Money, cash, resources… Everybody talks about it, and everybody wants to know more about it.
After all, this is what drives a business, isn’t it?
One of the most frequently asked questions we get at Spider Videos is, by far, “how much does an explainer video cost?”
A lot of people imagine the price of an explainer video to work the same way as your average chocolate bar – that chocolate bar will cost you this much, and if you get two it will just cost you twice as much, plain and simple.
The reality however is a little bit different, and it all boils down to each individual video and the many details that surround it.
If you go out in the market, you will find that the explainer video cost falls in an extremely wide range.
Depending on the type of explainer video and who you hire to do it, you can see the costs going all the way from $500 to $50,000!
That means a difference of no less than $49,500 between the cheapest and the most expensive explainer video in the market.
What dictates the explainer video cost?
Of course, like most services and products out there the amount you will pay is wholly dependant on a great variety of factors that are up to you to choose based on your needs and expectations from the video.
In most explainer videos, all video creators will show you the price will be dictated by two main factors: the style and the length of the video.
When you compare the prices across different teams, you also have to factor in the quality of the final work, the level of detail and customization provided, the amount of experience this team packs and finally how busy is the team’s schedule and how high is their demand.
The vast number of factors will interact, and sometimes act together (more experienced teams are likely to have a higher demand, thus increasing costs quite a lot).
Depending on the nature of the video and its complexity, some stages of the production process can take many weeks of purely detail-oriented effort to get everything just right for the final version.
The animation process for example requires lots of fine tuning to ensure the character movement feels smooth, natural and captivating.
It seems like a lot of work, doesn’t it? Well, you got this right, because it really is.
Mind you, this timeframe does not even include the multiple hours the team and the client spend in meetings, calls, emails revisions, renderings, uploading and other steps that are constantly surrounding the production process.
Why make explainer videos?
After reading all this, I bet you are wondering to yourself: is all of this really worth it in the end?
When you ask yourself that, don’t forget the main thing about any good explainer video: the return it provides.
Because of its simplicity and fantastic versatility, an explainer video can be used for just about anything in your business.
They are by far the best way for a potential customer to better understand your company, your product and your services, and when done right it can boots your business to levels you have never imagined before.
In addition to that, unlike many investments, an explainer video has an easily measurable ROI for you to work with.
One of the most popular explainer video success stories is Dropbox, the online storage service you are probably very familiar with.
Before becoming the household name they are now, the Dropbox team invested a sum of $50,000 dollars to tell their story through an explainer video they planned to show to investors.
At the end of the day, the results from that video speak for themselves: since the video’s release, Dropbox has attracted 5 million new customers and earned over $24 million in revenue.
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. That is a whooping 480 times the money they invested.
The bottom line…
That brings us back to the original question: how much does an explainer video cost after all?
We are not in a place to speak for the competition, but here at Spider Videos we can guarantee your explainer video cost will be between $500 and $4,500 depending on the specifics of the video as we said above.
When you look at your explainer video cost, you need to remember one thing: all that money goes straight into it, and much, much more will come back from it. Think ahead, and invest in your business.