Pricing Your Content – Why Lower May Not Be Better
One of the most difficult elements of running your business is understanding how to price your content. What’s a fair price for both you and your fans? Should you offer discounts to boost your sales? How can you be sure you’re turning a profit?
Remember you’re not pricing a single product. There are elements to consider when you’re pricing your private social media account, Feed, clips, and your DMs. With a little research you can determine the best price point for each of your products and maximize your income!
To help you decide on the best pricing strategy, it’s important to create a pricing model, which is a formula that will allow you to see how much is going into your content so you can decide on a price that’s fair to you. Everyone’s pricing model will look a bit different, as it will be tailored to your outgoing costs for running your business. Too many influencers price their content super low thinking they’ll make it up in volume, but the truth is, undercutting yourself can be harmful to your business in the long run. Each piece of content should be earning you more than you spent to make it.
Remember, fans deserve a fair price, but so do you!
Know Your Worth!
One element of a pricing model is the idea of how unique a particular product is. The more unique the content, the more valuable it is to a customer. This is where influencers REALLY have to know their worth, because there is literally only one of you! That means that the uniqueness of your product is quite high and should be priced accordingly. Your fans are paying to see you and no one else can offer that specific content.
Your Costs
You put money into each and every piece of content you offer. Whether it be recording equipment, clothes, toys — these things all cost money and should be factored into your overall price. It’s a great idea to keep an inventory of any items you purchase that are directly related to your business so you have a clear view of your output vs. your income.
Your Time
Oftentimes people who are running a business forget to pay a very important person–themselves! You may think that since you’re reaping all of your income there is no need to think of things like your own salary, but it’s actually a very important factor in pricing content. Put a rate on your time ($30/hour, for example) and incorporate that rate into your pricing as well.
Understanding Overhead
Overhead costs are costs that are indirectly associated with your business. These are things like rent for the space you record in, electricity, and wifi. You need all of these things to successfully run your business, but it’s not something that translates for fans. Still, overhead costs need to be considered when you’re pricing your content, because without them you couldn’t operate. Think about how much you spend on overhead costs so you understand how much you need to make in order to go above and beyond that number.
Don’t Discount Too Deeply
Discounts are a great tool for bringing in new business, but they can also be a bit too tempting to content creators. When you associate a discount with a wave of new subscriptions, consider that those customers could potentially have been brought in at full price. Discounting too often or too deeply can be hugely detrimental to you in the long run, especially if customers come to expect a discount on every purchase. Use discounts sparingly, and don’t undercut yourself!
At the end of the day, you’re putting a lot of time, money, and effort into creating your content, and you deserve to be paid for it! Don’t sell yourself short; find out the exact costs that go into your operation and price accordingly.
