Have you ever wondered how to price yourself when bidding for a YouTube sponsorship? You are not alone! We’ve all been there and have seen some pretty scattered metrics. In fact, for many YouTubers, determining pricing is one of the most intimidating aspects of working with brands. But we are here to guide you through it.
When it comes to YouTube branded content, the most common ways of establishing pricing base is by looking at your Subscribers, CPV (cost-per-view), Content Type or a combination of these.
Subscriber Based pricing
The most popular and easiest pricing method is basing your price off of your total subscriber reach. This is a great method for smaller creators who are still trying to establish which of their videos perform best and who haven’t yet gotten to a place where they have a steady viewership rate.
When using this method, we recommend to charge $100 to $250 per every 10,000 subscribers. Ultimately, you can go higher or lower depending on the type of content you are going to create and how badly you want to get hired. However, be mindful that the total subscriber count doesn’t always translate into the actual reach and engagement of the content created and can sometimes lead to being over or under paid depending on how the content performs.
(cpv) cost-per-view pricing
Cost-per-view pricing is best approached by looking at your average views for the last 14 to 30 days to determine on average how many views your next video is expected to receive. This is a great pricing method for creators who post on a regular schedule, have established a tight-knit community of fans, and who get consistent views.
Competitive cost-per-view pricing on the FameBit platform typically ranges between $0.02 to $0.06 per view. The nice thing about this pricing method is that it puts a high value on engagement so even if you are small channel, with an engaged audience, you have an opportunity to earn a lot of money.
Do note that if you had one video go viral or one video that performed terribly within the timespan that you are factoring, be sure to remove it when calculating your channels average views to get a more accurate price. If your views fluctuate a lot based on the type of content you create, it’s usually good practice to go with a lower CPV to prevent the brand from being disappointed.
It’s also important to note that you can justify asking for a higher CPV by getting creative and thinking outside of the box. For instance, take into consideration if you have had a proven track record of success with similar products. Another factor that can really make an influencer more attractive is proposing ideas to further help boost a brand’s engagement. Perhaps you can offer to put the brand in one of your most popular videos that have a proven track record of getting views. Or perhaps you will offer to keep the featured video on your home page for 30 days. Moreover, showing passion and expressing how you can help the brand is something that every creator should practice. It shows that you thought about the brands bottom line as well, not just yours.
Content Based pricing
For smaller channels looking to start working with brands, CPV pricing may not make sense as the numbers may not add up. However, if you propose an original concept for a YouTube video, such as a music video or skit that’s perhaps more demanding from a creative, production and editing standpoint, it will not only justify higher pricing but will help you stand out! It might also be a good idea if you give the brand more than one content idea in your proposal to give them choice. Again, the main point is to get your foot in the door and start building up your professional portfolio. And it’s important to remember that brands are not only looking at YouTubers for influence and distribution, they also see them as experts in all things creative and video so take this opportunity to value your art and originality.
Think Through The requirements
Before you set your final price, it’s important to get a firm understanding of what the overall requirements of the campaign look like and what you are willing to create in partnership with the brand.
Factors to Consider:
- Will you need to hire outside help? Some videos may require hiring outside help such as additional cameramen, editors, CGI artists, etc. Make sure to factor those costs into your price so you can come out ahead after paying all expenses.
- Consider the Price of the Product — Not all products and services are created equal and you should look to adjust your price accordingly. For example, if a brand is offering you a product worth $1,000+ or sending you on an all expenses paid trip, you may want to adjust your proposal price down to take that into consideration.
- What Is Your Audience Getting? If a brand is going the extra mile and giving away their product to some of your viewers, then you may want to offer lower pricing, given that you will have the opportunity to also give back to your loyal community.
- Will the product require additional work to use? Some products need to be used or experienced for some time before content can be created. For example, acne medicine, teeth whitening or vitamin products may take time to see results and thus require a longer commitment than a traditional product, which can drive up your asking price.
- Brand’s Content Budget — On FameBit, brands are required to input a budget range that they are looking to pay per video when posting their campaign, which can serve as another useful guide. For instance, if a brand set a starting per video budget at $500-$1000 per content, you can definitely bid higher depending on your channel stats and what you are proposing to do for them, but be mindful that bidding too far from their range might scare the brand off. Importantly, if you feel that what you are proposing justifies going beyond the brand’s budget, use your proposal to not only talk about why you are the perfect fit for the campaign but to also explain why they should pay a higher fee.
- Brand Fit — Is this a brand or product that you’re dying to work with? If so, you may want to consider lowering your price to get your foot in the door and build a long-term relationship with the brand. Especially when you’re a smaller channel and are looking to get some sponsorships under your belt, bidding on the lower side of the brand’s budget range can help you stay competitive and get hired. Ultimately, your only focus should not be on how much money you can make. In other words, don’t just choose sponsorships that you will earn the most money on, but choose sponsorships that you yourself are excited about and that you believe your audience will be excited about as well.
As you can see, pricing is more of an art than an exact science and there are several options for creators of all sizes. By combining the methods with the different factors suggested, such as product price, content involvement and brand fit, you should get much closer to getting that perfect price. Importantly, don’t be afraid to experiment and adjust along the way accordingly.