We recently received the following question for our Vlog Nation Q&A series:
“A company contacted me to promote their product on my YouTube channel but I don’t know what price to tell them. How do you know how much money to charge for a video when promoting a company?”
Good question! YouTube sponsorships are easily one of the best ways to earn money with your channel. In the beginning stages, many YouTubers are happy to market brands within their content in exchange for free products.
However, as your YouTube channel grows with a consistent viewership, you can start to ask for compensation, which brands are happy to match when there’s a good fit. That being said, it can be a confusing process for YouTubers to decide on a price. Here’s our take:
Go With The Flat Fee Model
How exactly can you figure out what to charge a company to promote their product or service on YouTube? A simple and effective way to do just that is to work with a flat fee. Yes, there’s various other pricing models, but charging a flat fee is one of the best choices when you’re just getting into sponsorships. It also guarantees that you get paid!
Many companies may offer to provide you with a commission from the sales generated by your YouTube channel, but there’s never a solid guarantee. In addition to sales, there’s a ton of other benefits a brand can receive from an endorsement by you on your YouTube channel, and the commission model usually doesn’t take that into account.
Our first recommendation is to always go with the flat fee model, as this keeps everything simple, and compensates you for the exposure the sponsoring brand is receiving.
Deciding on Your YouTube Sponsorship Rate
So, how can you decide on the total dollar amount for your flat fee? To get started, take a look at your previous 8-10 videos and then calculate an average view count. Avoid counting any videos that suddenly went viral, and are not reflective of your average viewership.
Next, assign a cost per view for your sponsored content. While the rate you decide could be anywhere from $0.02 to $0.10+, here’s a few things to know so you can determine a good value when using this scale:
- Is your YouTube channel based on a niche topic area (relevant to the brand)?
- How engaged are your viewers (comments, likes, taking action, etc.)?
- How relevant is your audience to the brand?
- Are you receiving a free product as well?
- How much exposure are you providing (is it just a brand mention or a dedicated video)?
These are just five of the many important factors to consider. Depending on how relevant your viewership is to the brand, and how much video time you’re dedicating to them, the cost per view will vary for every company that you partner with.
Calculating How Much to Charge for YouTube Sponsorships
After you’ve decided on a CPV rate to promote a brand on your YouTube channel, the next step is to multiply it by your average view count. For example, if you’ve set the CPV at $0.04, and your average view count from the past 10 videos comes to 22,500, then your flat fee price could start at $900.
Added in could be any special costs involved (buying supplies, renting a specific location, hiring actors). If you’re receiving a quality product for a review to keep, then you can reflect that in your total amount as well.
When deciding on how much money to charge for a video sponsorship, keep these tips in mind as a general guideline, and experiment! Remember, this is just a suggestion, and there’s a variety of other formulas out there, as well. Every YouTuber will have their own unique set of results and opportunities.
Most importantly, brands are always looking for a profitable return on investment from their YouTube sponsorships, so be sure to offer good value so that it can be a win-win situation for both sides!
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