The influencers of today’s social media landscape understand their contribution to ecommerce more than ever before. In accepting brand partnerships, most successful influencers are very discerning about who they work with and the parameters of this agreement. They want to share the best content with their audience and be appropriately compensated for the time needed to create this content. Most influencers will negotiate past your initial offer for partnerships and collaborations.
An influencer’s key negotiating tool is their audience. Any payments or incentives should be directly related to their potential reach, the size of their audience, and the engagement of that audience. Another key metric for determining the value of an influencer campaign is the quality of the content produced. A micro-influencer may be able to produce better content that can be used for a brand’s advertising, product photos, and marketing materials, which would justify paying a higher price.
Hootsuite and other sources recommend the following formula:
$100 per 10,000 followers + extras = total rate
You may want to adjust this depending on the requirements of your campaign, but this is a starting point to consider when writing your initial proposal.
An alternate solution for negotiating the price of the campaign is to let the influencer give you their standard rates. Influencers typically have a price in mind when accepting the offer to work with a brand. Allowing them to make the first move will allow you to see what they had in mind.
Negotiating within Carro
Carro is here to enable brands and influencers to work together with purpose. In negotiating the requirements and the price of a collaboration, there are a few ways to start communicating with influencers:
Customize your Quick Invite message to include the requirements of the collaboration, as well as any details about payments.
Instruct the influencer to add their rates or requested payments to the notes of a product request. This can allow influencers to let you know their rates. You can approve, deny, or contact the influencer from this product request for more negotiating.
Follow up an approved product request with information about any ambassador or affiliate programs that your brand offers.
In your initial proposal, you should have the starting price that you are willing to pay, as well as the requirements for the campaign. Setting clear expectations from the campaign will help both the influencer and yourself negotiate toward a fair price.
Leave some wiggle room in the pricing listed on your initial proposal. You may have to sweeten the deal in order to work with a top-notch influencer.
Be prepared to receive a counter offer from influencers after you have submitted your initial proposal. For some influencers, you may want to stand firm in your offer and be prepared to walk away. For others, you may have to come up with additional funding for the project.
Additionally, anytime the influencer requests additional money, you can counter with additional creative content from the influencer as part of the campaign. That can help your influencer marketing dollars stretch even further.
Should I pay for their post at all?
If you’ve ever heard the expression, “You get what you pay for,” then you are familiar with the fact that paying for work can help you get the results that you want for your campaign. Paid contributors may outperform volunteers. However, when considering whether to pay an influencer, you should take into account the following:
Are you giving them free products?
Is their audience of high value to you? Does their audience overlap with your target customers?
Do they have other brands competing for their time and energy?
Are you hoping to reuse their content in other advertising channels?
How extensive is the campaign? Will they be required to post multiple times or create multiple types of content?
In determining if an influencer should be paid, it is important to consider their ROI as well. Will this influencer help to generate revenue for my brand? If you have past experience with influencers, you may be able to estimate the return you should see from a successful influencer. An influencer who is estimated to have a large return should be paid accordingly.
In the end, it is important to weigh the options for your influencer campaigns and determine the best fit for your brand. Micro-influencers may cost less and will help get the word out about your brand, while Macro-influencers will be more expensive and may be able to make larger strides in brand awareness. Weighing your goals with the potential impact of an influencer will help you get the best proposal together for your influencers.