MomCrunch
Ask Danielle: How Much Do I Charge for Sponsored Programming?
One of the more frequent questions I get asked is “how much do I charge?” It is very hard to know what our real estate and our influence is worth, so I thought I’d share some tips on determining fair compensation.
- Tip One:
Ask Around! This one is kind of obvious, but it’s also the most effective. Find out what others are charging for content. More importantly, find out what others are PAYING for content. Do you have friends in the PR and Marketing industry? Ask them how much they are paying for sponsored content! You can also ask how much they pay celebrities for appearances and endorsement. This is incredibly interesting, especially as studies continue to show that bloggers actually have more influence over purchasing decisions than celebrities do. - Tip Two:
Use a CPM Calculator. Most display ads on blogs run between $5 and $15 CPM (cost per thousand). You can use a CPM calculator to insure that your programs are matching these rates. Pop your daily impressions into the calculator along with your desired CPM, and use that to figure out what you want to charge. -
Tip Three:
Make sure you are covering your time and expenses. I think that your sponsored content should be priced well above just time and expenses (because those don’t cover influence at all), but at a minimum, make sure you are compensated for these. Expenses can include babysitting fees and mileage. -
Tip Four:
Start high. I use “funny feeling in my stomach” as a good rule of thumb. Do you feel a little queasy when you say your rate out loud? Good. You’re probably in the ballpark, then. Most women (and I say this from experience, not from a point of generalization) don’t even bother to negotiate. Remember that as the person charging the money, you need to start high so that you have room to negotiate. On the other side of the coin, remember that agencies ALSO need to leave room to negotiate. This means they are probably starting low. Nine times out of 10, they are offering you less than they actually budgeted. You might as well TRY to get more. It won’t hurt anyone – promise.
Go Back To MomCrunch
7 Comments
Selfish Mom commented on Sep 16 11 at 11:52 pmExcellent advice. I’m always amazed when I hear how little most bloggers charge. On the other hand, several times a week I’m told by giant corporations that they don’t have the budget to pay bloggers. Well then, I don’t have the time to promote your product!
Cat Davis - Food Family Finds commented on Sep 17 11 at 2:12 amTip1 – Excellent advice. Having been apart of a large blogging community for several years now, we’ve learned to openly communicate about compensation and learn our worth.
Tip2 – Wow, I just got a rude awakening using that calculator. Talk about selling myself short.
Tip3 – When I’m often asked about how I price things I tell bloggers that I start with an hourly wage that I think my time is worth and add expenses on to that.
Tip4 – Agreed 100%. It’s also important to set a minimum for yourself though and know that is OKAY to walk away from a deal that isn’t adding up.
Robin O'Bryant commented on Sep 17 11 at 4:54 pmThese are all great tips. Would you have any recommendations or resources for how to approach pitching a brand ambassadorship in conjunction with a book publication? My first book will be published before Christmas and I have a great idea for a cross promotional brand ambassadorship but I am having trouble finding resources to gauge how much money I should be aiming for because the deal will include much more than blog ads. Anyone got advice? I’d love to hear it!
Debbie commented on Sep 19 11 at 4:49 pmYour comments on CPM rate make sense, but what would you advise an advertising agency that believes that CPM rate is too high? $5-$15 CPM makes sense for a high-quality blog, but there is something to be said for how targeted the impressions are. Some blogs just aren’t worth that rate, but an advertising agency might still want a wide range of blog coverage. If you are going directly to a blogger, you expect to pay somewhat less than if you go thru a network like Lifetime or BlogAds. That’s because the networks cover placement, tech issues, payment and tax reporting. That justifies their fee. So if you are worth $15 CPM through a network, that does not mean that an advertising agency will think you are worth $15 CPM if they have to deal with you directly. Remember that agencies have choices, and it’s possible to get remnant rates (less than $2) from publishers much of the time (perhaps it’s due to the economy).
Oddly…I’ve found that some top bloggers are easier to work with on advertising rates than those with much less traffic and a less targeted site. This may be because the top bloggers have some business background and understand a bit more about how negotiations work.
A final note to bloggers: if you’re going to calculate your rates this way, please get your impression count correct and be specific with your duration. I’ve had bloggers tell me they had 45,000 page views…but they meant since their blog started…not monthly.
swaygroup commented on Sep 19 11 at 4:52 pmDebbie, thanks for the comment. I don’t know that I agree, however. What I’m talking about here is sponsored content, which I would argue is way more influential than a display ad along the side of a blog. To that end, the CPM (even though it doesn’t include placement and tech issues) would still be valid (if not low). Additionally, individual bloggers do indeed still need to worry about invoicing and tax reporting.
Heather commented on Sep 20 11 at 3:39 amTip four is the most important tip EVER. I say it to fellow bloggers all the time. So glad to see you preaching it to (not that I’m surprised).
Rebecca commented on Oct 08 11 at 10:54 pmI would add in that your CPM alone is not enough if you are also publicizing on facebook, twitter and other outlets of which you are a part. For many women bloggers there exists a breadth of reach beyond their blog and you should promote yourself as that entire package. Think beyond just that sponsored post and charge accordingly – but have the numbers to back up your ask!
Add your take:
Note: Babble is a supportive, diverse community. We encourage a range of opinions,
but any unduly hostile comments will be removed.
Comments are delayed up to 15 minutes
Paula Bernstein 
Cecily Kellogg 
Ria Sharon 
Janice Croze and Susan Carraretto 
Alli Worthington 
The Walt Disney Company supports Babble as a platform dedicated to honest, engaged, informed, intelligent and open conversation about parenting. However, the opinions expressed on this site are those of individual parents/writers and do not reflect the views of Disney. In addition, content provided on this site is for entertainment or informational purposes only and should not be construed as medical advice, diagnosis, treatment, or safety advice.
7