One of the most difficult parts of creating sponsored content is determining the price that you should charge for your work. In an industry that’s fairly new and rapidly growing, there aren’t really concrete standards that you can go by when it comes to deciding what’s fair and right for you. Your price for sponsored posts is something that constantly changes as you grow and develop your voice and personality online.
When one of us wins, we all win
Since there’s so much grey area in terms of pricing, it’s important for influencers to take a few things into account when deciding what to charge (see tips for deciding this below) so that you can come to a price that fairly reflects on the work that you do. By finding a rate that works for you and you feel is a fair representation of your work, you’ll be helping other creators get paid accurately as well.
We’re not the only ones new to this industry and sponsored posts; some brands jumped on to influencer marketing early and others are still trying to figure out how to break in to the area, which means that it’s more important now than ever to help build up a level of pricing that is consistent and that they can understand. Once they understand how much work goes into creating a piece of content and how much it is worth, they’ll be able to better gauge what pricing will be like throughout the industry.
All of us put hard work into what we do, and it’s important that this is recognized. By keeping rates at a level that reflects the work that you do, you help brands to see that the work others do is equally important. Undercutting this only hurts the industry and can mean that brands will expect lower pricing. When one of us wins, we all do; there’s a reason why the influencer segment is referred to as a community!
Don’t undervalue yourself when it comes to setting your price for sponsored posts
There’s a reason why a brand chose to work with you – they respect your work and think that you’re a good representation of their products and what they stand for. Don’t undercut yourself because you’re worried that they might think it’s too high. If you think your rate is fair, go with your gut. There’s always time to negotiate afterwards as well.
Take into account the amount of work you’ll have to put in
A good rule of thumb to get a general idea of what to charge is to start with a rate of about $7-10 per CPM (cost per thousand impressions) or a $0.40 CPE (cost per engagement), and then to build your price out around that (Time Out Factor has put together a handy calculator to help you determine this). Be sure to factor in the level of engagement that you have on your posts, the amount of work that will need to go in to creating the content, and what the brand is asking of you. For example, if a video is a required component, your rate will be higher than if you were asked to create a single picture.
Speak with others
If you’re not sure where to start, don’t be afraid to speak with others in the industry. As mentioned above, having a level of consistency across the market ensures that we’re more likely to get fair payment for our work. Reach out to a few other influencers you know and have an open conversation about what you charge and why. Getting a better understanding of why you should charge a certain price for sponsored posts will make it easier to set this.
Ready to start working with brands? Or want to check out #paid’s own pricing recommendation tool? Join #ThePaidCrew community and start working with world-class brands.