How do you ensure fair compensation and transparency with influencers?

I very rarely find advice on how to price offers for influencers, so I'm going to share exactly how I do it (from a Head of Influencer Marketing, working with 100s of influencers): 1. Take the median (not average) number of views on their last 10 posts. The top mistake I see is that people take an AVERAGE of views. 1 viral post will skew that number drastically. 2. Choose a target CPM (cost per 1,000 views). This varies by platform, niche and campaign. Do some research. If you're unsure, start from $20-40 CPM. 3. Calculate the value of the placement with this equation: CPM / 1000 * median views Remember to be flexible - this is just a starting point. Pay influencers adequately for their work, they're experts.

Simply put: know what you have and know what you want. Most influencers of scale will have answers to these two questions as well.

We have consciously built OpraahFx as a creator-first agency. By the virtue of working with creators day in and day out, we have first-hand witnessed the effort creators put into every piece of content they produce. Their creativity is the fuel that moves the ecosystem, hence, fair compensation and transparency for creators is non-negotiable for us. We ensure that in the initial rounds of discussion itself, the client knows and is in alignment with a few basic priorities like- the creator’s creative freedom, compensation & deliverables. This helps drive satisfaction on both sides. So, if you want to unleash the potential of this medium, keep these few principles in mind.

Most brands do not share their business or marketing goals with influencers. If the creators cannot be part of the strategic planning, they will not be able to effectively mobilize their audience.

Knowing your goals and budget not only help you understand what size creator you need but what you need from them. Is it video, static, series of posts, etc. Never assume people have the same value just based on size. Grouping by macro or micro isn't as valuable as people try to make it seem.

Creators must be adequately compensated for producing and creating their content for the brand. Additionally, a performance-based compensation proposal can be considered in a negotiation, provided that there is a transparent and auditable way of measuring the results by both parties, and that there is no chance of fraud in this process.

Consider establishing a baseline payment for all creators participating in your campaign, much like a "minimum wage," to prevent unequal or unjust payment practices. By guaranteeing that every creator's compensation exceeds a certain amount, regardless of their requested rate, you can ensure fairness and avoid perpetuating pay disparities.

We need fair compensation for content creators in the creator economy. You should determine one metric which you can use to measure the value an influencer can create for your business, such as reach, clicks, conversions, etc. Then determine one standard rate for that metric that you are willing to pay. For example, you could say that you are willing to pay $5.00 per $1,000 impressions. To be fair and equitable to influencers, this rate should be the same for all influencers whether you have 2,000 followers or 2,000,000 followers. Creators are highly valuable to any social media platform and other businesses, and it’s about time we recognize their worth.

I've never found any of the public tools above to be helpful for determining rates. Here's the approach I use instead (to run a 6-figure per month influencer marketing program): It's simple: I personally prefer to ask influencers for their rates upfront. Then, I evaluate the opportunity: how does that compare to my budget? does this seem like a good opportunity for the brand? how confident am I that this is a good-fit partnership for both parties? Based on the above, I negotiate a fair package that works for us both. If you're patient, understanding and realistic, you'll almost always be able to reach a deal that works for both of you.

Quite frankly most pricing tools out there are no good. You need to do some benchmarking, think about CPV models, etc. As a brand know the full package you want from deliverables to usage and come up with each influencers value for the program. Be willing to walk away if their pricing doesn't match your assessed value.

Build relationships via phone and face to face but negotiate on email. I've been in plenty of situations where a paper trail can be useful.

I cannot stress this enough. 1. Always negotiate on a phone call. Building a relationship tends to lead to more flexibility on both sides. 2. Brands always have a number ready to say first - otherwise you give up the upper hand in negotiation. Be fair always but don't get played and overpay.

The single most important thing that determines whether your partnership is successful is a campaign brief. Your campaign brief outlines your entire process and your expectations. Spend at least 1-2 days working on a detailed campaign brief BEFORE you reach out to a single influencer. Your influencer partner should be able to read it and understand: - What your brand is - What your campaign is - What their deliverables are - Clear expectations for the deliverables - Examples of the deliverables (from previous partnerships) - What the timeline and deadlines are - How they will be compensated and how long it will take

I would suggest building conversations will be the first step towards building trust. The fundamental to this is clear communication!

What I love most when a brand/agency is interested in partnering with a creator of mine is being open and transparent, once we've had a couple back and forths about budget. I always am when sharing rates (it's this a la carte cost, but it's this as a bundle, happy to be flex here, can't be flex here because of this reason etc). Oftentimes, I just ask if I can call so we can figure it out via the phone vs email. When a brand also shares "we're not flex here because of this reason but can definitely change up this" it really makes me feel like we're in it together, trying to find a solution so that their client and mine are both happy. It's not always easy, but I lean on my relationships and comfortability in the space to do just that.

A lot of brands do not pay attention to this part of the partnership, but if you do, it could be the edge you need to win more deals and get better partnerships for your brand and beat the competition. If you do the following things, you'll be better than 99% of brands: - Pay influencers quickly (standard is Net30 or Net60, but if you can pay within 7 days of deliverables, you'll be leagues ahead of the competition) - Offer diverse payment methods: support credit card payments, bank transfers, PayPal payments etc. The more payment types, the better. Give influencers a VIP experience by paying them quickly and on the platform they prefer.

Traditionally the negotiation process between brands and influencers has been non-transparent. This lack of transparency often leads to creators over or under bidding on opportunities, and either completely missing out on partnerships or being grossly underpaid. Introducing transparency into the negotiation process enables influencers to make more data-driven pricing decisions and brands too more equitably partner with untapped talent; particularly influencers that are underrepresented or simply don’t have agency representation.

To ensure a strong return on ad spend (ROAS) from influencer campaigns, consider these key actions: - Select influencers carefully based on audience alignment and successful track records. - Set clear campaign objectives and measurable KPIs. - Collaborate closely with influencers to align messaging and content with your brand. - Track campaign performance using data and analytics. - Optimize the campaign based on insights and adjust strategies as needed. - Implement tracking mechanisms to measure conversions and attribute them to the campaign.

Creators can also be paid and hired as business partners, such as business strategy consultants, ghost writers, creative advisors or even audiovisual producers. Brands are discovering that the Creator Economy can go beyond paid publishing and can drive relevance and awareness, as well as good business, for all stakeholders in the influencer marketing industry.

This is a top mistake I see brands make: they think they have all the power in the brand-influencer relationship, and they simply don't. Influencers are experts at their crafts that have agreed to promote your brand in a sea of other brand deals that they could be doing. Treat your influencer partners with the utmost respect and kindness, always. This seems like a no-brainer, but influencers can work with so many brands, why would they work with you? Give them a reason to want to work with you over and over again. Some tips that make a difference and can give you an edge over other brands: - Quick payments (faster than 30 days) - Clear instructions - Don't change deadlines - No last minute asks - Be understanding