How to Create a Video Production Budget [with Template]

Creating a budget for B2B video production services can be daunting for small business owners. Particularly if you have limited experience with creating corporate videos, it can be nearly impossible to anticipate the timeline or average cost of video marketing.

Your limited experience shouldn’t deter you from investing in video services, however. According to recent studies, 94% of marketers believe that video content boosts user understanding of their products and services. With easier and more effective communication of value, conversions will follow.

The benefits of video are clear — now you need to start the process of creating them. This starts with the ideation and budgeting stage. Your video production budget will ensure that your project stays on track and within the allocated financial resources.

What Goes Into a Video Production Budget?

The final cost of video production services will depend on the types of video production you’re hoping to contract.

There isn’t just one phase of a video project; getting a high-quality video requires a professional video production team that understands the required stages. Here are some of the services they provide, split up into four overarching categories:

• Pre-production: the planning and ideation stage that includes scriptwriting, storyboarding, casting, location scouting, and rehearsals. The cost of pre-production services can vary based on the complexity and scale of the project.
• Production: this stage involves everything relating to the actual video shoot. This includes the cost of equipment rental, b-roll, talent fees, travel expenses, and production insurance. The cost of production services will depend on the type of equipment and resources needed and the shoot duration (ex. half-day, full-day, or multi-day shoots will cost different amounts).
• Post-production: This stage is known as the video editing process. In addition to splicing and sequencing video clips, this phase includes color grading, sound design, music licensing, motion graphics creation, voiceover recording, and translation. The cost of post-production services can vary based on the length and complexity of the video and the level of expertise required.
• Distribution and other: This project phase occurs after all parties agree upon the final video. Distribution includes in-house and external efforts to position and promote the final product. This might involve social media strategy, new landing pages, publishing on video platforms like Vimeo, or housing the video on a targeted page on your website. While planning your budget, any other miscellaneous expenses that may arise during production can be added here.

The types of B2B video production products are seemingly endless: explainer videos, promotional videos, training videos, and more. Each type of video has its unique set of requirements and costs, so understanding the differences in structure, length, and complexity is a vital part of budgeting for your efforts.

This article will provide a step-by-step guide on how small business owners can create a budget for various B2B video production services.

How to Create a Video Production Budget

Creating a budget for video services is all about putting your needs into action and effectively prioritizing the necessary features of your final product. Building a budget will teach you how professionals can practically address your goals.

Regardless of your most pressing needs, a sound budget puts a price tag on the most mission-critical aspects of your plans. This is absolutely essential, as it provides you with the information you need to set realistic expectations and follow through on them.

Of course, this can be easier said than done, especially in the logically complex world of video. Still, you can achieve a great starting budget by following these four simple steps:

1. Determine the purpose and goals of the video
2. Research and compare prices for B2B video production services
3. Consider equipment and resource costs
4. Determine the length and complexity of your video

These steps are intended to aid you in finding your video must-haves while balancing costs along the way.

1. Determine the Purpose and Goals of the Video

Before you start creating a budget for your B2B video production project, it's essential first to determine the purpose and goals of the video. This will help you to understand what resources and services are required to achieve your desired outcome.

Let’s put this into context with an example: suppose you’re a business hoping to explain a complex product or service to potential customers. Here’s how you might think this type of video project through:

• Goal: illustrate the value and function of a complicated product
  • Need: step-by-step animated video with voiceover explanations of each step
  • Resources: need to hire professional voiceover artist and an animator

When the goals of a project change, the resources and needed deliverables often change with it. Let’s examine how this plays out for a company that needs a promotional video for a new product.

• Goal: market a new product to existing customers
  • Need: demonstration video illustrating how product works
  • Resources: need to hire a video editor to cut together footage of the product in action

In all likelihood, the second project will cost a lot less because it requires fewer resources to meet the desired goal. This way of comprehensively thinking through goals helps you keep a budget lean.

You could save thousands on a video product by closely evaluating a video's purpose.

2. Research and Compare Prices for Different B2B Video Production Services

Once you clearly understand your video's purpose and goals, you can begin researching and comparing prices for different B2B video production services.

It’s unlikely that you have all the human resources and equipment your need in-house. So, in video production cases especially, investing in outsourced business services is wise to bring your video goals to life.

A professionally produced video will better translate your message (hence achieving business goals more quickly). To get the level of quality that will meet these goals, it’s best to hire a reputable team or individual freelancers specializing in video work.

In taking this step, you will need to assume the costs of hiring a wide variety of professionals. Most of your crew members will be active during the production phase of your effort.

What Types of Video Experts Can You Hire?

• Scriptwriters
• Voiceover artists
• Animators and motion graphics artists
• Video editors
• Camera operator
• Production assistant or production crew
• Makeup artist
• Video producer
• Director of photography
• Videographer

How to Compare Video Production Company Prices

One way to evaluate which company is best for your needs is to reach out to different production companies and request service quotes.

