Following on from two articles introducing the basics of video, "An Introduction to Creating Your First Video" and "An Introduction to Creating a Webinar", this article introduces basic frameworks that might be used to guide a video, webinar, or any other discussion format. Of course they don't have to be used, but like any template, they may provide a basic reference for more complex topics.

We introduce three basic frameworks for video from within our BeLearn module. They are the Sonata Model (long form video - includes a FORDEC component), FORDEC (medium length video), and NITS (videos that are generally less than two minutes).

The NITS Format

If you're familiar with any of our models for telephone discussions you will already be familiar with NITS (Nature - product or claim, Intent/Info - details, Time or availability, and Special Considerations). The same model works in very short video (around one minute in length).

When recording video to the NITS format, remember to include an introduction and a conclusion that includes a call-to-action.

NITS Example:

The reason we’ve used this example is because it’s a real-world transcript from a client that posted a video to Instagratify which resulted in three quick loans. It wasn’t prepared in any way and the entire video lasted just 1 minute and 9 seconds.

If you’re shooting spontaneous video to Instagratify the predictable NITS format tends to work well. Whatever format you introduce, consistency will resonate best with your audience.

The Sonata Model

We first introduced the Sonata model earlier as it related to our Symphony Email Framework. The Sonata movement is the first and most influential wave of emails sent as part of a campaign after an inquiry or subscription of any kind. As part of our early Sonata efforts it’s expected that we’ll build a complete education campaign in a very short period of time.

  Pictured: BeliefMedia’s email Sonata form. The Sonata is usually the first movement of a four-part symphony, comprising of an Introduction, Exposition, Development, Recapitulation, and Code. It translates to any persuasive story-telling or argument.

Sonata is simply a logical progression of thought. The Exposition is rather broad in nature; for example, if we were to introduce the marketing funnel as a subject we might talk briefly about the steps of the funnel – not the method behind the madness. The Development is a lengthy and designed to provide details, while the Recapitulation is where we tie our Development back to the Exposition, and then we present our Conclusion.

You will find Belief using Sonata as a model over and over for different online interactions.

The FORDEC Model

Introduced in our BeLearn programs, the FORDEC model provides a framework for decision-making. However, the model also applies to developing ideas and concepts, or guiding discussion. In order to provide as much information as possible as it relates to a particular discussion point its usual practice to employ the FORDEC model in order to build a compelling Development in our parent Sonata framework.

Our FORDEC model tends to work well with medium length videos where sort of commentary is required - maybe between 4 and 6 minutes. In fact, FORDEC is a model that really works anywhere – including text blog posts.

So, we might mentally sequence through FORDEC as follows:

FORDEC LMI Example

What is LMI?

A non-exhaustive response might include the following:

Introduction (up to 15- 20 seconds in length)

One fifth of your viewers will click away from a video within 10 seconds or less. Manage expectations (your claim) from the outset (within the first 5 seconds).

• What is LMI (introduce LVR concept)
  
  Note: The Introduction for a video is quite short: “In this video we’re going to describe what Lender Mortgage Insurance is, how it is incorporated into your mortgage, and whether it’s a suitable option. Hi, my name is Joe Bloggs from XYZ Home Loans.

Exposition (starting at around the 15 - 20 second mark)

• From our introduction, lead into who provides it, when banks require it, how it’s calculated, how it’s paid, options to circumvent (guarantor, savings etc.), the cost, and who it protects. It’s essentially an index of your video. We need to establish a single purpose of your video with a few major neurological sticking points.
  
  Note: The exposition sets the tone early on and introduces other concepts that will be developed. Within the first minutes of your video the exposition increases the likelihood of continued viewing by setting clear outcomes/expectations. The exposition for a video is quite short – maybe two sentences.

Development (the primary video content)

• Now we discuss each fact (or proof). Multiple iterations of FORDEC are suitable if each point requires an exploded explanation.
  
  Note: We’ll just introduce one statement from the exposition for the purpose of our example; in reality you’ll loop over each major point introducing FORDEC for each (if required).

