Cost & ROI of Explainer Videos for Your Startup

July 19, 2023

Startup life. It's a wild ride, isn't it? An unending coffee marathon and countless brainstorming sessions to market your product. Amidst all this, there's one question that keeps rearing its head like a nosy neighbor over a fence: "Should we invest in an explainer video?"

Let's unpack this, shall we? We need to look at two things here: cost and return on investment (ROI). And compact cars... keep reading, you'll understand.

1. Cost

You've got your digital marketing budget spread out on the table like you're planning a military campaign. There's a line for pay-per-click (PPC) advertising that's eating up funds faster than a teenager at a pizza buffet. A modest PPC campaign on Google AdWords? That can easily run you $1,000 to $5,000 per month. It's like... renting a luxury apartment in Manhattan - except you can't even live in it!

Now, let's shift gears. We have our explainer video sitting in the corner, unassuming but alluring. That Cody guy is offering it for $50 per second. Yes, you heard that right. A 60-second video for $3,000. It's like getting a luxury sedan for the price of a compact car - high-end quality, without the exorbitant price tag! And the best part? It's not a recurring expense. This is a one-time investment.

My rate includes all parts of production and their fees, like script creation, storyboards, illustration, animation, voice over and music/sfx. You can use this video in countless ways without additional cost: liven up your landing page, spice up your newsletters, stop folks in their tracks at your trade show booth, or create engaging social media posts and YouTube ads. Oh! And I even provide the option of obtaining full rights and usage of the source files for all designs in which you can use across other marketing content.

2. Return on Investment (ROI)

And speaking of YouTube, that brings us to ROI. Our explainer videos are like the compact car that unexpectedly gives you the performance and longevity of a luxury sedan - they defy the price tag and exceed the mileage. They're engaging, informative, and superb at boosting online visibility and conversion rates.

Let’s put some numbers on this. Your product sells for $100. Your explainer video inspires 1% of its viewers to buy. So with 10,000 views (a modest estimate), that's 100 new customers bringing in $10,000 in sales. Suddenly, your initial $3,000 investment has tripled, while PPC keeps nibbling away at your budget like it's a bottomless brunch.

When weighing the cost and potential return of an explainer video against other forms of marketing, it becomes clear that our video could be a pivotal step towards elevating your startup to new heights of visibility and success. Need more convincing? Read my post on Why you need an explainer video


If you have questions, want more information or have a project in mind, shoot us a message.

We're happy to provide a preview of your customized content strategy and/or proposal for your video.

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