Video production costs: spend less, do more

Video is now the go-to way to tell stories or connect with customers. 

But while video has huge potential, creating content can get pricey – fast. If you don’t keep a handle on video production costs, they’re liable to spiral out of control faster than a Hollywood blockbuster.

We’re here to help. In this guide, we’ll show you how to:

• Dodge unexpected video production expenses

• Make the most of your budget

• Cut costs and save time with LucidLink

The factors that impact the cost of video production

When it comes to budgeting for video production, two main factors will dramatically shape your final costs: the kind of video you choose to make and who you hire to make it.

It’s like choosing between McDonalds or a Michelin-starred restaurant. Both have chefs who make burgers, but in very different ways, for different purposes and for different kinds of customers. 

The question is, what kind of video are you after? And what level of expertise (and budget) do you need to pull it off?

We’ll break down the cost of different types of video productions shortly. But first, let’s focus on that first key decision: who to hire for your video production.

Need a better understanding of the production process? Read our ultimate guide to video production.

The cost of hiring for video production

There are many different ways to get a video made, each with its own pros and cons. The best route for you will depend on several factors unique to your situation:

• Your budget 

• The scope of your project

• Your level of expertise 

• How much control and involvement you want

If you’re handling a large and complex video production project without much experience, taking a DIY approach or even hiring freelancers who may need greater supervision would be ill-advised. 

While a local video production company may appear more expensive, they will have the experience and resources to actually deliver the video you need, on time and on budget.

For animation or projects with fewer in-person requirements, a remote video production company might be your best bet. They can offer cheaper off-shore rates and access to a much larger talent pool.

Here are five common options for hiring video production teams:

1. Local video production company

• Pros: depth of experience, shoulder responsibility, existing resources, ongoing relationship

• Cons: more expensive, less hands-on control, may decline small projects

2. Remote video production company

• Pros: more affordable, depth of experience, global talent pool

• Cons: no in-person presence, not suitable for some projects, freelancers required for on-the-ground activities.

3. Local freelancers

• Pros: depth of experience, nimble capabilities, lower cost, suitable for most projects

• Cons: often assemble ad-hoc team, need to hire in most resources

4. Build an in-house team

• Pros: best value for constant video production, builds institutional knowledge, define a house style

• Cons: greater overheads, long-term investment, limited talent pool.

5. DIY - smartphone and online tools

• Pros: incredibly cheap, fast and efficient, suitable for small projects

• Cons: requires experience, lower quality results, time-consuming

While who you hire is a major cost driver, there are also other elements that can significantly expand your budget depending on how many of them you include. These are known as 'elastic' components.

Elastic factors that add to the cost of video production

These 'elastic' components can stretch your budget the more you add. Here are some examples:

• Scale of the crew: a single camera person vs a whole camera department 

• Location: hiring large, unique or remote shooting locations adds a lot

• Complex activities: a simple product demo vs an all-singing all-dancing performance 

• Actors: celebrities, crowds and lots of speaking contributors all cost more

• Quality of production: investing in props, costumes, hair and make up etc. 

• Post-production: visual effects, motion graphics, animation, multiple languages etc.

To avoid any surprises, check out our guide to the hidden costs of post-production.

How much does video production cost?

How long is a piece of string? And where is that piece of string??

Video production budgets can be close to zero or in the millions.

One way to best answer this question is to watch the same commercial made with three budgets: $1000, $10,000 and $100,000.

These brilliant ads, made by our friends at Sandwich, will give you a direct sense of where your budget can be best spent. (You can also see how Sandwich uses LucidLink to do their best work here.)

Location also really matters, as the cost of a crew in one city can be quite different in another.

Reframing video production cost

A better question when you’re producing any video is: what do I need to achieve with the budget I have?

How can you get the best bang for my buck, and still deliver on the video’s goal?

That might mean changing the kind of video you planned to make, or the level of quality, but that doesn’t have to dampen your ambitions.

For example, this 12-year-old viral video that launched DollarShaveClub.com into a billion-dollar business did not have a huge budget (reportedly $4,500).

But the video worked. Its writing and creativity are priceless, especially in comparison to every other razor blade commercial you’ve ever seen.

