Content creation is becoming a popular profession for creatives and entrepreneurs. According to a 2022 Linktree report, there are over 200 million content creators in the world, a number that is steadily on the rise. For many content creators, brand deals and sponsorships are some of the best ways to make a living from their work, and with the rise of influencer marketing, more opportunities to earn from sponsored content are available. 

Because of the free nature of content, it’s not uncommon to see content creators underpricing themselves because they don’t know any better. Whether you have 5000 followers on Instagram or a million subscribers on YouTube, the question of pricing is very important, as you should have a basis for determining the prices you set and the deals you accept.

In this article, we will cover everything you need to know about how to price your work as a content creator. We will look at everything from common mistakes content creators make when approaching pricing, to factors to consider when building a pricing strategy. 

Read on to find out how to price your work as a content creator.

But first, here’s how NOT to price your work as a content creator

Before delving into content creation pricing strategies, here are some mistakes you should not make. Some of these mistakes may surprise you, as they are not as obvious as you may think. But knowing what not to do and developing an eye for these common errors will help you better navigate your content creation journey better. We will be looking at the following, with relevant examples: 

1. Not having a contractual agreement
2. Thinking you need a lot of followers to earn money
3. Not paying attention to content ownership requirements
4. Looking at the competition to determine pricing
5. Not accounting for all resources used

1. Not having a contractual agreement

This is the most elementary mistake in the book: not having a written contractual agreement. Entering a deal with a brand without a signed contract puts you at a serious disadvantage. Especially if it’s your first time working with said brand, outlining the terms of your agreement protects you and your interests as a content creator. This legally binding agreement will keep both parties (you and the brand) accountable to each other and will prevent you from being taken advantage of. 

For example, let’s say you have spoken with a furniture brand about creating reels for Instagram. With a signed contract in place, you can outline the terms of payment, including the date, percentage to be paid first, and the mode of payment. Doing this would greatly increase the likelihood of you receiving your money, as a violation of the terms by the other party can incur legal action on your part. 

2. Thinking you need a lot of followers to earn money

This is another common mistake many content creators make. They look at their views, likes, followers, or subscribers and feel they are not worth being paid. For instance, a nano influencer with 3000 followers will believe they are only eligible to receive products, unlike other creators with more followers.

The problem with this outlook is that while popularity plays a role in pricing, as more followers could mean more visibility for a brand, there are other metrics to consider. Engagement for one, is an important. Smaller accounts usually feel closer to their audiences, and have more engaged communities as a result, which could translate into more sales for a business. The niche of the product being sold is another thing to consider. If as a creator, you focus on a specific area that tailors well with a business you are speaking with, then you can potentially get more sales for them compared to a bigger creator who doesn’t serve that niche. 

So don’t undersell yourself when negotiating with brands. When you make your value all about the number of followers you have, companies will respond in kind and hold you to that standard. Recognise everything else you have to offer – how well do people respond to your posts? How engaged are your comment sections? What niche do you cater to and how does it relate to the brand? Bring these up when having conversations with brands, and sell yourself aggressively.

3. Not paying attention to content ownership requirements

As a content creator, don’t make the mistake of overlooking content ownership requirements. When negotiating business deals with brands, be sure to discuss who would own the content you’re creating, and how long it can be used for promotions by the business.  

Signing away your rights to content in a brand deal is a decision that should not be made lightly. Doing so makes the content the property of the business, meaning that they are free to use it however they like. The implication for you as a content creator is that as you grow, said business may continue using old content and capitalising on your popularity, even when the business deal was made years ago. This could mean a loss of revenue for you. In extreme situations, the business may even get embroiled in a scandal, and as a creator, you don’t want your reputation to be affected by such an event.  

So ensure that usage rights are outlined as terms within the contract. How will the content be used, and for how long? Where will it be used? Taking pictures for a brand’s social media page, and seeing those pictures used on a billboard are two very different types of agreement. Ensure that the terms of usage are outlined in your contract, along with the length of time for usage, and the terms for repudiation or expiration of the contract where necessary. 

Dealing with Content Being Stolen? Read: Tackling Plagiarism: Insights from a Creator, a Lawyer, and a Product Manager

4. Looking at the competition to determine pricing

When discussing pricing, setting your prices based on what others are charging can be a huge mistake. In other lines of work, it’s usually sound advice to look at your competition’s prices and charge higher or lower depending on your strategy, but content creation is not like other lines of work.

No two content creators are the same. Each person has different circumstances, styles, audiences, and ways of doing things, and who is to say that the content creators you want to imitate aren’t also underpricing themselves?

