How Much Does It Cost To Start An Online Video Editing Business? (In 2024)
Looking to start an online video editing business?
But curious about:
- how much it costs to start an online video editing business?
- what are the typical online video editing business startup costs?
- or the actual cost of starting online video editing businesses?
Well, we have the data to prove it, supported by real online video editing businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting an online video editing business?
Based on our data reported by actual online video editing business founders, the average cost of starting an online video editing business is between $150 and $300,000.
Additionally, our data shows that the the median startup costs for an online video editing business are around $5K.
Remember, though, not all online video editing businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of online video editing businesses
Real World Examples: How much does it cost to start an online video editing business?
We asked real online video editing business founders and business owners how much it actually cost to get started?
Here is what they said:
Sabba Keynejad
Founder of VEED ($6K/month)
"The most important part of starting a business is having time to do so. We initially had saved some money from doing contract work. That gave us our first 4 months runway. We then won some money in a university pitch competition. But after that initial money ran out, as we had no revenue and had to go back to our contract jobs."
Sabba Keynejad is the co-founder of VEED.IO, an online video editing platform that started as a bootstrapped startup and has grown to over 20,000 monthly active users.
Hyunjae Lee
Founder of Vimerse ($30K/month)
"Thankfully, I bootstrapped my business with enough funds to survive a year. Unless you know the exact steps to generate sales, it is very likely that you will have to make mistakes to move forward. There is no easy way to estimate how much your mistakes will cost, which is why it is important to set aside more capital than you might initially estimate before starting a business. Adequate capital allows you to explore and eliminate paths that are not viable."
[FOUNDER NAME] is the founder of [XYZ company], a [TYPE OF BUSINESS OR STARTUP] that [INSERT IMPRESSIVE STAT LIKE REVENUE].
Joe Forte
Founder of D-MAK Productions ($54K/month)
"We started the business with a Canon 60D DSLR camera and a Macbook Pro and grew from there."
Joe Forte is the founder of D-MAK Productions, a video production business that has been operational since 2011, averaging $350k a year in sales for the past five years.
Michael Moloney
Founder of FilterGrade ($30K/month)
"FilterGrade is entirely bootstrapped and was initially started on a single landing page that looked like this:"
Mike Moloney is the founder of FilterGrade, a marketplace for creators of digital assets.
Louise B. Maciulevicius
Founder of Silksocial ($30K/month)
"We had a small budget to prove ourselves and we blew all of it on the production. Luckily this paid off as the small sweat equity investment turned into an almost 2-year long relationship, not to mention a great brand video and millions of seconds viewed on Youtube."
Louise B. Maciulevicius is the co-founder of Silksocial, a video marketing business specializing in eCommerce that she started with her husband, Edvinas Maciulevicius. The business is now generating a turnover of around $30K/month.
Aaron Connolly
Founder of Animation Explainers ($85K/month)
"In terms of funding, it wasn’t until Animation Explainers started amassing a stream of return clients that Aaron and Dylan decided to reinvest the money earned back into the company."
Aaron Connolly and Dylan Healy are the co-founders of Animation Explainers, an animation video production company that specializes in explaining complex products, services, and messages for organizations worldwide.
Ed Thomas
Founder of Vidds ($2.3K/month)
"The startup costs were reasonably low since we didn’t need to bring in any outside help. In the early months, our costs were approximately $10/month to host the marketing site and the app was covered by AWS credits that we had."
Ed and Andrew are the co-founders of Vidds, an online video editor that officially launched in 2021 and focuses on fast, simple video creation using pre-designed templates and an intuitive user experience.
Ching Goh
Founder of Piktostory (now known as Piktochart) ($2K/month)
"We were entirely self-financed, with the profits from Piktochart going into running Piktostory. Close to 90% of our primary expenses were coming from payroll, 10% in marketing, and servers and databases."
Ai Ching Goh is the co-founder of Piktostory, a video editing and transcription business that emerged from the success of their previous product, Piktochart.
Baird Hall
Founder of Wavve ($100K/month)
"Nick (my co-founder) and I both had $1,000 that we could use to start the business. We started a new LLC for the business and funded it with the $2,000."
Baird Hall is the founder of Wavve, a SaaS business that helps podcasters, musicians, and other audio creators to promote their content on social media.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful online video editing businesses that you can learn from.
Starting an online video editing business - what you should know:
Starting an online video editing business can be financially accessible with a proper understanding of costs and essential investments.
