Video Explainer for this Resource

Video Explainer for this Resource

There are a number of factors that go into pricing, and in this document we’ll do our best to line them out.

The first thing to understand for pricing is the idea of CPM (”cost per mille” or “cost per thousand views”). This is the price you charge per 1000 views. It is either calculated based on:

1. Average views
   • For example, if you average 100,000 views and you charge a $40 CPM, you charge the brand $4,000.
2. View guarantee
   • For example, if you guarantee 80,000 views and you charge a $50 CPM, you charge the brand $4,000.

A view guarantee is a term some brands will request in the agreement. It means that you will guarantee a certain amount of views, or else there is a penalty. For channels with inconsistent viewership (your views fluctuate by +/- 50% per episode), brands will be more inclined to request a view guarantee.

Penalty options include:

1. Post the same ad in another video to recoup the views
2. Make a new ad and post it in another video to recoup the views
3. Get a prorated payout calculated as (actual views / guaranteed views * price) - this option is most preferred amongst creators

Factors that drive pricing up or down

Below are a dozen of the main factors that affect your channel pricing:

Factors that affect pricing

CPMs per Genre