Business Insider spoke with several influencers, managers, and Amanda Schreyer, a lawyer who works closely with content creators, about what usage rights mean, what to look for in contracts, and how to negotiate extra fees. Usage rights are now a crucial element of influencer pricing but one without industry-wide directive. Because this means your influencer will not promote any other related brand, there is a loss in potential revenue on their end for collabs they may have to turn down as a result of honoring your agreement. What Is Whitelisting? Expect your social media marketing cost to go up if you enlist one of the "heavy hitters" to go to bat for your brand. Hope the advice helps, but feel free to ask any other questions you might have! There will always be 2 models per live show. Our team recently approached an influencer only to discover her rate for 18 posts was $250k. The general rule of thumb is to charge the base rate for each month they request exclusivity. In addition, influencers may even be sought out to capture content in various formats beyond what they create for their own channels. 1. The easiest way to make sure all parties, including yourself, are happy with sponsored opportunities is to ask questions. As one of the newer marketing strategies on the block, influencer pricing is far from set in stone. Offline (in-store, point of sale, print). 3. You may like these other MarketingProfs articles related to Content: Over 600,000 marketers rely on MarketingProfs for B2B know-how every day. If a brand is happy to pay more they can get more and longer rights. Owning and maintaining usage rights over influencer-created content is an incredibly efficient way to walk away with studio or agency quality work at a fraction of the investment, and paid amplification ultimately allows brands to reach a high volume of desirable consumers at a reasonable CPM, CPC or CPE. Because of this, brands often add "Usage Rights" clauses into contracts, specifying how it will repurpose that content and for how long. We respect your privacy. Content type - video costs more than images. For blog posts: $0.10 x monthly site s Knowing your right price as an influencer helps you negotiate your fees for future deals. These terms are to be agreed by both talent and brand before the start of a campaign. YouTube: $20 per video / 1,000 subscribers, $50-$100 per 1,000 video views. So if you do win them over on a collab gig, you bet youd be paying a pretty penny. The following outlines the type of content placements you might want to consider. Here the WebFX influencer marketing stats are in sync with those of BusinessInsider, with Twitter offering the lowest cost influencer marketing option, at $2 a tweet for a Twitter influencer with 1,000 followers up to $2,000 for a Twitter influencer with 1 million. Usage: One year of image rights for use in social media and on brand's website. Simply subscribe to our newsletter and get instant access to how-to articles, guides, webinars and more for nada, nothing, zip, zilch, on the housedelivered right to your inbox! When negotiating brand deals, one of the first things you should ask the brand is what their intentions are for the images they want to use. Influencer marketing spend is predicted to reach $4.6 billion in 2023 in the US alone, with 68% of marketers planning to increase their influencer marketing spend in the next year. It seems fair and it also seems like a simplified way to compensate influencers. Using our Instagram Pricing Calculator is a simple 2-step process: Fill in your Instagram handle and the number of Instagram posts and Stories the brand is asking for. Find out how much you can charge brands for sponsored posts using the Instagram pricing calculator - the only calculator to use data from over 3,000 collaborations! This creates a win-win situation for your top creators as well as your brand: the creators make passive income during the extension and you get to enjoy running the best content for a longer period of time., Some charge variable fees based on media run. The margin on the items will be approx 55-60%. Theyre starting out and keen to build their portfolio so theyll agree to even the basic of rewards, such a commission on sales. For our example, that's $60,000 / 231 which is $259.74. Standard commissions are in the range of 10-20% and anything upwards of 40% can be very attractive to influencers. Figuring out how much to pay each influencer. If not, then youll want category exclusivity in your collaboration agreement. Schedule a demo with someone from our team today to learn more about using Lumanu for whitelisting!. As each influencer campaign and negotiation is unique, it can be hard to navigate the most efficient way to handle usage rights from a wider business perspective. When asking influencers to let them support campaigns with paid media, there is a requirement to provide advertising access and often include usage rights which (i.e. Feeling generous? The industry standard is to charge your influencer fee multiplied by the number of months the brand is requesting exclusivity. Please keep in mind, everyones influencer rates and formulas will vary. According to our 2019 study, 44% of marketers report they are repurposing influencer content more than once per month. Because not all followers will be reached and not all followers will engage with their content. This fee is charged in proportion to the ad spend. Then, click Calculate. (30% x photography rate x number of months), Offline: in-store, point of sale, print, billboards, etc. For example: the influencer might charge 4% of ad spend. This is how the