Explainer videos are short and precise features that are used to illustrate your brand’s product or service. Explainer videos are ideally positioned on your site’s landing page, or a prominent product page. These videos have become extremely popular – some sites boast of conversion rates increasing by as much as 144% after including an explainer video on their website.

Explainer videos are a perfect way to explain a subject or idea in a coherent way. It may be a quick overview of your product , service, or brand. Even so it’s an easy entry point for people who don’t know about your brand otherwise.

This article is meant to help you estimate how much you should be paying for your explainer video, strategies, techniques and tactics.

In fact, these strategies have helped brands boost sales and shown a clear increment in customer retention.

Dropbox used an Explainer Video which drove 10% conversion and raised 10 Million Additional Customers & $48,000,000 Extra Revenue !

Whiteboard Animation Explainer Video by Dropbox

So maybe if you’re sick of reaching out to a lot of agencies, getting quotes and not knowing what to pick, , you’ll really enjoy this.

The main topics taken into consideration here are:

  • Agency vs Freelancing
  • Costs of Hiring Creatives
  • Sourcing Music & Sound Effects
  • Software
  • Time taken to deliver the Video
  • Type of animation and its complexity

Agency vs Freelancing



Freelancing is a growing trend. And one of the reasons it’s so popular with brands is that it means hiring the right talent without having to keep staff all year. It also means you save money, as you don’t have to pay overtime, holiday pay, or any other employee benefits.

Since freelancing is now so popular, there are lots of talented individuals available, looking for work. It means you can hire someone quickly, they can usually start their work straight away, and complete the work in a relatively shorter time frame.


Freelancers can be less reliable. Because of the fact that you won’t be carrying out thorough checks on their qualifications or experience, and probably won’t meet them in person, it’s possible that they aren’t capable of completing the work to the standard you need. They might claim to have certain skills and availability, only to fail to meet expectations – which is a waste of your time and money.

Another disadvantage of using a freelancer is that, because they work remotely, they might not be available at all times to answer your messages or phone calls. They might be in a different time zone. They might have other commitments. When hiring a freelancer, it might be more difficult to communicate with them. This is something you might need to take into account.

Video agency


One of the key benefits of using a video production company to build your video explainer, is the experience that they bring to the project. An agency’s role is to understand your company’s goals and vision, and then bring it to life in a creative and professional way.They have a lot of experience turning a brand story into a production of animated video that will resonate with your audience. So during the cycle you ‘re not going to have to think about the quality of the result.

Another advantage an agency would offer over a freelancer is that most of the time they would have access to better software and equipment. In terms of picture and sound, they can achieve higher quality of work and that will give your video an advantage over your competitors.

Agencies have more experience in making effective videos. They have plenty of previous clients, and you can see samples of their work and read testimonials from their clients. They know what works and what doesn’t, because they have more experience. They will also be more professional, and will probably be able to complete the project quickly.


The downside to choosing an agency is that they can cost more than most freelancers. However, by trusting a professional agency from the beginning, you might avoid costs later on, as needed to get the desired end product right on the first go.

Costing Analysis

According to Wyzowl , the lowest price for a 60 second animated explainer video is $700

The highest price for a 60 second explainer video is $72,000.

On considering quite a few tools, calculators and agencies such as 90seconds , explainers.lt ,nyolczas and a lot more, we conclude that the average cost for a 60 second animated explainer video is around $8000.

Now while one may find videos that are cheaper or way more expensive than the average cost mentioned above, we have to consider that, based on your requirements on any of these topics below, the cost of your video will vary.

  • Hiring Creatives : An animation explainer video requires a concept, illustrations, animators and based on the experience of each person involved
  • Sourcing Music & Sound Effects : The music and sound effects you need will have to be found or created as per your requirement. Choosing pre-existing music and sound effects from the internet might also cost you if it is not royalty free
  • Software : Animation software aren’t always free and can cost around 50 – 100 USD per month
  • Time : The time to get an animated video generally can take anywhere between 2 to 6 weeks. And based on the time constraints, the cost will vary.
  • Type of animation and its complexity (style and quality): You can choose for your video to be 2D animated, 3D animated, and might even involve motion graphics and these affect the costing of your video

If you would want to be able to enjoy the benefits of an agency, while also those of a professional network, guch allows you to have that experience right at your fingertips. If you have any video requirements, drop them here and get your amazing budget friendly video done at speed and scale!