Factors Of Influencer Compensation: Legal & Negotiations

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There are many factors that go into nailing down compensation rates, or value exchange, with influencer partners. A big part of it is based upon the influencer’s social media presence and the deliverables you are asking them to execute. The other big factor comes down to the paperwork and the negotiation process. This blog post will outline some of the things you need to consider as you prepare to go into negotiations as it comes to legal work and negotiations. Please be advised that if you are not sure of what to include or fight for, please consult a lawyer to determine what is best for you and your brand.


The Fine Print and Negotiations

It’s a popular strategy for marketers to leverage influencers, their names, and their likenesses across other marketing channels, sometimes even gaining ownership of their content. Between the usage and the duration & terms of that usage, the price may go up. 

There are also many ins-and-outs, jargon, and legalese that goes into contracting an influencer. The more specificity and demands you make in the contract, the more of an opportunity there is for an influencer to negotiate a compensation rate. 

As far as the actual negotiation goes, many influencers are bringing on savvy representation, namely lawyers and managers, to help them field opportunities and negotiate on their behalf. These people are typically very well-versed in negotiation tactics and are also incentivized to drive up the price to justify their percentage of the deal, too. 


Soft Terms

As this post has alluded to thus far, influencer marketing is a people-first practice that demands more empathy than any other marketing channel and through this, success begets success. If an influencer has an existing relationship with a brand, marketer, or is already a personal fan of the brand, this might help grease the wheels when it comes to payment. This is why it’s so important to treat influencers like people, not just another marketing tool, to achieve your goals for today, and in the future.

That being said, value exchange comes in many forms beyond monetary compensation. Marketers must consider what they can offer the influencer, and their audience, beyond a check. Products do not pay the bills, and neither do experiences, but providing a high-quality opportunity–something that the influencer or their audience wouldn’t be able to obtain on their own–can be quite enticing. What is the cool factor of the opportunity that would make the influencer want to do the activation? Heightened experiences will not only potentially reduce the cost, but it will positively impact the content, as the influencers are more enthusiastic to participate. 

Enthusiasm for the campaign can be swayed by many things, including but not limited to the news and cultural moments. Being mindful of your brand’s presence in the space, press, and influencer happenings are important for pricing. Although these things might not directly impact the negotiation process, they are part of the ecosystem in which the process resides. 

The ecosystem is important to consider because you’ll be working with a partner that has a high profile and is authoritative in that ecosystem. As you can imagine, seasoned influencers know how to throw their weight around and might demand more from a partnership. It goes without saying that partnering with higher-profile influencers, or industry leaders, will come at a higher price than still-emerging folks. 

Negotiations and influencer compensation can be tricky, but rest assured, it will become clear what works for you and your brand as time goes on. With equal parts intuition, relationship-building, and creativity you are sure to strike a fair deal with an influencer partner, and ultimately produce high-value content.

Danny Palestine, Head of Product Marketing at Julius, is an industry veteran with over 11+ years working with some of the biggest brands in the world. With most of his experience at PR and advertising agencies in NYC, Danny joined the Julius team in 2017 and now leads content, social & product marketing strategy, and lends his expertise to support key stakeholders. When not at work, Danny is a proud new father, Star Wars & F1 fan, and avid cyclist.  danny-headshot


February 20, 2020
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