How much to charge for a Sponsored Instagram Post? (the secret formula 🤫)

if you're trying to figure out how much to charge for brand Partnerships as an influencer or content creator this video series is for you because every video I see on this topic people just say well there is no standard just pick a number and go for it but like why is there no standard yet there's over 27 million paid creators in the United States alone and the global influencer market is valued at over $21 billion and you're telling me there is no set standard for paying creators yet what so I had this idea why don't I start a video series teaching creators exactly how to set their rates and let's change that let's create a standard this is video one in this series today we're first going to go over some industry standards then go over the formula to calculate how much to charge for sponsored Instagram posts this includes for photos stories and reals and at the end I'll share with you my rates and how much I charge in future videos I'll break down how much to charge for YouTube collabs and Tik Tok collabs if that sounds exciting to you let me know in the comments below as always time stamps are below so use them if you need them and let's jump right into it talking about industry standards first let's start with its industry standard for creators to get paid if that's not an industry standard right now let's say that that it is moving forward you deserve to be paid for your work your platform your image your gear all the things you deserve to be paid of course if you have like absolutely no experience you can do a few free collabs to build up your experience but if you're at that point where you feel like you should be paid you're ready to be paid paid next if you've done any research on this topic you have probably heard of all sorts of formulas like the penny method where you charge 1 cent per follower or the $100 per 10,000 followers approach or in other words 1% per th000 followers however the problem with these standards is that they only take into consideration your follower number the value that you provide when doing brand collaborations is so much more than a follower amount if it wasn't that Brands wouldn't be asking you to create the content instead they would be sending you videos that they already filmed and being like hey can you post this video to your followers but that's not the case you are more than your followers the brand is paying for your experience your expertise your image your likeness the trust that you've already built with your followers to trust what you're saying the time that it takes you to create a post gear you're using and so much more so how do you calculate all of that into your rates well I have the magic formula well there's not really a magic formula this is just a suggestion of sorts the formula is your follower number times your average impact level plus contract terms all of that equals the rate that you charge now before jumping over to the Whiteboard to show you how to use this formula I do want to say a quick disclaimer this formula it's a guideline as I said before there is no industry standard yet I don't think this formula is perfect I don't I'm just hoping that by me sharing this formula that has worked really well for me and my students it can one give you a great guide to figure out how much to charge but also two open up the conversation even more when it comes to setting your rates I think the best way to bring attention to systemizing how brand Partnerships work is through candid conversations like these and I hope that transparency in talking about this creates a way or a standard for each Creator to be treated equally and paid on a similar scale I've seen too many times where creators are not treated equally or paid equally for certain situations and I hope that by opening up this conversation it does create more equal opportunity for every Creator now to answer your question of where the heck does this formula come from honestly it's a culmination accumulation culmination whatever of everything that I've learned over the past 5 years being in the influencer industry I've taken online courses gone to master classes been in masterminds t talk to different agents and agencies that work with influencers and of course consuming free content in the industry to create this formula and test it with by students so it's just been kind of like bringing a little bit of knowledge everywhere to create what I think works well I'll be sure to link some of my favorite Educators that are in the space down in the description below but without further Ado let's jump over to the Whiteboard and figure out how to use this formula all right so this formula the one that we are going over first is the formula to help you calculate your rates for specifically an in feed post and when I say in feed post I mean if you were to take a picture for a brand and you post that singular photo in feed Post photo all right and then we're going to go over how you could use this number to calculate your rates for reals and also stories using our formula for today's example I'm going to say that we're going to use an account that has 10,000 followers for example do you need 10,000 followers in order to start charging for brand collaborations no you can have a thousand followers 5,000 500 I just you know this even round number just feels good with my brain for like example purposes so the first step of the formula is easy plug in your follower number next though we need to plug in our average impact level so your average impact level measures your platform engagement your collaboration