The general rule of thumb is to charge the base rate for each month they request exclusivity. There will always be 2 models per live show. This type of fee is a percentage of ad spend. Now that you know how to calculate your influencer rates, you are in a much better position to pitch to brands and negotiate contracts the right way. Just specify your ideal follower count on your target . Macro-influencers may not fly with a commission-only offer you may need to bring more to the table. Lauren McGrath is the vice-president of studio and SaaS strategy at ACTIVATE, which partners with brands and influencers to tell engaging and compelling stories across social media, at scale. As youve now discovered, theres more to rewarding influencers than just paying for the number of followers. On the one hand, its positive: it means positive changes for end-users. Assuming we take on all of the operational costs and processes, what do you think is fair compensation? Influencers that help your business grow are influencers youd want to keep close. Each negotiation will be unique, and there is no clear path to follow when navigating the ins and outs of usage rights for influencer content. Ninja Outreach makes business lead generation easy and fast. "Because they no longer have control over their content, they don't know who is going to see it." That said, it's important to have a general sense of time and placement for content usage before you finalize details or cast creatorsespecially considering the impact on pricing. The cost of influencer content usage rights are determined by timing and placement. Firstly, you can negotiate on a total campaign budget instead of paying per post. It's also why companies often ask what a fair price for hiring an influencer is. Exclusivity: Cannot work with competitors for one month. Your commission offer should be worth their while. $2,000 for Static Post x 20% = $400 Licensing Fee for 30 days (about 1 month or 1, 30-day period) $400 Licensing Fee x 3 Months = $1200 Licensing Fee for 3 Months. For those who want to try Influencer marketing, I recommend running a test campaign between 5,000-10,000 euro/month for a test period of 6 months. Hi Neal! Sales need to be tracked efficiently in order for this method to work. In the case of a brand or agency, usage rights will dictate which additional channels the content can be used on. Read Next: How to Make Money as a Content Creator There are many questions about their compensation. Industry insiders say one of the most important things influencers should look out for when signing a contract with a brand are "usage rights.". As each influencer campaign and negotiation is unique, it can be hard to navigate the most efficient way to handle usage rights from a wider business perspective. But if you're working on a partnership, here are the most important elements to keep in mind. In a nutshell, whitelisting is a great opportunity for brands to gain traction with ads, utilize your look-alike audience and really maximize their influencer marketing strategy. How much do you need to pay for influencer advertising, really? Because not all followers will be reached and not all followers will engage with their content. For example, an influencer with 10k followers that publishes a picture is not the same as an influencer with 10k followers that publishes a video. This advised rate can vary. In fact, over 59% of marketers are tapping influencers for content creation-only partnershipsoutlining extensive usage rights up front for content that an influencer may never even distribute on his or her own social channels. Natalie Weber is an expert on Influencer Marketing. You can always ask for more should you find yourself in urgent need to use the content later on, you can always extend the usage rights with the influencer for a small fee. Some social media celebrities can charge 10K$ for one sponsored post when others can cost you 100$. Do you want to charge a base usage rate? In-Feed Post: $100 per 10,000 followers (x3 for above average engagement rate). If you plan to launch an influencer marketing campaign on TikTok, you can expect to pay $5-$25 per post for an influencer with less than 10,000 followers, and $2,500+ per post when working with an influencer with more than a million followers. Influencers who create content for brands own the legal rights to that content. Beyond the time period, the manner in which a brand can use the content is also often a part of usage rights negotiations. Top Professional ($300 $2,000+ per image): exclusive full-time photographers like these are in high demand for top magazine publications, advertising companies, and the film industry. For our example, that's $60,000 / 231 which is $259.74. But, But thankfully, brands and influencers can easily discover favorable collaboration opportunities on, A nano influencer with 8k followers is not in the same league as a mega influencer like, the highest-paid influencer at $1.2m+ per Instagram post, And certainly, the effort to publish a tweet is nowhere near any of the above, $10 per post / 1,000 followers, $250-$750 per 1,000 engagements, $20 per video / 1,000 subscribers, $50-$100 per 1,000 video views. Treat your influencers to unexpected rewards. Just as there is a variance in which influencers charge, there is also a variance in what influencers charge. What she was paid: $1,500 and a $100 gift card (originally offered $800 and negotiated) Question: my account was receiving reels bonuses, but IG flagged a story I posted almost a year ago (several months before eligibility to get the reels bonuses) as promoting self harm. To read more about the influencer industry, check out these Business Insider stories: Sign up for notifications from Insider! Sell your photos5. Whitelisting is when you grant a brand permission to run ads using your social media accounts, meaning