Influencer Marketing Strategy: Negotiating with Influencers

It is common these days to work with influencers for social media marketing. But agreeing on how much to pay can feel difficult. You want to pay a reasonable price that makes sense for your business. At the same time, you don’t want to underpay the influencer. Good communication and doing your homework first help you negotiate the right deal.

Researching Rates

Before reaching out to influencers, get an idea of typical rates. Look at how many followers they have – more followers usually means higher rates. But don’t just look at follower numbers. Check how much engagement (likes, comments, shares) their posts get. High engagement means their audience really connects with them. Look at any sponsored posts they’ve done too and how those performed. An influencer who gets tons of engagement on brand deals is more valuable. If you have data from previous influencer campaigns you’ve done, that data can help guide your pricing expectations. Look at metrics like cost-per-engagement to understand what to budget. You can also look at the pricing of creators on an influencer marketing platform for brands to get a fair idea.

Getting Pricing

Reach out to influencers you’re interested in working with. Invite them to provide their pricing packages, but don’t commit yet. When they share rates, make sure you understand all the details of what is included. Ask if it’s just a single post or if you get additional content like Instagram Stories/video clips. Ask about timing too – do you own the content rights forever or just for a limited time?

Coming to An Agreement

With the influencer’s pricing and your research, you can evaluate if it aligns with your budget and goals. If the rate makes sense based on their audience size, engagement, deliverables, and your experience, great! You can then finalize all the details. If the pricing is higher than your budget allows, have an open conversation. See if you can adjust the package scope, timeframe, or usage rights to reduce costs. Or consider offering bonus extras like free products or special experiences to make it a broader partnership. The goal is a true partnership where you pay a fair rate that works for both sides, not simply trying to pay the lowest price.

Negotiation Best Practices

Keep some simple negotiation tips in mind. Treat the influencer as a valuable partner not just a one-off paid promotion. Be transparent about your goals, needs, and reasoning for your budget number. Use a friendly and collaborative tone focused on making the partnership work for everyone. An argumentative approach helps no one. If things don’t end up aligning, don’t burn bridges. Thank the influencer for their time and express that you’d be open to discussing future collaborations if the situation allows.

Other Potential Costs

In addition to the influencer’s baseline rate for creating content, be aware there may be some other fees involved. Many influencers use influencer marketing software as an agent which will add a commission percentage to the rate you’re quoted. There may also be separate, higher fees for unlimited perpetual usage rights or rights to reuse the content in print ads, TV commercials, etc. Most influencer rates cover some reasonable revisions but if you request excessive rounds of edits, additional fees could apply. Having extremely clear contracts that spell out all expectations around costs and usage rights prevents any surprise added costs later.

Conclusion

Negotiating fair influencer pricing doesn’t need to be hard. Focus on building an equal partnership that provides real value for both sides.