Just like most services, one of the most common questions we get asked is the cost of producing explainer videos.
I hope there was a simple way to answer it, but the truth is, it really depends on what you need.
It’s just like buying a laptop. There are cheap laptops that you can buy for less than $500 and there are higher priced options. Ultimately we pick the ones that fit our needs whether based on specs or just personal preference.
So the question we need to ask is what do you need an explainer video for?
Is it to market your business and generate leads or users?
Is it to onboard or train existing customers?
Is it for a presentation or a talk?
Is it for content marketing, social media, or SEO?
We ask these questions because an explainer video isn’t just simply a nice to have, but an important tool to help you achieve a business goal.
We don’t use a hammer if what we need is to drive a screw.
So what’s your business goal that you need an explainer video for?
Oftentimes we find that these goals fall in one of two categories: nuture or growth.
Nurture is when explainer videos are used to inform or educate viewers without a direct impact on the bottom line. Examples can be for public service, conferences, internal presentations, onboarding, and more…
Growth, on the other hand, is when explainer videos are used to generate new business or savings for your company and they have a direct impact on the bottom line. Examples of these are lead generation, sales conversion, on-demand trainings, etc.
If your goal is nurture, explainer videos are often seen as an expense.
What you need is a video producer who will make the video for you at a reasonable price based on the quality you need. The work here is all about the creative production of the video.
A budget between 1000-5000 USD per minute will often be enough in this case. You can probably even find cheaper ones on sites like Upwork or Fivver.
But if your goal is growth, an explainer video now becomes an investment.
A simple producer will seldom be enough to help you in your goals, you need a producer and a strategist. While the producer’s work is on the creative execution, the strategist will ensure that the video will deliver the results you need through right messaging, distribution models, and video optimization.
A budget between 5,000-20,000 USD will often work for this, but like any investment, you should consider the ROI.
So do you need a producer or a producer and strategist?
Do you need just a video, or a video that will deliver results to grow your business?