As an influencer, you have numerous ways to earn revenue. For one, you could sell merchandise for your brand or you could rely on advertising fees from the platform. YouTube, for instance, offers advertising revenue share. However, one of the best alternative revenue streams is working with brands. In this article, we discuss how to negotiate with brands as an influencer with the top ten negotiation tips.
This list of negotiation skills has been compiled with Indy. Indy is one of the top platforms that can help you easily generate revenue, gain control over your business, and pursue your passions.
Why Work with Brands for Sponsored Content?
You need to sit at a bargaining table and negotiate with third parties for numerous reasons. Sponsored content is one of the biggest earners for influencers. One survey found that the best influencers earned 71% of their income from sponsored content. Therefore, those who currently aren't using sponsored income could potentially double or triple their income.
Sponsored content can also be a good way to develop content for a brand. You can use the sponsorship to get in new props for your content or just to create a diversification that can be refreshing for audiences.
Another factor to consider is that sponsored income is more predictable revenue. You can be sure that you're going to get a set amount from the collaboration. Whereas when you're relying on other means, such as advertising income, the income can trickle in and is not reliable.
For example, YouTubers need to hope that their videos can attract audiences to watch their videos and the ads. Much is dependent on the YouTube algorithm showcasing their content to audiences and those subscribed also finding the video. If YouTube dislikes a video, it can suddenly become less popular, and therefore the advertising revenue can be reduced.
In addition, merchandising sales can be less predictable. And they are very time-consuming.
How Much Can Sponsored Content Be Worth?
Research shows that by 2028, the influencer market value is expected to be about $84 billion. That is a staggering amount, and there are certainly going to be a few who will want to have some of that revenue for themselves. But how much can an influencer expect for each piece of sponsored content?
There are three different ways to pay freelancers for sponsored content that are commonly used.
Pay per view
This type is like the YouTube advertising system. The brand will pay the influencer based on the views of the video. Some individuals will charge about $0.03 for a YouTube or Instagram view whereas TikTok gets $0.01 per view. There can sometimes be an upper limit on the amount, like $500 or $1000 per piece of content.
Pay per result
Sometimes influencers can charge per result. So if the influencer is advertising an app, they're paid based on the number of people who download that app. The value of the action can vary from $1–2 per action to $100 per action. Pay per result tends to not have an upper limit.
Upfront flat fee
Another option is to have a flat fee for sponsored content. Some brands like Squarespace utilize this system because it is considered a fair deal for both you and the other party. However, some influencers get millions of views that might be financially better off doing one of the other options.
On online forums, some are stating that influencers should be aiming to get a value for their work that is equivalent to 4% of their following. So if the influencer has 10,000 followers, they should be charging $400 per piece of sponsored content.
However, some work for influencer agencies who say this is far too low and that influencers are often not realizing their potential. They suggest that when you negotiate, you should look for a rate that is more fair and not accept low offers for your work.
Top Ten Negotiation Tips
Here are the ten tips you need to have for your negotiation skills to be at their best for a successful negotiation agreement. The negotiation process is a tough system, so you have to be strong and know the worth of your valuable assets. You also need to look after your interests.
Tip 1: Set upper and lower price limits
To have better negotiation outcomes, you need to set upper and lower price limits that you're going to accept. Think about your personal life and how much you want to earn for the time that it takes you to create that piece of content.
Then also think about how you can help the brand. If you've got a million followers, you're going to be worth more than those that only have thousands of followers.
There are going to be some brands that have a set price that they offer. For example, Squarespace tends to offer $50 per piece of content. For those with lots of followers, it may be insulting when other brands might offer $10,000 for the same effort.
Consider using the rule of between 8 and 12% of your follower base. So if you have 10,000 followers, your lower price limit is $800 and your upper limit is $1,200.
Tip 2: Have a draft negotiated agreement deal
Getting your negotiated agreement done is about being prepared. You can use Indy to help you start the business deal by having a document that can be edited. It speeds up the process because you can say you have a set document with terms, and you can negotiate effectively from there.
And by having a standardized document, you can build trust with the brands because it shows professionalism.
Tip 3: Keep statistics of your worth
The other party will want to know that investing in your brand will be worthwhile. Therefore, for any salary negotiation to go well, you need to be sure you have the statistics that are most relevant to the sponsor.
For example, the number of subscribers is valuable information. You should also look at previous campaigns and determine the financial value the campaign had for the other party. Did they get so many downloads, what were the campaign engagement rates like, etc? The better your statistics, the more bargaining power you have for the negotiations.
