So you are looking into producing a video for your product or service but have no clue what your budget should be. Don’t worry because you are not alone. Budgeting is difficult stuff for everyone.
In a perfect situation you would have an unlimited amount to spend on an explainer video for your company, but that typically isn’t reality. And, of course, you want the ROI on your video to be high. This brings us to our first tip:
Tip #1: Know what your budget is and what you want in return.
Being realistic is crucial! On average studios/freelancers charge between $3,000 to $10,000 and above for explainer videos. Use this range a rough beginning estimate.
It’s good to have this figure in your head at all times because if your budget is below the $3,000, you are probably looking at a video of low quality or a DIY option. Sure you will be able to find someone who can make a video for under $1,000, but you give up quality and it could have a negative impact.
Ask yourself, would you pay $1,000 to hurt your product or service? Hopefully, you answered no, or you have bigger issues to solve.
Tip #2: Research the offerings/options and determine if they are needs or wants.
Once you have that rough budget range, you need to research, research, and research. Look for companies that can quote you in the range you provided. The basic components determining costs of a video depends on its duration, resolution, audio, and script work.
Sure it would be nice to list every single feature your product has to offer, but you can cut costs by leaving out irrelevant information to shorten the duration of the video. Typically, videos cost $2k/$3k per finished minute, so shorter is cheaper.
Focus on a specific audience; don’t try to kill all the birds with one stone.
Tip #3: Estimating costs
Break the budget down. The more specific you are the better your quotes can be and the easier your budget will be to adjust and visualize. Break it down into the basic components mentioned above. This will show freelancers and studios what means the most to you…the message or the technical aspects.
Once you outlined how much you want to spend on each component, talk to production companies (ahem..us), because they can work with you to get the best video that you deserve.