Businesses looking to create an explainer video often ask the same question: how much does it cost? The answer isn’t straightforward because pricing varies depending on production quality, expertise, and the complexity of the video. Whether you’re a startup with a tight budget or an established company looking for high-end production, understanding the factors that influence pricing can help you make the right decision.
In this guide, we’ll break down the costs associated with working with an explainer video company, the different pricing tiers, and what to expect when budgeting for a high-quality video.
What Determines the Cost of an Explainer Video?
There’s no one-size-fits-all price for an explainer video. Costs depend on a variety of factors, including:
- Video length – Longer videos require more scripting, editing, and production time.
- Visual complexity – Simple designs cost less than detailed, highly customised visuals.
- Voiceover and sound design – Professional voiceovers and soundtracks add to the final cost.
- Revisions and edits – The more changes needed, the higher the production cost.
- Expertise of the production team – Established explainer video companies with a strong track record typically charge more for their experience and quality.
Understanding these cost factors helps businesses determine what level of production is best suited for their needs.
Explainer Video Pricing Tiers
Most explainer video companies offer different pricing levels, allowing businesses to choose a solution that fits their budget and goals.
Budget Tier ($500 - $3,000): This is the 'no frills' option. The videos at this price point often use pre-designed templates and are usually created by less experienced producers. They're a good choice if you're just testing the waters or have a tight budget, but don't expect a high level of customization or unique branding.
Mid-Range Tier ($3,000 - $10,000): Here you'll find increased customization and generally higher-quality work. Your video might not win any Academy Awards, but it should still effectively communicate your message in a visually pleasing way.
Premium Tier ($10,000 and above): This tier provides top-notch quality explainer videos. You get full customization, premium styles, and possibly even celebrity voiceovers. If you have a substantial budget and high expectations, this tier is for you.
Each tier offers different levels of production quality and creative execution, so it’s important to choose one that aligns with your business goals.
Why Going for the Cheapest Option Can Backfire
It’s tempting to go for the lowest-cost option, but cutting corners can lead to poor results. Low-quality explainer videos often lack engagement, fail to communicate the message effectively, and can harm brand credibility.
Common issues with budget explainer videos include:
- Weak storytelling that fails to captivate audiences
- Poor sound quality and unprofessional voiceovers
- Generic designs that don’t reflect the brand identity
Investing in a reputable explainer video company ensures a well-executed video that delivers real value and long-term benefits.
Hidden Costs to Watch Out For
Some businesses are surprised when the final bill for their explainer video is higher than expected. Hidden costs can arise if you’re not clear on what’s included in the initial price.
Potential hidden costs include:
- Additional revision rounds beyond the agreed limit
- Licensing fees for music, stock visuals, or voiceover talent
- Rush fees for fast-tracked production timelines
To avoid unexpected charges, always discuss pricing details upfront with the explainer video company.
How to Get the Most Value from Your Budget
If you have budget constraints but still want a high-quality explainer video, there are ways to maximise value:
- Keep the script concise – Shorter videos cost less while still delivering impact.
- Reuse existing assets – Providing your own brand visuals can reduce production costs.
- Plan for fewer revisions – Clear communication with the production team helps minimise extra editing costs.
With strategic planning, businesses can produce an effective explainer video without overspending.
The ROI of a High-Quality Explainer Video
While an explainer video requires an upfront investment, the long-term returns can far exceed the cost. Businesses using explainer videos effectively see higher conversion rates, improved brand awareness, and increased audience engagement.
Key benefits of investing in a high-quality explainer video include:
- Improved website conversion rates by keeping visitors engaged
- Increased shareability on social media, extending reach and visibility
- Higher retention rates as videos simplify complex messages effectively
A well-crafted explainer video continues to deliver value long after it’s published.
Choosing the Right Explainer Video Company for Your Budget
Selecting the right production company is just as important as choosing the right budget. Not all explainer video companies deliver the same level of quality and service, so businesses should look for:
- A strong portfolio showcasing previous high-quality work
- Transparent pricing without hidden fees
- A structured production process that ensures timely delivery
Partnering with a professional team ensures that every pound spent leads to measurable results.
Why Paying More for Expertise is Worth It
Businesses that opt for experienced explainer video companies often see better engagement, higher conversion rates, and a stronger return on investment. While it may cost more upfront, expert production ensures that:
- The message is clear and compelling, resonating with the audience
- The video aligns with marketing strategies for maximum impact
- The final product meets high professional standards
Choosing quality over cost leads to better long-term business growth.
Making an Informed Investment in Your Video Content
When considering the cost of an explainer video, it’s essential to look beyond the price tag and focus on the value it brings. A well-produced video can serve as a powerful marketing asset, helping businesses attract customers and stand out in competitive markets.
For companies serious about creating a high-impact explainer video, working with a professional explainer video company is the best choice.
If you're ready to invest in a high-quality explainer video tailored to your brand, Venture Videos is here to help. Let’s create a video that delivers results.
Written by James Bryant Video strategist and co-founder for Venture Videos — a full-service video production agency that specialises in producing creative videos & campaigns that get real results.
