Glossary
The words of a sponsorship, without the jargon.
23 terms that show up in a brief, a contract or a call with a brand. If a word changes what you charge, it is here: usage rights, paid media, exclusivity, kill fee and the metrics that actually matter. Each one has its own page with a case with figures and how to use it when negotiating.
Metrics
- Benchmark
- The average reference you compare your own metrics against. On CreatorRates the benchmark is the average engagement and the CPM of a niche on a given platform: it tells you whether your account performs above or below what is expected.See also: Engagement rate (ER), CPM (cost per thousand impressions)
- CPE (cost per engagement)
- What the brand pays for each interaction (a like, a comment, a save or a share). It is calculated by dividing the spend by the interactions obtained. It is a common metric when the campaign is after conversation and not just visibility.See also: CPM (cost per thousand impressions), Engagement rate (ER)
- CPM (cost per thousand impressions)
- The price of 1,000 impressions. In organic sponsorships it is used as a value reference: the base rate comes from multiplying the estimated reach by the CPM of the platform and the niche. A CPM of $22 on YouTube and one of $8 on X explain why two accounts of the same size charge differently.See also: Impressions, RPM (revenue per thousand impressions)
- Engagement rate (ER)
- The share of your audience that interacts with a post. It is calculated by dividing interactions by reach or by followers, depending on the standard you use: say clearly which one you apply when negotiating. Below 2% it is worth reviewing format and quality before raising your price.See also: Benchmark, Reach
- Frequency
- How many times on average a person sees your content in a period. High frequency with low reach means you are talking a lot to the same audience: for a brand that can be worth less than new reach, even when total impressions are the same.See also: Reach, Impressions
- Impressions
- The number of times a post has been shown, repetitions included. It is the metric that feeds the CPM. Platforms count impressions differently, so always compare within the same network.See also: Reach, CPM (cost per thousand impressions)
- Reach
- The number of distinct accounts that have seen a post at least once. It is not the same as impressions: the same person can generate several impressions. Sponsorships use it to estimate how much new audience a brand gets.See also: Impressions, Frequency
- RPM (revenue per thousand impressions)
- What the creator earns per 1,000 impressions, usually after the platform's cut. It is the metric of advertising monetisation, distinct from the CPM a brand pays for a sponsorship.See also: CPM (cost per thousand impressions), Impressions
Money
- Invoice
- The document that claims payment for a service already delivered. Unlike a quote, it requires a tax number, the details of issuer and recipient, the taxable base and the taxes. In many countries the creator must be registered as self-employed or as a company to issue one.See also: Quote, VAT
- Net 30 / Net 60
- Payment terms: the invoice falls due 30 or 60 days after it is issued. A long term is free financing you are giving the brand; if it is imposed on you, build it into the price or ask for a deposit.See also: Invoice, Kill fee
- Quote
- A price proposal made before acceptance. It must include a number, dates, deliverables, usage rights, amounts, taxes, payment terms and validity. It is not an invoice and creates no tax obligation until it is accepted and the service is delivered.See also: Invoice, Deliverable
Contracts
- Brief
- The document in which the brand sets out the objective, audience, mandatory message, deliverables, dates and restrictions. A weak brief is the most common cause of endless revisions: ask in writing what cannot be said and how many revision rounds are included.See also: Deliverable, Kill fee
- Category exclusivity
- A clause that stops you promoting competing brands for a period and in a territory. It should be limited to a product category and to a specific term. On CreatorRates it is valued at an increase of roughly 35% over the base rate.See also: Usage rights, Paid media
- Deliverable
- Each piece or action you commit to produce: a Reel, three stories, a mention on a live stream, a 60-second integration. Professional quotes detail number, format, date and the number of revisions included per deliverable.See also: Brief, Quote
- Kill fee
- Agreed compensation if the brand cancels the project after you have held the date or started production. It usually covers between 25% and 50% of the rate, or 100% if the piece has already been delivered.See also: Brief, Deliverable
- Paid media
- Use of your content as a paid ad, for example with Spark Ads on TikTok or boosted posts on Instagram. It is not included in the organic publication price: a 30-day licence adds 25% and a 90-day one adds 50%.See also: Usage rights, Whitelisting
- Perpetual use
- A licence with no end date. It is one of the most expensive clauses and one of the most often given away: it removes any urgency for the brand to renew and stops you renegotiating the piece in the future. In our reference it adds 85% over the base rate.See also: Usage rights, Paid media
- Usage rights
- The permissions you grant over the piece: channels, duration, territory and the right to edit it. Organic publication on your channels is included; paid advertising, perpetual use and transfer to third parties are charged separately.See also: Paid media, Category exclusivity
- Whitelisting
- Permission for the brand to run ads from your own account or using your identity, so the ad appears to come from you. It is usually charged as a monthly line on top of the paid media rights.See also: Paid media, Spark Ads
Formats
- Branded content
- Content produced with a brand and published as an editorial piece rather than as an ad. The brand takes part in the concept and the creator keeps the voice. It must carry the advertising labelling your country's rules require.See also: UGC (user-generated content), Paid media
- Spark Ads
- A TikTok format that turns an organic post into an ad while keeping the creator's profile. It requires express authorisation and usually involves paid media rights and, sometimes, account whitelisting.See also: Paid media, Whitelisting
- UGC (user-generated content)
- Pieces produced for the brand to use on its own channels, without being published on the creator's account. You charge for production and licence, not for reach. Perpetual use of UGC adds 85% in our reference.See also: Branded content, Usage rights
You know the vocabulary. Now put a number on it.
Work out your rate and check the breakdown of rights, engagement and audience location before you send the quote.