Advertisemen
I have found the perfect formula for how much to charge for each brand campaign
https://ift.tt/eA8V8J
So I was sitting with my boyfriend who is a sales consultant and asking him what he thinks would be important when charging for posts. We tossed a few ideas around and things to consider, and eventually we came up with this formula together:
Estimate Post Charge Formula
Reach = R = Average reach posts (can be based off last 3, last 6, or this whole year, but be sure to mention which one you're using when pitching.)
Retail Price of Product = P
R * 1% = estimated number of buyers = B
B * P = estimated revenue = X
X * 10% - P = My amount charged = M
R = 5000
P = $60
R * 1% = 50 buyers
B = 50
B * P = 50 * 60 = $3000
X = $3000
X * 10% = 3000 * .1 = $300
300 - $60 = $240 post price
I think this is a solid formula as it takes into consideration how much the product is that you're promoting and how much revenue they are likely to make, where you are payed based off your true performance and they still will see an ROI.
Questions, comments, concerns greatly appreciated!
Edit: Just to clarify, I subtracted P from the final result because in most cases the brand will send you the product as well, which is a cost for them.
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https://ift.tt/1ODA6gd
July 14, 2020 at 06:11PM