With influencer partnerships on the rise, brands are starting to wonder, “how much should I be spending on this collaboration?” We’re here to help you think through the most important considerations to get the best rates for your influencer partnerships. No surprise, it all starts with budget.
Identifying a budget at the start of negotiations limits how much you’re able to pay partners and gives them clear answers about spending parameters. Once a total budget is set, divide it by the number of partners you’d like to secure. This not only sets your base for negotiations, but also provides insight into the size of partners you’ll be able to afford. If potential partners come in over budget, your budget will allow you to be transparent with agents on how much room there is to negotiate.
The age of brands negotiating for influencer content in perpetuity is gone. Most often, we request a year of usage rights and negotiate based on when a brand will actually repurpose the content. Organic sharing across social media, website and email marketing tends to cost less than accessing content for whitelisting or brand ads.
When deciding how long an influencer should be exclusive to your brand, consider the competitiveness within your space. Longer exclusivity drastically increases cost and may not be required for the success of a campaign. If you don’t want influencer partners mentioning other brands following your branded content, start by asking for 90 days of exclusivity.
Pro Tip: While sharing organically within term is often included in the initial fees, we recommend asking influencers to disclose costs for both exclusivity and usage rights to help you understand how you can get lower fees.
You’d be surprised at how much more successful verbal negotiations are than cold emails! Hopping on a call to discuss influencer partnerships will allow you to dive into content requirements, build rapport with influencers and agents, and allow for real-time back and forth. Furthermore, developing lasting relationships with influencers and agencies can positively impact future rates and plus-up content. Stay positive and friendly in your communication and keep in mind, all parties are excited to partner and are open to figuring out the best way to make it happen!
There are several factors that need to be considered when setting prices for influencers. Understanding these factors will ensure you’re able to come up with an appropriate counter offer for your influencer partnerships:
As you reach out to partners, remember that rates should be mutually beneficial. This is a partnership and all parties should feel heard and respected during the negotiation process. Walking away with a mutually agreed upon rate kicks the partnership off on the right foot and allows influencers to go into content development feeling stronger about the partnership and motivated to do their best work.
At Socialfly, we prioritize relationships to get our clients the strongest content (and plus-up content) for the best rates and highest-performing campaigns. To learn about our end-to-end influencer marketing services, email us at email@example.com. For more tips and tricks, subscribe to our newsletter.
Written By: Angie Bolotin, Head of Influencer Marketing