How Much to Charge for Brand Deals
Click to watch the full video:
Here are all the factors you should use to figure out how to price yourself when negotiating for a brand deal or sponsorship!
Pricing Sponsored Content & Brand Deals
Price The Brand
If a small business approaches you for instance a startup, or a small family run business, chances are that they are going to have a much smaller budget than a really big company. I know this may be completely different advice than other people may give, but I also think it's a mistake to have standard pricing or a rate sheet.
There are so many factors that go into a partnership such as
-How many posts
-Dedicated or integrative videos
It doesn’t hurt to start with asking what the brand's budget is for the project.
When a brand is asking for exclusivity you have to ask, how long is the duration? What kinds of deals, how much money are you potentially giving up and is there a specific category that it can be confined to?
Next is usage rights, how and where are they planning to repurpose your content? Do they want to re-share on their social media? Are they gonna embed it on their website? And then it's paid media, are they going to be putting additional money behind your content to amplify it on social media, and how long do they want do that for?
If the brand provides their budget, or the deliverables they're looking for in the campaign, when you respond, provide multiple packages, and different price points. If their budget is let's say $2,000, you could come back to them with packages at $2,000 and up-sell at $5,000, and then a premium up-sell at $15,000.
I know that might seem like a lot, but you have to understand how these campaigns come together.
Oftentimes a brand wants to work with a lot of other creators, and they have a much larger budget for the overall program. Let's say they have $30,000 to work with, 15 creators, which is where the $2,000 budget came from for you.
If you can make two or three times the amount of content than originally with these different price points, they could potentially decide to partner with you and give some of that extra budget to you instead of multiple other influencers. Never be afraid to shoot for the stars, the worst that they can say is "no", I mean really our max budget is 2,000. And really you're no worse off, right?
Pricing Relative to the Value You Provide
The last point is that you need to price relative to the value that you provide. People ask me all the time, how much should they charge? Like specific numbers, but it's so hard to do that. I know there's some tools out there like Social Media Bluebook, and those can be helpful. However, that assumes that your only value to the brand is in you uploading that content on your channel and leveraging your reach. What if the brand wants to repurpose it?
That's super valuable to them, and it means that they probably won't have to go hire a production company or another agency to make that ad for them. Not only are they getting eyeballs from your channel, but they're getting an asset that they can use in other ways.
Here some food for thought that I'll leave you with!
What if you find a brand that you really love, but notice that their social media content kind of sucks? Or maybe they're not posting super-frequently.
What if you reach out to them and propose to help them create content for their social media platforms? You wouldn't even propose posting it to your page, I mean you could, that could be a part of it, but instead your channel can serve as credibility that you know what you're doing, and that you can create compelling content. So in that situation you shouldn't base your pricing on your channel, right? I mean it's based on the value that you're bringing to the brand.