BLOG

Creating a video is a pretty unfamiliar activity for most businesses. It’s filled with unknowns. You may like the quality the company produces, but you still need to know the cost. And unlike other products, there’s no standard proposal structure for video.  Proposal pitches can take different forms, often with hidden expenses. All of the proposal structures have strengths and weaknesses, but some types of proposals have significant risks for the buyer. So what do you look for?

Financial Risk:

  Getting from 100 to Zero

Before you can evaluate a video production proposal, you need to make sure you’ve done the right planning for your video.  This is information a video production company needs before they can draft a budget and proposal.  If they don’t ask the right questions, run for the door.  At Hurricane Images we always ask five questions:

1. 1. What’s the goal of the video?
   2. Who are you trying to reach?
   3. What emotions do you want them to feel?
   4. Do you have a distribution plan?
   5. How will you measure success?

The answer to these five questions can dramatically change the budget of your production.

Now that you’re armed with a clear plan, you can hold your initial conversations with a production company.  A good video proposal should provide either a precise cost or a specific range of costs, and also information that describes the video goals, scope, and recommendations.

I’ve outlined the three most common proposal types, along with the associated risks for the client.

Rate Cards. Rate cards provide the hourly rate for an activity, typically with an estimate of how long the project or activity will take. Unfortunately, they’re often a poor estimate of the final cost. Moreover, they can signal that the production company doesn’t trust the quality of their work. They’re worried about making mistakes– or differing visions– and are expecting large-scale revisions.  Not only are time overruns frequent on every project, edits and changes based on your feedback will come at a price; those costs are going to be yours. However, if your vision for the video isn’t clear (and you anticipate a lot of back and forth on the project) an hourly rate may be the most reasonable approach.

Estimate Range. This type of proposal provides a clear prediction of your final costs. The best type of range proposals offer different creative options or concepts (and thus a range of associated costs). If a producer offers an estimated range for a single concept, they’re probably not confident they can meet your expectations for the video and are trying to protect themselves. Still, estimated ranges show that they have some grasp of your vision and the production process.

Flat Fee/Project Fee. Flat fees provide an exact amount your will be charged for the production. Any financial risk is absorbed by the company, and it’s generally a sign that the company is confident about their ability to meet your expectations. However, flat fees should be accompanied by a clear description of the project, the activities, and the equipment to be used. To accomplish this, the company should have had a detailed conversation with you about your goals and vision; otherwise, your product is likely to be “canned.” Flat fee proposals should also include a number of editing revisions based on your feedback. Additional edits (or shoots) are generally charged at a their standard rate, which should be included in the contract as well. This is one of the safest contracts available.

All-in-Ones. The “All-in-One” is a type of flat fee, and different companies call it by different names.  Essentially, it’s one price for a type of shoot.  It should have no over-runs or extras, making it essentially zero risk.  And while this seems like the way to go, an All-in-One is usually a canned production process– that’s why the cost is constant.  And this results in canned results.  Your video will look pretty much like every video they’ve ever shot, and will be less effective at reaching your goals.

How to Review a Proposal

Once you have the numbers in front of you, take a moment and let your gut weigh in. A price tag is still an apple to orange comparison. The production company’s experience, the past clients, technical ability, and the ease of working with them can impact the success of your video. Potential production partners should be flexible, ready to walk you through the numbers and make adjustments based on your conversation. Video isn’t a small-ticket item, so talk with the perspective companies and get to know them.

When you review their proposal, evaluate how well they summarize your project. Do they have a strong understanding of your goals and vision? Have they communicated a pre-production process that feels thorough and appropriate for your project? Then return to their portfolio to see if they have the expertise to create that vision.  Does it require special equipment such as drones, underwater, or multiple camera videography?  If you’re unsure whether they have the experience or the tools you need, ask. Some types of video, such as animation, are highly specialized. If you don’t see the animation style you want in their portfolio, it may not be something they can create. If you need help with the concept or script, what is their experience level?  Do you need translation?  Finally, make sure there is a clear timeline with a date for the review draft.  One of the biggest ways production companies fail is by taking months to complete the work.
Professional video is an investment, and it takes time and careful thought to review and select a company that will deliver on your vision.