experience your industry impact and your overall expertise in your Niche or topic so let's erase what we have behind us and calculate your average impact level all right so behind me this is how we calculate our average impact level again we're taking into account our engagement rate collab experience industry impact and expertise or knowledge on a specific topic basically you're just going to rank yourself on a scale from 0 to three where you're at with that thing now I've done this a few different ways like on a scale of 1 to 3 1 to 5 0 to three and you could do whatever you want truly you could do whatever you want for this video this is what we're going to use I feel like it's just simpler it's the simple way to do it starting with our engagement rate on a scale of 0 to three how well do we think our engagement rate is performing How great is our engagement rate if you have less than a 1% engagement rate on your Instagram you're going to circle zero if you have 1 to 2% engagement go with one 3 to 4% engagement Circle two and five and above Circle three if you don't know how to calculate your engagement boom here's a slide this is the formula calculate your engagement you're welcome personally for me my engagement is pretty low so I would probably be at the zero but if you're a micro influencer Nano influencer maybe you have less than 10,000 followers you probably have more than 5% engagement so you can Circle three the next level is your collaboration experience if you have experience with collaborations I did this by amount of years I've been doing brand collaboration so if you've been doing collabs for less than one year zero about a year or two one 3 to four years or five plus years I've been doing collabs for over 5 years so I would Circle three again I've seen this measured on a few different levels so instead of numbers of years people say oh if you've done zero to five brand collaboration Circle zero if you've done 5 to 10 brand collaborations one 11 to 15 and above 15 te so you could kind of gauge it do whatever you think feels best to you industry impact this is basically how welln you are in your industry are you an established credible person in your field are you like the go-to expert do people look you up how established are you in your specific industry and then of course your expertise this would be offline how many years of experience do you have doing said things so let's say you start an Instagram account you have 10 follow followers and you want to teach videographers how to build a video business just because you have 10 followers that has nothing to do with your expertise maybe you went to college and you have a degree in marketing maybe you also ran your own video production company for 5 years your experience in that industry offline social media just in that thing will probably be more of a three because you have a degree because you've been in it for so many years because maybe you've already helped other people turn their video business into a full-time thing so that is how experienced you are with s topic Let's do an example together so we're going with an account that has maybe 10,000 followers their engagement rate is probably pretty good we're going to give them a three let's say you have some experience with doing brand collaborations you've done a few free ones and you're just like okay I'm ready to get paid I've been doing free ones for a year now I want to start charging let's give you a one industry you're still pretty new to the industry you're not very like well known yet but 10,000 followers that's saying something so we'll go with one again and then expertise you're teaching videographers right maybe you've had your own video business you haven't quite coached people yet but you've done it yourself you have a degree let's give you a two so how do these turn into your average impact level we're going to take the average of these three numbers starting with three plus 1 plus 1+ 2 equals seven that's not the average yet the average is adding them up and then dividing by number of them so there's 1 2 3 four different numbers 1 2 3 four different numbers so we're going to take seven 7 divided by 4 because there's 1 2 3 four numbers here all of you will be dividing by 4 equals 1.75% that is your average impact level congratulations you figured out your average impact level but because it is currently a percentage when we plug into the formula it needs to be a decimal so the trick if you don't already know I feel like I'm like a a math teacher right now if you don't already know the little trick you're just going to move the decimal point over to spaces which means 0175 is the number that we're going to be plugging into our formula that is our average impact level all righty so now that we know our average impact level is this we are going to multiply our follower number and average impact level in doing so when we multiply these two together we learn that our base rate for an infeed post would be $175 plus our contract terms which we'll get into in the next step now before we add in our contract terms we need to figure out what our base rate will be for both stories and reals this is actually really simple if our infeed post is $175 our story price is actually just going to be 50% of that and our Real's price is going to be 150% of that again we're working with percentages we want to turn that into a decimal this is going to be .5 and this is going to be 1.5 so our formula we're going to do5 of 175 because that's how much our in feed post here we're going to do 1.5 * 175 equals our story base rate R is going to be $87.50 and then our base