The number one question we hear from people is “How much does an explainer video cost?”
As you’d probably expect, you can find a wide range of prices out there. Our research shows that an explainer video costs anywhere from $1,500 up to $50,000.
As with most things you buy, the amount you pay depends on a wide variety of factors. While length (typically 1-2 minutes) and style (i.e. animation or live action) are important, pricing is also affected by the quality of work, the level of complexity and customization, the experience of the team, and how busy or “in demand” they are.
Most people are surprised, even shocked, when they first hear how much an explainer video costs. But if you don’t understand the amount of time and effort that go into producing one, it’s hard to wrap your head around just where your money is going. That’s why we think the more important question to be asking is “How much money should I be spending on an explainer video?”
At Demo Duck, we say we create “handcrafted” videos for a reason. Each and every stage of the project requires individual time and attention. Certain stages, like animation, can take weeks of detail-oriented effort to get just right.
In fact, the typical project takes 8-12 weeks to complete, involves 5-15 talented individuals, requires at least 6 or more separate steps and hundreds of hours of work.
If it seems like a lot of work, it is. And that doesn’t even include the meetings, calls, emails, revisions, renderings, uploads, and more.
Still wondering if all this is worth it? Don’t forget about the return.
In addition to helping your potential customers better understand your company, an explainer video should be treated like an investment, and one with a measurable ROI.
According to Kissmetrics, Dropbox spent $50,000 to tell their story through an explainer video. It resulted in 5 million new customers and over $24 million in revenue. Our video for Crazy Egg helped them increase conversion rates by 64% and generate an extra $21,000 in additional monthly revenue.
So back to our original question. How much should you spend on an explainer video? To do it right, we think you should be spending at least $16,000. There are plenty of companies out there willing to do it for less, but at what cost? In our latest post on the topic, we talk about why you can, and should, spend more money on an explainer video. It comes down to having something that presents you brand well (in many cases this is the first thing a potential customer may see), lasts a long time (some of our clients have been using their explainer video for 5 years), differentiates you from your competition, saves you money in the long-term and gets you a quicker return on your investment.
Follow your favorite flock.
We realize $16,000 is a pretty penny, and dropping that kind of cash on a video isn’t for everybody. If you’re a bootstrappin’ startup (like us), consider doing it yourself, or hiring a freelancer through a video marketplace like Video Brewery.
So, the next time you hear how much an explainer video costs, remember all that goes into it, and even more – all that you can get out of it. Before you lock yourself into a budget, do your research and make sure you’re spending the right amount to reach your objectives.
Interested in getting pricing for a Demo Duck explainer video? Send us a note and we’d be love to learn more about you and your company!