Here's the uncomfortable truth: most brand negotiators don't know what a creator's business actually looks like.
08/01/26
Most brand negotiators don’t understand a creator’s business. They negotiate in the dark.
They rarely know what percentage of a creator’s income comes from brand deals, what their operating costs are, or what profit margin they maintain. This asymmetry explains why so many partnerships feel transactional. Brands and creators aren’t speaking the same economic language.
A Mid-Tier Creator’s P&L ($200K/year)
Revenue
Brand deals – $70K (35%)
YouTube Ad Revenue – $35K (17.5%)
Subscription (Patreon/Substack) – $40K (20%)
Affiliate Commission – $25K (12.5%)
Digital Products – $20K (10%)
Events/Consulting – $10K (5%)
Total Revenue – $200K
Costs
Production – $15K
Contractors (editor, manager, accountant) – $30K
Platforms – $5K
Taxes – $60K
Operations/Admin – $10K
Total Costs – $120K
Profit – $80K
Brand deals make up 35% of revenue, but they’re the most labor-intensive, negotiations, legal reviews, revisions, compliance, and unpredictability. Meanwhile, subscription income is recurring, passive, and high-margin. To a creator, $1 of subscription revenue is worth 3–5x more than $1 from brand deals.
Reframing the Negotiation
Old model: “We’ll pay £5K for a post.”
New model: “We’ll pay £5K with capped revisions, quarterly deliverables, and paid amplification worth an additional £2–3K in exposure.”
The number stays the same, but the offer becomes strategically valuable because it acknowledges the creator’s business model.
Tier Insights
Tier 1 creators (£500K+/year) – diversified, selective, leverage high. Offer equity or recurring partnerships.
Tier 2 creators (£100–300K/year) – diversifying, want partnerships that align with business growth. Support new revenue streams or digital products.
Tier 3 creators (<£50K/year) – brand-dependent, flexible, but need stability and consistent income.
The Diagnostic Advantage
Knowing a creator’s P&L changes how you partner.
It helps identify leverage, vulnerability, and opportunity. It explains rejection patterns, retention issues, and pricing gaps.
The Smart Brand’s First Question
“Walk me through your revenue model. What are you optimizing for this year?”
This simple question transforms the conversation from “What can we buy from you?” to “How can we grow with you?”