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They all quote abnormally high prices, here's how to assess a fair fee.
A warning to start ⚠️
Never ever pay for posts, especially when you're just starting out. A transactional sentiment reflects in the kind of content that the creator would create for your brand and their audience can smell it.
It's 2022, consumers are smart - so give them the respect they deserve. Don't do paid promos with famous influencers just because they'll generate eyeballs for your brand. These shoutouts are more than likely to be unprofitable.
What you should look for
Alignment comes first. Before followers, before engagement, and way before payment. You can adapt to the metrics, you can't change how aligned a creator is with your brand. So the first step is to find creators that are aligned with your brand.
Only once you've found creators that are aligned with your brand's ethos, then work around negotiating an incentive structure (which may involve upfront payment).
A rule-of-thumb for fair fee
For every placement,
Pay $100 for every 10,000 followers on Instagram.
Pay $150-$200 for every 10,000 subscribers on Youtube.
Pay $75 for every 10,000 fans on TikTok.
Now, all of this also depends on their engagement rate. If they have 100k followers with a poor engagement rate, then certainly don't pay them $1K for a post.
For the advanced folks out here...
I'm building some software in this space and we use this formula for our the fair-fee calculator in our app:
Sponsor Rate is the % of sponsored posts they have among the last 10-15 posts on their feed. It's a negative factor as you ideally want to work with creators who are selective with the brands they work with.
Does this help you guys make fairer decisions when working with creators on social media? Let me know if you have questions
Appreciate you reading till the end
A warning to start ⚠️
Never ever pay for posts, especially when you're just starting out. A transactional sentiment reflects in the kind of content that the creator would create for your brand and their audience can smell it.
It's 2022, consumers are smart - so give them the respect they deserve. Don't do paid promos with famous influencers just because they'll generate eyeballs for your brand. These shoutouts are more than likely to be unprofitable.
What you should look for
Alignment comes first. Before followers, before engagement, and way before payment. You can adapt to the metrics, you can't change how aligned a creator is with your brand. So the first step is to find creators that are aligned with your brand.
Only once you've found creators that are aligned with your brand's ethos, then work around negotiating an incentive structure (which may involve upfront payment).
A rule-of-thumb for fair fee
For every placement,
Pay $100 for every 10,000 followers on Instagram.
Pay $150-$200 for every 10,000 subscribers on Youtube.
Pay $75 for every 10,000 fans on TikTok.
Now, all of this also depends on their engagement rate. If they have 100k followers with a poor engagement rate, then certainly don't pay them $1K for a post.
For the advanced folks out here...
I'm building some software in this space and we use this formula for our the fair-fee calculator in our app:
Sponsor Rate is the % of sponsored posts they have among the last 10-15 posts on their feed. It's a negative factor as you ideally want to work with creators who are selective with the brands they work with.
Does this help you guys make fairer decisions when working with creators on social media? Let me know if you have questions
Appreciate you reading till the end
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