This is the fourth post in a series based on an ebook we co-authored with AP and Alison Chew. For early access to the rest of the book, click here.
Influencer compensation comes in several types.
Flat fee is very popular in influencer marketing. You pay an influencer based on their quality, audience, or engagement.
This is also popular and works well. Many influencers, especially micro-influencers will work for free products. Frequently a flat fee on top of a free product works well for larger micro-influencers.
Is less common but where many trends are headed. More and more people are paying based on performance or a hybrid of a flat fee plus performance. That performance could be a cost per engagement, cost per click, cost per lead, and/or cost per sale. At the end of the day, you want them to drive more traffic to your website.
One point worth mentioning is that if you can work with influencers directly – vs. finding and engaging with them via an influencer network – you can often keep your costs much, much lower. Typically, direct engagement can save you 50% or more on paid placement costs.
To see how you could optimize your influencers, sign up for part-five of our blog and download our e-book!