  Facts

  • 80% (may be dependant by lender etc.). Allows entry to the property market.
  • LMI permits entry to the market if you don’t have sufficient deposit. Introduced Aussie Government in 1965 to permit FHB entering market. Private insurers – not Government (unlike many other parts of the world where it’s part of a Government program).
  • The cost, various options apply – you don’t always get to choose. Depends on loan amount (usually percentage) and/or LVR (“Community Rated”).
  • If you can’t repay mortgage your house may be sold for less than it is worth (according to your policy), and you will be required to pay the remainder to the insurer.
  • Refinancing a loan is prohibitive. LMI doesn’t migrate so any benefits might be offset by the need to purchase a new LMI policy.
  • Often comes with the requirement for other home protection policies.
  • LMI may be refundable early in a loan (normally time limit applies, maybe 2 years).
  • Very different to Mortgage Protection Insurance which protects borrower. LMI does not protect the borrower in any respect.

  Options

  • Bank of “mum and dad” – guarantor (by offering security in their property).
  • The very generous bank of “mum and dad” – gift.
  • Continue saving (to %20).
  • Look for an alternative property.
  • Government grants, builder cashbacks etc.
  • Alternative lenders.

  Risks

  The very generous bank of “mum and dad”.

  • Still requires a demonstrated savings history. Evidence of borrowing is required if you are borrowing more than (usually) 85% of the property value (sometimes always – “responsible lending”).
  • You may still have a payment plan to pay back mum and dad.

  The bank of “mum and dad” – guarantor.

  • It may be difficult to sell the property, or gain early equity since you only ‘own’ 80% of the property.
  • If you default on your loan your parent’s will inherit the bank’s wrath.

  Continue saving (to %20)

  • May take time. Particularly when an opportunity presents itself.
  • Property values may increase meaning that any savings might have a negative effect on purchasing power.

  Look for an alternative property

  • It’s a compromise. The opportunity for particularly property might be short-lived. Is our property choice driven by emotion?

  Decision

  • How do we take the relevant risks into consideration in order to arrive at a sensible conclusion? Advice. Talk to your broker, accountant, and perhaps a financial planner. Think with your brain – not your heart. It is worth imposing financial or legal risk on another in order to satisfy our needs?
  • Don’t rush into a decision. Sometimes it’s worth introducing a decision making model to our circumstances. Something as simple as ‘pros and cons’ might suitable.

  Execute

  • What loan is most appropriate given our circumstances? What lenders and/or insurers are a best fit? Which offers the most flexible contract terms?
  • If you introduce products into your video make sure you state that the information was valid at the “time of making your video”. Product information is a good way in which to introduce your expertise.
  • Offer a general disclaimer and note that individual circumstances should be assessed, and information is fluid in nature and likely to change (refer our extremely important compliance documentation). All promotional material must comply with The Act and other relevant legislation.

  Communicate

  • Make the necessary application. The “Process”. LMI Contract starts on settlement.

Recapitulation (around 1 – 2 minutes in length)

The recapitulation in this case might simply provide an example, an overview, or provide another quick summary of the ‘reasonable doubt’ or ‘balance of probability’ argument that might apply in making a decision (the nature of the decision is motivated in part by opportunity and/or importance). The idea here is to introduce the overwhelming positive consumer outcome – “you will own your home sooner” – but ensure that the potential risks are suitably assessed against a realistic framework.

Coda (Conclusion)

Summary – “LMI permits early entry into the mortgage market but it doesn’t come without additional burden (higher repayments) and risk”. The Coda includes a call-to-action, phone number, website, and any other relevant information.

■ ■ ■

As you can tell, the Sonata/FORDEC model is lengthy and will not be appropriate for those occasions where you're interviewing a video subject, but as a general framework it tends to guide a specific discussion with laser-like purpose and focus.

We introduce the same LMI example (above) when we introduce our long-form video format, and it’s most suitable when you’re introducing concepts via a whiteboard, webinar, and perhaps an animated video. The format ensures you’ll be presenting the most powerful webinars in the finance market.

Keep It Simple

Don’t get too technical in videos intended to be shorter and to-the-point (or those intended for general use on internal web pages). If a particular claim requires serious exposition (say, how compound interest works), make another video and reference that video as one that provides supporting information.

