If you're just starting out, working with brand partners can seem intimidating with all the terminology used. Here's a cheat sheet to help you better navigate negotiation, contracts and all the in between of landing a partnership.
WHITELISTING When a brand puts their marketing dollars behind your content and promotes it as an ad, so the ad comes from your account vs. the brand's account.
EXCLUSIVITY Stating you can not partner with a competitor of the brand you're working with during the duration of the partnership.
AD DISCLOSURE Your sponsored ads should clearly and conspicuously disclose all the information about an offer that is likely to affect a consumer's purchasing decision. Examples of this would be #Ad or #Sponsored and using the "Paid Partnership" toggle on Instagram.
AFFILIATE MARKETING When a brand offers to pay a creator a commission or fee for each sale you make them.
CLICK THROUGH RATE (CTR) A metric that shows how often people are clicking on an ad or specific link. Industry standard is 4-7% CTR.
Want to better understand your CTR, you can use this formula! (clicks/impressions) x 100!
DELIVERABLES The type of content and the amount of content the creator is needing to provide. Examples of this would be (1 IG Story frame, 2 IG Reels, 5 Images for whitelisting)
USER GENERATED CONTENT (UGC) Content in the form of photo or video, that is crated by someone on behalf of a brand. Another term would be "content creation" meaning this content would go directly to the brand for their marketing usage (website, paid advertising, socials etc.) The individual of this content would not have to post on their socials for promotion.
USAGE RIGHTS How long your content can be used under the partnership agreement with the brand. Example of this would be (paid Facebook advertising for 2 months)
RETURN ON INVESTMENT The amount of money a brand makes compared to how much the brand spent. A recent study found that businesses that invest in social media/Influencer Marketing see an average return of $2.80 for every dollar spent.
NET PAYMENT The timeframe in which a brand is going to deliver payment. For example, if the contract states "Net 30" and you invoice the brand on October 3rd - the brand is going to deliver payment by November 2022.
RATE SHEET a digital line item list (PDF or hidden website link) that illustrates your list of creator services and the starting rate for each.
MEDIA KIT A digital resume/portfolio that details who you are, what you do and the value you can add to brands along with any updated metrics, analytics and demographics.
KEY PERFORMANCE INDICATOR (KPI) Metrics a brand uses to determine the overall results and success of the partnership (website visitors, conversion rate, engagement rate, sales etc.)
IMPRESSIONS The number of times your content is viewed! Example of this would be if 1 person views on piece of content 6 times that mean 6 impressions.
REACH The number of people who view your content! This is only counted one time. For example if you view one piece of content 40 times...the reach is still 1!
ENGAGEMENT RATE A metric that tracks how engaged your audience is with your content. The formula for this is (likes + comments)/followers x 100. A good engagement rate on IG is 1-5%
The lower your following, typically higher your engagement rate, the higher your following the more likely the engagement rate will be lower.
CREATOR BRIEF A document given by the brand that provides clear direction and guidelines for the creator to follow when executing your content in order to reach the brand's desired goals for the campaign.
BRAND AMBASSADOR Someone who endorses or promotes the brands product or services. Creators are generally compensated via gifted products and commission.
IN PERPETUITY The release of rights within a brand contract. This allows the brand to continuously use your content how ever they'd like and for as long as they'd like.
RETURN ON AD SPEND (ROAS) A metric that measures the revenue that's made compared to the money spent on an advertising campaign.
SCOPE OF WORK (SOW) A clear outline explaining the work the creator is going to complete for the brand. Typically found within the contract!
COST PER MILLE (CPM) A metric that measures the price of an advertisement per one thousand impressions or clicks. A formula for this would be (total costs/impressions) x 1,000
THUMBSTOP RATE A metric that measures the effectiveness of your hook. The hook is the first 3 seconds of your video, this is the most pivitoal part in capturing your viewer's attention. The formula for this is (3 second video plays / impressions) x 100
COST PER AQUISITION (CPA) The metric that measures the cost of acquiring a new customer or users to assess financial impact. Calculated by dividing the total media investment by the number of acquisitions.
SPONSORSHIP An alternative term for sponsored content or paid partnership to indicate where money has exchanged hands. A sponsor will contribute to costs of an endeavor in exchange for advertising or publicity.