Negotiating NIL deals is a skill that is important for student-athletes who wish to earn a healthy income from NIL.
As a student-athlete, you have the opportunity to make money using your name, image, and likeness (NIL). These NIL deals with brands can provide a valuable source of income and help you reach your financial goals.
However, negotiating the terms of these deals may seem complex and intimidating, especially if you have little experience. In this blog post, Ostrich shares tips for negotiating NIL deals as a student-athlete.
Set Clear Goals
Before you begin negotiating NIL deals, set personal goals.
Do you want to secure a certain amount of income? Or promote a specific product or brand? Do you want to build your personal brand? Are you interested in free products?
Having clear goals will help you stay focused and make informed decisions when negotiating an NIL deal.
Ostrich wants student-athletes to utilize NIL to become financially independent so consider using Ostrich for financial goal setting.
Learn from Others Having Success with NIL
If you are new to NIL, then talk to others who have more experience. This could be teammates who are regularly doing NIL deals, coaches, parents, or administrators. Talking to others with more experience about how to find, negotiate, and manage NIL deals will give you a better understanding of the opportunities that exist.
There are also podcasts, blogs, content creators, and videos about NIL that you can tap into.
Seek Advice from Advisors and Agents
Another route you can take is connecting with NIL advisors and agents. These professionals can help you understand the terms of the deal and negotiate the best possible terms for you. It is important to note that advisors or agents may charge a fee for their services, so be sure to ask how they make money when first meeting with them.
Another important thing to understand is that attorneys and agents may approach the same negotiation differently depending on their backgrounds. Attorneys tend to focus on the legal terms while agents tend to focus on the business side of the deal.
Understand the Value You Bring to the Table
As a student-athlete, you have a unique set of skills, experiences, and attributes that make you valuable to potential partners and brands.
Before entering a negotiation understand the value you bring to the table and be confident in your worth when negotiating NIL deals. This could include your athletic ability, your social media following, your personal brand, or other factors that make you attractive to potential partners.
Consider the Brands Desired Outcome
A great rule to remember when negotiating is that the aim is to come to a mutually agreed-upon solution that is valuable for all parties. Brands will be looking to ensure they are receiving a return on their investment in an NIL deal. This return could be in the form of sales, brand awareness, exposure, content, or another metric.
Ask brands what a successful outcome is for them from an NIL deal. This will help you better understand the value you bring to the table and ensure there is alignment before entering into an agreement.
Build Long-Term Relationships
When you are starting out in NIL focus on building long-term relationships with brands. You may initially be talking about one small deal, but if it is successful there will likely be an opportunity for additional deals.
As you work with a brand more than once you’ll start to build a relationship that can pay long-term dividends. It may result in referrals to other brands, additional NIL opportunities, and even lead to job opportunities in the future.
Utilize Marketplaces and Market Standards
If you join any of the NIL marketplaces there will often be open opportunities for student-athletes to take advantage of. The NIL deals listed on the marketplace you can evaluate without having to negotiate with the brand.
Additionally, look to see what your peers are receiving in compensation for similar deals. This provides a reference that you can use in a negotiation. If for example, a student-athlete with 10k followers is receiving $25 for creating a TikTok video, you can use that as a negotiation point based on your own unique value.
Be Flexible but Firm
During the negotiation process, it is important to be flexible and open to compromise. But also stand firm on your key terms and values. Be willing to listen to the other party’s perspective and find common ground. But also be prepared to walk away from a deal if it does not meet your needs or if it is not a good fit for you.
It’s okay if a deal doesn’t work out just remember to be professional throughout the negotiation process.
Final Thoughts on Negotiating NIL Deals
Negotiating NIL deals as a student-athlete may seem like a complex and intimidating process, but with the right preparation and guidance, you can secure fair and mutually beneficial agreements. Student-athletes are in a position to earn money and become financially independent through NIL deals.
By setting clear goals, seeking advice, understanding the value you bring to the table, and being flexible but firm, you can navigate the negotiation process with confidence and achieve your financial goals.
Be sure to download Ostrich to get a jump start on how you can take strides to achieve financial independence as you negotiate your first NIL deals.
