Brand deals are a great option for content creators looking for an additional source of revenue 💰. However, YouTube sponsorships aren’t for everyone, and definitely come with a long list of pros and cons.
If you’re trying to determine whether a sponsorship is the right move for your YouTube channel, check out this list of brand deal pros and cons. Then, reach out to a social media attorney to learn how we can help.
👍 Pro: Once you’re established, it’s easy money!
After you finalize your brand deal, you can sit back and watch the profits fly in 💸. In fact, I always tell my clients who are looking for passive income that brand deals are the way to go.
Think of it this way: Brand deals allow you to film your videos pretty much the same way you always do. The only difference is now you’re featuring a specific product linked in your description section.
Thus, once you’ve recorded your video and posted it on YouTube, you can let your viewers 👥 do the rest!
👎 Con: Securing a brand deal takes a lot of work
While brand deals allow you to sit back and relax after you’ve initiated them, the process of getting sponsored is a totally different story.
Securing a YouTube sponsorship comes with a plethora of steps, including, but not limited to, the following:
✔️ Light market research;
✔️ Establishing a business entity;
✔️ Amazon Affiliate link sales testing;
✔️ Acquiring followers;
✔️ Writing proposals; and
✔️ Negotiating deals.
Before you consider reaching out to any brands about establishing a deal, be sure to check out the steps in the process to ensure that you have the means to complete them. Missing out on one or more of the requirements can cost you a deal and a ton of your time ⌛.
👍 Pro: You can negotiate your own deal
One important part of establishing a brand deal is negotiation. Negotiation is a great tool that all content creators looking for sponsorship should utilize when in discussion with a brand.
During the deal negotiation process, you have the opportunity to present your desires to ensure you get what you want out of the partnership.
For example, are you looking for an affiliate deal in which you make commission on every product your channel sells? Or are you interested in a free product deal, in which you get to keep products as compensation for sales?
The deal negotiation is your opportunity to present your requests while convincing the brand that they need to partner 🤝 with you.
👎 Con: Deal negotiations can be tricky.
While beneficial to your revenue strategy, deal negotiations are often difficult to navigate. In fact, many YouTubers end up losing out on huge amounts of money or products because they have trouble successfully negotiating a brand deal.
In fact, in order to have a successful deal negotiation, YouTubers should conduct some research 🔍 beforehand.
For example, if you’re looking for sponsorship by a popular brand, consider reaching out to other YouTubers who are already partnered with the same company. Be sure to ask questions about how much they get paid, how they get paid, and how the brand conducts business negotiations.
Furthermore, brand negotiations require a calm demeanor as well as quick thinking. Therefore, I always recommend that YouTubers work closely with a social media lawyer 👔 prior to and during the negotiation period to learn helpful negotiation tactics.
👍 Pro: Two words: free swag!
Even if you decide to enter into an affiliate deal, you can still get a ton of free swag out of YouTube sponsorships!
For example, some brands will let you keep the products you use in your videos 📺. Plus, you can ask for freebies during your deal negotiation.
Once the deal is just about finalized, tell the brand’s representative that everything seems great, but you’re going to need them to do a little more. Then, ask for some small freebies as a part of the deal.
Just don’t ask for too much – you don’t want to send them running 🏃♀️!
👎 Con: Two more words: legal risk
Perhaps the most daunting problem associated with YouTube sponsorships is the legal risk.
For example, did you know that any time you advertise on your YouTube channel you are legally required to abide by the Truth in Advertising Law 🤔?
In order to comply with this law, you must place a small disclosure at either the beginning or the end of your advertisement that states you are earning a commission from the products sold.
Plus, failure to comply with the Truth in Advertising Law can result in fines of between $100 and $50,000 🤑 – so it’s certainly not something you want to miss.
Furthermore, you should always consult with a social media lawyer prior to finalizing any brand deals in order to protect yourself from liabilities. For example, if you are advertising a new green juice on the market, and that juice has negative health effects on its consumers, you need to ensure you will not be held responsible for any damages.
If you’re interested in getting a YouTube sponsorship, you can often stop worrying about the downsides of brand deals by speaking 💬 with a social media attorney. Reach out for a consultation today!