Twitch Marketing: How to Create & Negotiate an Initial Pricing Offer

It’s time.

You know you want to sponsor streamers. You know which streamers you want to sponsor. So you open your email, enter an email address, and start writing your proposal. Now it’s time to make an initial offer for your sponsorship.

..but how much are you supposed to offer them?

Pricing is perhaps the most confusing thing brands run into when hiring streamers for the first time. There aren’t many resources that show you how to do it — and that makes sense. It’s a difficult topic.

With a few years of influencer marketing experience under my belt and the help of some other industry pros, however, I’ve put together this article to help you with the process.

So what methods can you use to generate initial pricing offers?

Consult your network

The most straightforward way to determine your initial offer is to consult your network.

Do you know anyone who has worked with Twitch influencers in the past? Did they run campaigns similar to yours? You likely have someone in your network willing to give you information on how they determined their pricing offers.

If you don’t have anyone in your current network, don’t be afraid to connect with influencer marketing managers at companies you know are advertising on Twitch. Most of us will be happy to help you out over a LinkedIn or Twitter message (if you ask nicely).

If you’d like, you can also send me an email at aaron@powerspike.tv and I’ll help you for your specific campaign and its requirements.

Use pricing formulas.

Bet you didn’t know these existed, huh?

There are many different formulas you can use to generate initial pricing offers, the most popular of which being:

(ACV)*(Minutes of sponsored content)*(.015)

ACV, or average concurrent viewership, is the average number of viewers a streamer has during any of their broadcasts. “Minutes of sponsored content” refers to how many minutes you’d like the streamer to promote your product (ex. a 5-minute shout out would be “5”). The last number is commonly changed based on the size of the streamer, but for the sake of simplicity let’s leave it at .015.

Using this formula, an hour-long playthrough with a streamer of 1,000 ACV would equal out to about $900.

This formula is a decent starting point if you’re totally lost. As you move up the ladder of complexity, however, it becomes more and more obsolete. For instance, if you want to fly an influencer to your headquarters to stream from your offices, it doesn’t really work — there are too many factors at play. It’s also a bit tough to use when streamers are represented by agencies who up-charge.

You’ll have to judge whether this formula makes sense based on the complexity of your campaign and the streamers you’re working with.

Ask.

Although I recommend including an initial pricing offer in your proposal email to a streamer, it doesn’t always make sense given the requirements. And in cases where you don’t have any contacts in the industry and the pricing formula doesn’t work, you just gotta ask.

Ask the influencer if they’ve completed campaigns like yours in the past. If they have, they may be able to play a part in generating an initial offer.

But what happens if they’re just as confused as you are?

At that point, it’s time to just make an offer. Use the pricing formula I gave from before to its greatest extent and lay it on the table. If the streamer likes it, they can accept, and if not, you can negotiate.

Note: If the streamer you’re working with is represented by an agency, the initial offer can be made for you by their management team.

And that brings us to our next section:

Negotiation

Negotiation is normal with Twitch influencer marketing. Sometimes — especially when reaching out to streamers represented by an agency — it’s to be expected.

It’s important to have a bit of wiggle room with your initial offer. Don’t expect it to be taken immediately — be open to changes and talk through them. If both you and the streamer are stuck in negotiations and aren’t sure how to proceed, it may be best to pause the negotiations a bit and look for outside assistance — whether it’s someone in your network, someone in the streamers, network, or simply brushing up on the methods in this article.

If, in the end, the price goes out of your budget and you have to call off the deal, don’t worry about it. Wish the streamer luck and let them know you may reach out in the future for more deals, then start looking elsewhere.

I won’t bore you with the basics of negotiation here. Instead, I’ll link you to some resources I found incredibly helpful when I first started:

Ten Tips for Negotiating in 2019

Ed’s “top ten” list of negotiation strategies to help you make better deals and get your needs met.

www.brodow.com

11 Ways to Negotiate Better With Anyone (Especially if You Hate to Negotiate)

While you may not realize it, you negotiate with people every day. Here’s how to get more of what you want and enjoy…

www.inc.com


Pricing can be stressful, but it doesn’t have to be with the right tools and approach. Over time you’ll get a much better sense of what pricing is right for a streamer so you can do deals much quicker. Hopefully this article helps you get there!

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