If you open TikTok, and search “content creator,” you will instantly be met with thousands of videos of TikTok creators sharing their learnings from their own journey posting content on the popular app. You can’t scroll through the comments on any of these videos without seeing someone asking “What should I charge?” or “How do I even figure out my rate?”.
In the creator economy—currently worth $250 billion according to Goldman SachsGS -2%—where Instagram, TikTok, YouTube and other platforms serve as outlets for influential creatives, one question remains at the forefront: What is the true value of a brand-creator partnership? And how do content creators put that into a number that quantifies their “worth?”
As the industry continues to evolve, it becomes increasingly evident that there is no one-size-fits-all answer, and this is potentially the most difficult part for budding creators to grapple with. The rates for brand deals fluctuate dramatically depending on factors such as audience size, industry niche, deliverables, race, and even individual negotiation skills.
After speaking with four different nano-creators (meaning they have from zero to 10,000 followers on Instagram), hear more about what they’re charging for brand partnerships.
All figures are in USD.
Emma Keteler, 6.7k followers
Emma Keteler (@emmaketeler) is an Austin-based adventure, travel, and outdoors creator who has been generating content on Instagram for a little over a year. Keteler said that most of her brand deals do not include exclusivity and all of them organically reached out to her.
Brand Deal 1: Music festival production company; $400 + 2 weekend passes in exchange for 2 Reels
Brand Deal 2: Headphones company; $200 for 2 in-feed Instagram posts sharing content that the brand created (Keteler was not required to create an original content)
Brand Deal 3: Alcohol brand; $400 for 1 Reel and 1 Instagram Story
Rebecca Logan-Brown, 9k followers
Rebecca Logan-Brown (@beccerzzzzz) is an Black creator based in Myrtle Beach, SCSC 0.0% who creates travel, food, and thrifting content local to the beach town. In the last three years, Logan-Brown has been intentionally creating content in her niche.
Brand Deal 1: Soft drink company; $350 for 1 Reel cross-posted to TikTok. They accepted her rate immediately which was an indication to her that she likely quoted too low.
Brand Deal 2: National chain brewery; $100 gift card and a 4-pack of beer in exchange for 1 Reel. Logan-Brown stated that “it’s quite an informal partnership, but it’s somewhere I go a lot, so I don’t mind the low pay.”
Brand Deal 3: Escape room company; $350 for one user-generated content Reel (She was not required to post this content. The brand will use it in their marketing efforts.)
Sara H., 8.4k followers
Sara H. (@notablysara) has been creating mental health-focused content for the last three years and has had the opportunity to work with multiple brands.
Brand Deal 1: Supplement company; $400 for 1 Reel, 12 months organic usage, and a quick turnaround time of only seven days. The creator mentioned that she was originally offered $250 and negotiated the rate up to $400.
Brand Deal 2: Korean face mask company; $400 for 2 Reels and 12 months organic usage.
Brand Deal 3: Pet company; $250 for 1 Reel, 1 Instagram Story, Link in bio for seven days, 3 UGC images, and perpetual usage rights. The creator originally was offered $100, attempted to negotiate up to $400 and landed at $250.
Sakira and Nonso Nwasike, 8.8k followers
Sakira and Nonso Nwasike (@ourblissfulbites) have been creating foodie content for the last year and a half showcasing all the “blissful bites & beautiful nights” around Houston, New York City, and DC.
Brand Deal 1: Local restaurant week; $150 for 1 Reel
Brand Deal 2: Alcohol company; $350 for 2 Reels and 3 Instagram Stories. The couple told us they “negotiated a package deal for multiple Reels, which gave [the brand] a slight discount”.
Brand Deal 3: Alcohol company; $500 for 2 Reels and an optional sampling event. Sakira told us the brand offered them more than they charged at the time.
According to FYPM‘s 2023 Creator Pricing Benchmark Report, creators with follower counts ranging from zero to 10,000 on Instagram find themselves in a particularly dynamic space.
The median rate for one sponsored Instagram post among this cohort stands at $250. However, breaking down the rates by specific content formats reveals intriguing nuances. For instance, that industry specialization plays a pivotal role in determining rates.
As per the report, pet creators under 10k followers typically charge around $100 per post, whereas their counterparts in the tech industry land on rates over $200 for similar content. This discrepancy showcases the importance of understanding the market dynamics within one’s niche and tailoring pricing strategies accordingly.
Lindsey Lee Lugrin, founder of FYPM, “started FYPM in 2020 because I’d always wished there was a resource like it back when I was negotiating collaborations for my Instagram, @msyoungprofessional.”
“Introducing pay transparency to the creator economy has had the same impact on this industry as it’s had on every other industry – creator wages increased across the board,” says Lugrin.
She emphasizes how creators focus has shifted towards forging partnerships that align with long-term career goals and audience interests. Lugrin adds, “As wages inflated, new creators entered the job market and budgets tightened. Creators are more focused than ever on partnering with the right brands for their audience… and a big part of solidifying the deal is pricing.”
In response to the evolving landscape, FYPM is set to launch its “Build My Offer Tool” for businesses, slated for release in Q3/Q4. This tool aims to streamline the collaboration process by enabling brands to instantly price, contract, and submit verified offers to creators based on fair market value.
Lugrin envisions this tool as a bridge between creators and brands, fostering trust and ensuring that both parties walk away from the negotiation table feeling valued and satisfied.
This article was first published on forbes.com and all figures are in USD.
