Depending on your business size and the goals of your video, you can pay anything from a couple hundred bucks to tens of thousands on a video… but this article is meant to help you decide how big of a budget you need to allocate to your video.
Who is spending the most?
New software companies, especially SAAS companies, spend the most money on explainers and that’s because they usually have the money and because they want to achieve many goals from just 1 video, and the biggest one would be improving their conversion rate for the piece of software they are selling.
What you need to understand?
No matter what niche you are in, an explainer video needs to be more than an explainer…
1. It needs to entertain people, so that they stick with the video to the end but since explainers are like eye candy, this part should be pretty much taken care of, depending on the quality of the video and sound.
2. It needs to explain your product, your service or your business in the shortest amount of time… because if you start dragging it out, guess what? People will leave without knowing what you actually do or sell.
3. And it needs to sell! This is the last but most important thing. There are many innovative ways to achieve the 2 points above, but selling… that’s another ball game. The video needs to build trust among the viewers and it needs to increase their desire to own or experience it.
If you’re business is just starting out and you have a low cash-flow then you might want to get yourself an affordable explainer video, because there’s no reason to spend $10,000 to $20,000 on a video… in fact in my opinion there’s no reason at all to spend that much money on a video!
But, if you have the budget, and you want to work with a renowned company that has a track record of working with multi million dollar businesses, then you might want give a shot to those $10-20k video companies.