According to influencer marketplace Tomoson, companies make $6.50 for every dollar they spend on influencer marketing. This data demonstrates the value of influencer marketing, so creators like you should be fairly compensated for their work.
However, many influencers and creators don’t know how much they should be charging for sponsored content. Instead of having a flat rate, they may negotiate each individual offer. Realistically, if you want to make a steady income from sponsorships, you should be the one determining the baseline of what you’re making.
As a general rule of thumb, charge about $200 for every ten thousand followers you have.
Single Grain defines a micro-influencer as a creator who has up to ten thousand followers. According to their survey, 42 percent of micro-influencers charge $200-500 for sponsored content, and 37 percent charge less than $200.
If you have less than ten thousand followers, you can follow these exact numbers. However, the bigger your online following is, the more you should be charging for sponsored content.
Following the aforementioned formula, a channel with a million subscribers would charge at least $20,000 for a sponsored video.
Have different rates for different types of content.
While this formula is a good starting place for videos, you may want to adjust your rates for different kinds of content or promotional posts.
For example, if a brand wants to sponsor an Instagram post instead of a YouTube video, then you may lower the price to $100 for every ten thousand followers you have. According to the previously cited Single Grain survey, 96 percent of micro-influencers charge $200 or less for a sponsored tweet.
You can negotiate for other kinds of compensation, too.
Before you promote a product or service, you should definitely try it out for yourself. Major influencers have landed themselves in hot water for promoting products fans found to be faulty or companies they later found to be dishonest.
However, you also shouldn’t have to pay for the product or service out of pocket. While you’re negotiating a sponsorship, ask the company to send or product samples or give you a voucher to try the service.
Don’t let the promise of money sway your opinion of the product. If your viewers have poor experiences with one sponsor, then they will be less likely to purchase anything from any of your future sponsors.
Product samples are not the only other kinds of compensation you may be able to get. Ask the company about affiliate links to share on your social media pages and in the descriptions of your videos. When fans use your affiliate link to make their purchases, you’ll receive a small portion of the profits.
Know when to raise your fees.
If you feel like a company is asking for a lot more work to be put into a sponsored video than you usually put in, don’t be afraid to charge them a bit more. You may consider setting an hourly rate based on what freelancers doing similar work charge.
You may also raise your rate if the company wants to turn your sponsorship into a long-term business partnership.
When you’re making a sponsored video, keep an expense report. Record any extra charges, such as props or rented equipment, the video requires. Turn your expense report into the company before uploading the sponsored video.
When it comes to influencer marketing, you have to know your worth. Set definitive rates so that companies will compensate you fairly for your work.
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Kristen Harris enjoys listening to a wide range of music, from Taylor Swift to, on occasion, Celtic instrumental. She also spends her time writing, reading, and baking.