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Commercial drone business

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Hi all,

Interested in feedback regarding pricing for drone services. I see a great deal of reference to drone operations as being a profitable business model. I would love to see input on the numbers to support that.

What parts of the drone operation are more profitable?
What are effective ways of marketing?
 
This is my opinion and mine alone. I had the same ?'s as you do. I called a couple wind tower companies and they said they would hire me when I got my 107. I got it and called and they changed their minds. I think most companies are doing work arounds or just getting a drone and doing it themselves.

I called every realtor in my area and got 1 person whose interested in doing farms and acreages. The others said we'll just do it ourselves. The FAA isn't going to go after these guys. We with the 107's are the only one putting ourselves in jeopardy.

I know there are some fliers that are getting jobs but the market is dwindling. Anyone can spend $500 and they're an instant drone videographer. I've got 2 jobs thus far so I'm looking at it as a hobby with some extra cash every once in a while.

As I said that's what I'm experiencing.
 
You are going to have to make a resume of sorts. Maybe a little pro bono work to show case a couple of finished projects . A good website to promote and a “lot”of door knocking and be prepared for a lot of turn downs.

You will need at least two aircraft systems with spare parts and batteries. You won’t be able to get by with one $500 drone and two batteries.

Spare parts for field repairs when you crash ( and it’s going to happen) . A very good still camera .

It’s not going to be instant money maker , approach it as a hobby and make extra cash off of it at first and then expand your contacts with door knocking and more door knocking .

There are a lot of people doing and trying to do this .
 
My experience of the business is not too dissimilar from that of @thoneter and @Dustoff . I started purely as a hobby flyer and went on to take my 'papers'. (not the 107 as you guys in the U.S. have to have: Here in the U.K. it's known as the PfCO). But when I got my PfCO I thought that the world would magically open regarding paid jobs. My experience, though, has been that paid jobs are no-where near as abundant as I wanted. It wasn't too bad at first but over the last year or so paid jobs have become less frequent. It would seem that these days organisations are doing their own work or are more frequently using pilots who don't have papers doing the work that are vastly undercutting the guys that are doing it legally. The illegal guys are charging rates for jobs that I simply can't compete with and cover my costs.

Indeed, if I was looking to get into the business now, I probably wouldn't. I believe that these days, a small one-man business employing UAVs is simply not viable, at least not here in the U.K. Not when some dude down the road is prepared to throw his aircraft into the air for what amounts to little more than just beer money. For example, the last job I did earned me just £110.00...about half of what I would have liked to charge for a similar job. People simply won't pay what I regard as the 'going rate' when they can get their job done by Joe Bloggs for a swift £20.00.

Regarding Pro-bono work: Good idea in theory, and I've done a couple...and indeed have one job booked in early August. But my experience in doing freebies is that I've not noticed a tangible difference in work generated from them. Maybe it has made a difference, but not one that I can point too.

So, Yes, I've done the marketing. Sent post cards out to organisations, produced show-reels, had business cards printed, done a couple of freebies, but folk just aren't prepared to pay my rates when they can get Joe blogs to undercut me massively or just do the job themselves.

My advice, should you wish to take it, is to think long and hard before setting up your business. Only do so if you are very confident that you will get the work at reasonable rates...rates that will cover your outlay, all of your outlay. If you aren't confident in covering your costs and turn at least a small profit, then don't do it. Just have fun as a hobby flyer.

My PfCO is due for renewal in early November. I'm currently seriously considering not to renew...the jury is still out, so to speak.
 
Flush,

I “liked” your post but for the wrong reasons! Liking it as stating the current climate from a business perspective, but not liking the same climate you articulated.

As stated many times in many places, we are facing what the pro wedding photographers experienced, being squeezed by every “Uncle Bob or Aunt Jane” who picked up a digital SLR. Eventually the bride’s (or more to the fact the mothers of the bride’s) have to realize “you get what you pay for” is something to heed.