rate for reels looks like it's going to be 26250 now I don't really charge Brands like specifically these numbers I'm not like and 50 cents so I would probably just say this is 85 and then I would probably just say like this is 260 just to keep it simple if you've learned something new so far far be sure to give this video a thumbs up because this helps tell YouTube that more people like you could find this video helpful plus if you've learned two new things by the end of this video you could maybe subscribe to my channel if you want it helps me continue to make free content like this every week for you so just think about it just think about it all right now that we have our three prices for the three different types of content that Brands typically requests during brand collaborations for Instagram let's dive into our contract terms and remember these prices are your starting point because we still need to talk about contract terms and before we jump into contracts I just want to say if you're somebody who is serious about being a full-time content creator and you enjoy trainings like this I am opening the doors to my course bundle the bsp model at the end of this month the bsp model I'm so proud I love it I love it I'm obsessed but basically the bsp model is a bundle of courses structured in a proven three-part framework teaching you how to build an un forgettable brand harness the power of social media and make money while doing it so while this video that you're watching right now is not sponsored by any sort of brand I figured it could be sponsored by me I can confidently say that there is nothing else out there like the bsp model because it is exactly what I wish I had when I started my content creator journey and it's laid out in order of the steps that I wish I took bssp stands for build scale profit which is the three-part framework building your brand scaling on social media and making money each framework has its own bundle of courses so build has a course that helps you define your branding Niche target audience content pillars colors which platform you should focus on all of the basics that's a course there's also a course that teaches you how to start and grow your email list which is something I wish I did from the very beginning so that's why it's in the build section scale another bundle of courses there's an Instagram course a YouTube course we're working on a Tik Tok course and a newly added course for video production and then profit there's a bundle of courses there so there's a course on brand collaborations creating ugc setting up multiple streams of income and like the legal side of being a content creator taxes money management all the things bsp has helped students land $10,000 deals get featured on shelves in their local grocery store and work with countless dream Brands again I can say there is nothing out there like the bsp model with a bundle of such thorough courses so if that's something that sounds interesting to you I'll be sure to leave a link down below where you could get on the weight list because weightless people get Early Access and a secret bonus um but if you're watching this after the doors are open still use the link it'll be ready for you so now that we know your starting rate by multiplying follower number and average impact level we need to add on the Rest by going through the contract terms when doing any partnership whether it's free or paid sign a contract and it's equally important that you read the contract and you understand what you're signing because this is where adding on the rest of your rates come in there is a lot that goes into reading through contracts and lots of terminology that comes up but here are a few of the most common things I see pop up that could have you charging a little bit extra for starting with deliverables this is a list of the content that a brand wants you to produce it usually defines the quantity and type of content for example how many stories do they want you to post do they want you to use a link in those stories how many photos do you have to include in the carousel how long should your reel be how many reels will there be are they requiring you to post it with them as a collab post all these things are important to know yes as you are creating the content but with more deliverables that means you're probably charging more the next term is usage rights this pops up every single contract so look out for it usage rights is a term that states who owns the deliverables and what they are allowed to do with those deliverables when they own it now there are typically four types of usage rights organic paid full and Perpetual organic usage rights just means that the brand can repurpose your content on their organic media channels they're not putting ad spend behind it they're not putting that content in ads it's simply for their organic purposes only because it's only being posted to their organic media channels the industry standard says one to three months of organic usage is typically included in the price we calculated so if the Reel is $275 that includes 1 to 3 months of organic usage so just be sure to read through the contract make sure it's saying it's one month of organic usage or up to three months of organic usage anything more you're probably charging extra for or you could just be like hey I only include 3 months of organic usage rights in this price can we change it in the contract like you can tell them to change the contract that's a thing it's a negotiation truly now paid usage rights this is when the brand can use your content to run paid ads to like wh listing blacklisting and