The Kit Sponsor Network is our newest service that will be an extension of your creator business, helping you source, negotiate, and manage sponsorship deals to help you grow your revenue without doing more work or additional hiring.
When creators sell digital products, offer coaching or courses, or write a paid newsletter, they are earning a living online. But did you know that these sorts of products and courses account for just under a third of the revenue professional creators are generating?
In 2022, premium brands will invest somewhere between $14.2 and $16.4 billion to sponsor creators. Those sponsorships are the main way creators earn money, accounting for, perhaps, 70% of the so-called creator economy this year.
In most cases, you have to manage the complex sponsorship process themselves. This means you need to:
- Contact brands
- Write proposals
- Negotiate rates
- Manage contracts
- Write ad copy
- Collect payments
- Report results
- Find the next deal
All of this takes away from what you love to do: create.
Even if selling sponsorships is an income channel you want to pursue, it unfortunately becomes a lower priority because of the time it demands. So, on the main stage at Craft + Commerce 2022, Nathan Barry asked a simple question, “What if we did it for you?”
Continue to write consistently great content and with the Kit Sponsor Network, we’ll do the rest to get you paid sponsorship deals.
We are kicking this service off with newsletter sponsorships. That means to be eligible for the Kit Sponsor Network, you need to:
- Be a Kit user
- Have 10,000+ subscribers with good engagement.
- Send a consistent newsletter at least once a week.
For creators exclusive to the network, there will be a charge of 20% + 3.5% for payment processing.
The Sponsor Network will begin with small groups and topically similar creators and scale up over the next several months. You can apply to be part of the program at Kit.com/sponsor.
Sponsor Network FAQ
How do I know if I am eligible?
In its initial phase, the Kit Sponsor Network has three eligibility requirements.
- Have approximately 10,000 engaged subscribers or more.
- Have a habit of sending consistently —typically at least once per week.
- Be a Kit user.
There are also three things to consider.
Kit prefers exclusive relationships, meaning that we sell for you exclusively. (You can stop at any time with 30 days’ notice). We are open to non-exclusive relationships in some cases. So let’s talk!
The sponsorship ads include an image, a couple of paragraphs of copy, and a call to action, so you will want to make sure this makes sense in the context of your newsletter.
Kit will ask you to place a “Sponsor Me” form on your website. This form will go directly to the Sponsor Network team, so once the form is up, you won’t have to worry about it.
How do I sign up?
- Visit Kit.com/sponsor.
- Fill out a short questionnaire.
- Armando (who heads up our program) will get back to you within a couple of business days.
How soon can I start earning money?
Don’t be surprised if it takes up to 90 days for sales to begin after you have been accepted.
This will give us time to establish the Sponsor Network agreement, add your newsletter to sales documentation, and start offering the sponsorship to brands that make sense for your audience.
What does exclusivity mean?
During the Sponsor Network’s pilot program, we learned that when only one organization is selling a given sponsorship more revenue is produced and less energy is spent.
Exclusivity simply means that only the Kit Sponsor Network will be selling your sponsorships in a given month.
How long does exclusivity last?
You will be able to end exclusivity at any time with 30 days’ notice.
Any sponsorships currently sold but extending past the notice will still be managed via the Sponsor Network.
What if I don’t like a sponsor?
You will always have the opportunity to approve sponsors in advance. You don’t have to accept any sponsor you don’t want.
Are there other requirements (i.e. where is the fine print)?
If you are approved for the Sponsor Network, you will be asked to review and approve the Kit Sponsor Network agreement, which outlines what everyone is expected to do.
There are three things to consider.
- Kit prefers exclusive relationships, meaning that we sell for you exclusively. (You can stop at any time with 30 days’ notice). We are open to non-exclusive relationships in some cases. So let’s talk.
- The sponsorship ads include an image, a couple of paragraphs of copy, and a call to action, so you will want to make sure this makes sense in the context of your newsletter.
- Kit will ask you to place a “Sponsor Me” form on your website. This form will go directly to the Sponsor Network team, so once the form is up, you won’t have to worry about it.
Will Kit sell my other sponsorships too?
The short answer is yes.
In its initial phase, the Kit Sponsor Network will focus on your newsletter. But we will soon help you sell any form of sponsorship. Just apply at Kit.com/sponsor and we will chat soon.
How much will I earn?
How much you will earn depends on four factors:
- Who your audience is (think topic or industry).
- The total number of subscribers you have.
- What your newsletter’s typical open rate is.
- How many subscribers usually click a sponsor’s ad.
Once you are approved, Armando will help you figure out how to set prices, but as a rule of thumb, take your total number of subscribers, multiple by your open rate, and divide the product by 1,000 then multiply by $45 for the high-end and $25 for the low-end.
((Subscriber Count × Open Rate) ÷ 1,000) × $45
Here is an example of a creator with 30,000 subscribers and a 35% open rate.
High End:
- 30,000 × 35% = 10,500
- 10,500 ÷ 1,000 = 10.5
- 10.5 × $45 = $472.5
So this creator would have net sponsorship sales of about $470 per insertion or about $24,000 per year.
Don’t forget that this is before fees and processing.
When will I get paid?
We ask sponsors to pay 30 days net, meaning they have a month to pay. Once they pay, you should have the funds in a few business days.
How will I get paid?
Payments will be transferred directly to your Kit Commerce account.
How much does Kit take?
For exclusive sales relationships, Kit will take a 20% commission. There is also a 3.5% payment processing fee for a total of 23.5%.
For non-exclusive sales relationships, Kit will take a 30% commission, plus the payment processing fee.
