How does a company create a deal with an influencer?

by Karanpal13. Posted on Sep 10, 2020    18    12


Just wondering if you’re an influencer, say like Charli D’amelio, who has 85M + followers on TikTok alone. How would a company approach her in terms of a sponsorship deal?

I can imagine it’s dissecting her followership by age group, gender, the most liked content but what other categories would a company take into consideration both in terms of how much money / stake to offer and if this influencer will be able to sell their product / service ?


Comments

pixelrow 1

Merchant Marketers is a Social Commerce company that manages sales campaigns where influencers are compensated based on actual sales rather than arbitrary flat fees. MM identifies and ranks influencers for any interest or product using proprietary audience analysis rather than public follower counts. You can scale as you want with dozens of vetted influencers rather than risking 6 or 7 figures with a single influencer that might never deliver sales commensurate with their fee.

  Karanpal13 1

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Thank You again!

ncb879 2

I would say it's a multi-step approach. First you need to find out who the influencers are who can elevate your brand and showcase it to the right target demographic. Then get in touch with them to understand their process, their rates, and so on. I would also find out if they're worked with brands similar to yours, to get an idea of how they went about it, and an idea of the results the brand achieved. Also, setting targets is important - a lot of influencers out there are not influencers in the truest sense of the word, and need to be seriously vetted.

codefame 8

Based on my personal experience with Influencers: you really don’t want to.

Their audiences are general and typically thin or low engagement. Most products require matching user problems with solutions, which, unless you’re a destination or something that’s 100% marketing, like an energy drink, influencers aren’t set up to facilitate.

ShartArtExpert 8

This - I work in advertising and the influencer channel is totally overrated in terms off effect from a ROI perspective. Especially big influencers are a pain in the ass to work with and are expensive as fuck.

If you would like to do something in this field, I’d go for micro-influencer bought through platforms. A shitload of micro influencers are much cheaper.

It all depends heavy on your product and target audiences.

someguyinadvertising 2

Agreed with this 💯. Making sure you have audience insight is critical as well, if their audience doesn't care about your product then it's even more wasteful.

Be weary of platforms that promise all the glory too, 95% are there to take a cut while offering you little to no value.

mistymei 7

Contact them and ask for rates etc. A lot of influencers also have an email for business inquiries in their bio.

  Karanpal13 3

That is definitely one way to start a dialogue for an ad or a promotion but as a company, there must be a way to put a number on how valuable an influencer is to a firm if they were to say, become an ambassador for them

leaklikeasiv 1

Check out hashtagpaid.com. They are almost a 2 sided market place for brands and influencers

150Zeta 4

Yeah of course so you need to evaluate how much you’re paying the influencer and the value they will bring in to your company - just like most advertisement. Usually isn’t as easy as just looking at direct sales added following a promotion because partnerships such as this can enhance product / brand standing that pays dividends over years to come.

Some things to consider include how receptive their audience would be to your product, how the product lines up with said persons image, whether you’re willing to align yourself with a real human that will make mistakes and have their own life rhat could be permanently be tied to your brand.

Happy hunting !

Trackzyapp 21

If you are talking that level then you can go through their management companies or talent agencies.

Most have a set cost per post. Each contract is different but the agency should be able to give you an idea. Usually a large number that you can either afford to negotiate or it's so large you don't waste their time.

There are a TON of SAAS type companies who work as a middle man of sorts. Places like influence.com for an example.

Those services usually let you set a cost for your campaign and select certain criteria i.e. fashion, women 16-32, tik-tok, etc.

I'd recommend using those services since they can really help hold your hand if it's your first campaign. Just Google for influencer platforms and you will find a ton.

yxtbz4 5

This is a good comment. Thank you