The Best Practices
of Compensating Influencers

In this guide we discuss when unpaid product exchange campaigns work and when cash compensation for content creation is the best choice to compensate influencers.

woman with arms crossed on phone with like icon and money icon

The Best Practices of Compensating Influencers

In this guide we discuss when unpaid product exchange campaigns work and when cash compensation for content creation is the best choice to compensate influencers.

woman with arms crossed on phone with like icon and money icon

10 min read

Introduction

Influencer Marketing has long grappled with the questions of why pay influencers for their content and how much should they be compensated? The industry has often toed the line on the value of product exchange campaigns; at certain times these types of campaigns are championed as the “new wave” of cost-effective Influencer Marketing, while at other times they are seen as ineffective for both sides and potentially even unethical. So the question is: when do unpaid product exchange campaigns work and when is cash compensation for content creation the best choice?

Based on our experience in the industry, we want to provide some food for thought to our customers who are considering what route to take and how much to invest in their campaigns. We will aim to answer the following:  

  • Is it necessary to always pay creators in cash compensation for their posts or is non-cash compensation ok? 
  • What should marketers pay the creators they work with and how should those rates be determined? 
  • Can marketers run a successful influencer practice with a very small budget? 
  • What is the best way to approach creators for a campaign and assess their pricing?

Introduction

Influencer Marketing has long grappled with the questions of why pay influencers for their content and how much should they be compensated? The industry has often toed the line on the value of product exchange campaigns; at certain times these types of campaigns are championed as the “new wave” of cost-effective Influencer Marketing, while at other times they are seen as ineffective for both sides and potentially even unethical. So the question is: when do unpaid product exchange campaigns work and when is cash compensation for content creation the best choice?

Based on our experience in the industry, we want to provide some food for thought to our customers who are considering what route to take and how much to invest in their campaigns. We will aim to answer the following: 

  • Is it necessary to always pay creators in cash compensation for their posts or is non-cash compensation ok? 
  • What should marketers pay the creators they work with and how should those rates be determined? 
  • Can marketers run a successful influencer practice with a very small budget? 
  • What is the best way to approach creators for a campaign and assess their pricing?

10 min read

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Each year, content creators adjust with the market rate and the
growth of the industry and their rates have steadily increased.

Each year, content creators adjust with the market rate and the growth of the industry and their rates have steadily increased.

Man running while listening with headphones

How IZEAx Can Help With Either Approach

IZEAx allows marketers to manage paid and unpaid campaigns efficiently and gather performance data and quality content across all activations. Key platform capabilities that create efficiencies include:

Directional Flexibility

On IZEA, you can do both Direct Offers and Open Bidding. Direct offers are sending an offer to a creator with a certain amount attached (remember, you can reach out to the creators first to allow them to price themselves according to the scope). Open Bidding means that you can create and flesh out a campaign with all the relevant scope and objective details. Then, creators can bid on these opportunities by raising their hand (digitally) to say they would like to participate and for how much. They can even include a pitch for you to review.

In-Kind & Cash Comp Options

Our Payment modal allows you to succinctly and clearly outline both the cash compensation to the creator and the value of the product, trip, service, or offering that is not cash. We allow you to delineate the value or price of the product you’ll be giving to the creator in a way that is clear from the get-go. You can also include a brief synopsis of product or offering to expand on the value or characteristics as you see fit.

Survey Options for Niche Creators

Our ability to run surveys will allow you, with the help and support of your CSM, CM, or AD, to also have creators fill out a more structured Google Form if you are looking for niche creators to participate.

Performance Data

Whether you have a robust budget or are planning to mainly send free product to your creators, IZEA’s platform will provide performance data for all your activations, all your creators, and all of your campaigns. We have live API connection access for each of our creators and this allows us to swiftly assess and present performance data to our brands and all you to provide high-level snapshots or super granular deep-dives to your team.

Content Compilation

Our ContentMine asset library automatically saves and stores all of the creator content you have ever commissioned on the platform. Once a creator adds in their finalized links (after you have approved their content to go live, of course!) our backend grabs the performance data, the high res raw images, and the snapshot of the post on the social channel and stores them all accordingly. Plus, you get all of this content auto-tagged by our proprietary AI, performance data surfaced, and relevant keywords to sort by.

Payment is Handled

Payments in IZEAx are automated. One of the most time and cost-efficient elements of the platform is that we have a robust process to ensure that creator content is FTC compliant, that creators only post what the brand approves, and that payment is handled swiftly.

Please reach out to support@izea.com if you are interested in scheduling a demo of our IZEAx Influencer Marketing Platform