That's all changed now. With the advent of digital video cameras and non-linear editing on computers, the costs of producing a video have come down dramatically. And with sites like YouTube you can be available to every computer in the world in a matter of seconds (with the right linking of course). In my career of over 13 years in the video business I've seen a room full of equipment that cost near $250,000 be reduced down to a computer with specialized software at 1/10th the cost.
What you, as a customer, need to consider in this brave new world is the ultimate quality of your production. As stated, equipment is less expensive which is a double-edged sword. What we've witnessed in the industry is an influx of would-be video producers that can afford the equipment but don't have the experience to know what goes into a production. What you end up with is a low end video that most likely won't get your message across and thus cheapens your image.
A good video production starts with a good script. If you have a bad script you can have Steven Spielberg directing the video and, though it will look fantastic, your message still won't get across . The script then must be translated to compelling images for the camera (via a talented director of photography who knows lighting and composition) which in turn must be stylized by a talented editor.
Along with the script and technical side, there are other things to consider; actors, voice over, music, props, locations....all of these things should be provided by a competent producer. Bottom line, as with any major purchase you make, do your homework. Ask questions. When a production company offers you their demo reel make sure you know what they did on that demo reel (shoot, light, edit, all of the above?). Make sure that you know what you are getting for the money. Good actors cost good money, ever see a local car commercial with good acting?
Get your thoughts on paper (or Word document), outline what points you want your video to make, then work with a good producer that can make that outline even better. A well produced video or commercial, in tandem with a solid marketing plan, will get you noticed.
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