Tips on Negotiating Brand Deals for Creators
You know your worth!
This post is a summary of my takeaways from this post by Rakugo Media.
As a content creator, you may have been approached by brands interested in working with you for a sponsored post. Some will offer a low-paying opportunity, when it may be worth much more. Other agencies and brands may price your content at a high rate without any explanation. This can make it difficult to understand the true value of your content and how much the brand will make from the sponsored content. BUT - it's important to remember that in the digital media industry, brand deals are now fully in your control and are not based on metrics.
Brand deals are now more art than science. They require an understanding of the entertainment industry and "influencer marketing". The creator represents and endorses both their own brand and the sponsored content. When promoting a brand, you will generally hear buzzwords such as content quality, brand fit and authenticity, and engagement rate. However, if you do a simple search of “brand deals” on TikTok, you’ll learn from many creators that brand deals don’t have a standard rate, and the ability to create content has nothing to do with the engagement metrics. Brand fit and authenticity are purely the brand’s / agency’s subjective interpretation of your content.
To land more and better brand sponsorships, consider the following:
Do due diligence and ask questions to potential brand partners - e.g., Who else are they working with in the campaign? Who have they worked with in the past? What are their campaign objectives and budget?
Some of the due diligence, you can do yourself, such as signing up on FYPM and looking at past experience of creators working with certain brands. Don't be afraid to inquire about the details of the partnership and understand the value you bring to the table.
Negotiate based on the value you bring to the partnership - i.e., Do not just put a number (rate) as proxy to your true value.
Don’t try to negotiate an hourly rate. Focus on the value you can offer the brand. As a content creator, you bring valuable services that go beyond traditional hourly rates.
It may be uncomfortable at first to advocate for the value of your content. Remember, though, that you are the expert in your field and can best communicate the worth of your work even if brands may question the value of a short 30s video.
Having a portfolio (i.e., a media kit) of past collaborations and showcasing your success gives you great leverage when negotiating brand deals. Even if the current deal may be for a higher price, you don't have to disclose your previous rates. The larger your portfolio, the more likely a brand will trust you and your track record.
Understand the metrics you have - e.g., What can the implications of your engagement metrics mean to brands?
When engaged in a brand partnership, it's important to emphasize the metrics you know. Brands and agencies may intimidate you with metrics that are basic and “tablestakes”. You can quickly Google the terms “CPM”, “engagement”, and “conversion” or hear other creators on TikTok/YouTube talk about it. These terms are often thrown at creators to make them feel like they need an agency's help. In reality, you know your content and your social media presence better than anyone else, so use this information to navigate the negotiation process and monetize your social media.
Let the brand or agency do the talking - i.e., Work with what they’ve got to say rather than against it. Let them do the majority of the talking, especially if they reached out to you!
It's important to let the other side do the majority of the talking in the early stages. Don't reveal too much information and let the brand explain why they want to work with you. The goal is to show that your branded content will be more effective than others while also giving away as little information as possible. Resonate with the goals they hope to achieve through your content and make sure both sides feel heard and understood.
A common misconception to creators is that negotiators must be strong-willed or bullheaded, but in reality, giving the impression that the other side has the upper hand is the key to success. For example, a micro-influencer may have a niche following, but the rate the brand agrees to could be based on something they mentioned in the first five minutes of the conversation. By giving the brand the opportunity to speak, you allow yourself to negotiate from a position of power.
Think about long-term partnerships - i.e., When you can, try to get the brand into thinking about developing a long term relationship over a short-term transactional one with you.
Keep in mind that you are the expert in your field and only you can truly determine your worth. Always keep the brand's goals in mind and hold essential information close to your chest. When it comes to working with brands, always negotiate from a position of confidence, think about how to add value, and focus on the long-term aspect of the partnership. A successful brand deal can lead to a long-term, regular source of revenue.
YOU are the expert in your field and know the value of your high-quality content. Don't be afraid to ask for what you deserve and don't be discouraged if you don't have a media kit; you can make one easily on Canva!