Negotiating with influencers can be a nerve-wracking experience for brands. But this doesn’t have to be confusing or daunting!
Prepping for conversations and understanding what’s ahead can make all the difference. Here are some helpful strategies on how to discuss rates and reach a mutually satisfactory agreement.
Know Your Value
Many brands make the mistake of treating influencer marketing like an economic transaction rather than as an ongoing relationship that requires both parties to discuss specifics such as deliverables and usage rights. Influencers are highly valued assets who have built their brands by cultivating trust among their audiences – it’s vital that brands treat influencers with equal regard as any other brand ambassadors.
As with any negotiation, starting off on the right note with influencers requires setting clear expectations from the outset. This includes discussing how your project will be executed (such as what type of content they’ll create for you or any stipulations or limitations that might interfere with their work), what type of content they will produce for you and any restrictions or limitations which might impact their work – giving them confidence that you understand their business needs and can offer fair compensation that matches up with their value.
Once you have an accurate grasp of an influencer’s needs and wants, it’s time to formulate your offer. Aiming your pitch at what you have learned about their creators – such as audience size and engagement rates as well as any unique factors which influence content production – it is wise to tailor each pitch specifically according to each creator in order to avoid overcompensating some while undercompensating others while guaranteeing that your offer fits their exact potential for driving results.
Consider your commission structure when crafting your offer, such as offering influencers a commission of 3% rather than 20% which they may find more enticing. Also, adding special bonuses (like affiliate product links or free samples of your product) may make your offer even more enticing to potential partners and help seal the deal successfully.
Negotiation can be a challenging challenge for marketers, but with proper preparation, strategies, and tactics it can become an effective means of strengthening influencer relationships and increasing earning potential.
Be Prepared
When approaching influencers with collaboration opportunities, it’s essential that you come prepared with a proposal in hand. This will keep the conversation moving forward while giving them a clear sense of what to expect from your brand and their contribution. You should also use this time to inform them of any deliverables, timelines or budget requirements for the campaign or project.
Influencers typically understand brands and will work to find an agreement to make your collaboration happen, however be ready for the possibility that they might not accept all your proposed deliverables or prices.
If an influencer doesn’t agree to your deliverables, it is best to move on without burning any bridges. Be polite and thank them for their interest; establish a relationship that you both can benefit from in the future – ask them to promote the campaign on their social channels; offer discounts or free products as incentives to their followers or potential followers.
An alternative plan can give you greater assurance in negotiations. Commonly known as your BATNA (Best Alternative To A Negotiated Agreement), it’s an essential business strategy. Roger Fisher and William Ury first coined this term in their book Getting to Yes: Negotiating Agreement Without Giving In.
Preparing to meet influencers requires doing your homework on them. This may include reviewing past collaborations and how their content performed; reviewing their website/social pages for evidence of authenticity as well as considering other factors like how long they’ve been active in the industry.
One important consideration when working with influencers is their payment terms. While many require a Net-30 or Net-60 payment date, others might pay immediately. Be sure to discuss this matter with them prior to beginning discussions as this could become an deal-breaker if negotiated improperly.
Be Flexible
Influencers offer unique skillsets and reach that brands desire, yet successful influencer partnerships require both parties to adopt a flexible strategy in order to meet their objectives and negotiate rates accordingly. While snags in negotiations may arise, there are ways you can stay adaptable in your negotiations process in order to land an agreement that benefits both parties involved.
One of the best approaches for negotiating with influencers is to focus on maximizing the overall value of a campaign, both financial compensation and any additional incentives that make collaboration successful. If an influencer hesitates to sign a contract that includes commission-only payment structures, try offering additional perks such as free products as alternatives to pushing back against initial offers.
An effective way to demonstrate flexibility is to gain an understanding of industry standards and what other influencers in similar audiences are earning for their work. This will give you a realistic idea of your rates while showing that you’re willing to negotiate an arrangement that works for both parties involved.
Know what your red lines are. For instance, if your focus is exclusively promoting your brand in the US market, don’t push for exclusivity that simply isn’t practical. Additionally, include proof of previous partnerships when discussing terms with creators to provide some leverage in negotiations.
Negotiating rates with influencers can be intimidating and requires tact from the outset. Undervaluing an influencer could be offensive, while delighting them with fair terms is the way to establish long-term partnerships that provide mutually beneficial exposure for both parties. By following these tips you can effectively negotiate with influencers to obtain optimal deals without breaking your budget or offending them.
Don’t Be Afraid to Ask
As influencers become an increasing value to brands, marketers need to know how best to negotiate with them. Although some influencers may seem like natural brand ambassadors, negotiations can often involve intricate details about deliverables, number of posts and usage rights that need to be discussed between both parties involved.
Whenever negotiating with influencers, it’s essential not to be intimidated by questions they might pose. Doing so shows your seriousness about working together while giving a greater insight into what the influencer is seeking from you and their target audience.
Example: An influencer asking for an exclusive deal where they will be the only ones promoting your product online could be a warning sign that they won’t fit with your business. Another question you should pose to them would be “What other opportunities are they exploring?” This information will allow you to determine if their request is reasonable or not.
Don’t be afraid to challenge an offer from an influencer; although this doesn’t have to be done in every instance, occasionally doing so could benefit both parties involved in finding a compromise solution. For example, if an influencer requests an extended deadline you could suggest they add in a rush fee allowing them to complete the project faster while still paying an equitable rate for their services.
At the start of any negotiation process, it’s advisable to create a BATNA (Best Alternative To A Negotiated Agreement). This strategy gives you confidence and power during negotiations as it gives you something tangible in case initial terms don’t suit.