Avoid tangential and complicated narratives that do nothing other than show off your knowledge, and keep your language simple (refer to our article on the Flesch Reading Ease score - you audience requires simplicity). Your audience is interested in outcomes more than method, but the method and ingredients are required to support your conclusions.

Don’t be afraid to talk to your audience by way of questions. For lengthy webinars we may manufacture a workbook so our audience can play along with us and see for themselves what personal outcomes might be achieved via our claims.

Avoid overlaying music into your entire video during the editing process (this doesn’t necessary apply to videos intended to show off your services, rather than those designed to discuss content and strategy). Why? It detracts from content. However, it’s acceptable and usual to use music during the introduction and conclusion.

There are times when we’ll give you a very specific script for a video or webinar that we create internally on your behalf although we want you to create videos that reflects your personality, culture, branding, and positioning.

You’ll find that once you’ve navigated your first production the second will be something you’ll look forward to. It isn’t nearly as complicated as it may appear. Certainly, if you're a natural story-teller there will be no need for any kind of framework - your personality will be magnetic enough.

Live Presentations

The framework as discussed above is one that translates to live event presentations (or at least building a compliant discussion). It’s expected that we’ll build at least one full presentation suitable for a live audience whether you expect to host an event soon or not. If you’re asked, you’ll have a presentation (perhaps a modified webinar) that you’re able to present at short notice.

Creating an Educational Series

The array of information that we’re required to communicate to First Home Buyers is extensive. If we create a single video addressing the plethora of necessary material it stands to reason our video length might be somewhat untenable. Unless we’re producing a lengthy webinar where there’s a clear expectation that we’ll be presenting for a significant period of time, we’ll manufacture an educational series that is far more appropriate (and served via your FHB marketing campaigns). The video series is manufactured as a number of standalone videos that incrementally introduces our potential client to everything they need to know.

We don’t want to lose a client because we’re drip-feeding our video content to a client via a time-delayed email campaign when they’re looking for a loan today, so we’ll usually make all videos available as a link in our first email. Each subsequent email will include a PDF summary, fact sheet, and links to other resource (adding clear value to that specific communication).

Since the video series isn’t overly limited by length, we’ll often introduce elements that wouldn’t normally be introduced into a webinar or standalone product.

Belief’s Platinum video package includes custom FHB educational video series by default, and we obviously build the material into a very high-yield video campaign. Other users are expected to receive a generic white-label video package in late 2021 (expected to be supplemented by ongoing animated videos).

First Home Buyers Discussion Points

First Home Buyer discussion points will usually include the following mandatory points for inclusion in our Exposition, and built upon in our Development. These points are in addition to those points shown below, such as rate types and construction loans (often applicable to First Home Buyers).

Consider the non-exhaustive list of basic FHB considerations. What videos do you currently have in your arsenal that satisfies the subject matter?

The 'problem' with creating a webinar or video is that we're not legally obligated to provide all the pros and cons - we cannot simply introduce a concept without a reasonably broad discussion, or at least pointing the viewer to additional resources. We would recommend a single video for each of the subjects below, but also appropriate and longer webinars where they're introduced together.

• What is LVR and how is it calculated?
• What is a conveyancer and what is their purpose?
• Fixed versus Variable Rates
• Stamp Duty
• Legal Fees
• Lending Fees
• LMI (Lenders Mortgage Insurance) – also a standalone video.
• Mortgage Registration Fee
• Pest & Building Inspections – often a standalone video.
• Home Insurance
• First Home Owners Grant – often a standalone video.
• Federal Government First Home Buyer Incentive
• Is a Buyer’s Agent a sensible option?
• Buyer's Agents and Real-Estate Agents.
• What is 'Exchanging'?
• What will slow down your application.
• Loan reduction strategies.
• Comparison Rates - what are they?
• Future investing (leverage, collateral etc.)

The list goes on.

It’s important to introduce other elements to the First Home Buyer group such as, but far from limited to, offset accounts and credit cards (and how to use them). Remember, the First Home Buyer group is coming into this cold and is looking for high-end education. It’s always safe to assume you’re dealing with an audience that knows nothing about the buying process.

