Definition, Functions, and How to Calculate Rate Cards

Are you an influencer or content creator who accepts advertising or promotion services on social media? If so, make sure you have a rate card to facilitate cooperation. Rate cards are documents in the form of price lists set by influencers for the various advertising services they offer. To find out more, just look at the explanation below.

Definition of Rate Cards

A rate card is a document that contains details of an influencer’s price for various ad placement options on that influencer’s digital channel. The rate card also often includes detailed demographic information, additional fees, and other information.

Before it was widely used by influencers, rate cards were used by advertising agencies to explain the rates for each service they provided. However, currently social media has been widely used by influencers, so that each influencer currently has its own rate card. In addition, rate cards between influencers are of course different. This is caused by the large number of followers and social media engagement of followers and those they have.

That’s why as an influencer, it’s important for you to manage social media accounts in order to generate a good engagement rate. Because later the rate card will be used as a benchmark when a brand wants to work with you.

So, who needs a rate card? Actually, it’s not just influencers and content creators. Rate card is a populer term in the creative or freelance industry.

Therefore it is also important for freelancers to have a rate card. For example, there are freelance writers who work alone and are not bound by a company, so they have to determine what price they want to set for their services.

Apart from freelance writers, there are many other professions such as videographers, virtual assistants, and others.

Rate Card function

After understanding the meaning of a rate card, what is the function of a rate card for both influencers and clients? Below are some of the rate card functions as follows:

1. Provide a benchmark rate for each service

In a rate card, every service offered by the influencer is explained. For example, for rate cards on social media Instagram, you can include rates for each content.

Among them are Instagram stories, posts on feeds, posts on reels, and the various types of choices that you offer. So that with the tariff for each service, clients will know what the benchmark is and they will choose according to their budget.

2. Facilitate collaboration with brands

Make it easy for influencers to work with businesses or brands. When a brand is interested in advertising on your social media, of course they will ask for a document in the form of a price benchmark.

With the rate card document, it is easier for brands to read rates. In addition, because it is in the form of a document or list, you will look more professional than just giving a quick glance at the price. From there, cooperation between you and the brand can be done more easily.

How to Determine and Calculate the Rate Card

Now you know what rate card functions are, but maybe there are still many who are confused about how to start determining and calculating rate cards for advertisements in your account.

Below are several ways that you can follow later.

1. Know your audience (niche)

The way to determine a rate card is to identify the audience you have. Each influencer usually has a specific target audience. The target audience can be seen from the fields controlled by the influencer

For example, you work in the beauty field and often create content about cosmetics, skincare, or something else. So the target audience is individuals, both women and men who are interested and enthusiastic about beauty.

Knowing who your audience is can be the first step to determine a rate card.

2. Personal brand values

The next way is to increase your personal branding. Influencers who have a high personal brand will generate brand awareness along with their reputation and populerity.

The more people know you and the more followers you have, the engagement rate will increase so that the card rate will also increase.

3. Cost per action (CPA)

As we know cost per action (CPA) is a fee that must be paid by clients provided they will only pay if a customer takes an action.

The rate here is based on how many customers take actions, for example, subscribe, download, fill out questionnaires, or buy products.

4. Cost per view (CPV)

Cost per view (CPV) is currently the benchmark for influencers to determine their rate card. Brands that advertise to you will pay per head. This means that how many people see the ad, then that’s what the client will pay.

Social media platforms such as Youtube, Instagram, Twitter, and blogs have the facility to see the average viewer per your post. You can use this amount as the basis for determining rates for advertising services on your social media.

5. Use an attractive design

Even though it is only a list of rates, the rate card display that is made must also look attractive so that the client who sees it becomes interested and can understand the rates being offered. Designing is also an important factor in rate cards. An attractive design will certainly make the brand more interested in working with you.