Look, you're staring at a decision right now.
On one side: cheap explainer videos that promise the world for pennies.
On the other: premium options that cost more but claim better results.
Which way do you go?
The truth? Most businesses blow money on budget videos that end up costing them more in lost opportunities than they saved upfront.
I'm going to lay it all out for you.
By the time you finish reading this, you'll know exactly:
- What makes a video "premium" (beyond just the price tag)
- Why investing more upfront can multiply your ROI
- Exactly how much you should be paying (so you don't get ripped off)
- The hidden factors that separate videos that convert from ones that collect dust
No fluff. No sales pitch. Just the straight facts from someone who's been in the trenches for years.
Ready? Let's dive in.
What Is a Premium Explainer Video?
First things first—let's get clear on what we're talking about.
A premium explainer video isn't just something that costs more. It's a strategic asset built from the ground up for one purpose: driving business results.
Here's what separates premium from cheap:
- Custom design: Every visual element created specifically for your brand—not pulled from a template library that 500 other companies are using.
- Strategic storytelling: A narrative crafted to trigger specific emotions and actions from your target audience—not just explaining features.
- Professional execution: Smooth animations, perfect timing, and high-quality audio that keep viewers glued to the screen—not amateur movements that scream "we cut corners!"
Think about it like this:
A cheap suit and a tailored suit both cover your body. But only one of them makes people take you seriously when you walk into the room.
Same with videos.
Check out
The Best Examples of Fabulous Custom Explainer Videos
Why Premium Explainer Videos Deliver Better ROI
1. Higher Engagement & Retention
Here's the reality:
According to Forbes, people retain 95% of information from video versus just 10% from text.
But that stat comes with a massive asterisk.
It only applies to videos people actually watch.
And here's what nobody's telling you: viewers can smell a cheap video from miles away. Those cookie-cutter templates with the same stock characters moving around? People tune out instantly.
Ask yourself:
When was the last time YOU sat through a generic, templated video? Exactly.
Premium videos grab attention because they're fresh, custom-built, and designed specifically for your audience's problems.
They don't just explain—they captivate.
2. Stronger Brand Perception & Credibility
Let me bust a myth right now.
"Only premium brands need premium videos."
Dead wrong.
In fact, it's the opposite. Brands become premium in people's minds partly because they invest in premium presentation.
Think about it:
When Apple launches a product, do they use cheap graphics and stock music? Of course not. Every detail screams quality, which makes you willing to pay more for their products.
The brutal truth? A cheap-looking video makes people assume you offer a cheap product or service.
And no, viewers aren't fooled. They've seen enough videos to instantly recognize when corners have been cut.
But here's the good news:
You don't need an Apple-sized budget to create a video that exudes quality. Later, I'll show you exactly how to get premium results without breaking the bank.
3. More Conversions & Sales
Let's cut to what really matters: ROI.
Would you rather:
- Pay $1,000 for a video that brings $1,500 in revenue? (50% ROI)
- Or invest $6,500 to generate $250,000? (3,746% ROI)
This isn't theoretical. We've seen these exact scenarios play out with real clients.
The math is simple: a video that converts at 5% instead of 1% is worth FIVE TIMES more to your business.
And conversion rates aren't random—they're directly tied to quality.
Premium videos convert better because they:
- Address objections before they arise
- Trigger emotional connections that drive decisions
- Position your offer as the obvious choice
- Build trust through professional presentation
Remember: your video isn't a cost. It's a salesperson that works 24/7 without commission.
Would you hire the cheapest salesperson you could find? Or the one who consistently closes the most deals?
Continue learning
Explainer Video Cost – A Price Guide For Any Budget
4. Long-Term Value & Versatility
Here's something the budget video companies won't tell you:
Cheap videos get replaced. Premium videos get repurposed.
If you're a startup or growing business, you can't afford to create new videos every year. Not just in terms of money, but also the time spent finding a production company, briefing them, and managing the project.
