How to Calculate Sponsorship Rates by Platform
The industry standard formula is: Sponsorship rate = Average views × CPM / 1,000, adjusted for engagement. YouTube CPM benchmarks for paid integrations run $20–$30 per 1,000 views; Instagram $8–$15; TikTok $4–$10. High engagement (6%+) signals an active audience — brands pay a premium for that conversion potential.
When quoting rates, present a media kit with your last 90-day averages rather than all-time stats. Be transparent about your audience demographics — brands often pay more for specific age/location matches. Always clarify usage rights upfront: if a brand wants to run your content as a paid ad, charge an additional 50–100% on top of your base rate.
Frequently Asked Questions
Include: channel overview (niche, audience description), last 90-day stats (avg views, engagement rate, reach), audience demographics (age, gender, top countries), and past brand collaborations if any. Keep it to 1–2 pages with visuals. Tools like Canva make this easy.
Always counter unless the offer is already at or above your calculated rate. Brands expect some negotiation — accepting immediately can signal you undervalue your reach. A polite counter with your media kit data rarely kills deals and often results in 20–40% increases.