Should you set sponsorship rates?

Hey passionate creator,

Has a brand ever reached out to you and asked for your rates?

You're thrilled at the prospect of doing a brand deal, but your excitement quickly turns to panic. You don’t know how much to charge for sponsorships. What now?

It's normal for creators to experience some self-doubt during the early stages of their business. They’re not sure how to price their value and they’re afraid of charging too much or too little. But before you start plucking figures out of thin air, it might be worth considering whether setting rates is even the right approach for you.

All businesses and creators differ. There’s no right way of doing things, including brand deals. That's why it's important to choose a model that makes sense for your business.

Some creators prefer not to limit themselves by having predetermined prices. They would rather treat each brand deal as an individual service that they offer, tailoring their value proposition and prices to a brand’s needs. This leaves room for negotiation.

On the other hand, some creators prefer a more streamlined workflow. They don’t want to think about negotiating, or they don’t have the time for it.

There’s no one right approach, but here are some things to consider:

• How often do you plan to do sponsorships? If you have weekly or even daily sponsorship slots, it might be easier to fill them with as little input as possible by having set prices. This is often the case for newsletter writers.

• How many platforms are you on? If you’re on one platform, you might only be able to offer a single type of sponsorship or service to brands. In this case, set rates make sense. However, if you have a newsletter, a YouTube channel, and an Instagram page, you can upsell a variety of different packages by leaving pricing open.

• How comfortable are you with negotiating? Although negotiation is a skill that requires practice, if it’s not something you enjoy doing, setting rates might be the best option for you.

• What’s the main focus of your business? If your main income stream is brand deals and sponsorships, negotiating can get you more money on the table. On the other hand, if you’d rather have sponsorships as a more passive form of income, setting prices can reduce the amount of time and energy you need to put into collaborations.

Ultimately, it’s your business. You get to create the model that works for you. 

With Passionfroot, you’re not limited in your approach: you have the option to set rates or hide prices. You can even create custom packages if you have a variety of offerings.

You can learn more about how to set rates and how to negotiate here.

What approach do you prefer? Hit reply and let me know!

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If you struggle with a scarcity mindset when it comes to money, this conversation with Steph Smith is worth listening to.

 Introducing Live Stats

If you've ever used a media kit, you'll know it's a constant struggle to keep it updated. You love growing as a creator, but the only downside is having to change your metrics every time you communicate with a brand.

Now you can automate this with Passionfroot. Sync your Passionfroot page with your platforms and your stats will automatically stay up-to-date. 

Let your Passionfroot page grow as you do. 

What's been the biggest win for your creator business this week? I'd love to celebrate it with you.

Stay passionate,

Akta