Premium videos last years longer because:
- They're built on timeless storytelling principles, not trendy styles that quickly look dated
- They focus on core value propositions that don't change, even as features evolve
- They're created with modification in mind—designed to be easily updated as your offering evolves
Plus, a premium production partner thinks beyond the main video. They'll help you slice and dice that investment into:
- Social media cuts
- Email marketing snippets
- Website animations
- Trade show loops
- Ad variations
One investment, multiple assets.
What Goes Into a High-Quality Explainer Video?
1. Expert Storytelling & Scriptwriting
Let me tell you a secret about video production:
The most important person isn't the animator. It's the scriptwriter.
A premium script isn't just explaining what your product does. It's a strategic document that:
- Hooks attention in the first 5 seconds
- Agitates pain points your audience already feels
- Positions your solution as the obvious answer
- Anticipates and destroys objections before they form
- Drives specific actions with psychological triggers
Budget videos use generic templates that could apply to any business. "Meet Bob. Bob has a problem. Our product solves it. The end."
Premium videos craft a narrative specifically for YOUR audience, addressing their unique situation, desires, and objections.
The difference? Night and day conversion rates.
Interesting to know
How to write an explainer video script - The ultimate guide
2. Custom Animation & Design
Think about email marketing for a second.
When you get an email that starts with "Dear Sir/Madam" and looks like a template, what do you do?
Delete it without reading. Every time.
The same principle applies to videos. When viewers see generic characters and stock animations they've seen a dozen times before, they mentally check out.
Custom design isn't about looking pretty. It's about signaling to viewers that:
- You've invested in quality (which builds trust)
- You care about their experience (which builds rapport)
- Your attention to detail extends to your product (which builds confidence)
The human brain processes visual information 60,000 times faster than text. Don't waste that processing power on generic visuals that trigger pattern recognition ("I've seen this before") instead of interest.
3. Professional Voiceover & Sound Design

I know what you're thinking.
"AI voices are getting better. Can't I just use one of those?"
Short answer: Not if you want conversions.
Here's why:
Voice isn't just about pronouncing words clearly. It's about creating emotional connections through subtle shifts in tone, emphasis, pacing, and delivery that AI simply can't match.
A professional voice actor knows exactly when to:
- Speed up to create excitement
- Slow down to emphasize importance
- Add warmth to build trust
- Show concern to validate pain points
- Project confidence to inspire action
And sound design? It's not just background noise. Strategic audio cues direct attention, highlight key moments, and create subconscious emotional responses.
Remember: 33% of your audience are auditory learners who make decisions primarily based on what they hear.
Cut corners here, and you're throwing away a third of your potential conversions.
Continue learning
Step-by-Step Guide to Getting Voice Over for Explainer
Cost Breakdown: How Much Does a Premium Explainer Video Cost?
Here's what you've been waiting for: the numbers.
But first, let's clear the fog.
You've probably seen prices ranging from $500 to $250,000 and thought, "What the actual #@%$?"
I get it. Let me simplify.
Unless you're a Fortune 500 company with a six-figure promotion budget, forget anything over $50,000. That's not your market.
For most businesses, the real range is $5,000-$25,000.
But that's still a wide spread. So where's the sweet spot?
After surveying 152 explainer video companies and analyzing hundreds of projects, here's what we found:
- Average price for a premium 60-90 second explainer: $8,980
- Most startups and SMBs spend: $4,000-$7,000
- Minimum for truly professional results: $5,000
For maximum value, I recommend budgeting around $7,000 for a premium explainer video with extras like:
- Alternative endings for conversion testing
- Social media cuts
- Landing page loops
- Source files for future modifications
What impacts the price?
- Length: Every additional 15 seconds adds approximately 20% to the cost
- Animation style: 3D costs 2-3x more than 2D
- Complexity: Character animation costs more than motion graphics
- Customization: More revisions = higher price
But remember: price ≠ value.
A $5,000 video that doubles your conversion rate is infinitely more valuable than a $1,000 video that does nothing.