general ads how do you charge for paid usage rights now with paid usage that's not already included to the price you need to add it on so how do you charge for that you're going to charge an additional 15 to 20% per deliverable for every month that the brand wants to use that piece of content in their ads for example let's use our real price as a breakdown so our real Price is $262.50 Right 20% of that is $525 so that means for every month the brand wants to run paid ads to that specific reel you want to charge them an extra $52 for every month now if in the contract it says 3 months of paid usage you're going to take 52 multiply it times three to give you $157.50 now that $157 that is just the number for how much to charge them for the paid usage so you're going to add your real base rate plus the paid usage rate to give you your new total of $420 the next usage rights is full usage this means the brand can use your content anywhere and everywhere their website social media Platforms in their apps blogs email newsletters basically anywhere and everywhere this one's a little bit more rare I don't really see it come up often so I'm just going to skip the pricing here and move on to the big red flag that you need to keep an eye out for our big red flag and the fourth type of usage a brand might try to slide into a contract is Perpetual usage or in perpetuity if you see Perpetual or in perpetuity red flag basically this means that you release your rights to own your content for forever the brands can do whatever they want to your content when they want till the end of time so if you ever see this term in a contract you can tell the brand that you do not offer any sort of Perpetual rights you can instead say I'd be happy to offer you six to 12 months of full usage rights or instead you could be like I only offer 3 months of or oranic usage rights so basically if you see that term in a contract tell the brand that you will not be moving forward with signing it or if you do move forward with signing it you're probably going to be asking for five to six figures now another term that pops up a lot in contracts is exclusivity this is basically you promising not to work with any of a Brand's competitors for a certain amount of time so if you do a partnership with Crest like the toothpaste brand they will probably be like all right you can can't work with Colgate for 30 days 60 days 90 days ideally what you're looking for is one making sure the brand specifically lists who their competitors are in the contract if you don't see the list of the competitors in the contract you can ask them to list it out for you and then of course if you see exclusivity in a contract you want to make sure that you're getting paid for that the industry standard is 1 month of exclusivity is included in your base rate so that 262 that price for your reel that includes 30 days or one month of exclusivity at no additional charge but if a brand wants more than 30 days of exclusivity for example if they want 3 months of exclusivity you're going to charge your standard partnership rate for each additional month for example we have our real price $262.50 this includes one month of exclusivity so for the other two months we want to add up to 26250 26250 add it all together that means the final price would be $787 now the reason we charged the full amount for those additional months is because if a brand is paying you 90 days of exclusivity the 30 days that's included that's fine but those other two months that's basically the brand cutting off your access to accept any sort of Partnerships for those two months at least competitor Partnerships so that's why they're paying to have access for you to not accept any collaborations for that additional time at the end of the day you're the business owner you can set your own rates and charge whatever the heck you want if you're unsure of what to charge or this formula doesn't calculate a number that feels right for you you can do what most people do and just pick a random number and go from there this again it's just a guide for you for right now for full transparency this is how much I would charge for Instagram partners ships personally of course at the moment I'm taking a break from Instagram but when I go back these would be my rates based on the formula we went over today the last time I shared my rates on Tik Tok so many people were like you're undercharging those prices are too low which like I know for you like are you serious that's like $2,000 $4,000 it's crazy when I do the formula I round down because my engagement rate is not that great especially I've taken such an extended break when I go back my engagement rate is going to be pretty low so that's why for the formula I round down now that you're ready to start working with Brands your next step is to start pitching yes you can absolutely pitch directly to your dream Brands and to learn how to craft the perfect pitch be sure to watch this video next all right thanks so much for watching and I will see you in the next one bye

Channel: Modern Millie

Views: 4,483

Keywords: instagram sponsorships, how much to charge for instagram post, instagram influencer rates, instagram collaboration rates, setting influencer rates, instagram content creator rates, influencer marketing rates, brand partnerships, sponsored content, calculating influencer rates, influencer marketing formula, instagram reels rates, instagram stories rates, influencer marketing for brands, how to become an influencer, tips for ugc creators, tips for content creators

Id: PzS6-MZQKUM

Length: 22min 47sec (1367 seconds)

Published: Wed Jun 05 2024