Determining the right compensation for an influencer is more complex than simply buying a cup of coffee. Unlike tangible goods, content creation lacks a set price tag and there's no definitive guide to dictate what brands should pay influencers. While there are guidelines shared online, most Influencers base their rates on various factors, and if the compensation doesn't match their efforts, they may decline the partnership as it wouldn't justify the required content and engagement efforts.
At Partipost, we prioritise transparency. Each campaign clearly outlines the payout on our Partipost app, enabling influencers to make informed decisions about their participation. However, we recognise that not all brands can offer large payouts, and startups may lack monetary incentives altogether. If you find yourself in this position, what strategies can you employ to attract influencer partnerships effectively?
Here are three ways to attract influencers to collaborate with your brand.
1. Providing free products
Although many influencers prefer paid campaigns, offering products can still be a compelling incentive. By sending your products to influencers in exchange for a shoutout—an unpaid approach to influencer marketing—you leverage product value effectively. If managing logistics is challenging, consider offering coupons for them to redeem on your site, allowing them to select products they're genuinely excited about, which encourages more authentic and engaging content.
For brands with high recognition and premium products targeting nano-influencers, product-only campaigns can be particularly effective. It’s crucial, however, to align your expectations with the value of the product offered. You might, for instance, request a few images from the influencer without expecting them to post on their social media, or perhaps just an Instagram Story.
Clearly communicate that the compensation will be in the form of products instead of cash. Since many are not full-time influencers and are looking to build their profiles, they are often more receptive to this type of collaboration.
Additionally, some brands opt for product seeding, where influencers are sent products without any obligation to post content. This strategy not only tests the waters for potential content but also serves as an initial engagement, paving the way for future collaborations.
Big names get a lot of attention for boosting brands. But have you heard about nano influencers? These are the folks who might be your neighbours or friends, each with up to 5,000 followers on social media. Their posts might not be super polished, but that's exactly why people love them. They're real, just like most people.
- Advantages: Gifting is an affordable entry into influencer marketing, with main costs involving product and shipping. Additionally, it yields valuable marketing assets like ad creatives, product reviews, and professional photos from influencers, enhancing your content arsenal.
- Challenges: Your brand could face multiple challenges with influencer gifting: competition from brands also gifting, influencers preferring competitor products, and those paid by other companies. Without paying them, they're not obligated to post about your products, and without a creative brief, their portrayal of your brand is unpredictable.
2. Paying influencers one-off
Aside from product gifts, many brands utilise one-off payments for each sponsored content piece an influencer publishes, such as posts, stories, or videos. This pricing typically depends on the engagement—likes and comments—an influencer generates, which reflects their audience's quality and influence better than mere follower counts.
Influencers commonly receive these flat fees, often supplemented with a product, at the start of a collaboration. You can usually ascertain these rates from an influencer’s media kit or through their management, particularly if they are higher-tier influencers or celebrities.
The cost of influencer collaborations can vary based on several factors:
- Campaign Requirements: More intricate content guidelines or unusual posting schedules can increase costs.
- Engagement Rate: Higher interaction rates on posts often lead to higher fees.
- Influencer Tier: Payment scales with the influencer's reach, from nano to celebrity status, with prices increasing with their statuses.
- Content Format and Quality: Different types of content, like videos or carousels, can be more complex and costly to create than simple posts.
This approach, one of the oldest in influencer marketing, provides simplicity in transaction but is not always the most cost-effective, especially for brands on a tight budget.
- Advantages: This method is less time-consuming as it doesn't require tracking setups. It allows for quick collaborations with many influencers, and they tend to prioritise brands that offer one-off payments over those that only provide free products, making this a great strategy to quickly test different market niches.
- Challenges: Payment is made upfront, making it challenging to justify or show results until after the campaign ends. If the campaign underperforms, the investment is non-recoverable. Additionally, sporadic mentions by creators may seem less authentic compared to ongoing collaborations found in long-term partnerships, where the product features are regularly highlighted.
3. Payment based on performance
Performance-based compensation allows you to pay influencers based on the specific conversions or engagements they generate, tracked via unique links or personalised promo codes.
This model has two primary methods: some brands provide a one-time payment for each lead or customer an influencer brings in, whereas others opt for ongoing commissions for every purchase made by the referred customer. Although recurring payments might impact your profits more significantly, they can motivate influencers to keep promoting your products as long as their promotional offers are active.
- Advantages: Paying influencers based on results reduces risk for brands, as payment is made for actual conversions, not merely effort. This method encourages genuine promotion from creators, with compensation that is transparent and merit-based. It also guards against fraudulent practices like buying followers, since sales can't be faked. Establishing long-term relationships with creators allows brands to gather valuable data over time, aiding in strategic decisions about brand messaging and identifying the most profitable products.
- Challenges: For small brands, the cost of tools to track attributed conversions can strain budgets. Accurate result tracking is challenging, and influencers may wait a long time for full compensation. This delay can deter them from embracing this payment model.
The takeaway
When partnering with influencers, it's crucial to compensate them appropriately for their time and talents. This not only fosters relationships grounded in mutual respect but also facilitates negotiations that benefit both your brand and the influencers. Whether you’re starting out and can only offer products, or you’re ready to engage with cash payments, align your approach with what’s feasible for your brand and meaningful to the creators.
Remember, the influence of an influencer is not solely measured by follower counts but by the relevance and engagement they command within their niche. Focus on these aspects rather than competing unnecessarily with others in your industry.
For more information about working with influencers, drop us a message on Partipost and learn more about influencer marketing. Paying them is just one of the many steps involved in the process.