The FORDEC model is a model that repeats itself for each major discussion point in your video. We're required to introduce the appropriate pros and cons from a best interest duty point-of-view, and any model simply serves as a checklist to ensure we cover required discussion points. For example, if you were producing a First Home Buyer video or webinar you would likely introduce those points listed above (at a minimum), and you would use FORDEC to shape your presentation around each of those discussion points.

Example Loan Type Discussion Points

The following discussion points might be appropriate for a Rate, Interest-Only, LOC, Refinancing, and Construction Loan discussion (there are obviously more but these will get you started). The points are really just a means of wrapping your head around the Options and Risks associated with each FORDEC-based discussion.

Variable Rate

Introduction

• Home loans with a variable interest rate are the most popular home loan in Australia. Interest rates go up or down over the life of the loan depending on the official “cash rate” set by the Reserve Bank of Australia, and the funding costs of the different lenders.
• Your regular loan repayments contains a portion to pay off the loan principal, and some to pay the interest.
• Variable interest rate home loans offer more flexible options for paying down your loan, such as having an Offset Account, allowing weekly/fortnightly/monthly payments, making additional payments, and allowing redraw of those extra payments.

Benefits

• If interest rates fall, the size of your minimum repayments will too.
• Variable rate loans allow you to make extra repayments. Even small extra payments can cut the length and cost of your mortgage, by reducing the overall amount of interest you pay.
• Most variable rate loans often come with a redraw facility, allowing borrowers to redraw any extra payments they have made, above the normal monthly payment.
• By allowing borrowers to make additional payments, variable rate home loans can act as a virtual savings account. If you hold extra payments in your home loan you will pay less interest while the cash is there, but you also have the ability to “redraw” those extra payments, out of your home loan, if they are needed for some other purpose – just like having a typical bank account.
• Some variable rate home loan come with an Offset Account, which is a savings account connected with your home loan, and where any funds in credit create a benefit by reducing the interest payable on your home loan.
• If you are fortunate in being able to pay your loan out at any time, you won’t pay an early payment fee, as you might with a fixed rate home loan.

Risks

• If interest rates rise, the size of your repayments will rise too.
• Increased loan repayments due to rate rises could impact on your household budget, so make sure you take potential interest rate hikes into account when choosing a variable rate home loan.

Fixed Rate

Introduction

• Borrowers can also have the choice of fixing their home loan interest rate for periods of between one and five years, if there is a chance that the variable interest rate will rise.
• Having a fixed interest rate means your regular loan repayments stay the same regardless of changes in variable interest rates.
• At the end of the fixed period, borrowers can decide whether to fix the interest rate again, at whatever rate lenders are offering, or move to a variable loan.

Benefits

• Your regular repayments are unaffected by increases in interest rates.
• You can manage your household budget better during the fixed period, knowing exactly how much is needed to repay your home loan.

Risks

• If variable interest rates go down, you don’t benefit from the decrease, your regular repayments will remain the same.
• You may end up paying more than someone with a variable loan if rates remain higher under your agreed fixed rate for a prolonged period.
• There is very limited opportunity for additional repayments during the fixed rate period; some lenders allow an extra $10,000 each year (above normal loan payments), while other lenders might only allow $10,000 of extra payments for the whole fixed rate period. Lending criteria is fluid from one lender to the next.
• You may be penalised financially if you exit the loan before the end of the fixed rate period. This is called a “break cost”, and is a calculation of the economic loss to the lender if you “break” your fixed rate contract early, and pay all, or some, of the fixed rate portion of your loan before the end of the fixed rate term.

Interest Only

General Information

• With most standard home loans your repayments are made up of an interest charge plus a small repayment of the loan principal. In this way you slowly chip away at the original loan amount, so over time, the loan is paid off.
• When an interest-only period is arranged, the loan principal remains the same unless you specifically choose to make additional payments. You are charged interest on the loan amount each month, and as this does not reduce, your monthly loan payment will remain the same, unless there has been a change in the interest rates.
• Investors prefer this type of loan, as they can claim a tax-deduction for this interest that was paid to create the rental income, declared in the annual tax return. Under present legislation, interest paid in creating taxable income is usually tax-deductible, so it stands to reason that you would pay your own home loan down first, before paying down your investment loan.
• This type of loan is useful for investors because during the interest-only period of the loan:
  • Your monthly repayments are less than they would be if you were to pay off principal as well.
  • You can potentially get a tax deduction for the interest payments, but not for principal repayments.
• Consult your accountant and/or financial adviser if this applies to you as tax rules change from time to time, and this is general advice only.