This is why as a creator you must decide on your worth for yourself. If not, you risk not only lowballing yourself but also affecting the market price, as brands will come to believe that the prices you call apply to everyone else, since they don’t have any better representation of your actual value.

5. Not accounting for all resources used

A lot goes into content creation: money, time, skill, and effort. Many content creators fail to recognise the value in the resources they put into the content they create, because they are usually not tangible. Unlike business owners, like chefs or tailors, who have to go to the market weekly to buy goods, content creators usually work from the comfort of their homes, so it’s easy to forget the cost that goes into creating content. 

Think about it: you pay for your electricity bill, which is used to power up your lighting and set up. You have a phone for filming, a camera, tripod stand, etc. If you are into fashion content, you would have to do your makeup, or skincare, iron your clothes, go out to take pictures, spend time to edit these pictures and videos, and post. All these activities go into the content you create, and should be factored into your pricing. Don’t make the mistake of diminishing the time, resources, and effort you put into creating content. It is valuable, too.

Now that we have established these mistakes, let’s look into the strategies you must consider when pricing your work as a content creator.

Strategies for pricing your work as a content creator

The question of how much to price your work as a content creator becomes simple once you consider the value of your work, your reputation, opportunity cost, and your audience. 

1. Consider the value of your work

The first and most important thing you should consider is the value you place on your work. This is the foundation on which you can begin to price your work as a content creator, set your rates and negotiate with brands. The value of your work is every cost that goes into the creative process.

A good rule of thumb is to take note of all the recurring expenses that go into creating content yearly. For example, if you’re a lifestyle content creator, you might want to consider the cost of your apartment, phone, editing software, filming software, transportation, electricity, makeup, and more. When you have gotten the cost for a year, divide it by twelve and spread the cost among the number of jobs you get monthly. This should give you a rough estimate that you should not go below when negotiating with brands. 

Of course, discretion is needed, as there will be instances where you opt for opportunities that do not meet your monetary standards. But generally, knowing that your effort and energy are valuable and exist as part of the tools of your trade will help you approach pricing from a much better perspective. 

2. Consider the risk of your reputation

Next, you want to consider the value of your reputation. This is because your name and face will be tied to whatever brand you choose to work with, so working with them is a legitimate risk that you’ll be taking.

As a content creator, be mindful of the brands you work with. Perform your due diligence by doing research researching the brands, seeing their products and the feedback customers leave on social media, and deciding whether your values align with theirs.

In her #CreatorStories episode, Blessing Abeng spoke about the importance of working with brands that align with yours. “I think people collaborate because of numbers, as opposed to values. There’s no reason why a vegan person should be doing any kind of influencing for KFC.” 

3. Are there any opportunity costs?

When deciding on how to price your work as a content creator, sometimes saying “yes” to a brand means saying “no” to other brands. This is called opportunity cost and should be taken into consideration when negotiating with brands. Opportunity cost is the benefit an individual or business misses out on by making a choice. 

Some brands require an exclusion clause for a certain period when they decide to work with you. For example, hair extension brands may want their influencers and content creators to not work with competitors for some time while carrying out the terms of their agreement. If a brand is going to limit your options, then they should pay you more, as you would be missing out on potential income from other opportunities by working exclusively with them.

4. How valuable is your audience?

Finally, consider the value of your audience. Different audiences mean different things where pricing is concerned. Factors like demographics, purchasing power, number of followers, and engagement, all play a huge role in determining pricing.

For example, a content creator whose content caters to 30-year-old businesswomen will probably be able to demand more money than a content creator with a target audience of high schoolers and early 20-somethings. This is because the first content creator has an audience composed of people who earn more than the second creator’s audience. 

Factoring your audience into negotiations will help you manage client expectations as well. Your audience is part of your value, they are the target for whatever product is being negotiated, so they should fall into your plans. Be mindful of deals that do not tally with your audience, as they will most likely not perform well. Build strategies and create content you know would resonate with them. This will increase the chances of success.

As mentioned earlier, remember that a good following is a great metric, engagement is also important. Be sure to factor in your engagement levels when discussing pricing. 

Read: How to Be A Successful Food Content Creator

Final thoughts

Determining how to price your work as a content creator is a process that is full of so much trial and error. There’s no hard and fast rule for it, but by applying the things discussed in this article, you would have done most of the work. Remember to have a signed agreement, to value your work, and consider your audience when discussing the price for your content.

Also, pay attention to the clauses in your contract. Content ownership requirements and exclusion clauses are not terms that should be considered lightly, as they inevitably affect your work as a creator, and might even have life-changing implications. 

Content creation is a growing field, and businesses are contracting more content creators to help them humanize their brands. Price your services well today, because you are valuable!