How to Price Your First Sponsorship Deal
Pricing doesn't have to be a guessing game
A brand just reached out. They love your content and want to work with you. You're excited — this is what you've been working toward.
Then they ask: "What are your rates?" And you freeze.
You have no idea what to charge. Too high and you'll lose the deal. Too low and you'll regret it the second you hit send. So you panic, throw out a number that "sounds reasonable," and hope for the best.
Here's what usually happens next: you either undercharge by thousands of dollars, or the brand ghosts you because your rate didn't match what they were expecting.
Pricing your first sponsorship deal is awkward. But it doesn't have to be a guessing game.
Start with a baseline
There's no universal formula for sponsorship pricing. A YouTube video isn't worth the same for every creator, and a brand paying $500 for an Instagram post in one niche might pay $5,000 in another. But you need a starting point.
The most common model is CPM — cost per thousand views or impressions. You take your average reach and multiply it by a set rate. For example, if your YouTube videos average 10,000 views and you charge a $50 CPM, your rate for one video would be $500. CPM rates vary wildly depending on your platform, niche, and engagement. If you're just starting out, $25–$50 CPM is a reasonable baseline.
Some creators skip the math and charge a flat rate per content type — a set price for an Instagram post, a YouTube integration, or a newsletter mention. This works if you're producing consistent content, but it doesn't scale with performance. If your audience grows, you'll need to revisit your rates regularly.
If the brand wants you to attend an event, create custom content, or work on something beyond a standard post, think in terms of time. A half-day shoot, a full-day rate, or an hourly consulting fee. This model works well for partnerships that involve more than just hitting publish.
What's not included in your base rate
This is where most new creators leave money on the table. Your baseline rate is for one piece of content with limited usage rights. Anything beyond that should cost more.
The biggest mistake new creators make is agreeing to "a post" without clarifying what else the brand expects. If you don't set boundaries in the contract, you'll end up doing twice the work for the same flat fee.
- Usage rights for paid advertising — if they're running your content as an ad, charge 50–100% more
- Exclusivity — if they don't want you working with competitors for 30, 60, or 90 days, that's worth an extra 20–50%
- Multiple deliverables — if they want three posts instead of one, offer a slight package discount but make sure you're compensated
- Tight turnarounds — if they need it done in 48 hours, charge a rush fee
- Extra revisions — if the contract includes more than two rounds of feedback, build that into the price
How to answer when a brand asks for your rates
You don't have to give a number immediately. In fact, you shouldn't.
When a brand asks for your rates before they've explained what they need, ask for more details first. Find out the number of posts, platforms, timeline, and whether they're planning to use the content in paid ads. This shows you're professional and forces the brand to define the scope, which protects you from undercharging.
Once you have the details, calculate your rate, add a little padding for negotiation, and send it over with a brief breakdown. Don't apologize for your pricing or justify it with paragraphs of explanations. Just state it clearly and move on.
What to do if the brand says your rate is too high
If a brand pushes back on your rate, you have three options.
First, hold firm. If you know your rate is fair and you're not desperate for the deal, don't budge. Politely explain that your rate reflects the value you bring. Brands will lowball you if they think you'll take it. If you hold your ground, they'll either meet your rate or come back later.
Second, negotiate the scope instead of the rate. If they can't meet your price, adjust what you're delivering. Offer fewer posts, shorter content, or limited usage rights. This keeps your rate structure intact while still closing the deal.
Third, walk away. Not every deal is worth taking. If a brand wants the world for $100, let them go find someone else. The opportunity cost of saying yes to a low-paying deal is that you'll be too busy — or too resentful — to take on better ones.
Track every deal from the start
Once you start doing sponsorships, you'll lose track fast. What did you charge last time? What deliverables did you agree to? When are you supposed to get paid?
If you don't have a system, you'll either underprice future deals because you forgot what you charged before, or you'll miss payment deadlines because you didn't follow up.
Track every deal from the start. Write down what you charged, what you delivered, when you got paid, and whether you'd work with that brand again. It takes five minutes and saves you from guessing next time a brand asks for your rates.
Your first rate doesn't have to be perfect
Your first sponsorship rate doesn't have to be perfect. It just has to be something you don't regret two weeks later.
If you undercharge, learn from it and adjust next time. If you charge too much and lose the deal, that's also data. The goal isn't to nail it on the first try. The goal is to start somewhere, track what happens, and refine your pricing as you go.
The worst thing you can do is avoid pricing altogether because you're scared of getting it wrong. Pick a number, test it, and adjust. That's how you figure out what you're actually worth — not by overthinking it, but by doing it.