Initial Equipment Investment
Your primary investment will be in hardware. A high-performance computer is crucial, with costs ranging from $1,000 to $3,000 depending on specifications. A necessary investment is in a good quality monitor; the price typically ranges from $200 to $600. Additionally, professional-grade headphones cost around $100 to $300, and for uninterrupted work, a power backup (UPS) might cost you about $200.
Software Costs
Video editing software is another significant expense. Popular choices like Adobe Premiere Pro have a subscription model at approximately $20.99/month or $239.88/year. Alternative one-time purchase options like Final Cut Pro X are available at a price of $299.99. Consider also purchasing plugins and additional effects, which could add another $100 to $500 to your software costs annually.
Marketing and Branding
To attract clients, you'll need to invest in marketing and branding. A professional website can cost between $500 to $2,500 to develop, while search engine optimization (SEO) services might set you back an additional $300 to $1,000 per month. Social media advertising budgets vary but expect to spend around $100 to $500 monthly for effective campaigns.
Training and Development
Staying updated with the latest editing trends is essential. Online courses and tutorials range from free resources to more comprehensive courses costing $50 to $300 each. Platforms like LinkedIn Learning and Udemy offer extensive courses that add value to your service by broadening your skill set.
Ongoing Operational Costs
Don't forget ongoing expenses such as high-speed internet, which typically costs around $50 to $150 per month, and cloud storage solutions, which can range from $10 to $50 per month depending on storage capacity. Additionally, consider miscellaneous expenses such as office supplies and snacks, adding another $50 to $100 monthly to your budget.
By understanding these costs and planning accordingly, you can more accurately budget and manage your online video editing business efficiently.
Potential Costs of Starting an Online Video Editing Business
Starting an online video editing business involves various upfront and ongoing costs, including software, hardware, hosting, and marketing, among others. Here is a detailed breakdown:
| Expense Category | Estimated Cost | Details |
|---|---|---|
| Software | ||
| - Video Editing Software | $20 - $50/month | Adobe Premiere Pro ($20.99/month), Final Cut Pro ($299.99 one-time), DaVinci Resolve (Free/$299) |
| - Motion Graphics Software | $20 - $53/month | Adobe After Effects ($20.99/month), Apple Motion ($49.99 one-time) |
| - Cloud Storage | $10 - $100/month | Google Drive, Dropbox, or iCloud (varied storage options) |
| Hardware | ||
| - High-Performance Computer | $1,000 - $3,000 | Desktop or Laptop (e.g., Apple MacBook Pro, Custom-built PC) |
| - External Monitors | $150 - $1,000 each | Dual or triple monitor setup (e.g., Dell UltraSharp, LG UltraFine) |
| - External Hard Drives | $50 - $200 each | For additional storage (e.g., Seagate, Western Digital) |
| - Peripherals | $50 - $300 | Keyboard, Mouse, Drawing Tablet (e.g., Wacom) |
| Website and Hosting | ||
| - Domain Name | $10 - $15/year | Purchase of domain name (e.g., Namecheap, GoDaddy) |
| - Web Hosting | $5 - $20/month | Hosting services (e.g., Bluehost, SiteGround) |
| - Website Development | $500 - $5,000 | One-time cost for professional web development or DIY with WordPress |
| Marketing and Advertising | ||
| - Social Media Ads | $50 - $500/month | Social media marketing on platforms like Facebook, Instagram, and YouTube |
| - Google AdWords | $50 - $1,000/month | Pay-per-click (PPC) advertising |
| - SEO Services | $100 - $500/month | Search engine optimization |
| Licenses and Subscriptions | ||
| - Stock Footage Subscription | $20 - $100/month | Services like Storyblocks, Artgrid |
| - Music Licensing | $15 - $50/month | Services like Epidemic Sound, AudioJungle |
| - Online Courses and Training | $50 - $200 | For skill enhancement (e.g., Udemy, Skillshare, LinkedIn Learning) |
| Labor Costs | ||
| - Freelancers/Assistants | $200 - $1000/month | Hiring freelancers or assistants for project overflow |
| Miscellaneous | ||
| - Insurance | $200 - $500/year | Business insurance coverage |
| - Office Supplies | $50 - $200 | General supplies like printer, paper, pens, etc. |
| - Other Tools and Utilities | $10 - $50/month | Project management tools (e.g., Trello, Asana), Video conferencing tools (e.g., Zoom) |
Total initial and ongoing costs can vary greatly depending on the scale and professionalism of the operation, ranging roughly from $1,750 to $12,000+ initially, with monthly expenses around $200 to $2,000+.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
