Finally, we’re about to talk about making some coins, I’m sure this is the part you’ve been waiting for! Before we begin, if you haven’t read the other posts in the Become a Natural Hair Influencer series, check them out below and come back to this one!
In this post, we will discuss how to set rates for collaborations. Your rates are what you charge for creating content. In the beginning, I did many collaborations for free because I was just getting my foot in the door. I knew I had to grow more as an Influencer before starting to charge for my time and work.
One price does not fit all when you set rates for your collaborations. Don’t compare what you charge to anyone else, your main focus should be what you know you can offer a brand and how good you are at creating quality content.
I also want to point out that your rates won’t be the same for every collaboration. How much you end up charging will depend on factors such as the amount of work you have to complete and how long it’ll take you. You can always adjust your rates depending on what the brand is expecting from you during the collaboration.
So, let’s go ahead and start with this post. Once again, these are my tips and personal experiences so you can learn how to set rates for collaborations!
What you set your rates as will depend on your experience, engagement, and time. There’s no cut and dry answer for the exact amount you should charge for your content. However, here are some things to consider when you set your rates for collaborations:
When you apply for a job, your resume is important to include right? The same goes for collaborations on social media. If you create good-quality content and have experience working with brands, you can charge more since you know the value you will bring. You want to ensure what you charge reflects how much you’re worth as an influencer.
Unfortunately, there are people who take shortcuts and decide to purchase followers and/or likes on Instagram. However, it’s evident because they may have little to no engagement on their content. This is one reason why brands are focusing more on engagement than how many followers you have. If you have a small following with a highly engaged audience, you’ll be able to set your rates for collaborations accurately.
Any content that a brand wants you to create will take time and energy. If you know the scope of work is more than usual, then you want to factor that into your rates.
No matter the amount of followers you have, you should eventually become comfortable with telling brands your rates. I mean, they feel comfortable asking you to work right? Any content that you create outside of what you have planned is LABOR.
However, you don’t want to end up over-pricing or under-pricing your work as an influencer. If you charge too much, you risk losing the collaboration. If you don’t charge enough, you may find yourself overworked and underpaid, and you won’t end up happy.
Here are other ways you can figure out the rates you should charge
This website provides an estimate on how much you should charge based on your engagement and follower count. You can put in how many photos and/or videos the collaboration requires and get an idea of what your rates should be. It’s important to remember that this is only an estimate. You should price yourself lower or higher depending on how you feel the quality of your work is.
Set your base price (absolute minimum)
When setting your rates for collaborations, it’s important to have a base price. Your base price is the bare minimum you would accept for your content no matter what. For example, if you can’t see yourself doing a collaboration under $50.00, then that would be your base price.
You don’t want to end up accepting a collaboration for much less than what you want OR think you’re worth. When you accept less compensation than you’re expecting, it will show in the quality of your content you’re creating for the brand. This will only lead to an unsuccessful collaboration, and most likely you won’t have another chance with the brand in the future. You always want to put your best foot forward no matter what, so, set your base price and never budge from that minimum!
What if a brand reaches out and provides the amount they will pay you without asking for your rates?
If an offer is already presented to you without your rates being provided, you want to make sure you have all of the information about the collaboration before moving forward. First, you want to make sure this collaboration would be a good fit for your brand and audience. Second, you want to find out how much work they are expecting from you. Remember, the time you contribute to a collaboration should be factored into your rates.
Before negotiating your fee for the collaboration, you want to have a good understanding of your engagement rate. If you know your audience regularly engages with your content and will trust your opinion, and if you’ve had successful collaborations in the past, let the brand know that and show them some of the work you’ve done.
If you’re not happy with the offer, then this is when negotiation comes into play.
Ask the brand what their budget is, that way, you can set your rates based on that. If they don’t provide a budget, then give them a range amount you’re willing to charge based on the work they’re asking you to fulfill. Negotiate until you can meet in the middle and both be satisfied.
However, if the brand isn’t willing to pay you what you feel your content is worth, then you have the choice of moving forward with it or politely declining.
What about brands that want you to collaborate for free?
Before I even begin this section, I just want to point out that free products don’t pay bills. However, some brands will reach out to you and expect free promotion in exchange for free products.
Some brands may have a tight budget or may not expect to pay you at all. At this point, it’s up to you to determine whether or not you’re willing to collaborate for free in exchange for exposure on their social media and/or website. Sometimes doing collaborations for free can have benefits in the long-run. You’ll establish an excellent working relationship with the brand and will continue to obtain more opportunities in the future, maybe even paid ones! So think about it before making your decision.
You want to weigh out the pros and cons of working in exchange only for free product(s). If you feel the value of the product(s) is equal to the value you’re bringing to the company, then you can make the decision to move forward.
For example, one of your favorite brands may want to send you products in exchange for a review. You know you love these products and let’s say they are sending you an entire line that is worth more than your rate. It would be up to you whether or not you’re willing to provide promotion and if the value of the products are worth it.
You want to work with brands who value your content and audience. You’ve worked hard to create and build your platform, so it’s important to collaborate with those who hold themselves to the same standards.
Also, remember you won’t have one flat rate for every collaboration. Like we discussed earlier in the post, some collaborations may require more time and effort, so you want to be flexible when you set your rates.
Always be ready to negotiate if you’re not satisfied and remember to look at the bigger picture of each collaboration. What benefits would this bring for your brand? Will it put you in front of more brands so you can secure more opportunities? Will you have a professional relationship with the owner and be able to work for them in the long run?
Rates are one of those things that takes time. Once you continue to work with more brands, you’ll have an idea of how much you should charge. Sell yourself, and know your worth as an influencer!
That’s the end of Become a Natural Hair Influencer series! I hope you enjoyed it and received a better understanding of collaborations. If you have any other questions, feel free to reach out to me!