Pricing

UGC pricing explained: subscriptions, commissions and flat per-video fees

Subscriptions, markups, commissions and add-ons can each look small. Add them up into one number before you compare anyone.

By Ad Army teamPublished Updated 4 min read

The fee types you'll run into

Not every provider charges all of these. Check which ones are in your deal.

Fee typeHow it can be chargedWhat to ask
SubscriptionA monthly or annual plan, whether or not you orderWhat do I get if I order nothing this month?
Service fee or markupA percentage or flat fee on top of what the creator is paidIs the price I see the price I pay?
Commission on salesA percentage of revenue the content drivesHow is that revenue measured, and for how long?
Percentage of ad spendA cut of what you spend running the adsDoes the fee rise when I scale a winner?
Usage rightsExtra charges for paid use, longer terms or more channelsWhat can I do with the video without paying again?
WhitelistingA fee to run ads from the creator's accountIs it charged per video, per month or per creator?
Revisions or reshootsCharges after a set number of roundsWhat happens when a video still misses?
Product and shippingYour cost of goods plus postage per creatorWho pays when product doesn't come back as a video?

Work out your real cost per approved video

The number that matters isn't the sticker price per video. It's what you spent, divided by the videos you could actually run.

All-in cost per approved video = (subscription for the period + creator fees + service fees + rights + add-ons + product and shipping) / videos you approved and can run.

Run it over a full quarter, not a single order, so the subscription and the misses are counted. Two things usually surprise people. First, a subscription spread over a slow month makes each video far more expensive than it looked. Second, videos you paid for but can't use still sit in the top half of the formula, so a low sticker price with a high miss rate isn't cheap.

Why percentage fees grow with your success

Flat fees and percentage fees behave very differently once a video works.

A flat fee is fixed when the video is made. If that video becomes your best ad and runs for a year, the cost of making it doesn't change.

A percentage of sales or ad spend keeps going. Scale the winner and the fee scales with it, even though nobody made anything new. That can be a fair trade when a provider is also running your media. For production alone, it means your best creative gets more expensive the better it performs.

When you model a percentage deal, use your realistic upside, not your current spend. That's the version you'll be living with if it works.

Questions to ask before you sign

  • Is there a subscription, minimum or retainer? What happens if I pause?
  • Is the per-video price all-in, or is there a fee on top?
  • Do you take any percentage of my sales, revenue or ad spend?
  • What usage rights are included, and for how long?
  • What does whitelisting cost, and is it charged when the creator declines?
  • When am I charged: at order, at delivery, or at approval?
  • What do revisions cost, and is there a limit?

If a provider answers all seven in writing, you can compare them fairly against anyone else.

How Ad Army prices

Ad Army charges one flat price per approved video and nothing else by default.

FormatPriceWhat's included
15 second edit$125One hook, captions, licensed music
30 second edit$175Three hook variations, captions, music
60 second edit + raw$260Long-form cut plus raw clips for your editors

There is no subscription, no retainer and no minimum. We take 0% of your sales and 0% of your ad spend, so a video that turns into your best ad costs exactly what it cost on the day you approved it. Full content rights are included. The only add-on is Spark Ads or whitelisting at $50 per video, billed only if the creator accepts. Nothing is charged when you order; each video is billed when you approve it, after revisions until it's right.

Ad Army pricing page listing what every video includes and the fee types that are never charged, such as a cut of sales, a percentage of ad spend, subscriptions, minimums and license renewals (opens the full-size image in a new tab)
What the flat price covers, and the fee types that never appear on an invoice, from the Ad Army pricing page.

FAQ

  • How much does a UGC video cost?

    It depends on length, editing, rights and who manages the creator. Rates from individual creators vary. Ad Army charges $125 for a 15 second edit, $175 for a 30 second edit and $260 for a 60 second edit with raw footage, with full rights included.

  • Are UGC subscriptions a bad deal?

    Not always. A subscription can make sense if you order steadily every month. If your volume is uneven, divide the subscription by the videos you actually approved to see what each one really costs.

  • Does Ad Army take a commission on sales?

    No. Ad Army takes 0% of your sales and 0% of your ad spend. You pay the flat price per approved video and keep everything the videos earn.

  • Are usage rights extra with Ad Army?

    No. Full content rights for organic, paid ads and any placement, with no expiry, are included in the per-video price. Spark Ads or whitelisting is the one optional add-on, at $50 per video if the creator accepts.

Sources

  1. Pricing, Ad Army. Retrieved .

Rather not do this yourself?

Send one request. We cast and manage the creators, you review finished videos, and you pay a flat price only for the ones you approve.