the ads are shown under your influencer handle. Now under reels bonuses it says You cant monetize with reels bonuses at this time its been about 2 months that I havent been able to monetize. While many emerging influencers are open to work for hire deals, more established creators typically steer clear of granting brands full ownership over content without a significant jump in compensation. If you plan to repurpose an influencer's content, be sure to discuss that with them ahead of time and outline the terms in the influencer contract.Some influencers will charge more for content that's going to be reused. Usage rights; As you can see, these factors are only present in certain types of content, not all content that you would commission from an influencer. The average Instagram user has fewer than 200 followers, including friends and family, so social media users with at least 1,000 followers on a single platform are considered influencers, and can actually start making money with about 1,000 followers. Please keep in mind, everyones influencer rates and formulas will vary. 10,001 to 50,000 views = $500. An influencer collab may be an affordable alternative. Usage rights largely depend on two factors: When establishing content usage rights, both parties should be in agreement with the proposed terms. Keep in mind during negotiations that micro or up-and-coming influencers may view repurposing or amplifying content as a major value-add. Take these with a grain of salt and understand that, like everything else in life, prices are negotiable ;-) Facebook $25 per 1000 followers. Collabstr's influencer rate calculator takes into account over 10,000 real rates from influencers based on similar followers . As a marketing strategy, companies hire individuals with a large social media following to promote products through their personal accounts. Whether its a few days or weeks, or months this airtime will come at various rates. This method may have a particular appeal to college student influencers. The more followers, the more attention, and the more value each piece of shared content holds. Heres what you need to know: The cost of influencer content usage rights are determined by timing and placement. A $100,000 whole life policy will probably cost between $100-$1000 monthly depending on various factors such as your age. But of course, big and famous TikTok influencers may cost higher. Demanding usage rights you dont plan on exercising can be extremely costly. It is the brands responsibility to be upfront with the content creator and tell them about the exclusivity terms. Know your worth. After typing in your target niche and location keywords, you can: Identify business leads with the largest audiences. 100,001 to 500,000 = $5,000. Hi Ashley! "Sometimes that's two weeks, other times there is a default of 90 days or a year," Schreyer said of the amount of time. Writing a blog post is also another talent. Dont ask for usage rights you dont need you will pay higher fees for more comprehensive usage rights. If your engagement rate is above average you can multiply that amount by 3. 3. She loves creating and she loves inspiring good vibes. Simply subscribe to our newsletter and get instant access to how-to articles, guides, webinars and more for nada, nothing, zip, zilch, on the housedelivered right to your inbox! Perhaps product launches or even exclusive product workshops? Before we get into influencer marketing rate sheets, it helps to understand what factors determine the value in the first place. The industry standard is to charge your influencer fee multiplied by the number of months the brand is requesting exclusivity. Well be covering a number of ways you can reward influencers. These categories include: Nano influencers (1,000-10,000 followers) Micro influencers (10,000-100,000 followers) Macro influencers (100,000-1 million followers) Mega/celebrity . This is a flat fee on top of the photo rights you would charge. Secondly, there is room to perfect the execution of the campaign for the duration based on data insights at every stage. When everything is clearly spelled out, those unpleasant surprises can be avoided. How much should influencers charge for usage rights? Deliverables: One static feed post on Instagram, a blog post and a YouTube video. Yes, Instagram can pay you, and here are some ways on how to make money on the platform:1. Good energy and good coffee is how she rolls on the daily. In influencer marketing, the influencer owns the rights to their content and the brand has to be granted, or purchase, those rights. Heres where your own pickiness will cost you. When it comes to repurposing or amplifying content, micro or emerging influencers may think of this as a major value add. Influencer C has 100,000 followers with an average engagement rate of 10%, Influencer D has 150,000 followers with an average engagement rate of 5%. Influencer's engagement rate vs our benchmark engagement rate; The estimated price of sponsored posts; These estimates are based on data from thousands of stories, posts, and . The distribution fee refers to the cost of getting a brand/product featured on your social media channels. I often get asked if I know anyone at Instagram, Facebook, LinkedIn, etc. And it makes sense: Due to a decline in organic reach, reaching followers via organic algorithms is becoming less and less impactful, while whitelisting and other forms of amplification are becoming unavoidable if you want true results. Laura-May Azpiazu. Understanding all the factors that impact the value of an influencer can give your brand negotiating power. A simple rule of thumb for digital rights and licensing is to charge a 20% fee for every 30 day period. There are m. Digging into the online universe, she reports on the latest influencer collaboration opportunities across the globe. The closest thing to