Here are all the things you should think about when deciding how much to charge for a brand deal or a sponsorship!
If a small business like a startup or a small family-run business comes to you, they probably won't have as much money to spend as a really big company would. I know that this is very different from what other people may say, but I also think that having standard prices or a rate sheet is a bad idea.
So many things go into a partnership, such as:
- How many posts will be made and on what platforms.
- Are they requesting a Video or Photo?
- Is it just a brand mention or a dedicated post/video.
- How much would it cost you to produce the content?
When a brand asks for exclusivity, you have to ask, "For how long?" What kinds of deals are you giving up, how much money could you lose, and can it be put into a certain category?
The next question is about how and where they plan to use your content. Do they want to share it again on their social media accounts? Will it be posted on their website? And then there's paid media. Will they be putting more money behind your content to make it more visible on social media, and for how long?
If the brand tells you their budget or what they want to get out of the campaign, offer multiple packages and different price points when you respond. If their budget is, say, $2,000, you could offer packages for $2,000, an upgrade for $5,000, and a premium upgrade for $15,000.
I know that sounds like a lot, but you need to know how these campaigns work.
Usually, a brand wants to work with a lot of other creators, and they have a much bigger budget for the whole program. Let's say they have $30,000 to work with and 15 creators. This is where you got the $2,000 budget.
If you can make twice or three times as much content as you could before with these different price points, they might decide to work with you and give you some of that extra money instead of giving it to several other influencers. Don't be afraid to reach for the stars. The worst they can say is "no," and our budget is a maximum of $2,000 anyway. And you're not really worse off, right?
The last point is that you should set your prices based on the value you offer. People always ask me how much they should charge. Like specific numbers, but it's so hard to get them. Because it assumes that the only thing you can do for the brand is put that content on your channel and use your reach to get more people to see it. What if the brand wants to use it for something else?
That's very helpful for them, and it means they probably won't have to hire a production company or another agency to make that ad for them. Not only do they get people to look at their ads on your channel, but they also get something they can use in other ways.
I'll leave you with some things to think about.
What if you really like a brand but notice that their social media posts aren't that great? Or maybe they don't post all that often.
What if you reach out to them and offer to help them make content for their social media platforms? You wouldn't even think about putting it on your page. I mean, you could, and that could be a part of it, but your channel can show that you know what you're doing and can make interesting content. So you shouldn't base your prices on your channel in that case, right? I mean, it depends on how much value you add to the brand.