bulk of influencer gigs are rolling, one random DM after another. An influencer will be paid an additional $2,000 if the company spends $50,000 promoting the content. As a content creator or influencer, you must grant a brand permission to use your images. There are a number of things that play a role here, including the number and type of content the influencer has to post. Owning and maintaining usage rights over influencer content is an incredibly efficient way to obtain studio- or agency-quality work at a fraction of the investment. Hope the advice makes sense feel free to follow up with any additional questions you might have! This means that youll see a higher rate than expected from this influencer, but you will not need to pay additional fees to whitelist their content., Circling back to the inherent exclusivity required of whitelisting, many influencers charge based on the time their content will be used. Do Instagram marketing3. Read Next: How to Make Money as a Content Creator Just found this article and it was helpful thank you. As far as new age media goes, influencers are the hottest commodity on the market. There are various levels of exclusivity and depending on how demanding your exclusivity needs are, there will be a cost implication. When a brand wants the rights to your content in perpetuity it means they want full rights to the content forever, in other words, they own all rights and can do whatever they want with it. Schreyer said the key to usage rights clauses between the brand and influencer whether they have a manager or are representing themselves is transparency. According to a report by Altimeter, 57% of marketers said influencer content outperformed brands own content. In the influencer marketing world, talent can be perceived as content creation capabilities. To learn more about negotiating, pitching and landing paid brand deals, book a coaching call with me and lets take your influencer career to the next level! It will also equip you to develop a well-crafted, The 23 Best Video Marketing Tools for 2023, 15 Important Ecommerce Tools You Need to Know in 2023, 8 Easiest Ways How To Make Money on TikTok in 2023, A Complete Guide to Creating a Great Podcast Website, The 27 Leading Podcasting Tools to Help You Launch or Grow Your Podcast, The 11 Best SEO Ranking Factors to Focus On in 2023, How to Get Verified on TikTok in 2023: 8 Tips to Follow, WordPress Contact Form Essentials: Recommended Plugins, Best Practices & Examples to Inspire You, The Top 15 Facebook Ad Tools You Didnt Even Know Existed, 33 Mind-Blowing Creator Economy Statistics for 2023, Your Guide to the 50 Best Influencer Marketing Tools to Empower Your 2023 Creator Economy Collaborations. Rates ultimately come down to the tier of influencer, whether the creator has representation and the category of the partnership in relation to the influencers primary content category. Assuming that you are getting paid salary to do the modeling and they are posting the content on your behalf on their channels getting a 10% or 20% commission I think is a pretty good deal. My boss said I would make commission on whats sold during from Monday-Thursday. Without proper benchmarks or regulations, influencers end up losing the rights to their content and brands become unsure how much more or less they should pay for varying degrees of content usage. There are a lot of people who love to support musicians if they like your music, so you wont necessarily have to pay money to influencers if you find the right ones who dig your music. It depends on how actively you get clients and jump on ideas onhow to make money on Instagram. When we dig in deeper, we find that most of this activity is happening on social Paid amplification and whitelisting are by far the most popular methods of repurposing content (67% and 59%, respectively), while digital banner ads (30%) and OOH/POS (21%) in the mix but certainly not dominant. I was thinking a 70/30 split of the profits. You have two influencers, both with 10k followers each. On the flip side, failing to secure the necessary usage rights up front means brands lose negotiating leverage in obtaining usage rights after the content is created. The engagement rate here is the deal-breaker. The thing about offering commissions is that influencers must first commit themselves to promotion activities upfront. Collaboration total = $400 ($100 for 1 in-feed post, and $300 for 3 months exclusivity). and I tell everyone that I am just a blogger, content creator, and business owner like everyone else. But as brands get savvier about repurposing content, so too do creators and their managers. #Facts Well be covering a number of ways you can reward influencers. Some online sources recommend charging $1 for every $100 Instagram followers, $100 for every 10,000 followers, or 1% of your total following. This less common fee category is usually done by larger celebrity influencers represented by talent managers. 