Whether you’re making content on YouTube, Instagram, or TikTok, brand deals and sponsorships are a huge and important source of income. Often, the money creators make from their sponsorships outweighs what they earn from the platform itself.
If you’re creating a sponsored post on Instagram or an ad in a YouTube video, here are some of the key factors you need to know before you set up a brand deal.
Set the Right Rates
Rates can be challenging, especially for newer content creators. You never want to feel like you’re scaring brand partners away with rates that are too high, but you also don’t want to undervalue yourself. Charging too little not only means you have to do more work for the money, but you also risk sending a message to potential collaborators that you don’t offer great value.
Do some research to see what other creators at your level are charging and become familiar with the different ways creators charge for content. Some common methods to determine rates include how many followers you have, price per hour, or price per the typical number of impressions your content receives. (We’ve got a post that goes into this topic in depth here.)
Make Sure the Brand Fits Your Audience
Money isn’t the only thing you need to think about when deciding whether to work with a brand. You have to take your audience into account! Does the brand represent or cater to the values of your ideal follower? Does the product fit your niche and make sense to advertise for your audience?
When you’re vetting brands, don’t just rely on how they pitch themselves to you. Also, do some independent research to ensure that their words match their actions, and there will be no nasty surprises that get revealed during the course of your partnership. You know how quickly a content creator can get cancelled for partnering with a brand that messes up.
Keep Creating Authentic and Valuable Content
Brands want to work with you because your followers and subscribers trust you. Even if you are creating sponsored content, make sure you are always being yourself and being truthful with your audience. If you lose that element, then you don’t offer a lot of value for brands. This is another reason for vetting potential partners. If you can’t get behind a brand, your audience will feel it, and if you do things just for the money too many times, your audience may lose interest in your content.
Done-for-you taxes and bookkeeping for creators
Read and Understand the Contract
The contract will guide not only what you need to do to complete the brand deal, but also what the brand needs to do to help you be successful. For example, the brand may need to provide you with early access to content or products.
They’ll often include embargo dates that define when your content can be posted. You may also need to run content by the brand before it goes live to ensure that you are not violating any consumer regulations.
When you’re reading the contract, look for the deliverables, payment terms (we have tips on payment terms here!), and timeline to make sure everything is laid out clearly and is reasonable. Look out for red flags such as exclusivity (unless you are prepared to offer that) or ownership of the content you create.
If you’re unclear about any of the terms of the contract, you may want to work with an attorney who is versed in brand deals and the world of content to make sure you’re protected.
Understand Your Financial Responsibilities
Both money and merchandise you receive from bands may be taxable, so keep good records of what each brand pays you and the market value of any merchandise you receive as part of your brand partnership. Also, track any expenses you incur while creating content for the partnership to offset your taxable income.
And yes, do have a handy tool to help you track income and expenses. Download that here. If you need help figuring out what is and isn’t taxable, we’re happy to help. Book a call with us to explore how we can work together to take the money stuff off your plate so you can focus on creating great content.
Conclusion
Partnerships with brands can be the make-or-break element of your business, enabling you to make a good living doing work you love (and leave that day job behind, if that’s your path). Just keep these five points in mind when you’re deciding whether to take a deal: the rates, the brand’s fit with your ethos, whether you can be authentic when creating content for the brand, how well the contract fits your business needs, and how you will track your earnings and expenses for each brand project.
Be strategic with all brand deals and remember, authenticity and audience trust should always come first. If you want more help with your taxes, bookkeeping, and accounting, feel free to book a call with us, and we’d be happy to discuss your needs!