Influencers are a key aspect of modern social media marketing, enabling businesses of any size to tap into their desired markets. In fact, data has shown that over half of consumers are more likely to buy a product that they have seen advertised on Facebook. Due to the increased popularity and benefits attached to this type of marketing, it is vital that brands pay their influencers fairly and in line with their market rates. Netinfluencer will go into more detail about paying influencers for their services.
How Do You Get Paid To Be an Influencer?
Although influencer marketing has seen a great amount of success over the past decade, it can still be difficult for these individuals to monetize their content. One way influencers can get paid for their work is through sponsored posts. This means that a brand will pay a content creator to promote their product on their active social media channels.
Another simple way to earn money as an influencer is to become an affiliate for a brand. This type of marketing enables influencers to earn a commission by selling another brand’s products on their own platforms.
If you already have an engaged follower base, you could earn money by selling merchandise related to your personal brand. Many influencers use a third-party platform to build their own online store where they can sell their product directly to their fans.
Common Influencer Payment Methods Companies Should Use
Gifted Rewards: This payment method relies on offering an influencer a tangible product or access to a brand’s service as compensation for their work.
Access to an Event: If you want an influencer to promote a certain event, you could pay for their travel expenses or offer them free tickets.
Store Credit: This allows an influencer to purchase a product directly from a chain of stores. Brands can put a financial limit on this credit or allow creators to pick a select number of items.
Content Licencing Fee: This payment method allows creators to earn a small amount of commission on content that is republished through the means of legal distribution.
Pay per Post: Influencers will only be paid for the content they produce and will often have a set price attached to each post.
Performance Based Pay: This enables a content creator to earn an additional incentive if they reach certain sales goals or achievements on behalf of a brand.
Fixed Rate & Performance: Using this method, an influencer would be paid a set amount but would also be able to earn more money if their content is seeing a high amount of engagement.
Paying Influencers: Payment vs. Product
Product-based Partnerships With Influencer
How To Send Your Products to Influencers
If you are looking to compensate an influencer through one of your products, it is important that you choose the right influencer. Ensure that your business conducts some in-depth research into these individuals before you begin reaching out.
Once the influencer has accepted your proposal, you must decide how you are going to send these products to your desired influencer. Some nano-influencers accept a collection of free products and can help to create a great surge in organic traffic for your brand.
Communication is key when starting this process and it is paramount that a set of goals and rules have been defined before any products or incentives exchange hands.
Commission-based Influencer Partnership
How Much Do Influencers Get Paid?
For brands who are looking to work with influencers on a commission-based partnership, you must first determine your commission rate. Be mindful of your overall marketing budget and always keep maximizing your ROI at the forefront of your business decisions.
Alongside this commission rate, brands could also offer other financial incentives to keep influencers interested in their campaign. For example, you could offer a 5% commission rate as well as access to a variety of store credit options.
These payment methods can help to motivate influencers to create their best work and can ensure that these individuals are being fairly compensated for their content.
How To Ask an Influencer To Promote Your Product
A promising way to encourage influencers to promote your product is through Product Seeding. As such, brands can send a creator one of their products without them being obligated to promote it. In theory, this should push the influencer to share your product without having to set up a fully-functioning campaign.
Another way to ask influencers to promote your product is by simply reaching out to them. This can be done via their social media channels or by contacting their agency. Brands will be required to send a pitch and relevant contact details to their chosen content creator and wait for their response. This is a great way for businesses to seem eager and transparent in their motives and allows influencers to learn more about your product range.
Setting up an affiliate program can also be an effective way to draw influencers toward your brand. These programs rely on influencers to sell a brand’s products on their behalf and allow them to earn a commission as a result. Affiliate marketing is ideal for brands who are looking to work with a collection of influencers at one time.
Do You Pay Influencers Before or After?
Once you have decided how you are going to pay your influencer, you must then decide whether you are going to compensate them before or after the campaign has been completed. This decision is entirely up to the brand but data suggests that influencers prefer to be paid upfront for their content.
Research highlights that 68% of influencers require brands to pay them before they begin their sponsorship. Plus, 85% of influencers said that they would be more motivated to promote a product if they received payment beforehand.
These statistics lead us to believe that payment is extremely important for influencers when they are collaborating with a brand. Therefore, it is good practice for businesses to disclose their payment methods early on in the campaign process, especially if they want to receive the best results from their chosen content creator.
What’s the Most Popular Type of Influencer Partnership?
According to the Oxford College of Marketing, sponsored social media content is the most sought-after form of partnership. This strategy works very well across a variety of platforms and can be applied to a variety of brands.
Sponsored posts also often allow influencers to set their own rate, helping them to better manage their finances and seek a collection of additional revenue streams. Plus, 63% of consumers are more inclined to trust an influencer’s sponsored post over traditional advertising methods.
Most Common Influencer Payment Terms
To gain the best results from a campaign, influencers must state three key payment terms before releasing any content. Firstly, you must determine when you expected to be paid. This can be expressed in your media kit or in your invoice. Although it is tempting to set a short-term goal, be mindful that most brands will only pay creators 30 days after the content is posted.
Creators must also express how they expected to be paid. Thus, if you have decided on a commission-based incentive, you must include the commission rate and sales targets within the contract or business documents.
Finally, it is a good idea to seek a point of contact within the business you are working with. This means that influencers have an ally and support system if something goes wrong. Ideally, this is the person you would send your invoice to as they can verify the content you have created.
Paying influencers to promote your product is a fantastic way to build brand awareness and potentially gain more sales. This payment can be expressed in a number of ways, making influencer marketing a versatile option for any business. To discover more about working with influencers, visit our website.