Be VERY Careful with THIS Type of Brand Deal Email

Summary

This video script warns creators about the potential pitfalls of dealing with influencer marketing agencies. It explains that agencies often contact creators for rates without having brand approval, adding them to RFP spreadsheets as commodities. The script details how agencies manage brand campaigns, emphasizing the importance of understanding the behind-the-scenes dynamics. It also discusses the challenges of guaranteeing views and the implications of contract clauses, advising creators to approach sponsorships with a diversified mindset, akin to managing a stock portfolio.

Takeaways

• 🔒 Influencer marketing agencies often reach out to creators for potential brand deals, but these offers may not be finalized yet.
• 📈 Creators should be cautious when sharing their rates, as agencies may use this information to compare and select the most cost-effective option.
• 📊 Agencies maintain spreadsheets, known as RFPs (Request for Proposals), to track potential influencers and their pricing for campaigns.
• 👥 Multiple agencies may be involved in a single brand campaign, each vying for a share of the brand's advertising budget.
• 🚫 Creators are often seen as commodities by agencies, with selection based on views, demographics, and cost.
• 📝 Contracts may include clauses requiring guaranteed views and potential 'make good' obligations if the guaranteed numbers are not met.
• ⏰ There can be strict timelines for reporting views and providing 'make goods', which can impact creators' flexibility.
• 🚫 Agencies may request category exclusivity, restricting creators from working with competing brands for a specified period.
• 💼 Understanding the dynamics behind these deals is crucial for creators to negotiate effectively and maintain a diversified sponsorship strategy.
• 💰 It's essential for creators to ask the right questions during negotiations to maximize their earnings and understand the full scope of the agreement.

Q & A

What is the potential danger for creators when responding to influencer marketing agencies' emails?

The danger lies in the fact that agencies often reach out to creators for pricing without having secured a deal, potentially leading creators to believe they have a guaranteed brand deal when it's not yet confirmed.

Why are creators advised to be cautious about sharing their rates with agencies?

Creators should be cautious because their rates may be added to a spreadsheet and compared with other creators, potentially leading to undervaluing their content if they are seen as too expensive compared to similar creators.

What is an RFP in the context of influencer marketing?

An RFP, or Request for Proposal, is a document sent to agencies by a brand or another agency representing the brand, detailing the campaign's goals, target demographics, and other relevant information for potential collaborations.

Why might an agency ask for a 'make good' clause in a contract?

A 'make good' clause is requested to ensure that if the promised views or engagements are not met, the creator provides additional content at no extra cost to compensate for the underperformance.

What does category exclusivity mean in influencer marketing agreements?

Category exclusivity means that the creator agrees not to work with competitors of the brand within a specified time frame, potentially limiting their ability to collaborate with other brands in the same industry.

How does the concept of a diversified stock portfolio relate to a creator's sponsorship strategy?

It suggests that creators should view their sponsorship deals as a mix of high-earning and lower-earning opportunities, with some deals providing significant income and others providing consistent, if lower, revenue streams.

Why might a brand or agency request the right of first refusal in a contract?

The right of first refusal allows a brand to have the opportunity to match or preempt any competing offers from other brands within a certain time frame, ensuring they can maintain exclusivity with the creator if they choose to.

What is the significance of the Ford Motor Company example in the script?

The Ford example illustrates the complexity and scale of large brand advertising campaigns, which often require outsourcing to multiple agencies, including those specializing in influencer marketing.

How does the size of a brand influence its approach to influencer marketing?

Larger brands are more likely to outsource their marketing to various specialized agencies, leading to a more competitive and complex landscape for creators seeking brand partnerships.

What are the five important questions creators should ask sponsors during negotiations?

The script suggests that there are five key questions creators should ask to negotiate better deals, but it does not list them explicitly. These questions likely relate to understanding the brand's goals, budget, expectations, and the potential for long-term partnerships.

How can creators avoid being commodities in influencer marketing?

Creators can avoid being commodities by understanding the market dynamics, negotiating from a position of strength, and ensuring their unique value is recognized and rewarded by brands and agencies.