a standardized earned media value formula is as follows: EMV = (Impressions) * (Cost per 1,000, or CPM) * (Adjustment Factor). Youll receive an email with login information to experience Lumanu for free. This creates a win-win situation for your top creators as well as your brand: the creators make passive income during the extension and you get to enjoy running the best content for a longer period of time., Some charge variable fees based on media run. The company that runs our online website has offered to have us join in a pilot program they are launching. How Much Will a Social Media Influencer Charge Per Post? As a rule of thumb, ACTIVATE strives to create partnerships that support a creator value proposition extending beyond compensation. #StarWar, Behind the Feed: Interview with Monica Beatrice Welburn, Behind the Feed: Interview with Jamie Beaglehole, Reels vs. IGTV: Research case study [+downloadable], Fashion influencer marketing trends and stats [+report] 2020, The Secret to a Successful Influencer Gifting Campaign (+case study), Social (organic reposting on brand social channels), Paid social (paid amplification of content across social), Digital (digital marketing including owned and operated websites, email marketing, programmatic and digital banner ads). The number of classes of goods and services you intend . And pro-tip: NEVER grant a company full, irrevocable rights to use your TikToks as they see fit. When it comes to using the content in additional paid campaigns, we recommend opting for 6 months full digital rights on organic social, paid social and digital (also referred to as full digital rights). Drive traffic from Instagram to your own site7. What Is Whitelisting? Hey Jordan, thanks for your comment and congrats on being innovative! And quite right too. We'll help with the business stuff. Your commission structure should make sense. Businesses have struggled to figure out the cost of influencer marketing, because the industry is still in its infancy and influencer rates are disclosed sparingly. One of the major concerns about this compensation method is the uncertainty around the return on investment especially for brands looking to drive sales. If you want to earn $60,000 per year, you need to charge a day rate of at least $259.74, and you can't go below that. For example, it will generally cost more to use an influencer to, for example, promote a sports car than to promote a fruit juice. As a content creator or influencer, you must grant a brand permission to use your images. Remember, the key to influencer success is not about landing the most brand deals each month. 5,001 to 10,000 views = $100. Story (per 3 frames): $100 per 10,000 followers. What she was paid: $250. After doing extensive research myself, I have used several formulas to calculate my influencer rates and I will be sharing them in this blog post. Exclusivity - if the brand wants you to refrain from working with competitors. And now, creatives and their representatives are thinking more about what comes with repurposing content too, so brands will need to define clear goals when sitting at the table to negotiate. How is usage rights influencer calculated? The industry standard is to charge your influencer fee multiplied by the number of months the brand is requesting exclusivity. For example: the influencer might charge 4% of ad spend. Snapchat. In short, brands are thoughtfully picking and choosing where and how to amplify influencer content. 2. In addition, influencers may even be sought out to capture content in various formats beyond what they create for their own channels, Five Whitepaper Design Mistakes That Are Costing You Leads, What the Most Successful Content Marketers Do Differently, How Being Strategic About Content Development Can Boost Results and Save Time and Money: Ahava Leibtag on Marketing Smarts [Podcast], Five Serious Content Marketing Mistakes You Need to Avoid, Your First New Content Marketing Tool for 2023 Should Be Your Sales Team, How to Create a B2B Marketing Podcast in 2023And Why You Should. Natalie is chief 411 for Afluencer, a top social media influencer platform. Scope of work - the complete set of deliverables that the brand wants to receive So if you do win them over on a collab gig, you bet youd be paying a pretty penny. Perform affiliate marketing4. Schedule a demo with someone from our team today to learn more about using Lumanu for whitelisting!. To determine your licensing rate you will need to know where the brand intends to place your content and the length of time they plan to use it. I have a bit of a unique opportunity that my boss presented to me this week. Reason being: influencer whitelisting and usage rights licensing. It is recommended to run an influencer campaign over a period for many reasons. When in doubt about the exclusivity requirements, ask! A loss that youd need to compensate for. For instance, a brand could request the right to include an influencer's picture of themselves wearing a product in the brand's marketing emails to customers for 90 days. Your licensing rate is the price of using your work for different purposes and platforms. I think it all comes down to time spent and rewards gained. Example: 1000 x 0.03=$30. Finally, the size of the campaign also has a major impact on costs. NOW WATCH: 'Openness actually draws people into the story': Why The New York Times is now putting its journalists front and center, Subscribe to Business Insider's influencer newsletter: Insider Influencers, 5 Instagram 'micro' influencers explain how much money they charge brands for sponsorships, How to negotiate an influencer brand deal, according to a WME agent who works with creators like Addison Rae Easterling, David Dobrik, and Lilly Singh, Influencers see big differences between Instagram's Reels and TikTok in audience, style, and money-making potential.