The Complete Guide To Creator and Brand Collaborations 2024
How much should you charge as a content creator working with brands? That is one of the most common questions I keep getting asked, and truly, there are still a lot of unknowns around this "new industry" that's growing faster than the speed of light.
As we step into 2024, the creator economy is not just thriving; it's booming beyond expectations. Brands are increasingly recognizing the unmatched value that creators bring to the table — crafting content that's not only engaging but also resonates deeply with niche, highly targeted audiences.
Despite this growing recognition, many creators find themselves at a crossroads, unsure of how and what to charge brands as content creators.
The rising importance of content creators and influencers
The digital landscape continues to evolve, with influencer marketing taking center stage. In the past years, we've seen marketing budgets pivot significantly towards influencers, a trend that's only set to increase.
The creator economy is currently valued at around $250 billion. Goldman Sachs predicts the market could reach $480 billion by 2027, roughly doubling within the next few years.
The problem is that a lot of creators still have no idea what they should be charging and a lot of brands don't know what they should be paying creators.
So let's uncover that.
The industry standard for brand partnerships
Traditionally, the '1% rule' served as a baseline for creators to price their content — $100 for every 10,000 followers. While this formula provides a starting point, the dynamic nature of social media in 2024 demands a more nuanced approach.
Factors such as engagement rates, platform specifics, and content type play a critical role in determining a creator's base fee.
How to know what to charge brands as a content creator
Engagement rate
Your engagement rate (ER) is a critical metric, often more telling than follower count. Industry standards evolve, but the essence remains: the higher your ER, the more you can charge.
In 2024, it's essential to keep abreast of these benchmarks, which vary by platform and content type, ensuring you're pricing your services competitively.
Remember your ER is not only just the likes you get. It includes all content interactions, including saves and shares.
Here are some general ones:
<1k followers: 8%
1k - 5k: 5,7%
5k - 10k: 4%
10k - 100k: 2,4%
>100k: 1,7%
For example, let’s say you have 20k followers and you have an engagement rate of 8%. This is almost 5 times higher than the average, so you can charge up to 5%.
20,000*0,05= $1000 for one post.
Exclusivity
Brands often want an exclusivity period, where you can't partner with their rivals. That's okay, but they should pay you for it!
Did you know they should pay you your sponsored post fee for each month of exclusivity?
So, let’s say you’re working with a big brand that is asking you for a 6-month exclusivity. This means that they have to pay you your base fee times 6.
$1000*6 = $6000
Content usage and image rights
In an era where content is king, the rights to your creations are invaluable. Brands often seek to extend the life of their content beyond the initial post.
Ensure you're compensated for this extended usage, with fees reflective of the current market rate for content licensing.
The fee should be 30% of the sponsored post rate for every month your content will be used.
Back to our previous example, if a brand says they will be using your content for their marketing channels for 6 months, then they should compensate you with:
$1000*0,3 X 6 = $1800
PS. If you’re a photographer, the fee for image licensing can vary according to your gear, experience, and extra expenses like hiring a model, transportation to a location, etc
My friend Chas from @through.the.llyns has a great blog post where she dives more into photography fees, so make sure to check out her blog post here.
Whitelisting
Whitelisting is when you permit the brand to promote your post on your behalf.
This means that the post will appear as if it has been “boosted” or “promoted” by you. This benefits the brands a lot as they tend to have more control over the audiences they target, the copy, the destination page, and call-to-actions.
How much should you charge for whitelisting?
The industry standard is similar to that one for content usage (30% of the base fee). However, some influencers charge a percentage of the ad spend (between 4 - 5%) which is why you should make sure it states in your contract how much will they be investing into promoting your posts.
For example, if the company wants to use your content for ads over the next 6 months and their budget for ad spend is $2000, you can calculate your fee the following way:
$1000*0,3 X 6 = $1800 + 0,05*2000 = $1900
If you’re promoting a brand’s product, you could also negotiate a percentage of the sales.
Other deliverables
Instagram stories
For stories, you can typically charge between 5% - 10% of your impressions. This will depend if the brand wants you to include a link in your story.
Let’s say you usually get an average of 1000 story views, a good rate for this would be $50.
However, if the brand wants a link in the story you could charge twice as much, so $100.
Link in bio
When a brand asks you to add a link to your bio, all traffic you generate for that specific amount of time will go directly to the brand’s web or landing page and not to your blog or web.
You could potentially be losing on getting new leads or customers for your business and so you should be compensated for that as well!
There are no fixed rates for this yet, but a good way of calculating it is by tracking the total number of website clicks you get in a week and times that by the average cost-per-click on Instagram which ranges between $0,40 - $0,70.
Let’s take $0,4 as an example.e
Last week I got 651 website clicks from Instagram so 651*0,4 = $260 for one week of a link in bio.
How to charge brands as a UGC creator
User-generated content (UGC) has emerged as a powerful tool for brands in 2024, offering a more authentic and engaging way to connect with consumers.
For creators, UGC presents an opportunity to collaborate with brands more organically and authentically and the best part is that you don't need a huge audience. You don't need one AT ALL.
How to set your fees as a UGC creator
As a relatively new industry, there are no set standards for UGC rates. However, based on a 2022 survey, the average rate for a single 15-60-second vertical video is around $150, with the median and most common rate being $150. For bundles of 5 videos, creators typically offer a 19% discount, bringing the average rate down to $170 per video.
UGC rates differ from influencer rates, as UGC rates are based on deliverables like the number of videos, usage rights, and creative expertise, while influencer rates are determined by audience size, engagement, and niche relevance.
In addition to the base rate for videos, creators can charge additional fees for various upsells and extras:
Multiple concepts: 25% discount on the single video rate
Hook/CTA variations: $50 each
Usage rights (beyond the standard 12 months): 30-50% of the base rate
Raw footage: 30-50% of the base rate
Whitelisting/Spark Ads: 30% of the base rate per month
Organic/trending concepts: $150-200
Creators can negotiate these rates and extras with brands, emphasizing the value of UGC for its authenticity, engagement, and potential for wider reach compared to traditional sponsored content.
Last but not least, offer packages!
Offering custom packages is the best way to maximize a brand partnership!
This approach not only grabs their attention but also shows that you understand their needs and are ready to put in extra effort.
When a brand contacts you for a sponsored post, suggest a tailored package that might include:
One main post
Two reels
Three sets of stories with links
Maybe even a blog post or more!
Tailor packages for each brand with various options. Aim for a long-term partnership by explaining the benefits for both sides.
That's the advantage of having a presence on multiple channels in 2024. You can offer brand exposure through your newsletter, blog, YouTube channel, and more!
Keep in mind, that someone needs to see an ad at least 6 times before they decide to buy. This rule applies to influencer marketing too.
If your followers want to purchase what you're promoting, they need to see it several times.
Mention this when you're talking deals with brands.
Conclusion
As we navigate the flourishing creator economy in 2024, remember that your unique voice and content have significant value.
Stay informed on industry trends, understand your worth, and don't shy away from negotiating terms that reflect your true value.
The landscape of creator and brand collaborations is expansive, filled with opportunities to maximize your earnings while fostering meaningful partnerships.
Whether you're a seasoned content creator or just starting, embracing these guidelines will ensure you're well-equipped to forge profitable collaborations in this dynamic digital age.
Questions or need further advice? Feel free to reach out. Let's navigate this exciting journey together, maximizing our potential and redefining what it means to be a creator in 2024.
