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I’ve had a lot of creators ask for advice on how/where to start with brand sponsorship and activation rates. I’m a huge proponent of making this kind of information more available, so here’s my advice!
(Take everything with a grain of salt— and customize it to YOUR business)
(Take everything with a grain of salt— and customize it to YOUR business)
First and foremost, you should be compensated for any work you’re doing. If they’re a big enough brand to start deploying an influencer strategy or marketing campaign, they have the money. Exposure is nice but rarely, if ever, does it convert to your bank account.
Now, we start with the equation.
Every sponsorship or brand activation is different, but it’s roughly
(Hours of work) x (rate) x (opportunity scale) =
invoice total
Seems simple, but I’ll explain how to isolate each variable if you’re not sure for each one.
Every sponsorship or brand activation is different, but it’s roughly
(Hours of work) x (rate) x (opportunity scale) =
invoice total Seems simple, but I’ll explain how to isolate each variable if you’re not sure for each one.
Hours of work. 
This is the sleeper variable. Everyone thinks it’s straight forward. They want 3 distinct two hour streams. That’s 6 hours, right?
What about pre and post production? What about analytics and engagement collection? Did you have to create custom art/tools?
This is the sleeper variable. Everyone thinks it’s straight forward. They want 3 distinct two hour streams. That’s 6 hours, right?
What about pre and post production? What about analytics and engagement collection? Did you have to create custom art/tools?
You then have to consider the other asks outside of direct content creation. They’ll ask for one tweet and two Instagram stories too!
Only a few seconds, right?
Good content takes time to brainstorm, create, produce, and publish. Don’t sell yourself short.
Only a few seconds, right?
Good content takes time to brainstorm, create, produce, and publish. Don’t sell yourself short.
Rate. Big topic! 
If you don’t feel comfortable calculating your content creation rate, try this:
Take your last 3 months of streaming/creating. Add up the total $ across those platforms.
Take the total hours put in (including pre/post!)
Divide revenue by hours.
If you don’t feel comfortable calculating your content creation rate, try this:
Take your last 3 months of streaming/creating. Add up the total $ across those platforms.
Take the total hours put in (including pre/post!)
Divide revenue by hours.
Does this number feel reasonable? Does it make you feel valued? Are you productive with this number?
If yes, that’s your BASELINE. You make this on the regular. You make that without having to employ your extra special skills and talents as an influencer or marketer.
If yes, that’s your BASELINE. You make this on the regular. You make that without having to employ your extra special skills and talents as an influencer or marketer.
Take that rate and increase it to where you feel valued for ALL of the tools, skills, and talents being employed.
If the activation is JUST streams, okay. But if they want the fancy YouTube video, and the tweets, and the interviews, and the headshots...you’re doing more.
If the activation is JUST streams, okay. But if they want the fancy YouTube video, and the tweets, and the interviews, and the headshots...you’re doing more.
Now THAT’S your rate. This is where you have to realize that they’re asking you to do something OUTSIDE your normal experience. You might be delaying normal streams for your community or investing in your dream to help them reach theirs. That’s okay, but DON’T SELL YOURSELF SHORT
Most people think that’s it. Hours times rate does give you a number.
But the hidden variable, for me, has always been OPPORTUNITY scale. It’s entirely unique, custom and contextual.
Sometimes it’s a 3 because it’s a brand you’ve never worked with and may be a risk.
But the hidden variable, for me, has always been OPPORTUNITY scale. It’s entirely unique, custom and contextual.Sometimes it’s a 3 because it’s a brand you’ve never worked with and may be a risk.
Perhaps you’re willing to put the opportunity scale at .8 because it’s a BIG BRAND and you know the opportunity is huge. You’d elevate your own brand by being associated with it.
(Never go lower than .5 — you’re worth it and your rate is one signal of your experience/value)
(Never go lower than .5 — you’re worth it and your rate is one signal of your experience/value)
Now you’ve got your 3 variables. A simple sponsorship might be:
8hrs * 45$/hr * 1.75 scale = $630. Would you feel good about doing 8 hours of work for $630?
Some people would jump at the opportunity and some would scoff. Again, entirely contextual.
8hrs * 45$/hr * 1.75 scale = $630. Would you feel good about doing 8 hours of work for $630?
Some people would jump at the opportunity and some would scoff. Again, entirely contextual.
But I hope this helps provide a very cursory introduction to how you can evaluate a sponsorship/activation rate.
More advanced versions might include things like management fees, risk scale, opportunity cost (exclusive deals!!), and especially legal consultants.
More advanced versions might include things like management fees, risk scale, opportunity cost (exclusive deals!!), and especially legal consultants.
I don’t expect this to be perfect, so if anyone has suggestions or improvements to be made, please go for it.
