Pricing and rates
How to Think About Your Minimum Rate
Quick answer
Your minimum rate is the lowest price you can accept for a deal and still cover your costs, your time, and your taxes. Work it out from what you need to earn, what it costs to run your business, and how many paid deals you can realistically do.
Key takeaways
- A minimum rate is a floor, not your asking price.
- It should cover your costs, your unpaid time, and money set aside for taxes.
- Scope changes it. Usage, exclusivity, and rush work are added on top.
- Knowing your floor makes it easier to say no, or to change the scope instead of the price.
What a minimum rate is, and what it is not
Your minimum rate is the point below which a deal costs you more than it earns. It is not the price you quote first. Your quote should sit above it and reflect the scope, the rights, and the value to the brand. See How Brand Deal Pricing Works.
What goes into it
- What you need to earn. The income you want from creator work in a month or a year.
- Business costs. Software, equipment, props, travel, editing help, and anything else you pay for to make content.
- Taxes and savings. Money you set aside so a tax bill does not surprise you. Ask an accountant how much to set aside for your situation.
- Unpaid time. Pitching, calls, approvals, revisions, invoicing, and chasing payments are work, but no one pays for them directly.
- How many paid deals you can really do. Count the deals you can deliver well, not the most you could squeeze in.
How to work it out
This is a method, not a calculator. Use your own numbers.
- Write down what you need to earn from creator work over a set period.
- Add your business costs for the same period.
- Add the amount you set aside for taxes and savings.
- Divide the total by the number of paid deals you can realistically deliver in that period.
- The result is your minimum for a deal at your usual scope. Add more for usage, exclusivity, rush work, and extra deliverables.
Why a floor beats a guess
Without a floor, it is easy to accept a deal that feels fine and later learn it cost more than it paid. With one, you can answer quickly, hold your position, and offer a smaller scope when a budget is too low.
How to use it
- Compare every offer to your floor before you answer.
- When an offer is below it, change the scope before you change the price.
- Keep your minimum private. Share your rates, not your floor.
What you can say
I can do this at the scope we discussed for [rate]. If the budget is lower, I can reduce the deliverables.
That budget works for [smaller scope]. I price usage and exclusivity separately.
Common mistakes
- Forgetting taxes and business costs.
- Not counting unpaid time.
- Counting more deals than you can deliver well.
- Treating the floor as the price you quote.
- Never updating it when your costs or workload change.
When to revisit it
Review your floor when your costs change, when your workload changes, and at regular points in the year. Your own deal history is the best check on whether it is realistic.
Frequently asked questions
What is a minimum rate?
It is the lowest price you can accept for a deal and still cover your costs, your time, and your taxes.
Is a minimum rate the same as my rate card?
No. A rate card shows your prices for different packages. Your minimum is the floor underneath them.
Should I tell brands my minimum?
Usually not. Share your rates and options, and keep your floor for your own decisions.
What if an offer is below my minimum?
Offer a smaller scope, shorter usage, or no exclusivity. If none of that works, you can say no.
How do taxes fit in?
Set money aside for taxes and include it when you work out your floor. Ask an accountant what applies to you.
Should I accept a lower rate for a great brand?
Only if you choose it on purpose and know what it costs you. Treat it as a trade, and keep the scope small.