6 Steps to Negotiate Better Brand Deal Rates

6 Steps to Better Brand Deal Negotiation

1. Do Market Research

I hate to say it…but some creators charge far above (and below) their market rate. You’ve got to get real about the type of content you’re creating, the performance of said content, and the results you’re driving for brands.

Use platforms like Clara and FYPM to explore rates other creators have charged. While you can’t see their engagement rates, this will give you a decent idea of what creators of similar sizes charge.

2. Know Your Track Record

Let’s say two video editors approach you. Here’s what they say:

• Editor A: My thumbnail designs are well-designed.

• Editor B: My thumbnail designs 5x’d my last client’s click-through rate on YouTube.

Which one are you more likely to work with? Probably B, because there’s proof their work generated the result you want.

It’s not that Editor A sucks. It’s that Editor B knows how to convey their value. You need to do the same as a creator.

As someone who previously worked on the brand side, here’s what I’ll say. Sure, brands are reaching out to potentially hire you. But they’re not going to throw lump sums of cash around simply because.

The marketing managers, agencies, etc. reaching out to you have target metrics to hit. They’re trying to impress the higher ups or clients. If they don’t allocate their budget properly, it reflects poorly on them (and could lose them clients).

Knowing your metrics is how you sell yourself as a creator.

Spending $5k on a brand deal is a no-brainer if you know the last 3 partnerships that creator did generated X conversions or Y comments.

You can use a free media kit software like Beacons to get the basic metrics, but you may need to dig into the platform data to get more granular metrics like clicks, CTRs, comments, etc.

3. Don’t Diss the Lowball Offer

Brands often start with lowball offers. From their perspective, starting lower makes sense. If creators settle for that low rate, they’ve now saved a ton of money. Clients/higher ups are happy.

Many times, the emails you’re receiving are templatized or a mass send. The rate you see in the email isn’t necessarily what they think you’re worth. Sometimes it’s just a filler number they’re sending to everyone.

This doesn’t mean the initial offer is a reflection of their true budget though.

Don’t trash the email. This is your opportunity to respond and negotiate a better rate.

When I get a lowball offer, I politely respond and state what my rate would be for the scope described.

4. Be Polite

This goes without saying, but be polite. It can be frustrating when the budget doesn’t match your rate expectations, but don’t take it out on the person emailing you.

Most of the people you’re communicating with have no say over the budget. They’re simply trying to do their job.

One of the brands I previously worked for sold deodorant and they wanted to gift creators two bottles of deodorant in exchange for a post…*sigh.* That was my job though—to get creators on board with that offer…🤠

I still remember which creators responded kindly, even if they declined. And I still remember which creators sent a nasty email back. Guess who I’d hire for paid campaigns with my new clients?

In the same vein, I’ve previously represented a creator, negotiating all of her deals. Brands do come back when they have more budget. So be nice, state your rate, and even if you can’t align, they might come back.

5. Propose Alternate Offers

One of my favorite responses to low rate offer is this:

“Hey [name],
Thanks so much for sharing more about the budget and scope. My rate for those deliverables would be $X. If this is too far outside the budget, I could offer [another deliverable] for $X, which is more aligned to your budget.”

This does two things:

• Uses “if, then” framework, which gets the other person to a solution faster. (people love this)

• Still keeps you in the running for the project.

Don’t simply say, “Unfortunately my rate is much higher, so it doesn’t seem we’re aligned.” That’s a negotiation killer.

6. Offer Discounts for Long-Term Partnerships

If you’re open to it, offer a discount for a package of videos. I offer a 20% discount for packages of 3+ videos (I did this for my creator client as well, and it worked great there too.).

The Billionaire Platform Battle: Musk vs Zuck

With TikTok’s fate still uncertain, the race to be the next Gen Z based platform is a billionaire’s market. Both Elon Musk (X) and Mark Zuckerberg (Meta) are in a virtual race to see who can update their million-user-based platforms to become Gen Z’s next fix should TikTok go offline in the US next year.

While both currently have over 35 million active users within the 18-29 age range (X: 38m & Meta: 42m), both pale in comparison to TikTok, which has over 68m active users who meet the Gen Z age requirement.

Within the last month alone, both Musk and Zuck have made changes to their platforms, hoping to grab the attention of the average TikTok user.

X’s most recent update breaks down the barrier between premium and basic users, allowing x-rated content, both real and AI, as well as giving all users the option to hide their likes, a feature previously exclusive to premium users.

However, Meta’s recent changes to Facebook aim to draw in the creative crowd, featuring a new feed layout, an emphasis on short-form content with reels, and a professional mode that hopes to become the new home for creators.

TikTok has become the number one app for Gen Z creators and users. Should it meet a disappointing fate, Musk and Zuck have not come empty-handed. Both have given a taste of what’s ahead as the battle to win Gen Z is just heating up.

Quick Links

👾 Mobile app invests $20M to launch creator economy into the metaverse.

📺 Viral YouTube series raises red flag with Russian government.

💰 Sponsor pricing gap reported among colored creators.

👩🏻‍⚖️ New York passes laws preventing social media usage among minors.

Quick Financial Reminder

If you’re self-employed, quarterly estimated tax payments are due on June 17th :-) Don’t forget.

See ya next week,

Karat