Let’s talk about money. Whether finances are a topic you dread or something you could spend hours discussing, money is critical to video production. There are plenty of data deep dives into video production budgets online. The truth is that almost everything has a price tag attached to it.
In a perfect world, we could create anything we wanted without worrying about money. In the professional world, you cannot have a successful production without a strong budget.
What are the costs of a video production?
While the type of video determines the actual production costs, it costs $1000-$5000 per finished minute on average. Using that number, a 3-minute video could cost anywhere from $3000-$15,000. That may seem like a lot of money (it is!), but there’s a reason productions come with a price tag. There are many parts to a production. Each part costs something. So, what are they?
Of course, you have to pay the people you hire. Even if you have in-house staff, you’ll likely need to hire makeup artists, specialized vendors, and maybe additional production assistants. Additionally, any on-screen talent needs to be factored into your budget. Outside of the people on set, the actual set could cost money. If you’re doing a field shoot, location costs such as permits, parking passes, and other fees need to be considered. Depending on what your creative goals are, you may even need to rent equipment or gear you don’t have in-house. It adds up quickly!
Even pre-production and post-production come with costs. Maybe you need to hire contractors for services like script development. Props and wardrobe costs can add up quickly too. Or, after you shoot, maybe you need to pay for special effects, visual assets, or music licensing to make your video stand out.
Why does a clear budget matter?
Looking at all the costs of a video production can be overwhelming. A budget makes everything manageable. On top of that, utilizing budgeting skills is how you can make the best content within your project’s means. When you take the time to plan out how you’ll spend the money, there are fewer uncertainties throughout the production process. This means you can be confident in your decisions because you are practicing financial efficiency!
Additionally, when you look at the big picture of your project’s costs, you’ll be ready to justify budget needs to stakeholders and clients. At times, you may need to pivot a creative idea into a realistic alternative. If questioned, you can reference the numbers to prove you’re making the smart choice. Likewise, planning out your budget ensures you avoid budget overruns. You’ll be clear on how to allocate the money across the production’s needs because you’ll have a structure to follow. All in all, you’ll be working smarter and not harder when you have the right budget!
High Quality at All Costs
At the end of the day, money can be intimidating. You may not have the time to develop an extremely detailed budget sheet for every production you work on. However, understanding just how many costs there are to video production will prepare you to create high-quality content with any budget.
At Plaid Pony Productions, we embrace creativity in the work we produce as well as the financial decisions we make. You don’t need to be a finance professional to be financially literate. Our very own Stacy Scarsella will be moderating The Future of F2 B2 Innovation Summit 2024 this October because running a production company requires a wealth of financial expertise. Financial expertise develops over time, and you can build your own by flexing your budgeting skills on every video production!