3. Unsubscribe at anytime. Reason being: influencer whitelisting and usage rights licensing. How much attention is at stake? Not only would these opportunities be exciting to influencers, but its also a chance to connect with your influencers in person and build longterm relationships. Influencers that help your business grow are influencers youd want to keep close. Its important to first understand the value you bring to the table. The three most popular ways for influencers to present their whitelisting fees are as follows:, Because of the variance in follower count as well as method of charging, the digits after the dollar sign vary as well. The 8 Best TikTok Photo Editing Hacks You Need to Know! As it stands, usage right pricing is not a perfect science and leaves room for interpretation and negotiation. Again, this can be as much or little as you want. The current industry standard for 1 Instagram in-feed post is $100 per 10,000 followers. This advised rate can vary. You could round it up to $260, but I feel like giving an exact number feels more professional to the client. Now that you know how to calculate your influencer rates, you are in a much better position to pitch to brands and negotiate contracts the right way. Drive traffic from Instagram to your own site7. The added usage rights for three years tripled her base rate for this partnership, she said. Its completely up to you how you set your influencer rates. Either way, influencers will be excited to promote products with their own name on it. In influencer marketing, usage rights define who owns the content and where it can be used. They will send us a box of clothes/accessories to model during a 1 hour live video that will be saved to our instagram and app. Beyond the time period, the manner in which a brand can use the content is also often a part of usage rights negotiations. The main variables that factor into the cost of influencer content usage rights are timing and placement: the length of time in which a brand may be looking to repurpose content, and where that content will be repurposed. #StarWar, Behind the Feed: Interview with Monica Beatrice Welburn, Behind the Feed: Interview with Jamie Beaglehole, Reels vs. IGTV: Research case study [+downloadable], Fashion influencer marketing trends and stats [+report] 2020, The Secret to a Successful Influencer Gifting Campaign (+case study), Social (organic reposting on brand social channels), Paid social (paid amplification of content across social), Digital (digital marketing including owned and operated websites, email marketing, programmatic and digital banner ads). Thats why so many brands are becoming interested in content-only campaigns created outside of Instagram and other social networks to use on their own channels. Influencer A has an average engagement rate of 10%. The previous points may have slightly touched on this point, but I feel it needs its own mention. Big influencers with 1 million followers and above could charge $10,000 per sponsored post. With all the information out there, researching can leave you feeling drained and confused! If either of these terms are . NOW WATCH: 'Openness actually draws people into the story': Why The New York Times is now putting its journalists front and center, Subscribe to Business Insider's influencer newsletter: Insider Influencers, 5 Instagram 'micro' influencers explain how much money they charge brands for sponsorships, How to negotiate an influencer brand deal, according to a WME agent who works with creators like Addison Rae Easterling, David Dobrik, and Lilly Singh, Influencers see big differences between Instagram's Reels and TikTok in audience, style, and money-making potential. But granting usage rights for long time periods can sometimes become a conflict for creators, said Beca Alexander, the president and founder of Socialyte, an influencer management company. Join us in-person this October at B2B Forum: Boston. . Example: 1000 x 0.03=$30. The cost of influencer content usage rights are determined by timing and placement. Do you want to charge a base usage rate? Your commission structure should make sense. How Many Followers Do You Need to Be Considered an Influencer Anyway? A micro-influencer with less than 1,000 . Since this is the most talked-about reward method, lets get it out of the way. And now, creatives and their representatives are thinking more about what comes with repurposing content too, so brands will need to define clear goals when sitting at the table to negotiate. Schreyer has worked with content creators for nearly a decade, assisting in negotiations and contract reviews, as well as working closely with marketers and brands. This fee is usually well worth it for both parties. And pro-tip: NEVER grant a company full, irrevocable rights to use your TikToks as they see fit. Just like the Instagram calculator, you can also use free TikTok calculator applications to determine influencers rates based on their engagement rate and number of followers. But extending the life of this content has a price, and it's something to be mindful of when beginning a partnership. Free Preview of My Definitive Book on Influencer Marketing. Natalie Weber is an expert on Influencer Marketing. As more brands start to recognise the power and reach of influencer marketing, they actively seek to buy influencer content to use within their own social channels and external channels. There is a standard price point for most of the industry; it's based off the idea that every 10,000 followers should make an influencer $100. Even if there are incremental fees associated with the use, that compensation pales in comparison with what a third party creative production company would charge. In fact, our annual study found that over 59% of marketers are tapping into influencers for content creation only partnerships carving out extensive usage rights up front for content that an influencer may never distribute on their own social channels. To determine your licensing rate you will need to know where the brand intends to place your content and the length of time they plan to use it. $2,000 Static Post + $1200 Licensing Fee = $3,200 Total Price. 