The hidden cost of brand deals
I've created and sold many different types of digital products and services, but I'm hesitant to do any brand partnerships. Why is that?
Aren't brand partnerships or taking on sponsors a great way to monetize your content? And surely it takes less work than creating an online course, service, or community?
Well when you zoom out, brand partnerships are not always more lucrative, time-saving, or beneficial long-term.
You may want to re-think only securing brand deals as a way to monetize.
I'm gonna break down hidden costs associated with doing brand deals.
By the end, you should have a clear idea of the true value for both you and your audience, starting with:
Brand Deals Take Time
You don't need a large audience to strike a lucrative brand deal. You need the right audience.
It's a common misconception that you need a 1,000 podcast downloads per episode. Or 100,000 Instagram followers. Or 10,000 YouTube subscribers, in order to start making $1,000 or more per month through brand deals.
Companies want to work with creators who they trust can make their brand look good.
Sometimes, your stats are irrelevant, they just want to use your content for their platforms.
When you're just starting out, building and finding these relationships can take time. For example, a niche tech reviewer with only 5,000 subscribers might land a $5,000 sponsorship deal with a software company because their audience is highly targeted.
And because you have less choices early on, you run the risk of...
Compromising Your Content
If you're a value-driven creator like myself, it's important to you that the companies you work with align with what you walk and talk about.
Not having control over how a company presents themselves, or assures their quality, can be stressful for a creator.
Not to mention, can also reflect poorly (or highly) on your own personal brand.
Things you promote today, might not be popular tomorrow, which can have...
Long-Term Negative Impacts
Associating with the wrong brands can have long-lasting effects on your personal brand and future opportunities.
Remember when everyone was hopping on the crypto and NFT bandwagons? There's still creators trying to pivot away from that. Some influencers who heavily promoted certain crypto projects are now facing legal and credibility issues.
Everything comes at a cost, and for creators, one of the biggest things we have to consider are...
Opportunity Costs
Focusing on brand deals might divert attention from your own products, services, or content that could offer higher long-term value.
"When you confuse, you lose."
If you're offering too many things, how will your audience understand the problem you solve for them?
Some creators don't have anything to offer other than the sponsorships they work with. But for others, maybe they'd be better off taking that time and attention really hammering out how they could focus on delivering exceptional value, increasing their audience's trust, and playing the long game.
Also, before I you say, “Dylan…”
Can’t I Do Both?
Absolutely. It’s not chocolate or vanilla. But it is a matter of energy.
Very few people, in the beginning, can juggle the tasks of doing one or the other successfully.
It might work in the short-term, but if you only focused on one to start, how much farther could you go?
Wrapping Up
If you've read this far and still feel good about pursuing brand deals, they might be a great fit for you. Go for it! But if you know deep down that you have something else to offer, something with higher long-term potential, it might be time to double down on that instead.
Don’t let the “get rich quick” idea of sponsorship money distract you from your bigger vision. The best monetization strategy is the one that aligns with your values and serves your audience.
-Dylan