Jeff

P.S. any offense taken by any Bob or Jane is summarily requested to be excused as unintentional and not meant as a personal slight.
 
Its not just wedding photographers. Sports photographers as well.

The current US mindset, anyway, is that things should be "cheap" or free (except for their efforts). I can recall a parent fighting me because our $7 5x7 photo of her child was more than a 5x7 cost at Walmart. That was the day that I quit youth sports.

I did some sports photography for non-profits until they started taking the effort for granted. You just had to look at the sidelines to see how many people had good prosumer cameras and wanted to act like pros.

Now I just help a buddy out at spring horse races. Its a fun weekend so I don't care about making anything off it.

My photography now is just for me and I get a LOT more satisfaction from it.
 
I have 10 weddings under my belt, all in the 80s... after that, I started telling people that I have done a lot of bad things in my life... which is why I fear being reincarnated as a wedding/barmitzvah/prom photographer... :(
 
I am very fortunate to have another business that keeps me busy and I fly for my wife's business so we don't rely solely on the aerial stuff.

Our aerial photography business came around in a way that unexpectedly taught me some lessons that I will pass on here. My wife is a photographer who, is mostly an event type photographer; weddings, family outings and so fourth. But about two years ago she began getting a lot of real estate work. Eventually she was asked if she knew anyone that could provide aerial. Naturally it was no brainer I just had to get the 107 and I did. But then came the task of figuring out how to add this feature in, so we basically set up a structure for her photography where there was a base price that provided a specific number of pics of a property that was based mostly on size such as; single structure up to 1500 feet - 20 pics = x amount. Then there are the add-ons such as; outside of regular hours, night time, holidays, second buildings, animals, travel, AERIAL and so forth.

Essentially in our case, aerial work is an extension of a photography business. Had I started in a manner that would have began directly from the aerial, I don't think I could have gotten as much work, in fact I know I wouldn't have. It's a cart before the horse thing. Don't get me wrong we don't do a lot of the aerial, only about half (maybe a third) of the realty work she does, asks for the additional pics from the air, maybe one a week. But that is the lessen - a Drone is just another tool to hold a camera, and it is a very specific tool.

Every now and then one of our realtors goes astray and hires someone else, usually when we're already booked and my wife suggests we are asking too much (believe me we are not) and wants to cut prices. I have always left her business up to her, but my thought is; any work done for cheap or free resets your bar to that level.

We're fortunate in that between the two of us we have a lot of range of skill in our work, but if I were setting up a business all by myself I would make sure I could provide not only aerial but also ground-based photography and even video. I would make sure to have a very good and solid understanding of how to edit and deliver content of all kinds; taking a photo or video and handing a thumb drive over is not enough, if the client needs a print or poster, can you do it? If they want graphics on imagery, can this be provided? Knowing the difference between outputting for web or print is important and sometimes when people tell you want they want, they don't always understand the work flow and limitations so, you need to know. Basically - the back end stuff - everything done after the picture or video is taken is where the real work is done. Having a solid understanding of workflow from capture to delivery is vitally important.

But for sure I would try to think outside of the "Drone" box because as a stand alone tool I don't see how anyone could make a real living with only aerial work.
 
my thought is; any work done for cheap or free resets your bar to that level.
Exactly x Infinity!

Been in the imaging biz for almost 40 years, seen it all, sick of it all. Now, I do my own thing. Everyone wants it for nothing, or their nephew has a really good iPhone, or, if you do this one for free they will promise you more (free) work in the future. As I tell prospective cheapskates, Exxon, Food King and CitiMortgage don't take photo credits or pats on the back, they expect cash.
 
Very well said, Ty!

I am finding the “double edged sword/catch 22” scenario in my case. The old adage “don’t quit your day job” definitely takes the pressure off but, also limits building a second career.

