Negotiating rates with creators can be tricky, especially as the creator economy is in a time of growth and transformation at the moment. There are a few key rules you can follow, however, to decide on rates that are fair to you and the creator.
Do Your Research
Once you’ve decided on the project you’ll be completing, and the budget you have to complete it, you’re ready to dive into some deeper research. Ask yourself these questions to get started.
- Who will I need on this project? Do some research into initiatives with similar results, and who they needed on their team to get it done.
- What experience levels will I need from these freelancers to get the job done right?
- What do creators of this experience level typically get paid for their work?
Determine Your Budget from the Beginning
With the information you’ve gathered above, you can begin building out your total budget for the initiative. Before beginning any new project, determine:
- Your Overall Budget: What you can afford, factoring in the project’s expected return.
- If There’s Any Wiggle Room: If there is absolutely no room to move up in pay, make that clear when posting the opportunity.
Have an Open Discussion
The most important aspect of negotiating rates with creators is to show them the respect of having a conversation about the final rates. Follow these steps to reach a final verdict on payment.
- Propose Your Rates: Ask for their consent on rates, and invite feedback if they have concerns.
- Listen to Feedback: If they’re happy with your rates, great! If not, have an open discussion about previous rates they’ve received for similar projects, what they’d like to be paid for yours, and how their work will generate the value needed to justify the raise.
- Find A Middle Ground: If you’re able to adjust pricing within your budget, and believe the money is worth the value the project will bring you, then you’re set. If you’re unable to match their rates, see if you can find a happy medium by lowering responsibilities, providing consistent work instead of a one-off gig, or providing additional benefits outside of the set rate.