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How Much Should Influencers Charge for Brand Deals?

Mar 02, 2024  •  7 min read

How Much Should Influencers Charge for Brand Deals?

The most common—and most stressful—question for new content creators is: "How much should I charge for a brand deal?"

Charge too much, and the brand ghosts you. Charge too little, and you leave thousands of dollars on the table while undermining the market for other creators.

While there is no universal "rate card" (pricing varies by niche, audience demographics, and contract terms), the advertising industry relies on a standard mathematical formula to determine baseline value: CPM.

In this guide, we will break down exactly how to price your sponsored content.

The Core Metric: Understanding CPM

Brands don't pay for your follower count; they pay for your reach.

They use a metric called CPM (Cost Per Mille), which means the cost to reach 1,000 views or impressions.

The Formula: (Total Cost to Brand / Total Expected Views) × 1000 = CPM

If a brand pays you $1,000 for a video that averages 100,000 views, your CPM is $10. ($10 is the cost required for the brand to get 1,000 eyeballs on their product).

Baseline Industry Multipliers

To calculate your personal rate, you need to estimate how many views your sponsored video will get, and divide it by 1000. Then, multiply that number by the industry average CPM for your chosen platform.

Here are the standard baseline CPMs by platform:

1. YouTube ($20 - $30 CPM)

YouTube commands the highest rates in the creator economy. Why?

  • Intent: Viewers actively search for content and watch with audio on.
  • Attention Span: Long-form videos allow for deep, 60-90 second integrations.
  • Longevity: A YouTube video can generate views and sales for years through organic search.

Example: If you average 50,000 views per video, a standard dedicated integration should start around $1,000 to $1,500.

2. Instagram ($10 - $20 CPM)

Instagram rates sit strongly in the middle. The platform is highly visual and excellent for lifestyle, fashion, and beauty conversions.

  • Dedicated Reels/In-Feed Posts: Standard base CPM ($15).
  • Stories (Set of 3): Usually priced lower than permanent posts, but highly effective for direct-response linking.

3. TikTok ($5 - $15 CPM)

Despite massive reach, TikTok has the lowest baseline CPM.

  • The "Scroll" Factor: Users scroll incredibly fast, often mechanically, leading to lower brand recall per impression.
  • Volatility: Views are unpredictable. A creator with 1M followers might get 10k views, or 10M views.

👉 Don't want to do the math yourself? Use our free Influencer Sponsorship Calculator to get instant baseline rates tailored to your platform and engagement.

When to Charge a Premium (Double Your Rates!)

Your calculated CPM rate is just your baseline. It is the absolute minimum you should accept for a standard shout-out. You must add premiums (usually +20% to +100%) for any of the following factors:

1. High-Value Niches

If your content is focused on Finance, B2B Software, Real Estate, or Tech, brands are willing to pay massive premiums. A $100 CPM in the finance space is entirely normal because a single conversion on enterprise software is worth thousands of dollars to the sponsor.

2. Usage Rights (Crucial!)

If a brand wants to "whitelist" your post (run paid ads through your account using your content) or use your video on their own website/ads, they are purchasing commercial usage rights. Never give this away for free. Add a 50% to 100% premium for 30-day usage rights, or charge a monthly licensing fee.

3. Exclusivity Clauses

Brands often embed "exclusivity clauses" demanding you do not work with their competitors for 30, 60, or 90 days. If a VPN sponsor demands 90 days of exclusivity, that means you have to reject all other VPN deals for 3 months. Charge an exclusivity premium to cover those potential lost earnings.

4. Fast Turnarounds

If a brand wants a script read, a video shot, edited, revised, and posted in under 7 days, apply a "Rush Fee" of 20% to 30%. Your time and stress have value.

The Final Takeaway

Brands want ROI (Return on Investment). The more professional you are, the clearer your analytics, and the better you can articulate your value based on standard CPM logic, the easier it will be to confidently ask for your worth.

Start your next negotiation with data. Check your baseline rates today using the Sponsorship Rate Calculator.

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