Useful Resource:
Explainer Video Cost – A Price Guide For Any Budget
Common Mistakes When Choosing an Explainer Video Company
1. Choosing Based on Price Alone

Here's the brutal truth:
Companies offering explainer videos for under $2,000 aren't profitable unless they cut massive corners.
Simple math: A professional video takes minimum 80-100 hours to produce properly. At $2,000, that's $20-25 per hour—before platform fees, taxes, and business expenses.
What quality of talent works for that rate? Not the kind you want representing your brand.
What are you really getting with budget options?
- Template-based designs
- Junior animators or outsourced work
- Stock music and effects
- Generic scripting
- Limited revisions
- Zero strategy
Another trap: not checking what's actually included in the quote.
Always confirm:
- How many rounds of revisions are included
- Whether you get the source files
- What happens if you need changes later
- If they'll create additional formats for different platforms
Don't discover hidden costs after you've paid the deposit.
2. Ignoring the Portfolio & Case Studies
Here's a counterintuitive tip:
Don't just look at whether a company's portfolio matches your preferred style. That's actually a red flag.
Why? Because the best companies craft custom styles for each client. If everything in their portfolio looks the same, they're using templates or a fixed approach.
Instead, look for:
- Versatility: Can they adapt to different brand personalities and industries?
- Results: Do they share case studies with actual performance metrics?
- Repeat clients: Are major brands coming back for multiple projects?
- Strategic thinking: Do their case studies mention business objectives or just pretty visuals?
The portfolio tells you what they can make. The case studies tell you if it actually works.
3. Not Considering Marketing & Conversion Strategy
This is the biggest mistake of all.
An explainer video isn't an art project. It's a conversion tool.
You can spot companies that get this difference in the very first call. They'll ask questions like:
- "What's your current conversion rate?"
- "Who's your ideal customer and what keeps them up at night?"
- "What objections do prospects typically raise before buying?"
- "What metrics will determine if this video is successful?"
If they're only asking about style preferences and deadlines, run.
You need a partner who understands marketing fundamentals, not just animation techniques.
The best explainer video companies are marketing agencies that happen to specialize in video—not design studios that dabble in marketing.
FAQs About Premium Explainer Videos
How long does it take to produce a high-quality explainer video?
A: 5-8 weeks is standard for premium quality. Anyone promising faster is either cutting corners or charging rush fees. The breakdown:
- Strategy & scripting: 1-2 weeks
- Storyboarding: 1 week
- Style frames & design: 1-2 weeks
- Animation: 2-3 weeks
- Sound design & final touches: 1 week
Can a premium explainer video work for my industry?
Yes—if your business solves a problem or fulfills a desire, an explainer video can help. We've produced successful videos for everything from SaaS platforms to industrial equipment to financial services.
The key is working with a team that either knows your industry or is willing to learn its unique challenges and language.
What's the ideal length for a premium explainer video?
45-90 seconds is the sweet spot for maximum engagement and conversions.
Under 45 seconds and you're rushing, skipping crucial elements that drive conversion.
Over 90 seconds and you risk losing viewers before your call-to-action.
The exception? Complex B2B solutions sometimes need 2-3 minutes to properly address sophisticated buyer concerns and objections.
Conclusion – Is a Premium Explainer Video Worth It?
STOP.
Let me ask you something:
What's the real cost of a video that doesn't convert?
It's not just the money you spent on production. It's all the revenue left on the table. All the potential customers who bounced instead of buying.
A cheap video that saves you $3,000 but converts at half the rate could easily cost you hundreds of thousands in lost revenue over its lifetime.
The math isn't complicated:
Higher quality → Better engagement → More conversions → Greater ROI
By now, you understand that the question isn't whether you can afford a premium explainer video.
It's whether you can afford not to have one.
Ready to invest in a video that actually delivers results? Contact Yans Media today to discuss your project and see examples of how we've helped businesses like yours stand out and convert.
The choice is yours. But now, at least, it's an informed one.
Further Reading
References
https://www.investopedia.com/terms/r/returnoninvestment.asp
https://www.forbes.com/sites/yec/2017/07/13/how-to-incorporate-video-into-your-social-media-strategy/