Calculating video production costs

But let’s get back to brass tacks. There are many different ways to try to calculate what a video costs. Here are some methods:

• Price per minute: what is the average cost of video production per minute? Some industry rules of thumb suggest budgeting between $1000 and $3000 per finished video minute.

• Price per day: calculate who you will need to hire for each stage of your video production based on their daily rates.

• Set a budget and stick to it: decide what you can afford and then parcel that out in the most cost-effective way possible.

For example, investing in a compelling script and talented actors to perform will produce a much more engaging video – even if it’s shot on modest equipment in a simpler location.

That’s far more effective than using the best crew and equipment but relying on 'people from the office' to act out a script you wrote yourself.

Pro tip: get three quotes

Clearly outline your project requirements and request quotes from a few different video producers. This way, you’ll get a realistic sense of how much your project will actually cost based on professional estimates.

Consider their experience, the quality of their previous work and their understanding of your needs when making your decision. You'll have a clearer idea of the budget required and avoid surprises later on.

Typical video production costs (and tips to save)

As we’ve discussed, it’s tough to pin down an exact cost for any given video production.

Articles that try to list itemized costs often provide such wide price ranges that the information becomes impractical. The reality is that so many variables — from crew size to location — can drastically affect the final price. 

In this section, we’ll unpack the key components and costs of the following types of video: 

• Corporate video production 

• Animated video production 

• Marketing video production

• Commercial video production

• Educational video production

We’ll also explain how each element increases or decreases the cost of each video production. 

In reality, you could spend anywhere from $1000 to $100,000 (or much more) on any of these videos. You can maximize your budget by thinking and working creatively, but ultimately you get what you pay for.

Corporate video production costs

Corporate videos are often interview-led productions, featuring one or more members of staff covering an important topic.

Common ingredients:

• Interviews

• Cutaways

• Music

• Graphics

Additional illustrative footage (cutaways/b-roll) may be used to bring their dialogue to life. These can be an affordable way to generate a lot of content in a short time frame.

Filming all of the interviews on one day in one location is the most efficient and affordable way to begin production. But if you have to hire remote crews to record people in different offices around the world, consistency across your videos is key. Send an example of your preferred camera/lighting and eye-line set-up to maintain a consistent style.

You can save costs by using stock footage as your cutaway material, instead of filming new shots, but this tends to reduce the quality of the final product.

Pro tips: 

• Invest in affordable royalty-free stock music and simple template graphics (names, titles, maps etc.) to add a level of polish.
  

• Pay for an experienced interviewer to ask questions that provoke genuinely interesting answers.

Animated video production costs

Animated videos can range from budget-friendly simple ‘explainer’ videos to expensive and complex pieces. As most animation is still ‘done by hand’ it takes both time and effort which means money.

Common elements:

• Dialogue recording

• Storyboards

• Animation

• Sound effects

• Music

Creating a quick and cheap animatic (moving storyboards) version of the project will save time, money and revisions by ensuring you only do the quality animation once.  

Although AI-generated voice-overs can be a cost-saver, they often lack the nuance of a human voice, which could be a deal-breaker depending on your needs.

Pro tip: don’t skimp on sound design and music — these elements can elevate your animation’s quality by more than 50%, transforming a good video into a great one.

Want more info on creating an animated video? Read our guide to the animation pipeline.

Marketing video production costs

Marketing videos are all about grabbing attention, but that doesn't always mean a huge budget. From social media ads to product demos, there’s a wide range of options.

Frequent ingredients:

• To camera presentation

• Cutaways

• Music

• Graphics

• An interesting stunt

• Viral concept

The beauty of marketing videos is that they can be tailored to fit both small and large budgets. User-generated content, for example, can be produced at almost no cost, while a more elaborate stunt might add a significant line item to your expenses.

It’s important that your concept aligns with your brand. A scrappy viral video might work for a challenger brand but fall flat for an established company.

Pro tip: invest in creativity. A punchy script or viral concept can make a low-budget video stand out more than a high-budget one that lacks imagination.

Commercial video production costs

Video budgets can skyrocket for commercials, easily reaching millions of dollars –– take for example, Super Bowl commercials.

