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Introduction

What's up, ladies and gentlemen!
Welcome to a brand-new episode of The Blade Podcast—your go-to podcast for all things film production, post-production, and marketing.

I’m your host, Lungile, and in today, we’re diving into a crucial topic: Budgeting for a Low-Budget Commercial.

In my previous video, I explained how I developed a low-budget commercial for a fast food brand—breaking down the steps from concept to execution. If you haven’t seen it yet and want to learn about idea generation, research, and strategy, go check that out first.

If you’ve already watched it—great! Now, let’s talk about how to put together a budget for your commercial.

1. Breaking Down the Budget

Once I had the video script and concept aligned with the client’s goals, I had to develop a budget. Here’s what I considered:

a) Location Costs

• Number of locations needed (1, 2, or more).
• Hiring a location scout to find suitable filming spots.
• Location security to ensure a safe set.
• Portable toilets for the crew, especially with COVID-19 precautions.

b) Casting Costs

When hiring actors, you need to account for two key payments:

1. Call Fee – A daily rate paid to actors for showing up on set.
2. Usage Fee – Paid based on where and how long the commercial will air.

For example:

• If an actor's call fee is R3,500, and the commercial airs for six months, the usage fee could range between R10,000 – R20,000, depending on the actor's experience.
• If the commercial runs for longer than six months, another usage fee is required.

To get accurate pricing, reach out to local casting agencies and request their rate cards.

2. Crew & Production Costs

A successful commercial requires the right crew. My budget had to cover:

• Director
• Director of Photography (DP)
• Line Producer
• Production Manager & Coordinator
• Art Department Heads (HODs)
• Production Assistants
• Crew Drivers

a) Phases of Production

When budgeting, consider all three phases:

1. Pre-Production – Location scouting, casting, script finalization, and permits.
2. Production – Filming days, equipment rentals, and on-set logistics.
3. Post-Production – Editing, sound design, and final delivery.

Tip: Don’t just budget for the shoot days. Account for pre-production meetings, location scouting, and post-production work.

3. Equipment Costs

To achieve high production value, I had to budget for:

• Camera Package (rental costs)
• Lighting Package (lights, modifiers, and power requirements)
• Consumables (gels, batteries, hard drives)
• Grip Equipment & Crew (for rigging, stabilizers, and dollies)

4. Post-Production Costs

After filming, post-production expenses include:

• Hard drives (for storage and backups)
• Editing (hiring an editor, booking an edit suite)
• Color Grading (professional color correction)
• Graphics & Animation (if needed)
• Music Licensing (Library music vs. hiring a composer)

Music Costs

• Library Music – Requires a usage fee.
• Custom Score – Hiring a composer is often more expensive but provides a unique soundtrack.

5. Additional Costs

a) Production Insurance

Essential for protecting equipment and crew in case of accidents or damage.

b) Catering & Transport

• Catering during pre-production, production, and post-production.
• Transport costs for crew, cast, equipment, and wardrobe.
• Fuel, parking, and tolls for long-distance shoots.

c) Office & Admin Expenses

• Printing scripts, shot lists, and schedules.
• Airtime, data, and internet costs.
• General stationery for production planning.

6. Production Fee & Contingency

Production Fee (Profit Margin)

Your production fee should be 10% – 45% of the total budget.
Remember, this is a business—you need to make a profit!

Contingency (Emergency Fund)

Consider adding a 5% contingency fee in case of unexpected costs.
This protects you from over-budgeting issues while keeping your margins intact.

7. Free Budgeting Template

To help you out, I’ll be dropping a free template for my low-budget commercial in the description below.

• It includes a detailed breakdown of how I budgeted my project.
• The template uses South African Rand (ZAR), but you can adjust it to fit your local currency.

Final Thoughts

I hope this breakdown paints a clearer picture of how to budget a commercial properly. If you have any questions or need more details, feel free to:

• Comment below (if you're watching on YouTube).
• Like & Subscribe to stay updated with new content.
• Hit the bell button to receive notifications.
• If you're listening on a podcast platform, email me your questions.

Until next time—stay safe and keep creating! 🎬🔥

Summary of Key Budgeting Considerations

This version organizes everything clearly, making it more engaging and structured while keeping the energy and flow of your original script. Let me know if you'd like any tweaks! 🚀🎬