UGC Content at Scale: Why It Can Get Expensive

UGC Content at Scale: Why It Can Get Expensive

User-generated content (UGC) has become a cornerstone of successful e-commerce brands. By showcasing real people using products, UGC offers social proof, builds trust, and drives conversions. However, producing UGC at scale—especially for brands with large inventories—can quickly become a costly endeavor.

Brands often aim to create multiple videos for each product (or SKU), which can escalate expenses. Imagine producing 4 videos per SKU for 100 products: at a rate of $200 per video, that’s $80,000 in content creation costs. For growing brands, managing these costs is essential, especially when launching new products or testing the impact of UGC on sales.

The Power of UGC in Driving Social Proof

UGC isn’t just about creating pretty videos—it’s about authenticity. Customers want to see real people using real products in relatable situations. When done right, UGC acts as social proof, convincing potential buyers that your product is popular, effective, and trusted by others. This type of content can be a game-changer for e-commerce stores, helping boost engagement and ultimately increasing conversion rates.

Hiring UGC Content Creators: Where to Start

Hiring the right content creators is crucial to producing effective UGC. These creators should accurately highlight your product's best features while maintaining an authentic voice. To find reliable UGC creators, brands can turn to online marketplaces such as:

• HypeLinks
• Cohley
• Showcase
• CollabStr

These platforms connect brands with UGC creators who can develop videos tailored to your brand’s voice and audience. Each marketplace offers a variety of pricing and service levels, making it easier to find a creator that fits your budget.

UGC Content Pricing: What to Expect

Pricing for UGC content can vary widely based on the creator’s experience, the type of video, and additional costs like usage rights or exclusivity. Here’s a general breakdown of typical starting rates:

• 1 UGC Unboxing Video: $200
  The creator will produce one unboxing video for your brand. This is a starting rate, with additional costs for editing and usage rights.
• 1 UGC Product Video: $200
  This covers the creation of one product-focused video. Extras like raw video files, usage rights, and exclusivity come with additional fees.
• 3 UGC Product Videos Package: $500
  A package deal for three product videos at a starting rate, with optional add-ons for raw files and usage rights.
• 5 UGC Product Videos Package: $850
  For larger campaigns, this package includes five videos. Like other options, expect extra costs for raw footage and exclusive use of the content.

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Additional Costs: Usage Rights, Raw Footage, and Exclusivity

When commissioning UGC content, it’s essential to consider the extra costs that come with video production.

• Usage rights refer to how long and where you can use the content. Want to use it across multiple platforms? That’ll cost extra.
• Raw footage allows your team to edit the video later, which is particularly useful for creating variations. Many creators charge extra for this.
• Exclusivity ensures that the creator won’t reuse the same content with other brands, which is often critical for differentiating your product in the market.

Each of these additional factors can significantly increase the total cost of UGC, so it’s essential to budget accordingly.

Managing Costs: Start Small and Scale Gradually

For brands new to UGC, it’s tempting to jump in and produce videos for all SKUs right away. However, this can lead to overwhelming costs, especially for larger inventories. Instead, we recommend a more gradual approach.

Start by focusing on new product releases or a small set of SKUs, and see how your audience responds. Test out different UGC formats, creators, and styles to find what resonates best with your customer base. Once you have a clear idea of what works, you can scale your UGC production more confidently and cost-effectively.

Cost-Saving Alternatives: AI-Generated Content & DIY UGC

There are a few ways to reduce UGC production costs:

• AI-Generated UGC (AIGC): Some brands are experimenting with AI tools to create UGC-style videos at a lower cost. While it lacks the authenticity of real creators, AI-generated content can be useful for simple, repetitive videos.
• DIY Content Creation: For small or niche brands, shooting UGC-style videos in-house can be a cost-effective option. However, this approach may not scale well for medium to large brands with high product turnover.

Conclusion: UGC at Scale Can Get Expensive—But It’s Worth It

UGC is an investment in authenticity, trust, and conversions. While it can get expensive, especially at scale, careful planning and smart budgeting can help e-commerce brands reap the benefits without breaking the bank. Start small, focus on what works, and explore cost-saving alternatives to get the most out of your UGC efforts.

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