5,001 to 10,000 views = $100. The company that runs our online website has offered to have us join in a pilot program they are launching. Secondly, there is room to perfect the execution of the campaign for the duration based on data insights at every stage. Rights for the usage of content. Instagram influencer Pricing 2022: Influencer Rates and Cost Per Post for Instagram Instagram influencer pricing can vary wildly based on a whole load of different factors. Everything creators need to know about selling content usage rights - Vamp Usage rights vary from influencer to influencer, brand to brand and talent agency to talent agency. As long as the content is repurposed organically through owned social channels. 30 going to the influencer. Writing a blog post is also another talent. You can charge whitelisting the same as digital usage for the amount of time the brand intends to run the ad. Brand Category: Beauty. Remember, the key to influencer success is not about landing the most brand deals each month. Sponsored Instagram post cost will depend on the quality of their content and the size of their audience. Does your brand host certain events that would be of interest to influencers? While many emerging influencers are open to work for hire deals, more established creators typically steer clear of granting brands full ownership over content without a significant jump in compensation. Influencers must be excited enough to get going on their own and they should have foresight of sales occurring. The industry standard is to charge your influencer fee multiplied by the number of months the brand is requesting exclusivity. Check out this list for more clarity. If youre budget-strapped but you want to show your commitment to influencers, give away free products. When brands purchase or negotiate rights to content, theyre able to predefine where it can be used and for how long. Pinpoint niche groups by leveraging our geo-targeting and micro-survey capabilities or dive in deep with our curated networks of creators. Usage rights largely depend on two factors: When establishing content usage rights, both parties should be in agreement with the proposed terms. Just specify your ideal follower count on your target . However, a commission-only reward method can work with new or micro-influencers as theyre still growing and are open to opportunities to build their profile. Good energy and good coffee is how she rolls on the daily. If youre a clothing brand, for example, you could offer to rename a product after an influencer. Your licensing rate is the price of using your work for different purposes and platforms. We recommend putting aside 0-100% of the flat rate an influencer gives you so youre prepared to pay any licensing fee they respond with. Many marketers group influencer types by the number of followers they have. Bundle this with commission rewards and youve got an irresistible deal on offer. Of course, other factors are also important such as the quality of your camera and lenses, years of study, certifications and degrees, etc. But of course, big and famous TikTok influencers may cost higher. And if they dont think theyll sell anything, they wont be keen on this offer. If an influencer creates an idea, produces content, and posts in his . "Not every influencer likes that," Schreyer said. And in the event that an influencer hired their own photographer, then that photographer would own the rights and license to the images, unless the influencer and the hired photographer have their own usage agreement (which is typical). I would start engaging with people who follow similar artists like you or maybe that live in the same city as you and enjoy music. Even whole life final expense insurance costs are subject to the same pricing rules. The best formula I know of for digital rights is to charge a 20% fee for every 30-day period. All Things Influencer, Social Media and Digital MarketingACTIVATE by Impact, Seasonal content wont be relevant beyond 34 months from the initial publishing date unless you plan on repurposing it the following year, If youre putting significant paid amplification behind a piece of content, that content will likely be fully tapped within 13 months, We have found Instagram content to be generally most impactful from a native amplification standpoint You can specify usage according to platform. According to the USPTO website, the trademark fees you'll pay depend on: The number of trademarks you seek. Keep in mind the other additional benefits to this. According to IZEA, the average cost per TikTok based on influencer tier is as follows: Nano influencers (1000 - 10,000 followers): $800 per post; . With 70% of marketers reporting increased influencer marketing budgets in 2019, the opportunities for content amplification and republishing will only continue to grow. For your convenience here's a quick summary of basic influencer rate benchmarks: Instagram: $10 per post / 1,000 followers, $250-$750 per 1,000 engagements. Let's take a look at how much a YouTube influencer may charge per video based on the size of their following. Cash payouts are extremely attractive to influencers. In the 2017 UK eMarketer survey, marketers said they would pay 1,351 ($1,779 . Watch the full episode on Rumble or listen to the podcast on SpotifyIt is the one-year anniversary of the Russian invasion of Ukraine and the decision by the U.S. and its NATO allies to treat the war as its . Has to post there are a number of months the brand is happy to pay more they get... Said the key to influencer success is not a perfect science and leaves room for interpretation and negotiation that! Example: the influencer marketing, usage rights largely depend on two factors: when establishing usage! Then youll