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Video Conferencing is Expensive?

Some believe video conferencing is expensive and other believe it saves money. The expense that it takes to have meetings in person is overwhelming according to decision makers of large businesses.

First you would have to take into consideration the different aspects of travel that are an expense:

  • Fuel - With the fuel cost, it an be a financial burden on travel to meetings especially the cost of fueling private jets

  • Hotel - Hotel accommodations are usually a necessity (if you're not staying with a friend, family or associates).

    The number of rooms that may have to be reserved depends on the number of business associates attending.

    Business associates usually stay in 4 star hotels or better.

    This means that the cost will be more than average.

  • Food - Food is usually the least of expenses, however, it still adds up

  • Time - In the business world, time is money. The time you spend traveling could be used to put something into effect to make a profit for the business.

These are all perceived ways that traditional meeting are an expense. There are some fators you have to think about to fairly deide if video conferencing is expensive for you. Having a private jet in order to travel is an expense in itself.

The average jet costs approximately between 5 million and $150 million and around $550,000 per year to maintain it. However, you may not realize the expense of professional video conferencing until you have to pay for it.

If you have a small business, it may not be worth getting a telepresence system for your employees to meet. It may surprise you but the average video conference telepresence system ranges from $50,000 to $800,000. If you have a contract with a telepresence company, it an run you well over $15,000 per month.

If you have a small business, or even a business not it the top 1000 business according to Inc Magazine, you may say video conferencing is expensive for you. It may be more cost effective to use a free system or a system that is higher quality than a free system but will not break your budget.

If you are a multimillion dollar mogul or part of an executive team, telepresence may be well worth looking into. In most cases, a person in this position’s time is valuable. The saying, "Time is money" does actually mean something.

Look at the following scenarios below:

  • If you are in this position, one hour of your time could be anywhere between $20,000 to $60,000. According to various sources Bill Gates makes up to $4,000,000 (4 million dollars) during the night while he's sleeping.

  • Now if it takes you 2 to 3 days to have a business meeting out of the country that is 72 hours. If an hour of your time is only worth $10,000, the whole trip would cost you $720,000.

  • Even if you were the lowest earner with an hour of your time being worth $1,000 that same trip would cost you $72,000.

So as far as some of you thinking video conferencing is expensive, it may be. It just depends on your budget, what your time is worth. When it is all said and done, the purpose of video conferencing is about saving time and money.