1. How to Save $500 on Equipment
Don't buy an expensive camera - it's online video, so no one will tell the difference between a video that was shot on a $5,000 camera, or shot on a $150 camera like a Flipcam or Kodak Zi-8. Flipcam is being shut down by their parent company (Cisco), so you can find unbelievable deals on them these days... often less than $100. A Flipcam is what I use.
Don't buy or use lighting, or a studio - instead of blowing $1,000 on lightboxes, muslin, frames and stands, just use.... drum roll please.... natural sunlight! Not only will you save money, but tons of time too. If you've ever tried to setup lighting - especially in a small room or office - you know that you can easily spend 30-60 mins fidgeting with things to avoid shadows or "hot spots" (glare) on your / your subject's face.
Best Video Editing Software
Don't but expensive editing software - make no mistake, a $5,000 editing program can do amaaaaazing things (broadcast-quality in fact) in the hands of a skilled operator. Here's the thing - for you and I to get to that level would require dozens and dozens of hours of practice. PLUS - the accomplish what you and I want to accomplish in our basic, blog-style marketing videos doesn't require movie magic - we don't need lazers, crazy intros, or any other form of glittering editing magic. We just need an intro, body, and outro. That's it. So purchase accordingly - get Screenflow for Mac (the best setup, and only $100), or if you're on a PC (my condolences) you can use Camtasia or Sony Vegas.