How to Protect Your Time & Earn More as a UGC Creator: "Starting Rates" Vs. "Flat Rates"

Negotiating Fair Rates & Understanding Creative Requests as a UGC Creator

TLDR // Free-subscriber preview: The author advises user-generated content (UGC) creators to share their rates in their portfolio as "starting rates" that are subject to change based on the creative request. This allows them to protect their time and energy, as different requests require different amounts of effort. The author suggests that creators ask potential clients questions about the frequency of UGC work needed, the type of UGC requested, and the level of direction provided to understand the project better and quote most accurately. They also recommend being transparent about the amount of time and effort that goes into each request and negotiating fair rates. When you become a paid subscriber or subscribe with the 7-day free trial, you gain access to the following (but not limited to):

1. The full article, along with all archived articles to date.

2. The audio version if you prefer to listen to the articles.

3. Exclusive discounts and early announcements.

4. Relevant examples to topics discussed (i.e., in this article, I provide the Google Form Survey that I send out to every potential client interested in working with me to best quote them.

As a UGC creator, you should share your rates in your portfolio. This might sound controversial at first glance, but allow me to elaborate. Yes, sharing your rates in your portfolio would be best so the brand knows what they're working with - but not as flat rates. Instead, you should be listing them as "starting rates"; for example, if your rates look like this:

Rates based on deliverables:

$200/per concept for 1 concept under 60 seconds

$150/per concept for 2 concepts under 60 seconds

$100/per concept for 3 concepts under 60 seconds

I’d instead consider changing your rates to:

Starting rates based on deliverables (subject to change based on creative requests):

$200/per concept for 1 concept under 60 seconds

$150/per concept for 2 concepts under 60 seconds

$100/per concept for 3 concepts under 60 seconds

*Monthly retainers available depending on output needs & creative requests

Now, why is this minor detail important? In short, to protect your time! I have a client that has anywhere from 1-3+ UGC requests per week, and every single request is different regarding the time and energy required. If I just went by a flat rate, I'd be leaving so much money on the table.

Sure some requests are on the lower end (I don't do any requests for less than $300), but even if I went by a flat rate of $500, I would have missed out on SO MUCH MONEY! I say this confidently because most of my projects with this client in 2022 ranged from $600 upwards to $1,000+ per concept. But had I kept a flat rate and didn't communicate "starting rates that are subject to change based on the creative request," I would have made only a fraction of what I made working with this client. As someone very motivated by numbers, here is the stark difference in income had I done flat rates:

37 concept requests in 2022 x $500 flat rate = $18,500

VERSUS

37 concept requests in 2022 x Unique Rates Based On Creative Request = $25,523

That one minor change in my portfolio made a $7,000 difference. Had I only done flat rates this year, I wouldn't have surpassed the 6-figure marker. And for those wondering, I'm still submitting/processing invoices, but as of 12/26/22, I'm at $105,283 for 2022, having worked an average of 10-15 hours/week, and I took the entire month of January off this year. Here is a link to my pay transparency as a UGC creator in 2022 if you’re interested!

Now for the questions that follow:

What if the client says they want to stick to a flat rate?

How do I properly quote per project?

If it’s a new client, where do I even start?

Like any piece of advice I share: nothing should ever be a "one size fits all" for the sake of everyone involved. Some clients might request you stick to a flat rate, and as long as that flat rate works for you, then that's fine. You'll want to adjust your creative output and/or concept ideas to that pay range you've agreed on to protect your time and creative energy, as there is a cap-off.

Now, if a client is receptive to your "starting rates" and understands that a request may be more than the starting quote depending on the creative request or suggestion proposed, you'll want to better understand each creative concept before quoting. Depending on your working relationship, the client may either:

• Come to you with a TikTok they found as an inspo example for you to recreate.

• Provide a creative brief but without the script (for you to draft).

• Provide a creative brief AND script for you to follow/read.

• Request that you propose the concept ideas, and they write the scripts.

• OR request that you propose the concepts AND draft the scripts for their review.

Notice how each bullet point ranges in time required to bring the concept(s) to life. This is exactly why you'll need key details to quote each unique concept accurately.

When it comes to onboarding a new client, these are the questions I provided in a Google Forms Survey for them to fill out:

1. The frequency of UGC work needed:

   1. One-off projects (quote per project)

   2. Reoccurring work (potential monthly retainer)

2. What part of the process do you need help with (check all that applies)?

   1. Coming up with strategy-driven UGC concepts

   2. Writing the scripts leveraging DR best practices

   3. Filming the UGC as on-camera talent

   4. Sourcing other professional creators when needed

   5. Editing the UGC leveraging direct response best practices + organic social nuances

   6. Further iterating on concepts to further learnings

3. What are these UGC concepts primarily for (check all that apply for paid media)?

   1. Facebook

   2. Instagram

   3. TikTok

   4. Snapchat

   5. Youtube

   6. Other

4. Will you need these concepts resized (ie: filmed in 9x16 for stories or TikTok but resized to 4x5 to relaunch on Facebook or Instagram)?

5. Do you have a certain length in UGC you are looking for (check all that apply)?

   1. 15 seconds

   2. 30 seconds

   3. 45 seconds

   4. 60 seconds

   5. 90+ seconds

6. Do you plan to provide inspo examples for future UGC concepts?

   1. Yes

   2. No

   3. Sometimes

7. How open is your team to testing?

   1. VERY open, test whatever so long as we learn something & eventually profit

   2. Pretty open; if you're testing strategically, we'll be open-minded to your strategy

   3. Open, just let us know why you want to test something beforehand

   4. Not very open, we like to stay on-brand

   5. Not open, stick to our brand guidelines

8. Do you have any UGC concepts that you can include that you like? Can be your brand or someone else's. 

9. If you don't have the physical UGC file, do you have links you can provide?

10. What is your desired weekly UGC output if you're interested in a potential monthly retainer?

    1. 1 concept/week (4 concepts/month)

    2. 2 concepts/week (8 concepts/month)

    3. 3+ concepts/week (12+ concepts/month)

11. Do you have any other info you'd like to provide to better the SOW estimate? If so, please respond below.

In closing, I recommend you include your rates in your portfolio, but to ensure you're not leaving any money on the table, communicate that they are STARTING RATES that are subject to change based on each creative request! You can add a disclaimer below your rates letting them know monthly retainers are available depending.

An example looks like:

I want to reiterate that this approach doesn't always work for brands and their budget, which is okay! That doesn't mean you are automatically cheated out of thousands of dollars. It means you need to set the expectation with the client that some creative requests or suggestions could fall out of the SOW (scope of work). And that if/when that happens, you'd like to adjust the creative request to fit the flat rate OR propose an adjusted rate for the off-chance the creative request falls out of scope. Always bring this up before starting a project considered "out of scope" to ensure there isn't a surprise invoice charge that could negatively impact your working relationship!

I also wanted to announce that my Portfolio Guide is launching in January 2023. If you're interested in learning more about what comes in this guide, I will be announcing details in the coming week(s). And, of course, all my lovely subscribers will receive discount codes to use during the pre-sale and launch of this digital product. So stay tuned for what's to come! I wish you the best of luck on your UGC and marketing journey. Please continue utilizing me as a resource; I'm here to help!

If you found this article helpful, please like and comment below, along with any follow-up questions. If you are a fan of this newsletter, please share this article with your friends! I offer a 7-day free trial for anyone interested in becoming a subscriber. I wish you the best of luck on your UGC and marketing journey. Please continue utilizing me as a resource; I'm here to help!