A few months ago while in a Vegas hotel room with the TV on in the background, I heard an intro to a piece on CNN’s Your $$$$$ program, about a company which realized much of its enormous success, entirely through video marketing on YouTube. Of course, I immediately turned my attention the interview with Terrence Kelleman of Dynomighty Design, and was blown-away by this compelling ‘reel’ video marketing success story.

Following the interview, I emailed Terrence and asked if he would be willing to share his success story with us. According to Terrence,

“…video marketing changed my company overnight. …it is our #1 way of presenting products.”

A Magnetic and Mighty YouTube Marketing Case Study

Video Story Telling => Better Conversion Rates

Me (ReelSEO): You mentioned that your main source of revenue (at one point, perhaps even now) was a direct result of referrals from YouTube… Can you provide some insight into the numbers?

Terrence: Currently, YouTube referrals represent more than 45% of all the referrals to our site. We used to see even higher percentages prior to ramping up other marketing campaigns… but it still out-weighs everything else. More importantly, the percentage of referrals from YouTube convert to a sale at around 50% – other site referrals typically convert at around 10%.

This shows that the depth of story telling in a video is far more effective towards making a sale and leads to a better conversion rate.

Video Marketing Becomes a Pleasant Surprise for Dynomighty

ReelSEO: What were your goals/objectives at the onset and did you envision such massive success?

The idea at first was simply to integrate a dynamic video demonstration of my magnetic jewelry into the www.dynomighty.com website to hopefully boost sales. It did, but not for the reasons I imagined. I did not expect that YouTube was going to be an incredible marketing tool. The video was re-posted by many sites and shared throughout the world. This experience transformed our small business overnight and changed the way we looked at YouTube.

When the video went viral were completely inundated with orders. The biggest problem in the beginning was that we didn’t have enough boxes to ship the goods out, then creating postage labels fast enough was a problem, then it was getting more products quickly. At the end of 3 months when we finally caught up with the orders we had sold over $130K worth of goods (equal to the entire years sales) and had offers and interest for distribution throughout the world.

ReelSEO: What drove the majority of views to your most successful video? Social media, press, search marketing, paid advertising, etc…?

At the time of the first video in 2006 I noticed a lot traffic from a Digg post so I went there discovered the video’s authenticity was being debated. Some people thought the video was CGI, they didn’t believe that a bracelet could really be pulled apart and reassemble instantly like in the video. So I joined in on the discussion to defend the video and this really pushed the traffic higher. I think it was the spike in views from the Digg post that might have brought the video to the attention of YouTube moderators. It had only been up for a few weeks and it was my first video I ever put on YouTube.

Ongoing Video Marketing Strategies Have Little Downside

ReelSEO: Since the first video, have you been able to reproduce similar results with other videos?

Video marketing on has become an integral part of our entire business strategy. Ever since that first viral video I’ve been trying to recreate that initial success and that is very hard to do. But many of our videos have well over 100K views and even if they are not huge hits there is very little downside to having the video on YouTube because you never know what might take off later.

For example one video that posted nearly 3 years ago for our Desk DOTS…® desk toy is now having a huge success. In the past 3 months it has jumped to almost 750K views and sales are way up as a result. But in the previous 2 and a half years the video only had 400K views combined.

ReelSEO: Do you feel that it’s important to produce and release video content with a certain regular frequency?

I try to put up a video every week but I don’t always have time to produce fully developed product videos. Staying frequent is important but relevance is even more important. We don’t have a regular weekly publishing date but we coordinate it with other events and activities on our calendar. Sometimes this is for an exclusive release or an event.

Dynomighty Tips For Driving Sales with Video Marketing

ReelSEO: Are there any specific tips that you can provide for businesses who want to use YouTube to drive sales?

Use YouTube Promoted Video Ads! It’s an extremely low cost way to promote your videos and increase discovery of your channel and your products. You can’t beat the average CPC of 6 cents.

YouTube viewers are not out there specifically for shopping so it’s a different environment to consider when you’re producing content. You have to find some way of presenting your product or service that is engaging and different so that people want to watch it. This may seem like a challenge but it’s also an opportunity to develop a deeper understanding of your product and your brand.

YouTube video marketing is a great cost effective way to engage your customers in a deeper level while building the tools and message for your brand that can also apply itself to other advertising opportunities. With the shift of online content going to heavily into video and the eventual merging of online and traditional TV media this is a medium that your company should definitely be involved in.

About Terrence Kelleman and Dynomighty Design

Dynomighty Design, established in 2002, seeks to create a vibrant array of products to complement and accentuate the modern urban lifestyle with the designs of Terrence Kelleman. Having started with only 5 jewelry designs, the success of Dynomighty Design, inc. quickly grew in response to and in anticipation of customer demand. Today Dynomighty Design sells to more than 1500 stores across the USA and internationally in 30 countries and possesses the US Patent rights for all link-less magnetic jewelry bound only by magnetic force. Dynomighty has also expanded its line of eco-friendly consumer products including the Mighty Wallet, Mighty Tote and Mighty Tags.

Terrence Kelleman is the Founder, President, and Designer for Dynomighty Design, Inc. Terrence has an impressive background in the Fine Arts, performance art, photography, and retail product design. He came up with the idea for the magnetic bracelet while working as the in-house Product Photographer for MoMA Retail (The Museum of Modern Art, NY), and began selling the first bracelet design at the MoMA Design Store. Terrence left MoMA in 2004 to start Dynomighty Design, inc. and just a few years later, Terrence achieved incredible success in driving sales for Dynomighty products primarily through YouTube. In 2006, YouTube featured their “Magic Magnetic” video (shown above) on the YouTube homepage for 10 days during the Holidays which resulted in an explosion of orders for their products.

Thank you Terrence for taking the time to answer a few questions and for being a ‘Reel’ video marketing leader.

More about Dynomighty and Terrence:

Lastly – I leave you with the following excellent video interview by our friend, Greg Jarboe, of Search Engine Watch.