One of the most common questions we get asked is,
“How much does an explainer video cost?”
If you ask different explainer video providers the same question, a common reply will be “it depends”.
It doesn’t sound so helpful, but it is a truthful response.
Just like any custom creative work, the cost of producing an explainer video is a function of many things. Some are related to the scope of work and some on the experience and type of producer you are talking to.
Recently a company called Wyzowl surveyed 70 explainer video companies and asked them the cost of producing a 60-second explainer video. The lowest price quoted was $700 and the highest was $72,000.
That’s a 10x difference in price.
In the same survey, more than half of the respondents quoted a price between $2,500 – $10,000 with the average around $8,000.
Based on our own experience, the results of this survey is quite spot on, though we have encountered freelancers who charge even less than $700 and established agencies who charge in the hundreds of thousands.
But a decent sized organization that will be able to produce high quality videos and deliver business results do charge anywhere from $3,000 – $10,000.
So how can this information help you decide what to budget for your explainer video?
There are three key things you need to consider when setting a budget for your explainer video: quality, creativity, and results.
Quality refers to the craftsmanship of the video, it’s visual appeal, aesthetic quality, and how pleasing it is to watch.
Creativity is about the storytelling, how the script, voice over, images and animation come together to tell a story that engages and educates the viewers.
And results is about conversion, is the video meeting your goal or business objectives?
Budget < $3,000
At this budget, you’ll most likely be working with freelancers or animators who are just starting out. The focus of most creators here with be on the visual quality and less on the storytelling and results. In most cases you may have to write the story yourself and they will just execute the animation.
Set this budget if cash is really tight or you are bootstrapping and you just need to get a video done. But make sure you have a good writer in your team to craft a good script.
Budget > $10,000
At this budget you can get the best of everything. You’ll likely be working with established studios with teams collaborating together to ensure you get the business results you need.
While these studios deliver great videos, their priority is in creating business results. So expect several brainstorming and strategy sessions with them to ensure that your story is told creatively and on-brand. Some can even provide multiple versions of your video for testing.
Budget this amount if you are a well established brand already with good profitability and looking to get the best results from your video.
Budget $3,000 – $10,000
Working within this budget range gives you a great balance on quality, creativity and results. The average budget also means you get faster ROI with your video.
At this budget, expect to be working with seasoned freelancers or small studios. They are also able to bring in other creatives to help in the different aspects of production.
Quality and great storytelling are the primary focus of creators here, but most are also able to strategize with you and your team to help deliver the results you are hoping to achieve with your video.
Unless you have cash to spare I suggest budgeting within this range for your explainer video as it gives you results without putting a huge hole in your pocket.
Now that you have an idea how to set your budget, it’s time now to find the right producer to help you put together your video.