How can you adjust your influencer compensation model based on audience size and engagement?

1 Audience size vs engagement

Audience size is the number of followers or subscribers an influencer has on a specific platform. Engagement is the percentage of those followers who interact with the influencer's content, such as liking, commenting, sharing, or clicking. Both metrics are important to measure the influencer's potential impact on your campaign, but they are not always correlated. Some influencers may have a large audience but low engagement, while others may have a smaller but more loyal and active audience. Therefore, you should not base your compensation model solely on audience size, but also on engagement.

2 Compensation models

When paying influencers for their work, there are various compensation models to consider, such as a flat fee, performance-based, commission, or product or service exchange. A flat fee is simple and transparent but may not reflect the influencer's true value. Performance-based pays based on the results of the campaign and incentivizes the influencer to deliver quality content, however it can be difficult to track and verify. Commission pays a percentage of the revenue generated by referrals or promotions, which requires trust between both parties. Product or service exchange is cost-effective and can build long-term relationships, but may not be enough to motivate some influencers or comply with disclosure rules.

3 How to adjust your compensation model

To adjust your compensation model based on audience size and engagement, you need to do some research and analysis. Firstly, identify your target influencers and their platforms using tools like BuzzSumo, Traackr, or Upfluence to find relevant influencers in your niche and see their audience size and engagement rates on different platforms. Secondly, compare their rates and expectations by using platforms like AspireIQ, Influencer Marketing Hub, or Social Bluebook. Thirdly, choose a compensation model that suits your goals and budget; you can offer a flat fee plus a commission for influencers with high engagement and conversions or a product exchange plus a performance bonus for influencers with smaller but more loyal audiences. Finally, negotiate and communicate with the influencer; be clear and respectful by highlighting the benefits of working with you. Make sure to have a written contract that specifies the deliverables, deadlines, payment methods, and disclosure requirements.

5 Best practices for adjusting your compensation model

Adjusting your influencer compensation model based on audience size and engagement is not a one-time task, but an ongoing process. To make this process easier and more effective, you should monitor and measure your campaign performance, review and revise your compensation model, and communicate and appreciate your influencer. You should track the results of your campaign, such as reach, impressions, engagement, conversions, sales, or ROI. Additionally, you should evaluate your compensation model to ensure it is fair, accurate, and consistent. Furthermore, you should maintain regular communication with your influencer and show appreciation for their work. By following these best practices you can ensure the success of your influencer campaigns.

6 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?