Tip 4: Improve body language at the negotiation table
One of the key aspects of any negotiation is that you both are looking for a win-win scenario where both underlying interests are being met. Effective negotiation skills include how you appear to the other party. You want to look friendly but professional.
Therefore, ensure that you look your best with a smart outwardly appearance. Also, don't look defensive with how you sit or stand; crossing your arms is a major faux pas.
Tip 5: Aim high at the start of the negotiation
When you want to talk about the potential income, you need to think that they will want to bring you down a bit. For a win-win to happen, you probably want to aim higher than you expect in the opening offer. So if you want to earn $1000 per content, start the negotiation process by asking for $1,500.
They will probably bring you down a little in the negotiation. However, this is well-known by any good negotiator.
Tip 6: Don't be afraid to walk away
There are always going to be times when the possible outcomes aren't going to be favorable for you or the potential sponsor. Great negotiators know when to walk away from a negotiation, and you must do the same.
There could be multiple issues that are going to affect you. For instance, you might want more money, their budget might be a bit low, or they want to have content inserted in an unacceptable format.
Tip 7: Listen carefully and ask open-ended questions
A good negotiator knows when to listen and when to talk. It is important to ask open-ended questions that the brand will need to answer with their own details. Probing questions also means that you can get valuable information about what the client is looking for. It allows you to both set realistic expectations of the deal and how you can work together.
In addition, you can consider other factors within the deal, such as how much their requests will cost and how popular they will be for you.
Tip 8: Put yourself in the shoes of the other side
If you want to be a better negotiator, you will need to learn how to place yourself in the shoes of the brand. Do your research, and look at how the other parties have used influencers in the past. Your negotiations can go better when you know more about the other side.
You will, for instance, want to know about their goals, what they see as valuable, and how past deals have gone before.
Tip 9: Start the negotiation with clear goals
High-value collaborations start with clear goals for the project. So you need to know what they are expecting, in detail. For instance, are they looking for new subscribers, new downloads, more followers to a social media platform, or just to get the most from a deal?
A deal cannot be made or negotiation finished until you know what they want from you. Be sure that you also include costs, payment schedules, and more within the negotiations.
Tip 10: Feel confident in your valuable assets
You should feel confident that you have the necessary assets and drive to help the brand achieve its goals. Part of the process is to show that you're confident and display that you have their interests at heart. If you display confidence in your brand during the negotiation process, then the business will have confidence that you can deliver the best outcome for them.
As a result, you will have the upper hand in any money talks, and you can focus more on what can be delivered and the time frame for the delivery of the content. And being confident can also help you to build rapport with the business.
How Can Indy Help You With a Negotiation?
Becoming an influencer is a fantastic opportunity! For those looking to turn their passion into profits, you might consider being a freelance influencer on numerous platforms. However, to get there quicker, you need to work hard. But Indy is there to help as an all-in-one app helping you to save time and money throughout the whole client life-cycle.
- Using Indy’s proposal tool, you can create, edit, and send proposals to clients about new brand collaboration projects.
- Keep your work organized with a comprehensive workspace that includes a calendar for scheduling and tracking work.
- Get paid by brands for your work; Indy’s invoices support integrated online payments, including PayPal and Stripe, with no additional fees.
- Up your freelancing game with Indy University, with a range of advice articles written by experts.
And there is even more on the Indy platform that can help you grow. Create feedback or lead collection forms to help you learn more about your clients. And work in collaboration with your clients through a project manager and file-sharing system. Indy has everything you need to make your freelance work smooth, quick, and simple.
Conclusion
Mastering the art of negotiation is a critical skill for influencers seeking to optimize their earning potential. We've shared ten powerful tips to strengthen your negotiation abilities, offering insights into setting price limits, preparing drafts, tracking your worth, refining body language, and more. The crux of successful negotiation is understanding the value you bring to the table, projecting confidence, and setting clear, achievable goals. These skills not only ensure you secure favorable deals, but also build strong, long-lasting partnerships with brands.
It's time to take your negotiation skills to the next level. With the insights shared in this article, and the added help of Indy, you're well on your way to becoming a proficient negotiator. Remember, the key to successful brand collaborations lies in a win-win outcome, and Indy can help you achieve just that. So, why not give Indy a try today? Step up your negotiation game and discover how Indy can revolutionize your influencer journey. It's time to unlock the full potential of your influencer career.