Frequent elements:

• High production values

• Celebrity talent

• Larger crew costs

• Expensive locations

• Recognizable music tracks

This budget will be spent not only on the production itself, but on the ad space the final commercial will occupy.

Hiring (celebrity) actors, renting suitable locations and using recognizable music tracks by popular bands or artists all increase the costs of commercial video production substantially.

That said, clever and memorable concepts can be more effective than huge budgets. All you need is one gorilla suit, a drum kit and a really expensive backing track.

Pro tip: the real ROI for commercial videos often lies in brand recognition, so spend your budget where it counts most — whether that’s on talent, creativity or distribution.

Educational video production costs

Educational video production costs often come at the lowest end of the budget spectrum.

Common elements:

• Presenter

• Screen-recording software

• Graphics

• Location

• Props

The main aim of educational content is to teach, not wow the audience with zany ideas and high production values. That said, Masterclass.com does a great job of bucking this trend.

With an engaging presenter and useful content, educational videos can be produced for almost nothing. You can get by with the combination of a phone, microphone and screen recording software – think Khan Academy.

If the subject needs a specific location and materials (say a cooking video), then a more expensive multi-camera shoot and editing process will be required to educate the audience effectively.

Pro tip: if you’re creating a training series, invest in techniques that actually help people learn, like repetition, chunking, and interactive elements. These small touches can dramatically increase the effectiveness of your educational content.

Now that we’ve broken down the costs of various types of video production, let’s focus on how you can get the most value for your investment.

How to cut video production costs

There are plenty of ways to reduce the cost of video production. Most come with experience.

But video production is often an expensive endeavor with numerous moving parts. When things do go wrong (and they often do), it can be costly – no matter how well you plan.

1. Plan ahead, a lot

Know exactly what you’re making and why. Plan in detail how you will make each stage happen. Scripts, storyboards, location scouts and pre-production meetings can’t be skipped. These will all prove invaluable in creating a smoother production experience.

2. Be realistic

Set a realistic budget and then add at least 10% extra on top for unexpected expenses. If you don’t end up using this then you’ll be a hero for coming in under budget.

3. Get sign off from the start

Ensure the most senior person to sign off on your final video has some oversight of your preparation. This avoids any unpleasant surprises if it’s too late to change anything the first time they see it. 

4. Avoid re-shoots by planning for them

Re-shoots can double your costs. One way to avoid this is to intentionally plan for a second phase of your shoot.

By reserving some of your production budget for a second shoot, you can pick up the missing pieces or the shots you didn’t know you’d need more efficiently.

By editing the main spine of your video before your second shoot, you’ll not only see what’s working but you’ll have avoided wasting budget on elements that will never make the cut in the first place.

This usually works best for interview based projects where you’re not 100% sure what they are going to say.

5. Double-up on talent

One practical way to reduce your costs is hiring individuals who can perform multiple roles. For example, hiring an editor who can also do motion graphics, or directors who can also produce.

While this saves money, bear in mind that you might lose depth or speed by having one person juggle multiple tasks.

6. Invest in creativity 

If you've watched the examples in this article, you’ll have noticed that investing in creative ideas and strong writing pays off — especially when paired with talented direction.

The writing in the Dollar Shave Club and Soapbox commercials is a perfect example: it’s concise, punchy and memorable. The camera work and lighting might not be world-class, but they don’t need to be.

To make your video stand out from the flood of content we see every day, the best return on investment comes from hiring genuine creative talent.

How LucidLink helps cut video production cost

LucidLink’s storage collaboration platform makes it simple to save money on video production.

By giving your team instant remote access to a shared file storage space in the cloud, LucidLink keeps everyone in sync. Better still, it acts just like a hard drive, so you can keep using the same tools and workflows you do every day.

With a single source of truth for all your video production assets, LucidLink can save you a ton of time (and money) on:

• Managing video assets

• Sending large files

• Keeping projects in sync

• Onboarding freelancers

• Uploading and downloading files

• Updating new versions

• Maintaining expensive storage hardware

• Buying more storage capacity

See how much your team could save with our handy video production cost calculator.