More than 70% of respondents in a survey from the Internet Creators Guild (ICG) indicated that they get some of their income from brand deals, with more than 50% reporting that a majority of their income comes from brand deals.
“Unfortunately, these deals are often intentionally mysterious and difficult to negotiate and creators are legally prevented from disclosing the terms,” ICG said. “As a result, many creators, especially those trying to grow this part of their business, remain in the dark – confused and frustrated.”
ICG said that cost-per-view (CPV) is typically based not on delivered views, but on an estimation of future viewership. That estimate is based on average views of five to ten recent videos in their first 30 days after upload. On the high end, a creator with 10,000 average views might have a full integration brand deal worth more than $18,000 with a CPV of $1.80. On the low end, that same creator could do a sponsor mention at a 0.2 cent CPV and be paid $20.
“Negotiating a rate is only a tiny and early piece of what goes into a successful brand deal,” the report said. “Full integrations often involve extensive conversations between the brand or agency and the creator. This can involve input on the script, production and even final product. It isn’t unheard of for a brand to walk away after the video is done but before it’s uploaded.”
Nearly 30% of creators who responded to the survey had never done a brand deal, and of those, 70% wished they had been able to. About half had never had the opportunity, while the other half just hadn’t had the right opportunity.
By far the most common source of a brand deal is the brand themselves (or their agency) reaching out directly to the creator. A full three-quarters (75%) of respondents who have done brand deals reported that at least some of those had come directly from the advertiser.
The ICG suggests that guild members should be paid no less than 5 cents per view for full integrations, and no less than 1.5 cents per view for sponsor mentions. Contract terms that indicate payment should be delivered on upload and limit the number of revisions.