I’ll jump straight into it… How much do Video Testimonials Cost?
The short Fantestimonial answer is that it starts from an investment of $1200. However, you will find that many video production agencies will give a range between $3000 – $15000 or more. With such a wide range, how do you know what is a reasonable amount to pay for a video testimonial?
To answer that, let’s have a look at the time-investment-quality equilateral triangle:
I’m sure you would have seen this at one time or another. Just in case you haven’t, it’s a simple illustration of the relationship between Time, Investiment and Quality of any video production, and is also linked to the ROI of that video. To be sure ROI in this case is not the actual sales or marketing conversion rates that will occur from producing a video or video testimonial, but the perceived quality of the final video for anyone who watches it. However, it can sometimes be correlated to the conversion or engagement rates from the video or marketing campaign because great videos do drive up engagement.
Essentially, what this diagram is saying is: you get what you put into your video, if you spend more time by adding quality production values, it will increase the investment, but the quality of your video will dramatically increase.
So pour more money into making videos?
Well, No.
What most consultants don’t tell you when talking about creative endeavours like video production, is “Minimum Acceptable Quality” (MAQ) and “Maximum Available Investment” (MAI).
What is the minimum acceptable quality for the video testimonial or any video you want to make? To determine that, go onto YouTube and search similar videos you want to make and pick out the bare minimum you are willing to accept in terms of visual and story quality for your business and brand, and also find the bees-knees version.
This will provide your video production agency an indicator of how much time and resource are need to make it and provide a good determination of how much your video will cost.
Then you need to determine the maximum available investment for you or your business.
A simple way to work out what that is for you is this: What is your historical conversion rate for any marketing plan? And what is the profit or value from each conversion?
Say you have a traditional conversion rate of around 30% in any marketing activity. Remember Testimonial videos, if you are producing one, have been known to improve conversions by up to 80% or more.
So, say you make $1000 for each conversion, and you can increase your conversion rate to 60% with a video testimonial. If you have a marketing strategy of sending this video to 1000 targeted viewers, and result in 60% conversions and sales, you are looking at a profit of $600K. That is an increase of $300K of extra profit just by adding the video testimonial to the marketing plan.
How much of that profit are you willing to invest in that video then? What is the Maximum Available Investment?
Now I will be the first to say that spending $25000 for a video vs $5000 for a video may not lead to a higher conversion rate. I do not sell magic bullets and snake oil.
What I will tell you is that a video, when paired with a marketing campaign, has been shown to improve engagement in the campaign. While what makes a campaign successful is multi-factorial, how much time and effort and investment you put into a video, will determine if your target audience will even give your video the time of the day to watch it or not; in other words how much engagement you get, can be determined by the ROI Quality of the video.
So think back to what your Minimum Acceptable Quality is, and a good video production agency will be able to give you not just a reasonable quote, but a sense of whether it has a good chance of reaching your target audience. How far we can push the Quality above your MAQ will depend on your Maximum Available Investment.
At Fantestimonial, we want to help you grow your business with Videos you need, not visions we want. You can contact us for a no obligation, hassle-free chat about how much Video testimonials cost, and how it can provide the greatest bang for buck when it comes to marketing videos.
NOTE: It’s important to note that specific figures and claims, such as the increase in conversion rates and profits resulting from video testimonials, may vary depending on various factors including industry, target audience, marketing strategy, and the quality of the video content itself. Additionally, while the blog emphasizes the importance of considering factors like Minimum Acceptable Quality (MAQ) and Maximum Available Investment (MAI), the specific methods suggested for determining these values (e.g., historical conversion rates) may not apply universally to all businesses and scenarios. Therefore, it’s advisable for businesses to conduct thorough research and analysis tailored to their individual circumstances before making decisions about investing in video testimonials or any other marketing initiatives.
