How Much Should An Explainer Video Really Cost?

5 mn read

Pricing is an often asked question. Of course, not all explainer videos are “created equal.” Some projects may cost a bit more (or perhaps even a bit less), depending on your needs.

Now, let’s delve deeper into the topic.

Before I started writing this, I researched some of my competitors to do my due diligence. We have many kinds of competitors, good ones, bad ones, good ones with the much higher cost, bad ones with the much higher cost, bad ones with lower costs, and many others (mostly with higher cost).

You may have come to Breadnbeyond with an idea about how much our videos cost and how much you really want to spend. However, for those who don’t, let’s take a look and try to compare costs apple-to-apple.

Let’s examine the costs for explainer videos ranging from 60-seconds to 90-seconds, which is the most popular length when creating an explainer video.

Price Range

As you’d probably expect, there is a wide range of prices that you can find out there in the Internet jungle. From our research on the old internet archive, Quora, and our competitor’s research, we determined that the costs for purchasing a “good enough” explainer video range from (just to help you, we already selected and compared the best video producers):

– $5,000 to $8,000 – Revolution Productions

– $7,000 to $10,000 – Grumo Media

– $10,000 to $15,000 – Demo Duck

– $20,000 and up – Switch Video, Epipheo

So basically, the price range of our competitors starts at $3,995 and skyrockets all the way up to $50,000 dollars or more. There are more explainer video studios out there if you would like to do more research, but hey, why waste your time looking when we have done the research for you?

So what accounts for this huge price difference? Is your ROI on a video that costs $50,000 going to be more than twice from a video that costs $20,000? What would you do if you have some extra money from your budget to produce an explainer video?

Budget Allocation

What you need to pay attention to is how these “producers” allocate their budget. There are producers that:

1. Allocate more to their marketing than their production quality

2. Spend more time choosing which sports car they are going to buy, spend less time to think about what your video should look like

3. Pay 20% to outsourcers/freelancers, and the rest goes to their own pocket

4. Take care of you -as their client- like a king

Who would you rather be working with?


Let me show you what the factors that determine the cost of an explainer video are:


Research is where everything starts just like when you’re about creating an infographic. Before a producer starts working on your explainer video (or any other kind of video), they need to research what you do in order to have a better understanding of what is unique about you and how they can create a unique angle for your video that 100% matches what you already have.

The research can be done by interviewing you, sending you some forms to fill out, asking your employees or colleagues, brainstorming, and face-to-face meetings, or one of the many other methods of obtaining info.

This usually takes about 2-3 hours, or if a high level of depth is really needed, it could take up to 1 month.


If you do a bit of research, you’ll quickly find out that getting a good script is very important for any explainer video. The need for a good script simply can’t be ignored. Without a good script, your explainer video simply won’t be that good. It won’t matter how good the voice actor is or how great the animation is.

Of course, there are ways to do “script-less” videos, but if your video needs voice or text, you need to make sure that each word is perfect.

Style of Animation

Style choices are a matter of preferences. Some would rather go with a whiteboard video, while others may want to go with another type of animated cartoon video.

While it’s true that audience demographics, the type of product being explained, and culture all play a role in choosing what kind of style works best, I find that humor often works best. It doesn’t matter if your target audience is high-level executives or freshers straight out of college. People love to laugh.

The so-called “common knowledge” that videos geared toward professionals should look “professional” and not be “funny” is just a myth.

How many videos have they produced (I don’t see how this fits in with the rest of the points)

This is purely a numbers game. A company that has produced more explainer videos than others will most likely have more experience dealing with a range of different clients. They may have worked with someone in the same industry as you and could be very familiar with your product and target audience.

If you would like to know about our portfolio, just ask us, and we will fill you into the best of our extent. Of course, some clients prefer to remain confidential, but we can definitely fill you in on our own expertise and experience in your industry.


One of the less often considered “hidden factors” that not many know about is how many opportunities the video producer is getting every week or every day.

When you are looking for a place to eat, would you rather eat in a busy restaurant with a ton of customers already inside and enjoying their meals, or would you rather take your chances on a quiet restaurant that only has one or two customers?

This is purely your choice, though I’m biased to say that I’d rather go to the restaurant that many people have already chosen since they most likely like the food, and the chances are good that I will like it too.

Pricing Structure

There are no two firms that offer the exact same exact pricing structure. If you ask ten animation studios, you will get ten different answers.

If you would like to compare between these apples, create a well-written outline of what you want to do, the duration of the video that you want, and any other specific requirements you have, then pitch it to different animation studios to see what they are going to offer.

You should keep in mind, however, that when you are hiring an explainer video company, you are paying for:

1. Their years of experience doing motion graphics and other explainer videos

2. Resources they have spent (and yes, time is also a resource) to hone their animation techniques. And we should emphasize that skill is essential.

3. The time they spend with their clients (yes, that includes you, and that costs money as well). Some studios just want to crank out videos as quickly as possible, while others (like us) want to make sure we meet our clients’ needs.

This is a rough estimate of what it takes for us to produce a one-minute animated explainer video. This certainly isn’t something we set in stone, but at least it will help you understand that we take this thing seriously.

Because all of our core processes are done in-house, we are undertaking a great effort to continuous re-education on our illustration and animation techniques. In return, this will help you to get a higher quality and better converting explainer video.

As you can see, creating an animation video takes more than just sitting in front of a computer and pounding things out. It takes a lot of time to work on the processes involved and managing these kinds of projects.

So, how much does an explainer video really cost?

Since you have made it this far, you must genuinely be doing your due diligence before hiring someone to create an explainer video for you. Kudos!

Honestly, the answer varies. It really depends on the experience and how much demand there is for the company or artist that you want to work with. The larger the portfolio they have, the more likely it is that they can meet your needs.

Animated explainer videos are very different from live-action explainer videos, where the latter really needs quality actors to ship the product. The first option doesn’t have that need. This is why with animated explainer videos, you can cut the cost down by thousands of dollars, depending on what kind of animation you need.

If you are a startup owner and really want to know more about explainer videos, we have the best resources to help you jump-start your knowledge.

Remember, if you are looking to get a high-converting landing page, explainer videos are often the first thing your target audience will see to better understand what you offer. And you should make sure you do whatever it takes to make a great first impression!

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