Content creators face unique challenges in deciding what to charge for sponsored content. Compared to traditional industries, there are no standardized guidelines, and rate calculators are often inaccurate, leading to wide disparities in pay and frequent underpayment.
For many creators, determining rates can feel like a shot in the dark. Some base their rates on brand offers, while others rely on feedback from fellow creators. Understanding the factors brands consider when negotiating pay can help creators set rates that reflect their value, experience, and the impact of their work.
What Should Creators Charge?
Creators can find guidance on establishing a specific base rate using a platform like FYPM. Lindsey Lee Lugrin, Founder of FYPM, explains, “With fypm,vip, you can look up how much brands have paid other creators for sponsored content and UGC in the past, how many followers they had, usage rights and exclusivity terms, etc.” This information as well as information about where the opportunities with these brands can be sourced and if the creator was paid on time is crucial to ensure a fair and pleasant brand partnership experience.
Additionally, the FYPM 2024 Creator Pricing Benchmark Report serves as a valuable tool for creators, highlighting key elements like production value, endorsement value, distribution value, and opportunity cost. These considerations go beyond follower count and engagement, allowing creators to understand their worth and position themselves strategically in negotiations with brands.
1. Follower Count
Follower count remains one of the most recognizable metrics in influencer marketing, but it shouldn’t be the only determinant of a creator’s worth. A creator with 10,000 followers may drive just as many sales as someone with 100,000 if they have strong engagement, a highly targeted audience, and a deep connection with their followers. As Kevin Cantor, Influencer Marketing Analyst at Pepsi, explains, “Follower count is important, but this can be achieved through one viral post and is nothing more than a measurement in a single point of time. Average views, engagement rate, and other metrics can tell a better story.”
2. Engagement Rate
In today’s influencer landscape, brands value engagement rate over follower count, as it shows how actively an audience engages with a creator’s content. “We’re seeing ‘breakout’ influencers with a wide social presence in the ten thousands range who have a loyal, active, buzzing community behind them,” notes Priscila Hernandez, Associate Producer at Collectively Inc. “Engagement and authenticity have become more important than ever.”
3. Quality of Content
The quality of a creator’s content, from visuals to storytelling, can greatly influence what’s on their rate card. If a creator’s aesthetic aligns with the brand’s, they’re more likely to negotiate a higher rate. As Mikayla McMahon, Social Media Manager at Wild Dunes Resort, shares, “We prioritize creators who consistently produce high-quality, visually appealing, and well-edited content that aligns with our brand aesthetic. This includes not only the quality of photos or videos but also the storytelling and captions.”
4. Previous Work ROI
A history of successful brand partnerships and high conversion rates strengthens a creator’s ability to negotiate higher rates as well. Brands appreciate creators who can provide case studies or performance data from past collaborations. Tanya Kulesh, Acting CMO of Dirty Dog Beauty Club, highlights, “If it’s an ongoing relationship, past performance metrics and the creator’s reliability and ease of collaboration play into the rate.”
5. Impressions/Views
Brands look at average views and impressions, sometimes valuing them more than follower count. As Ashley Wilson, Owner of Ashley Wilson Media, puts it, “Follower count is not as important as average views. For example, if Creator A has 1 million followers but has only been getting 10,000 or fewer views, and Creator B has 150,000 followers but consistently gets 30,000 views, then Creator B is more ‘valuable.’”
6. Professionalism
Brands highly value professionalism as they often manage multiple campaigns with tens or even hundreds of creators simultaneously. Being reliable, communicative, and adaptable can enhance a creator’s reputation and lead to repeat partnerships. Gianna Cianni from The Knot Worldwide notes, “Responsiveness, willingness to adapt, and timely delivery are essential; creators known for professionalism are easier to work with and may command a premium.”
Many brands are also working with quick timelines for partnerships, so fast responses to email offers from brands may also allow you to raise your rate. Chloe Perkins, Founder of The Creative Cupid, adds, “With quick turn-around content, budget can be first come, first serve. So, if you reply fastest, it’s more likely you’ll get your rate.”
7. Audience Targeting & Demographics
Knowing an audience’s demographics—such as location, age, and interests—makes a creator more valuable to brands targeting specific groups. Luke Raben, Growth Manager at LABFRESH, notes that brands consider “qualified audience views & engagement,” emphasizing that for a Netherlands-based product for females, for instance, they’ll look at what percentage of a creator’s following is in that location and female.
8. Quality of Connection With Audience
Creators who genuinely connect with their audience are highly valuable to brands, as trust often leads to conversions. Shayna Macklin, Director of Brand & Social Strategy at Playboy, explains, “I look at how the creator engages with their audience. Are they responding to comments? Are they creating content that is authentic to their personal brand? Are they trying to build a community versus simply influence something?”
9. Authority in Your Niche
Establishing authority in a niche increases a creator’s worth. Adam McNeil, SVP of Client Services at ADOPTER Media, points out that “engagement and authority matter far more than follower count.” When a creator is respected in a specific field, their endorsement carries more weight with a brand’s target audience.
10. Usage Rights of the Content
When a brand wants to repurpose a creator’s content for ads, websites, or other media, it justifies a fee added to the creator’s base rate, dependent on how much usage the brand is requesting. Tosin Olaniyi, Influencer Campaign and Partnerships Lead at The Influencer Godmother advises, “For social use, we add about 20% of the base rate per month. Website, ads, or newsletter usage would be around 30-35% of the base rate.”
11. Partnership Exclusivity
Brands often pay extra for exclusivity in their product category, ensuring that a creator won’t promote competitors. Carl Twinney, Senior Client Relationships Manager at EMC Talent, says, “We always try to subsidize exclusivity periods and any extras added on top. This helps motivate creators to produce the best content, as their rate can increase if their content performs well.”
12. Requested Timeline
It’s not uncommon for a creator to charge a “rush fee” when a brand is requesting the content to be posted in less than the industry standard two-week period. In this case, the creator will often request that the “rush fee” is added into the contract to ensure they are compensated for having to “rush” to create the content with a tight deadline.
UGC vs. Sponsored Posts
User-Generated Content (UGC) differs from sponsored posts as it doesn’t reach the creator’s audience, typically resulting in lower rates. Lisa Harroy, Head of Creator Partnerships at Riverside.fm, explains, “Sponsored posts include access to the creator’s audience, so they typically command a higher rate due to the reach and engagement. For UGC, rates are usually lower, as they’re based more on production effort, quality, and intended usage rights than on audience reach.”
Bottom Line
Content creators face a complex landscape when determining what to charge, considering factors like audience engagement, content quality, and professional relationships with brands. By understanding these variables, creators can establish fair rates that reflect the value they bring to each collaboration, helping to create a more equitable and transparent creator economy.