One definitely needs to go all in if expecting to make any venture truly viable. Our photography work has always been a distant sideline because of one very poignant fact: don’t expect the tree to grow if it doesn’t get sun, water, at at least some nutrients.

I am hopeful, as the eventual “retirement” comes to be from that “day job” I can have some fun and maybe even earn enough every once in awhile to refresh my batteries!

Jeff
 
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Thanks @Ty Pilot - your advice makes good sense.

I never left my careers in the Fortune 100. I've done photography since I was a kid but NEVER wanted to be a starving artist. I did toy with the idea of full time photography but always woke up from the dream realizing it would be a tough row to hoe.

These days I just like making drone videos and still photography for myself and sharing with friends. Mostly landscapes, Carolina barrier islands, Blue Ridge Mountains, small towns and helping a friend out with his NCHS football championship games and the horse races. And.... enjoying every minute of it. :)

Oh yeah, being retired is a boon for all this.... :D
 
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Yes. Not having the pressure of needing the aerial stuff to pay all the bills gives us the time to ever so slowly grow that business. There are times when my regular work sees me put in well over 80 hours a week. Those days will be coming to a close soon . . . I Hope:confused: and after that if I could fly my toy drones and take photos and video to my hearts content I will be a happy camper.
 
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Very well said, Ty!

One definitely needs to go all in if expecting to make any venture truly viable. Our photography work has always been a distant sideline because of one very poignant fact: don’t expect the tree to grow if it doesn’t get sun, water, at at least some nutrients.


Jeff

Same to you Jeff, well said. And this is where we are now. I am going to try and expand our product range into video work. I have been holding off thus far waiting to see what unfolded with the Plus. I need an aerial video camera capable of keeping up with my ground camera's imagery and while the CG03+ is a great little camera, its outclassed by even moderate video rigs. I think the Plus is a done deal in my case. I will be coming into the slow season with my regular work soon and can't wait to get my hands on one of these new birds.
 
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The only “drone” businesses that can be successful now are those serving a demand the average drone business can’t do. In other words, providing solutions to extremely technical applications that require specialized equipment and back end data processing, and doing so in high volume.

The market for real estate, local sports, local business advertising, and news media are flooded with people that will work for near nothing. If we figure the life cycle of a decent drone is two years the odds are high you will not recover the cost of the initial investment in that time period, without beginning to consider the additional expenses involved with licensing, insurance, spare batteries and props, data storage devices, video/image processing equipment and software, and travel expenses.

Like another here I’m strongly reviewing the market to determine if there is any reason to renew my 107. For many the conditions have changed to where making money is extremely difficult while paying to do work for someone is expected.
 
To your point Pat, on tonight's PBS New Hour they had a great example of how specialized the drone world is getting. Learning about Humpback Whales in the Antarctic with drones. Not off the self drones, or it sure doesn't look like one. It looked custom built to me although several members of the crew seemed to know how to fly it.

 
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Kind of reminds when making websites a business became unviable. Was great at the start becuse not many people where doing it , then came the cut rate “ I will build you a web site for $50 kids”. Now developing websites is something the avg joe can do in a couple of hours.
 
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I built a few websites for friends back in the day but I could see what was coming and didn't do much of it. As you say, these days building a website can be done by just about anyone who can touch their nose with their finger. Getting it hosted and a domain name are pretty straightforward and part of the package. Just remember your credit card. :)
 
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To your point Pat, on tonight's PBS New Hour they had a great example of how specialized the drone world is getting. Learning about Humpback Whales in the Antarctic with drones. Not off the self drones, or it sure doesn't look like one. It looked custom built to me although several members of the crew seemed to know how to fly it.


I love the PBS Newshour... been watching for years as my choice in national coverage. And just to let you know how much of a PBS geek I am... yes, my ringtone is the closing credits of NOVA.
 
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...Getting it hosted and a domain name are pretty straightforward and part of the package. Just remember your credit card. :)

And try as best you can to keep track of all the additional fees in separate billings for different tools and features...
 

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