What are the best practices for negotiating compensation with Instagram influencers?

If you want to work with Instagram influencers to promote your brand, product, or service, you need to know how to negotiate compensation with them. Influencers can charge different rates depending on their niche, audience size, engagement, and content quality. Here are some best practices for negotiating compensation with Instagram influencers that can help you get the most value for your money and build long-term relationships.

1 Understand the influencer's value

Before you approach an influencer, you need to do some research on their value. Look at their follower count, engagement rate, content style, and audience demographics. These factors can help you determine how much influence they have and how relevant they are to your target market. You can also use tools like SocialBlade or Influencer Marketing Hub to estimate their average earnings per post or per campaign.

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Soni Adriance

Director of Communications at Shamiri Institute
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It’s also important to have a clear understanding of your own campaign goals from KPIs to broader marketing desires in order to clearly communicate with an influencer your expectations. You also need to share all dos and don’t of your brands online presence.

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Marvin Bisanga

Digital Marketing Manager dfcu Bank
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From some lived experience working with influencers in different markets, I always look out for the value behind all the measuring metrics. I segment the value into quality vs. quantity, the budget allocation to guide the most feasible duration of work engagements with them, and media relations long-term. Influencer marketing keeps evolving and it's important to understand the value system and work ethic as that's more sustainable for brand reputation.

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2 Set a realistic budget

Once you have an idea of the influencer's value, you need to set a realistic budget for your campaign. You can use industry benchmarks, such as $10 per 1,000 followers, or $250 to $750 per 1,000 engagement, as a starting point. However, you also need to consider your own goals, resources, and expectations. You don't want to overpay or underpay an influencer, as both can damage your reputation and results.

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Marvin Bisanga

Digital Marketing Manager dfcu Bank
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Budgets are important to manage expectations. However, budgets should be flexible enough and detail intangible and tangible services that will facilitate marketing efforts.

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3 Offer a fair and flexible deal

When you contact an influencer, you need to offer a fair and flexible deal that reflects their value and your budget. You can propose a fixed fee, a commission, a product exchange, or a combination of these options. You can also offer other incentives, such as exposure, creative freedom, or long-term collaboration. You need to be clear about what you expect from the influencer, such as the number of posts, the type of content, the hashtags, and the deadlines.

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4 Negotiate with respect and transparency

If the influencer accepts your offer, you can proceed to finalize the deal. If they counteroffer, you need to negotiate with respect and transparency. You need to listen to their concerns, explain your rationale, and find a middle ground that works for both parties. You also need to avoid lowballing, pressuring, or ghosting an influencer, as these can ruin your relationship and reputation. You should always communicate professionally and politely.

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Marvin Bisanga

Digital Marketing Manager dfcu Bank
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Negotiations leverage mostly on goodwill (past or present, bought or earned), it's important to not abuse it, as influencers/influencer marketing command a great perception from their followers. Always aim to have a win-win. Even in crisis, it's this premise that will benefit you and them.

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5 Use a contract and a tracking system

Once you agree on the terms of the deal, you need to use a contract and a tracking system to ensure accountability and compliance. A contract should outline the details of the compensation, the deliverables, the rights, and the responsibilities of both parties. A tracking system should help you monitor the performance and the impact of the influencer's content, such as the reach, the impressions, the clicks, and the conversions.

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Marvin Bisanga

Digital Marketing Manager dfcu Bank
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I once worked for a brand in the hospitality space and a tried and tested tool for tracking RIO was the power of referrals the influencers we onboarded were able to translate to bookings (rooms or restaurant reservations). Behind all the measuring and tracking tools for engagement and reach, it was important to show management that influencer marketing was worth the investment.

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6 Provide feedback and recognition

After the influencer completes the campaign, you need to provide feedback and recognition. You need to thank them for their work, share your results, and express your satisfaction or dissatisfaction. You also need to recognize their efforts, such as by giving them a shoutout, a testimonial, or a referral. You should also ask them for their feedback and suggestions on how to improve your collaboration. This can help you build trust and loyalty with the influencer and increase the chances of working with them again.

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Marvin Bisanga

Digital Marketing Manager dfcu Bank
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Feedback both positive and negative is important. Marketing and sales strategies are always improving based on this feedback. It's important to include this tool in refining the overall brand business operation models

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Augustin Ndikuriyo

Digital Travel Expert| Digital Transformation For Good| Tourism Industry| SEO Strategies| Social Media Marketing| Content Creation
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When negotiating with social media influencers, the first step is getting a clear understanding of their audience and how they align with your brand target audience and values. You don’t want to negotiate compensation with someone who has thousands of “bot 🤖 “ followers! Secondly, don’t be intimidated by the asking price. You know the value of your product(service), be realistic and strategic!

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What are the best practices for negotiating compensation with Instagram influencers?

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1 Understand the influencer's value

2 Set a realistic budget

3 Offer a fair and flexible deal

4 Negotiate with respect and transparency

5 Use a contract and a tracking system

6 Provide feedback and recognition

7 Here’s what else to consider

Social Media Marketing

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What are the best practices for negotiating compensation with Instagram influencers?

1

2

3

4

5

6

7

1 Understand the influencer's value

2 Set a realistic budget

3 Offer a fair and flexible deal

4 Negotiate with respect and transparency

5 Use a contract and a tracking system

6 Provide feedback and recognition

7 Here’s what else to consider

Social Media Marketing

Rate this article

Thanks for your feedback

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