Be sure to provide as much detail as possible about your project, including the following:

• Purpose
• Goals
• Target audience

This is the information you scoped out in the first step of this process and will help production companies give you the most accurate quote possible.

Getting quotes from various providers is your best bet for comparing costs. This will give you a better shot at getting the best possible value for your money.

Despite this, it’s important to note that the cheap option may not be the most fruitful option for your purposes. Think back to your mission and goals (and maybe do a cost-benefit analysis) to determine whether a cost-saving quote will really provide the quality you require for your final product.

3. Consider the Cost of Equipment and Other Resources

Unlike some other outsourced service providers, there are costs in addition to those associated with hiring industry professionals in video production. Companies looking to produce accurate budgets will also need to factor in equipment costs and other resources needed to create the video.

Source: Uscreen

This may include the costs of the following tools:

• Camera rentals
• Lighting equipment
• Props
• Editing software (if buying it yourself)

Make a list of the things you’ll need to produce the video you want and take stock of the things you already have. You will have to rent or purchase the equipment if you don't have the necessary equipment.

Renting equipment can be a cost-effective option, especially if you only need the equipment for a short period. Companies without plans to make frequent videos should most likely rent.

However, if you plan on using the equipment frequently, it may be more cost-effective to purchase it outright — especially for in-depth marketing campaigns. As video becomes more prevalent in marketing strategies, more companies may opt to buy some of their core equipment.

4. Determine the Length and Complexity of the Video

The length and complexity of a B2B video will be a huge indicator of a project’s overall cost.

For instance, a lengthy and complex video will demand more time and resources than a shorter option. Because it will take more effort to produce, a budget for long videos will be expected to be bigger.

Is the scope of your video project going to be more expensive than it’s worth?

To determine the length and complexity of your video, consider the following questions:

• How many minutes long do you expect your video to be?
• How many scenes or shots do you need in the video?
• Do you plan on including any special effects or animations?
• Will the video require any custom graphics or illustrations?

Just like video length, adding effects and elaborate graphics will drive up the price of your video. This is because they’ll take additional personnel to create.

Answering these questions will give you an idea of the scale of your video project. With this information, you can start to anticipate the total cost of your final product.

Another way to determine how your video will be priced is by examining pricing models of video production teams.

Types of Video Production Pricing Models

Most video production companies will offer either a day or hourly rate for their services.

• Day rate: Clients are charged a set rate per workday; this model can be broken into half-day or multi-day rates.
• Hourly rate: Clients are charged a set rate for each hour of work performed on a project.

Note that companies will often charge more than half their day rate for half-day requirements to make up for the value lost by not being able to work continuously for an entire day.

In cases where your project demands less than a full day of shooting, it may be wisest to seek out a company that uses an hourly rate pricing structure.

Video Production Budget Template

Download the Video Production Budget Template

Note: It’s important to remember that the actual contents of this budget can and should be adapted to meet your unique needs.

Remember to regularly update and examine your budget as the project moves forward. This will help you better stay on track to meet your goals and timelines. Given the many logistical challenges a video production project can present, it’s wise to regularly keep track of your financial resources throughout the production phases.

Factors for Video Production Costs

The cost of B2B video production services can vary significantly depending on several factors, including the video's purpose and goals, the project's length and complexity, and the resources and services required.

What makes some video projects a few hundred dollars while others costs tens of thousands? Here are some of the greatest points of influence that dictate the cost of video production:

• Video length: are you creating a 3-minute video or a 30-second video? Longer videos require more production and post-production effort, causing them to cost more.
• Production timeline: video production companies will either charge a day or hourly rate. The longer spent filming and editing, the more the team will charge for their labor.
• Type of video: are you working with stock footage or original footage? Do you have sources for testimonials, or will you hire actors for your product? Original footage and hired actors will drive up the cost of a project.
• Required resources: Do you need special cameras, software, or equipment to execute? Do you need a larger team of specialists to include all your desired features? Both instances will result in higher costs.

Video production pricing depends most on the number of resources needed, projected production timeline, type of video, and length of the final video product.

Additionally, unexpected costs and bottlenecks are typical in video production projects because of all the moving parts involved. It’s smart for companies to set aside a small portion of their budgets for contingencies that may arise. This will keep you from falling victim to the harmful effects of scope creep.

Create Video Production Budgets with Care

Building a budget for your project will allow you to ballpark the total cost of video work. Additionally, your budget will help you affirm your priorities and ensure you get the production value you’re after.

By understanding the purpose and goals of the video, researching and comparing prices for different services, considering the cost of equipment and other resources, and determining the length and complexity of the video, small business owners can create a budget that meets needs and achieves goals.