As we mentioned in our last blog, there is no perfect or “right” price for video marketing. It is all about what your business is willing to spend. So now that you understand the factors that determine the cost of your overall video marketing plan and have set a budget and strategy, let’s discuss the 5 Cost of Quality (COQ) levels of video production and how they differ.
The 5 Levels of COQ
Do-It-Yourself: This level is just what it sounds like. You are choosing to handle the video marketing production yourself. If you have the education experience then you are ahead of the curve, but most who choose this level of COQ learn the material through self-teaching methods like YouTube. This method is usually inexpensive but can result in similar looking end products: cheap and quickly done. This can cause the audience to question your credibility as a business and may make you seem untrustworthy. The cost for this level of COQ can be close to free once the proper tools and equipment are acquired. However, a proper camera can cost you anywhere between $800 and $10,000, while a tripod and backdrop can cost an additional $30 to $300 each. Proper lighting ($300), sound ($150 to $250), and software ($300) can bring the total cost to around $5,000. The biggest issue with cost at this level is the amount of time it will take to complete a project.
Sharing the Workload: This is a level between DIY and professional, where parts of the video production workload are shared. What you choose to DIY and what you choose for the professionals to handle is up to your own discretion. More education or experience is required in this level because you will be working alongside a professional, so having a clearer understanding of what is being done will make the process go more smoothly. The quality of the overall product is better than a DIY and still keeps its affordability, however some of the videos will vary in quality since you are doing one part of the work and a professional is handling the other. Overall costs can total around $1,500 to $3,000 for a 1-2-minute video but can be higher depending on what part you do and what part the professional does. Some companies charge for production, editing, equipment, crew members, and other jobs per hour, while others have solid rates. The talent of the production company can also determine the base or hourly rate.
Professional: A professional level of COQ is the first level that requires you to offer up trust and confidence in who you hire. You get what you pay for, so the talent and tools aspects are essential here and will determine the length of time needed to complete the project. These videos appear cleaner cut, professional, and convey credibility but unless otherwise instructed can tend to appear similar to one another and come across as boring to viewers as a result. Overall costs for a 1-2-minute video at this level can vary between $5,000 and $20,000.
Premium Professional: This level of COQ is an even more advanced and experienced video production company. Costs will go up since extra crew members, more advanced equipment, and more expensive tools will be used. More time is also spent on planning, editing, scripting, and shooting. Hiring a premium professional requires a more thought-out and focused purpose or goal, especially since more time and money is going into hiring them. These overall products can stand out from other competitors’ videos and can generate more leads and sales as well. The only concern is having to offer up more trust and confidence in who you choose to hire, so have a plan and be specific! Overall costs for a 1-2-minute video at this level can range between $25,000 and $50,000.
Hollywood: The final level of COQ is the Hollywood level, and it is just what it sounds like. Imagine creating a video like that of a Superbowl commercial. The videos resulting from hiring Hollywood video producers turn your business into a competitive force to be reckoned with and can even help move your business into a more global market. This level can be extremely expensive and requires an even more definitive idea of what it is that you want. The time in this stage all depends on you, and if the agency needs to spend more time doing something, you can be sure it is going to cost you more in the long run as well. Expect a combination of base rates and hourly rates depending on what you are asking to have done and what tools and talent are used. Overall costs for a 1-2-minute video at this level can vary between $100,000 and $1,000,000 or more!
So now you have the information needed to choose a level of video production company that suits your business’s needs. Choose the company carefully and do your research. Check out samples of their past work, ask about their experience and education, and talk with them. Ask to see videos that are like the budget you gave yourself.
Be on the lookout for our next blog where we go into more in-depth aspects of the video production cost like lighting, scripting, sets, audio files, and hosting to give an even better idea of what you want for your video marketing budget and what is important to you. Plus, we’ll be discussing details of our own pricing for video marketing production!