As of 2025, it has got more and more difficult to build trust as a brand and drive more conversions. So, user generated content or UGC is what businesses are now relying on to build this trust and get more genuine customers. 

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According to recent data, 79% of consumers consider UGC a critical factor in their purchasing decisions. This is a lot more impactful than even influencer marketing. 

What exactly is UGC?

User-generated content refers to authentic content created by individuals rather than brands. For marketing purposes, this typically means content created by customers or paid creators that appears genuine and relatable. UGC can be:

• Social media posts (photos and videos)
• Product reviews and testimonials
• Unboxing videos
• How-to demonstrations
• Customer stories
• Employee-generated content

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The Average Cost of UGC

The typical price range is $150 to $300 per video. However, this price range can vary greatly because of various factors like the experience of the UGC creator or even discounts on bundle offers (when you ask for videos in bulk). 

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But this is what you need to set aside at the least if you want some good UGC. 

Key Factors Influencing UGC Pricing

Creator expertise

Here social media follower count does not matter a lot but it does indirectly influence the rates. For example, a creator with a large following like 50k+ and more experience tends to charge 30 to 50% more than smaller and newer creators.  

Content deliverables

The cost of UGC also depends on the kind of content you want the creator to produce. For example, a simple 1 minute testimonial for a single product can range from $150 to $200. 

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If you’re looking for multiple product testimonials, prices will increase accordingly. Also, if the videos you need are long form, require scripting and graphics, prices will be a lot more, almost $500+. 

Usage rights

Though you paid a creator to create UGC, you still don’t own it unless mentioned in the contracts. Using a UGC outside of the initial contract might land you serious legal issues. So, it's important that you pay for UGC Usage rights beforehand. 

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For example, if you plan to use the UGC for paid ads for the next 3 months, this would mean you need to pay 20-30% of the base rate extra for this type of use. These values are mentioned to give an idea and are not the exact rates. How much more you’d need to pay for usage rights will be determined by the creator. 

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But if it's for organic use, you would not need to pay any additional cost (within a well-defined timeline). 

Geographic Locations

UGC rates also fluctuate due to location. This is caused by differences in living expenses and market saturation. For example, creators in North America, especially in the USA, charge 20 to 30% more than creators in Asia for a similar set of deliverables. 

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Things to keep in mind while working with UGC Creators

• Be absolutely transparent about expectations: Clearly outline deliverables, usage rights and timeline. So, you both are on the same page. 

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• Start with small campaigns: If you’re new to working with UGC creators, it’s always a safer option to start with small campaigns. See the results and then think of scaling. 

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• Always check portfolio samples and performance metrics of the UGC creator which are relevant to your industry. See what are the engagement metrics for their previous brand collaborations. 

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• Consider new creators: You can get competitive rates while they’re building their portfolio. 

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• Consider long-term relationships: When you decide to invest more on UGC then the better option is to work with creators for ongoing partnerships as it’ll have a higher chance of you getting consistent content quality and even better rates. 

Alternative ways to get UGC

Other cheaper and faster ways to get user generated content for your brand is to create those with AI. Several tools like Heygen, Creatify, Synthesia can help you create life-like AI generated content. 

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Another way is to hire services like AdsEther that can create AI UGC for your brand, getting results faster than working as a UGC creator. 

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To learn more, book a call here. 

How to maximize your UGC Investment?

To get the most value from your UGC budget:

1. Repurpose content across multiple channels - Edit longer videos into shorter clips for different platforms.
2. Set clear creative briefs - Provide guidelines while allowing room for authenticity
3. Track performance metrics - Measure engagement and conversion rates to understand ROI. Make changes accordingly. 
4. A/B test different creators and styles - Identify what resonates best with your audience. 

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Conclusion

UGC will become a crucial part of digital marketing strategy for every business and it’s important that you know how much investment is required for running such campaigns. 

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However, if you’re on a tighter budget and don’t have many users for your product yet, creating these videos with AI is an easier and more efficient option.

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Book a call here to learn how you can get professional AI user generated videos with AdsEther.

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