Is it worth spending money making a video explaining your startup on your homepage? Most startups have a short 1 minute video on their homepage that explains what their business does. Yet only a small percentage of visitors actually play intro videos.
So is it worth spending $1K to $3K and time to get a video made?
Let me first answer the question: Should you have an intro video?
Short answer: Yes.
Longer answer: It probably depends on your market, but it sure doesn't hurt to have a video.
People learn about startups in different ways. Some prefer reading about it. Some prefer looking at descriptive illustrations. Others prefer watching a video. It's all about providing visitors with as many easy ways to learn about what you do as possible.
Another benefit: If you host the video on YouTube, you may actually get a few people subscribing to your channel. This can be encouraged if you have a series of how-to videos about your startup. While the overall viewers may be low compared to the traffic on your site, this can provide a lot of utility for those few people who like them - as well as handle potential customer support questions.
Next, let me answer: Is it worth spending money on a video?
Short answer: It depends.
Long answer: If you are a very young startup, even a homemade video with a free screen capturing app can work. You don't need to blow a big budget on production quality.
The most important thing about an explainer video is the script and the content. Basically, you should have video of your product and how someone can get up & running quickly. Those are way more effective than cartoon drawings that abstract your product.
But if you are in a market where you need a more professional image, it is worth it to spend more on a well-made explainer video. Like an enterprise market, for instance. I've seen these run higher than $5k in some cases, but if you've found a good shop that can create a high-quality video for cheaper, more power to you.
There are also online services you can purchase to help you create explainer videos. They may not be as polished, but will look much better than a homemade video.
Whatever you do, the key is the script. The script is way more important than the production quality of the video. As long as you can show your value proposition easily, you are good. Some of the top explainer video agencies will help you with a script, which justifies their higher costs.