Line of Credit

General Information

• If you already own a property, a Line of Credit offers a way for you to tap into any equity you have built up in that property and, use it as a deposit for your investment property.
• This type of loan is useful for investors because a Line of Credit loan allows you to draw from a fixed amount at any time to pay for any additional expenses. In addition, it’s like a credit card with a big limit with your home equity used as security.
• This type of loan usually has a higher interest rate that usual home loans. In some instances, the interest can be capitalised with Lines of Credit loans, but you should seek personal financial advice to determine if this type of loan is appropriate for your circumstances.

Refinancing

Refinancing is a very important video (or video series) as it forms part of our initial campaigns, and it’s the subject of an early webinar. Our webinar’s Development stage will follow a strict FORDEC framework with reference to not just benefits of a ‘Health Check’, but advice on how to reduce the length of a mortgage. This information will be made clear in our Introduction and early Exposition: “We’re going to show you the benefits of refinancing an older loan product, but we’ll also show you daily tactics that are part of a much bigger-picture debt-reduction strategy”. The “How To Save On Your Mortgage” is usually (and almost always) another standalone video that leads into the Refinancing options.

General Information

• Borrowing to maximum capacity and keep excess funds in an Offset Account (if responsible and permitted). This way you’re positioned to take advantage of property, or other investment opportunities, should they arise.
• Often a suitable option for investors.
• Debt Consolidation (as introduced in the ‘Refinancing’ Exposition): You might choose to also consolidate all your debt and still save money over the term of your loan.
• Usually transition fees associated with refinanced debts.

Construction Loans

General Information

• Suitable for those building their own home.
• To deal with the various contingencies in the building process many lending institutions offer construction loans, which differ substantially from standard variable home loans.
• Interest is only calculated on the amount you have drawn, not the total loan value.
• How do these loans work with owner-builders?
• How is each state of the construction process determined?
• What is the owners and builder role? Who communicates with the bank?
• How are progress payments determined and what quality assurance systems are in place to ensure payments are not made until the building quality is deemed to be to standard?

Other Loan Types

Loan types such as personal loans, business loans, equipment finance, aircraft borrowing, SMSF, and automotive finance are not discussed in this article although they all follow the same format.

Your Video Length

For transient videos, about 2 minutes seems to be the longest anybody will watch a video. According to Vimeo, “Engagement is steady up to 2 minutes, meaning that a 90-second video will hold a viewer’s attention as much as a 30-second video.” Short videos are perfect for social media or any other interruption-based content. After 2 minutes, every second counts. We tend to recommend 60-second videos.

A study by Wistia says that “[t]he engagement decay really starts to level off after the 6-minute mark. Every second counts between 2 minutes and 6 minutes, but there’s hardly any drop-off between 6 minutes and 12 minutes. If your video ends up being 8 minutes instead of 7 minutes, it shouldn’t have a significant effect on engagement.“ Wistia recommends caution with general video lengths above 10 minutes.

In our experience, for opt-in webinars, we’ve found that anything up to around 17 minutes is perfect for short webinars, and around 75 minutes is about the ceiling for longer presentations. You’ll always see a slow decline in viewership throughout the timeline, but between 17 and 20 minutes we’re seeing nearly 30% of your initial audience leave.

If you create a compelling video that has real value you’ll retain audiences longer. Simple.

Conclusion

As we said earlier, some people are better at speaking than others, while many require a framework to keep them on track and to ensure they introduce all the content as required by law.

Keep in mind that the framework itself is just used during planning - it supports you while you gather the required information. That said, if you're shooting an unprepared video on a specific topic the FORDEC model provides a mental framework that wraps around your discussion.

In reality, we'll usually provide you with a ready-to-read script, and we usually make generic presentations and videos available for your modification and use.

If you're in the business of finance you absolutely need to have a few up-to-date webinars in your marketing toolkit, and they should be a central focus of your on-page funnel entry.