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What Is a Rate Card? Definition, Examples & How to Create It

Last updated: Mar 31, 2024

What Is a Rate Card? Definition, Examples & How to Create It
Cover image: Illustration of a rate card document.

What is a Rate Card?

A rate card is a term used to define a document containing a list of prices for a service or digital campaign.

Currently, it is widely used by various industries, such as service providers, media, or even influencers with significant followers on social media.

The main function of this card is to detail prices. In this document, you will likely see how much budget needs to be allocated based on various factors, such as the type of advertisement, duration, and estimated reach or impressions.

However, this pricing document is not only used by content creators. So, who else needs it?

Let's delve deeper and learn more about rate cards in the article below.

Who Needs to Have It?

In general, here are some parties that have a great urgency to create one:

  • Service-based Businesses: For businesses, a rate card is needed to display a range of services and their respective rates, making it easier for potential clients.
  • Content Creators/KOL: Social media influencers require this card to facilitate smooth and efficient collaborations with brands.
  • Freelancers: Freelancers in various fields such as copywriting, content writing, photography, videography, or modeling also greatly need this card since they are typically paid for each project.

The Advantages of a Rate Card

In general, it is used to display the fees or prices that must be paid for a collaboration. However, it also has several other advantages, such as:

1. Increase Efficiency in Determining the Price

One of the main functions of this card is to enhance efficiency. In the marketing world, especially in the realm of endorsements or collaborations with external parties, a rate card can make the pricing discussion process more efficient and structured.

If an external party intends to purchase a service, place an advertisement, or engage in an endorsement, you only need to send them this document.

2. Support Dealing Transparency

Another function of this card is to support transparency in collaborations. External parties can be aware that the prices and specifications of ads are standardized, making them less susceptible to manipulation. 

Additionally, external parties can also view the cost structure and assess whether the rates provided are appropriate for each type of offer. This transparency also serves to strengthen trust and reduce the risk of misunderstandings in the future.

3. As a Booking Guide

This document can make the entire booking process (for anything) more practical and efficient. External parties can refer directly to this card to see available advertising options.

4. Facilitating Comparisons

Through this document, external parties can more easily compare service options or endorsement rates in a more structured manner. 

This can prevent confusion and ensure that decisions made by external parties are more informed and aligned with their budget.

5. As the Foundation of Negotiation

In some cases, it can also be used as a negotiation foundation. Although this card usually presents fixed rates, there is usually room for further negotiations, especially when external parties ask for long-term campaigns, bulk reservations, or special packages. 

Elements Considered in Influencer Rate Card

This type of pricing document is commonly used in the marketing world, particularly in digital marketing through social media. 

Influencers or Key Opinion Leaders, especially, often use it to enhance the effectiveness of the endorsement process. 

So, what are the elements that need to be included within an influencer rate card? Here are the details.

1. Influencer Profile

The first thing that should be included in an influencer rate card is information about the KOL. 

This information may include social media usernames, follower count, average likes, engagement rate, impressions, and much more. 

The profile can also include the KOL's niche or specialization, which is crucial as KOLs with status as coaches or experts in a particular field tend to have higher endorsement fees.

2. Types of Content

In addition to the profile, it also needs to contain explanations about the types of content that can be advertised. 

With this information, brands interested in collaborating with KOLs can choose the type of content that is suitable for enhancing exposure in a digital campaign.

3. Budget/Rates

The endorsement budget will vary depending on the type of content to be ordered. For example, on Instagram, the endorsement rate for feed content will differ from the rate for reels content.

In addition, the rates could also be based on the effort required by the influencer and the metrics of success such as reach, impressions, and others.

If you are still unsure about the rates to set as an influencer, consider these steps:

  • Determine CPA (Cost Per Action): How much the external party should pay when the content creator performs a specific action.
  • Determine CPV (Cost Per View): The rate to be charged for a specific number of views.

4. Duration of Content & Collaborations

In addition to content types, KOL specialists also usually decide the pricing or rates based on the duration of the content. 

Generally, the longer the content duration, the higher the budget that needs to be allocated. If a brand wishes to establish a long-term collaboration, it should also include clear information and pricing for the duration of the digital campaign.

How to Make a Rate Card

Now, let’s learn how to create this pricing document. Here is a guide on how to make a rate card based on different objectives and industries:

1. For Influencers/Content Creators

  • Start building your portfolio: Establish your branding according to a specific niche. Gather data and statistics about your follower count, engagement rate, and follower demographics.
  • Upload content regularly: Brands tend to collaborate with influencers who have a significant impact. You can achieve this by consistently producing content in line with your niche and follower demands.
  • Customize endorsement rates: Determine endorsement rates based on branding, content type, duration, and other metrics.
  • Include terms and conditions: To ensure smooth collaboration, don't forget to include applicable terms and conditions.
  • Provide contact information: An influencer should also include the name of the responsible party for potential collaborations, which could be an agency or KOL Specialist.

2. For Service Providers/Businesses

  • Showcase business profile: For businesses, this pricing information is generally displayed directly on the service webpage. Hence, before listing the prices, it's beneficial to showcase the business profile to maximize authority. This profile can also include the vision, mission, and brand values.
  • Types of services and prices: Next, provide detailed information about the types of services and prices offered. If possible, also include the benefits and value-added aspects of each service.
  • Service package variations: To maximize cross-selling, include information about specific service packages that may be more appealing to potential clients.
  • Terms and conditions: Collaborations in the business realm often require a higher level of security. Therefore, make sure to include detailed terms and conditions for collaboration.
  • Contact information: After all the information is presented, provide contact details for the responsible party. Contact information can include email addresses, phone numbers, or your company's address.

Rate Card Examples

Here are some rate card examples from two common categories:

1. For Endorsements Purposes

Influencer rate cards are often used in campaigns on social media. Below is the example: 

2. For Business Purposes

In addition to endorsements, this kind of pricing document can also be used by service providers. Here is an example used by cmlabs as an SEO service provider.

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