Glossary

Hybrid pay model (base plus commission)

Updated

Hybrid pay model (base plus commission): A hybrid pay model pays a creator a small base for the video, per video or by the hour, plus commission on the ad spend or sales it brings.

A hybrid deal splits the pay into a floor and an upside. The floor is a flat amount for making the video: a per-video fee or an hourly rate. The upside is commission: a share of the ad spend the brand puts behind the video, or a share of the sales it brings. The base pays for the work. The commission pays for the result.

It is the deal most creators prefer and the one most brands end up at, because it answers both sides’ fear. The creator is not filming for free. The brand is not paying full price for a video that never beats its control.

Example. A brand pays $60 per approved video plus 10 % of ad spend. It approves ten videos, $600. Two of them become ads; the brand spends $3,000 on one and $9,000 on the other, so $300 and $900 in ad spend share. The eight videos that did not become ads cost $60 each. A flat $300 per video would have cost $3,000 for the same ten videos and paid the two winners nothing extra. Example numbers, not a benchmark.

When brands use it. The pain this answers: “Why add to my CPA when I can just pay $200-300 a video?” The hybrid is how a brand lowers the per-video price and still gets creators to say yes: the base drops because the commission carries the upside. It fits any brand that can read spend per ad or count sales by creator.

The creator’s view. Ask what the base covers (filming, one round of changes, which usage), how the commission is counted, and when each part is paid. A base of $50 with 20 % of sales on a product that sells is a better month than a flat $150; the same base on a product that does not sell is a worse one. The base should be enough that the video is worth making on its own.

On HourlyUGC. A campaign combines a base, hourly or per video or none, with commission on top: a share of sales (1 to 50 % of each order, or $1 to $500 per order) or a share of ad spend (1 to 30 %, Meta), and CPM or samples if wanted. The brand sets each part when it creates the campaign. Next step: start a campaign on HourlyUGC.

Related terms

Sources

  1. HourlyUGC: commission-based UGC, paying creators a share of ad spend · hourlyugc.com