Sponsorships and UGC for Beginners: How Creators Earn From Brands
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After meeting five brand deal examples, this article explains sponsorships and UGC for beginners.
Many people dream of being paid by brands to create content. With sponsorships and UGC, that is a real online income technique, and it is more open than it used to be. In this article, we explain sponsorships and UGC for beginners: what they are, how they differ and where to start.
Sponsorships and UGC: Lynnaider’s definition
Lynnaider’s definition: getting invited by brands to create content, and in the case of sponsorships, also sharing that content with your audience. You receive a fixed fee, regardless of resulting sales.
That fixed fee is the key difference from affiliate marketing, where you earn only when someone buys. In a brand deal, you are paid for the work and the exposure, not for the sales.
What sponsorships are
Sponsorships as an online income technique involve pitching to brands, and being invited by them, to create and share content about their products or services in exchange for payment.63 Brands usually work with content creators for this, mostly on social media. Content creators are the go-to online entrepreneurs for brand deals.
Sponsorships are the original business model of influencers. Their content was built around their own lives, also called their personal brand. Today, the possibilities are much wider.
A broader definition of the influencer
Becoming an influencer in the traditional sense is no longer the only way to land sponsorships. You do need to be a content creator. Your content can, however, revolve around an activity, in many different niches, and you can pitch relevant brands in that field.
We therefore use a broader, more modern definition of the influencer. You can be a creator without sharing your personal story or even showing your face. Your influence comes from the audience you build through your content, however visible you make yourself.
Faceless creators and sponsorships
It is still less common for faceless creators to secure sponsorships. Brands choose creators directly and tend to prefer those they can see. Still, there are effective ways for faceless accounts to build relationships with brands and gain experience.
What UGC is
This is where user-generated content, or UGC, comes in. UGC means images, videos or articles that creators produce to feature a brand’s product or service, often without sharing them publicly.64 Brands order this content and use it on their own platforms or in campaigns, because it brings fresh perspectives and new styles.
Producing UGC is therefore a service-based partnership. The focus is on creating high-quality material, without using the creator’s audience.
UGC as the entry point to sponsorships and UGC deals
Producing UGC is often seen as the main entry point into sponsorships, especially for beginners. Many brands start by asking creators for UGC. If they are impressed, they come back later with full sponsorships once the creator has grown.
A practical path into sponsorships and UGC
If your approach is to create content that gives value to your audience, which should always be the case, learn the craft of content creation. Practice it consistently and see where it takes you in terms of earning opportunities.
Start by pitching for UGC deals first, since the core task is the same: creating high-quality content. Later, once you have a larger following, you can pursue sponsorships.
Most of your content should be created to enrich your profile, not to get paid. The stronger and more consistent your practice, the more attractive you naturally become to brands.
Sponsorships and UGC at a glance
| Sponsorship | UGC | |
|---|---|---|
| What the brand pays for | Content and exposure to your audience | The content itself |
| Where it is published | On your channels | On the brand’s channels |
| Audience needed | Yes, an engaged one | Not necessarily |
| Typical fee | Higher | Lower |
| Faceless creators | Possible, less common | Widely accepted |
Who sponsorships and UGC suit
This technique suits people who enjoy creating content and have a recognizable style. It also suits those who can communicate well with brands, since pitching is a big part of the work. UGC suits people who are good at photos or videos but do not want to build a large audience.
It suits people less who want income without regular content creation. If that is you, a digital product may suit you better.
An example of sponsorships and UGC
Imagine a home cook who films close-up videos of her hands preparing simple meals. She never shows her face. She starts by offering UGC to kitchenware brands: short videos of their pans in use, which the brands use in their ads.
After a year of regular posting, her own audience grows to tens of thousands of engaged followers. A spice brand then offers her a sponsorship: a video on her account, featuring their spices, for a fixed fee.
Disclosure in sponsorships and UGC
Whenever you publish sponsored content on your own channels, you must disclose it clearly. Use a label such as “ad” or “sponsored,” a verbal mention in videos, or the platform’s paid partnership tag. Your audience has the right to know when content is paid for.
For UGC that the brand publishes on its own channels, the brand is responsible for how it labels its ads. Still, agree on this in writing, so everyone knows who does what.
Starting small and staying private
Brand deals need no shop and no stock. We recommend spending no more than about 20 dollars on your setup, using free tools for your content and your media kit, with no monthly fees before brands know you. You can grow your audience yourself, without an agency.
Brands still often prefer creators they can see, but faceless creators can succeed too, especially with UGC. If the idea of self-branding is what held you back so far, Lynnaider recaps the alternatives for you.
Your next step
The next article explains what you offer brands as a creator and the five must-dos before pitching. The complete module, alongside the other online income techniques, is in the book on our products page. If you would like help getting started with sponsorships and UGC, see our services page.
Frequently asked questions
Do I need a business to accept brand deals?
Often you need to declare the income, and in some countries register as self-employed. Check your local rules or ask an accountant.
How much do brand deals pay?
It varies widely by niche, audience, engagement and usage rights. Beginners often start with smaller UGC fees and raise their prices as their portfolio grows.
Are there step-by-step Lynnaider tutorials for starting each of the 10 online business models with a minimal-cost setup?
Not yet, but they might be made if enough people ask for them. Sign up to the waitlist so we can see the interest, and you will be among the first to hear when they are available.
What are sponsorships?
Brands invite you to create content about their product or service and share it with your audience, in exchange for a fixed fee.
What is UGC?
User-generated content: images, videos or articles a creator makes to feature a brand’s product, which the brand uses on its own channels, often without the creator posting it publicly.
What is the difference between sponsorships and UGC?
In a sponsorship, the brand pays for your content and your audience’s attention. In UGC, it pays only for the content.
Are sponsorships paid by results?
No. You receive a fixed fee regardless of sales. That is the main difference from affiliate marketing.
Do I need to be an influencer to get brand deals?
You need to be a content creator, but your content can revolve around an activity or skill rather than your personal life.
Can faceless creators get sponsorships?
It is less common, because brands tend to prefer creators they can see. UGC is a more open entry point for faceless creators.
Should beginners start with UGC or sponsorships?
UGC is usually the easier start, because it does not require an audience. Sponsorships often follow as your following grows.
Should all my content be sponsored?
No. Most of your content should enrich your profile and serve your audience. That is what makes brands want to work with you.
Where can I get step-by-step help to set up the Sponsorships & UGC technique on a small budget?
Yes. Lynnaider teaches setup routes for the Sponsorships & UGC technique that cost nothing, or very little (under 20 dollars), to go live, so you do not pay setup costs long before you earn. Our free AI agent, Lynnaider Compass, guides you through them step by step, in the same logic as the whole Lynnaider teaching.
References
63. McKinsey & Company. What is influencer marketing? McKinsey; 2023.
64. HubSpot. What is user-generated content (UGC)? HubSpot; 2024.
Disclaimer: This article is for general informational purposes only and should not be regarded as legal, tax, or business advice. Pursuing an online business does not guarantee income; results depend on many factors including the business environment, individual effort, skills, and consistency. Some links on this site may allow Lynnaider to earn a commission at no additional cost to the reader.
