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How to Set Your Rates as a New UGC Creator
One of the biggest challenges new UGC creators face is pricing their work. Charge too little, and you undervalue your time and skills. Charge too much, and brands might pass on working with you. Finding that sweet spot requires understanding your value, the market, and what goes into creating quality content.
The good news? You don't need years of experience to charge fair rates. This guide will help you calculate pricing that reflects your worth while remaining competitive for the brands you want to work with.
Understanding UGC Pricing Fundamentals
UGC pricing isn't just about the final video or photo—it encompasses your entire creative process, expertise, and the value you provide to brands.
What Goes Into UGC Creation:
- • Concept development: Researching the brand, planning creative angles
- • Content creation: Filming, photography, multiple takes
- • Post-production: Editing, color correction, adding text/graphics
- • Revisions: Making brand-requested changes
- • Communication: Email exchanges, briefs, feedback sessions
Reality Check
A "simple" 30-second UGC video typically requires 3-5 hours of total work when you factor in planning, filming, editing, and communication. Price accordingly.
Time-Based Pricing Method
The most straightforward approach is calculating your hourly rate based on the time investment required for each project.
Step 1: Determine Your Hourly Rate
Hourly Rate Guidelines for New Creators:
- • Beginner (0-3 months): $25-$40/hour
- • Developing (3-6 months): $40-$60/hour
- • Experienced (6+ months): $60-$100/hour
- • Specialized skills: Add $10-20/hour for animation, advanced editing
Step 2: Estimate Time Requirements
Typical Time Breakdown:
Single TikTok/Instagram Reel (30-60 seconds):
- • Planning and concept: 30 minutes
- • Filming: 1-2 hours
- • Editing: 1-2 hours
- • Communication/revisions: 30 minutes
- Total: 3-5 hours
Multiple Deliverables (3 videos + photos):
- • Total time: 8-12 hours
- • Often more efficient per piece due to batch filming
Platform-Specific Pricing
Different platforms have different requirements, audiences, and value to brands. Your pricing should reflect these differences.
TikTok Content
Single video: $200-$500
Video + photos: $300-$600
Multiple videos: $150-$400 each
Higher rates for trending formats
Instagram Content
Single Reel: $250-$600
Photo set (3-5): $200-$400
Stories package: $100-$250
Feed posts often worth more
YouTube Content
Short-form: $300-$700
Long-form integration: $500-$2000+
Dedicated review: $1000-$5000+
Depends heavily on channel size
Usage Rights and Licensing
One of the biggest mistakes new creators make is not charging extra for usage rights. When brands want to use your content for ads or their own channels, that's additional value you should be compensated for.
Usage Rights Pricing Structure:
Organic Use Only (Default)
Brand can post to their own social media organically. No additional fee.
3-Month Usage Rights
Add 50-75% to base rate. Brand can use for paid ads for 3 months.
6-Month Usage Rights
Add 75-100% to base rate. Extended advertising license.
12-Month/Unlimited Rights
Add 100-200% to base rate. Full commercial licensing.
Exclusivity Clause
Add 25-50% if you can't work with competitors for specified period.
Pricing Example
Base TikTok video: $300
+ 6-month usage rights: $225 (75% of base)
+ 3-month exclusivity: $75 (25% of base)
Total project value: $600
Factors That Affect Your Rates
Increase Your Rates For:
- + High-quality equipment and professional-looking content
- + Specialized skills (animation, advanced editing, specific niches)
- + Fast turnaround times (24-48 hour delivery)
- + Multiple angles/concepts for the same product
- + Proven track record of high-performing content
Consider Lower Rates For:
- - Building initial portfolio (first 5-10 projects)
- - Bulk packages (10+ pieces of content)
- - Long-term partnerships with regular work
- - Simple, straightforward content requirements
Presenting Your Rates Professionally
How you present your pricing can be just as important as the numbers themselves. Professional presentation builds confidence in your value.
Rate Card Template:
[Your Name] - UGC Content Rates
Core Content Creation
- • Single TikTok/Instagram Reel: $300-500
- • Photo package (3-5 images): $200-350
- • Unboxing video: $350-600
- • Tutorial/How-to content: $400-700
Add-Ons
- • Usage rights (6 months): +75% of base rate
- • Rush delivery (24-48 hours): +50%
- • Additional revisions (beyond 2): $75 each
- • Exclusivity (3 months): +25%
Payment Terms
- • 50% upfront, 50% upon delivery
- • Net 7 payment terms
- • PayPal, Venmo, or bank transfer accepted
Negotiation and Rate Adjustments
Not every brand will accept your initial rates, and that's okay. Smart negotiation can lead to win-win situations.
When to Negotiate:
- • Brand offers long-term partnership potential
- • Multiple pieces of content in one package
- • You genuinely love the brand/product
- • Building portfolio in new niche
When to Hold Firm:
- ✗ Rates below your minimum hourly threshold
- ✗ Requests for free usage rights
- ✗ Unreasonable revision demands
- ✗ Brands that seem unprofessional or disorganized
Frequently Asked Questions
How much should I charge for my first UGC video?
For your first few projects, consider charging $150-$300 per video to build your portfolio. As you gain experience and testimonials, gradually increase your rates to $300-$500+ per video.
Should I charge differently for different social media platforms?
Yes, platform requirements vary significantly. TikTok videos might be $200-400, while Instagram Reels with multiple deliverables could be $400-800. Consider the time investment for each platform.
What if a brand asks for usage rights to my content?
Usage rights should always cost extra. Charge 50-100% more for 3-6 month usage rights, and 100-200% more for unlimited rights. Your content has ongoing value to brands.
How do I justify my rates to brands who think UGC should be cheap?
Emphasize your professionalism, quality, and the time investment required. Show examples of your work and explain the strategy behind each piece of content. Quality UGC drives real results.
Track Your UGC Income Like a Pro
Collabed helps you track payments so you never lose sight of your income. Monitor what you've earned, what's pending, and which rates work best for different types of projects.