Trying to work out what to charge for UGC? If you’re a new UGC creator, working out where to price your work can feel like you’re fumbling around in the dark. How much to charge for UGC will depend on various factors: the platform, the brand, the deliverables and the creators.
The average UGC rates sit at $212 per video, but you’ll find creators charging a LOT more, and creators charging significantly less. It can vary massively from creator to creator, and while many are happy to tell you what not to charge, many UGC creators are tight lipped about their own rates.
Well, it’s time for some UGC pricing transparency.
In this article, we’re going to break down the average UGC rates in the industry, and provide some food for thought when you’re trying to set your own pricing.
What Are The Average UGC Rates?
As a relatively new industry, it’s not easy to find a standard benchmark to work from.
Using the Brands Meet Creators – a free newsletter that sends UGC jobs straight to your inbox every week – creator survey from 2022, we have a starting point.
Creators were asked for their fees for a single piece of UGC content, in this case, a 9:16 vertical video, between 15-60 seconds in length.
The average asking price for 1 piece of UGC is $212, this figure will be skewed by some big players who ask for significantly more, so it’s more reflective to look at the median. This number was $150, which also happened to be the most commonly requested rate.
So, if you’re a new UGC creator, you can expect to charge $150 for a single UGC video.
@ugcang Replying to @content_bychloe if you go to starbucks, they charge for all the additives (syrups, cold foam, dairyfree milk, ect). You should charge for the additives as well. Your base rate covers the content creation (the coffee). Extra value pieces may include raw footage, usage, refilms, whitelisting, resizes, ect. If you can’t tell, I love analogies 💖✨ #ugcrates #ugcratesandpackages #ugcpricingrates #ugcpricing ♬ original sound – Ang | UGC creator & coach
UGC Bundle Rates
It’s quite common that creators will discount their rate if a brand buys multiple videos. This incentivizes brands to purchase multiple videos from the same creator. By upselling a series of videos, creators can negotiate better rates with brands without drastically increasing the amount of work.
But how much are creators discounting their content?
Bundles of 5 videos were discounted by an average of 19%. So, for a bundle of 5 videos you would charge $854 for 5 videos, which equates to $170 per video (vs. the individual average of $212).
UGC Rates vs. Influencer rates
While UGC creators and influencers both sit in the content creation, the fees are very different.
UGC rates are based on the deliverables: how many videos, usage rights, the number of hooks etc. Their rates can be influenced by their own creative expertise, but for the most part, there is a fairly even playing field set for UGC.
On the other hand, influencer rates are determined by audience size, engagement rate, and niche relevance. Influencers will command higher fees due to their established following and ability to drive substantial brand awareness and conversions – they aren’t just creating the content for the brand to advertise with, they are the ones doing the advertising.
How To Set Your Rates As a UGC Creator
If you’re looking to set your rates as a UGC creator, you can use the below as basic guidelines to start with. You’ll quickly work out what brands are willing to pay you as a creator and what you’re comfortable charging, so you can adjust these as needed.
Rates are there to be negotiated, don’t be shy in fighting for what you’re worth, but also remember that there is no shame in dropping your rates if you need the job or your building experience. Everyone starts somewhere.
In the world of UGC, you’re going to set a base rate for a single concept. The bare minimum. One video. Without complicating it, as a new creator you’re going to sit somewhere around the $200 mark. If the brand wants multiple videos, you’ll offer a discount. For example, 3 UGC videos might then be $500.
You’ll then look to make the bulk of your income through upsells. These can be intimidating at first, but are ultimately a great way to boost your income (and luckily, rates are fairly standard across the board for them).
Rates for UGC Upsells
Multiple Concepts: 25% Discount On Single Video
A brand may have to come looking for an unboxing video, but could leave with an unboxing video, a testimonial and a green screen. In order to do this, you need to be able to present what is currently working in their industry and why you think it might be beneficial to them.
Hook/CTA Variations: $50 each
As a creator, additional hooks and calls-to-action (CTA’s) can be a powerful way to maximize the value of your deals.
Hooks are one of (if not the) most important parts of a UGC concept. The wrong hook might kill an ad before it ever gets started. Similarly, CTAs can drive engagement, conversions, and ultimately, greater ROI for the brand.
Usage Rights: 30-50% of Base Rate
When brands collaborate with creators, they require the usage rights for the content.
A creator may include 12 months UGC usage rights as standard as part of their base fee. A brand can utilize this footage across that period, but thereafter, they don’t have the right to use the footage.
If they want to use the footage forever, you, as the creator, have the right to charge more.
For usage rights, you can charge 30-50% of your base rate for a specified duration.
Raw footage: 30-50% Base Rate
No surprise here, UGC raw footage is a gold mine for both brands and creators alike. With raw footage, brands can create 5-10 variations of the same ad and test each to see the effectiveness. If they were to have to pay for each of these variations from the creator, it would quickly add up.
Whitelisting/Spark Ads: 30% Base Rates Per Month
Whitelisting involves allowing a brand to launch a paid social advertising campaign through your (the UGC creators) account, rather than a brand account.
From a brand’s point of view, UGC whitelisting works on a number of levels – the main one being customer trust.
Organic Concept: $150-200
Trends on social media have the power to go viral within hours, making trend-led creations a powerful tool in a UGC creator’s arsenal. As a UGC creator, staying up-to-date with the latest trends is essential to creating content that resonates with your target audience. Embracing popular trends and offering them as organic content for relevant brands is a great way to make extra money.
Rates For UGC Packages
By presenting a package that includes the original deliverables along with additional hooks and CTAs, you can not only add value but also showcase your commitment to delivering a well-rounded campaign that can be A/B tested.
For new creators, I find the two best packages to offer are an ad testing package and a raw footage package. Anything else you can negotiate over email and craft specifically for the brand.
UGC Pricing Calculator
To determine fees for UGC, you can use the The UGC Club fee calculators, which takes into account various factors to provide an estimated rate for UGC content.
Our calculator is based on data from a wide range of UGC creators and can provide a great starting point if you’re a new UGC creator who is unsure what to charge.
What Factors To Consider When Setting Your UGC Rates
When determining UGC rates, various factors come into play.
These can include the creator’s expertise, the time and effort required to create the content, and the potential return on investment for the brand.
If you are a creator, it’s essential to consider a number of factors when setting your rates:
✅ The Deliverables: What are you going to be creating and how long is it going to take you? This may just be your standard base rates, but there are opportunities to add additional fees on if needed. These include things like rush fees, raw footage or filming at an additional location or with a second pair of hands.
✅ Your Expertise: How experienced are you in the UGC field? If you are an expert creator, you can most likely command more for a single UGC video than a brand new creator, as long as you can demonstrate why. Be sure to include results from previous collaborations in your portfolio to highlight this.
✅ The Risk: Depending on the UGC usage rights you negotiate, these brands may be able to use your content in perpetuity. That means forever. If you go on to become a renowned clinical physician in 10 years, but your face is plastered over billboards advertising vapes because a dodgy brand sold your image, will that $150 still be worth it? Consider any future implications of these deals and price accordingly.
Overall, UGC pricing can vary greatly, so have a good think about what works for you when setting your rates. Collaboration between brands and UGC creators can be mutually beneficial when pricing is fair and reflective of the value provided by the content, so be flexible where possible.
