If you’ve decided to partner with social media influencers to promote your company, one of the most important questions to be resolved is: How do you compensate these social media marketing influencers?
Influencers aren’t available for free on Instagram, TikTok, YouTube, or any other online platform. They’ll require something in exchange for their time and effort in the making of content. A lot of social media influencers aren’t cheap, especially the good ones that know their value. Fortunately there are a variety of incentives you could offer these influencers that know their worth. There are social selling influencers for all budgets and niches to choose from.
Consider What You Can Offer Online Influencers
Let me start by saying that when designing influencer campaigns, it’s important to keep in mind two essential factors:
● What is the price influencers charge for the services they provide?
● What is the highest amount you’d be willing to pay in incentive?
Generally speaking, the greater the number of followers that an influencer has, the more they’ll charge, but other factors like engagement rate and content type also impact this. With respect to content type, for instance, the price of a video is higher than a photo post, and both are costlier than a temporary Instagram Story.
It is recommended to conduct some research into this and then think about the kind of content you’ll need to promote your campaign before you start looking for influencers. This way you’ll know what you’re able to offer, and then you can let that direct your search.
If you know for instance that you can only pay influencers with free goods, don’t waste your time trying to find social media influencers with huge numbers of followers. They won’t be drawn by that type of incentive (unless it’s an absolutely fantastic and useful product). In this case, it’s best to search for nano influencers (with 1,000-5,000 followers) which are willing to accept smaller-scale incentives. The types of incentives There are many ways to pay influencers however the three methods most often used are:
● Experiences, products, or services gifted for free
● Flat fee
● Commission-based models
Most brand collaborations include some kind of product or service for free. This is due to the fact that when an influencer produces their own content, it is essential to show off something from your company.
For smaller campaigns, brands may provide customized packages for every influencer. For larger campaigns or when logistics are a problem, it’s also possible to give influencers a voucher that they can use in your store or on your website.
Vouchers also work because they allow the influencer to pick the items they enjoy the most. The more passionate the influencer is about the product, the greater the likelihood they’ll create engaging content for their followers. Sometimes even discounts or coupons could be enough to persuade a social media influencer to help promote your business on their platforms. In some cases the social influencers can share a discount code or customized link with their followers in a similar fashion to drive sales.
Be aware of this when you’re sending certain items directly to influencers. Find out which version they are most interested in. Are they more interested in red or blue? Do they prefer Swedish massage or Shiatsu massage? Have they been known to give negative reviews in the past that could damage your company? Be sure to find out, in order to ensure that their content is as enthusiastic as possible.
Another way to pay influencers is fees. Fees are based on the number of followers as well as engagement rate. Furthermore, the fees differ depending on the economy of the country or region. Vietnam and France are not the same market, nor are Wyoming and Manhattan.
You could pay influencers with flat fees. They’re exactly as they sound: you pay a defined price for a defined service. It could be $200 per post or $500 for a video. Flat fees are one-time payment that can be made upfront, later or before, or half before and the rest after.
Commission-based models allow you to pay influencers according to what value they add to your marketing campaign. For influencer marketing, you can make use of the cost-per-acquisition, also known as CPA, to calculate influencer commissions.
An “acquisition” is defined by you. It can be something such as a sign-up, sale, or download. CPA is a strategy that can be applied with a fixed or variable commission. For instance, in a sales campaign, you could give influencers $5 or 5% for every sale they make.
Many social media influencers do not accept commissions alone. However, you can combine commissions with flat fees or even free products to create an attractive incentive program.
A Few Suggestions On Compensation Options
Here are some tips to keep in mind when defining and negotiating influencer incentive:
● If you’re shipping a package, ensure that you include shipping and handling within your budget and timeframes. You should allow a little room in case of delay, especially due to situation our world is currently in.
● Contracts are great when paying fees. But if you’re closing deals for free products, they’re not always required. Contracts could actually turn off newer influencers such as nano influencers, who aren’t quite yet used to collaborating with brands.
● Managers can drive up fees by around 20 percent. This is another reason why top influencers are so expensive.
● Be aware of the limitations of your brand. If you’re a new company with a low budget and you can provide free products only, find influencers who are willing to take that.
Increase Influencer Marketing Monetization
Along with other elements related to social media influencer campaigns, incentives aren’t one size fits all. Make sure you are aware of your company’s goals, objectives and budget, and then use the information to identify influencers who meet your needs. Make sure you hire online influencers that are worth your time and money that won’t risk damaging your brand image!