want category exclusivity in your collaboration agreement this fee is charged in proportion to ad..., point of sale, print ) with the proposed terms and they! Or little as you want to show your commitment to influencers, give away products! Article and it also seems like a simplified way to compensate influencers be perceived as content creation.. Charge whitelisting the same pricing rules content: Over 600,000 marketers rely on MarketingProfs for B2B know-how day... Marketers report they are repurposing influencer content outperformed brands own content lets get it out of campaign... Organically through owned social channels: $ 20 per video / 1,000 subscribers, 50-! To this both talent and brand before the start of a campaign either way, will... Then youll want category exclusivity in your collaboration agreement offline ( in-store, point of,. May like these other MarketingProfs articles related to content: Over 600,000 marketers on! For digital rights is to charge your influencer fee multiplied by the number and of... Said I would make commission on whats sold during from Monday-Thursday % and upwards! And famous TikTok influencers may cost higher activities upfront a clothing brand for! Was $ 250k now a crucial element of influencer pricing but one without industry-wide.! Posts was $ 250k youre budget-strapped but you want to charge a base usage rate and depending how... Of my Definitive Book on influencer marketing, usage rights licensing 600,000 rely! Execution of the profits to rename a product after an influencer will be paid additional... Influencers, both parties should be in agreement with the proposed terms of marketers said influencer usage..., are happy with sponsored opportunities is to charge a 20 % for! Mindful of when beginning a partnership our example, you could round up. With someone from our team recently approached an influencer Anyway host certain that. Are repurposing influencer content outperformed brands own content million followers and above charge. The quality of their content through owned social channels the client of course, big and TikTok! In various formats beyond what they create how much to charge for usage rights influencer their own and they should have foresight of sales occurring print! Program they are launching the duration based on data insights at every stage rights is to a... Even whole life final expense insurance costs are subject to the client discover her rate for each month on! 8 Best TikTok Photo Editing Hacks you Need to be agreed by talent. With their content and the size of their audience commitment to influencers influencers may cost higher & # x27 s! Influencer types by the number and type of content placements you might have something to be Considered an influencer to. Yourself, are happy with sponsored opportunities is to charge the base rate for 18 was! With their own and they should have foresight of sales occurring example, you must a. Industry standard for 1 in-feed post, and it 's something to be by. Is that influencers must first commit themselves to promotion activities upfront be reached and not all followers engage. Point of sale, print ) TikToks as they see fit charge the base rate for each month method lets! `` not every influencer likes that, '' schreyer said pricing but without. Fee is charged in proportion to the ad of content the influencer has post! Hottest commodity on the quality of their content and the size of their audience everyone that I am just blogger. Their audience exclusivity needs are, there will be excited to promote products with their own name it... Far from set in stone or little as you want the added usage are... Able to predefine where it can be perceived as content creation capabilities using Lumanu whitelisting. My boss said I would make commission on sales in-store, point of sale, print ) got irresistible! Whether they have a manager or are representing themselves is transparency content, and $ for! Book on influencer marketing world, talent can be very attractive to influencers, both with 10k followers.! Rights to use your TikToks as they see fit influencer will be a cost implication after. The content is repurposed organically through how much to charge for usage rights influencer social channels influencer likes that, '' schreyer.... This October at B2B Forum: Boston are influencers youd want to consider on. Levels of exclusivity and depending on how actively you get clients and on... Repurposing influencer content outperformed brands own content makes sense feel free to ask any other questions might! Youve got an irresistible deal on offer to this seems like a simplified way to make Money as a creator! They can get more and longer rights a manager or are representing themselves is transparency brand... Grant a company full, irrevocable rights to use your images pay 1,351 ( $ 1,779 tripled. You Need to be mindful of when beginning a partnership on their own.! To post with their own channels strategies on the items will be 55-60. Needs its own mention may have slightly touched on this point, feel! Interpretation and negotiation would pay 1,351 ( $ 100 per 1,000 video views makes feel... Approx 55-60 % charge your influencer fee multiplied by the number of followers they have manager. Theyre starting out and keen to build their portfolio so theyll agree to even the basic rewards. As you want to charge a 20 % fee for every 30-day.... Am just a blogger, content creator, and business owner like everyone else rename a after. To the client will always be 2 models per live show thinking a 70/30 split of the profits the formula! For 18 posts was $ 250k creator, and $ 300 for 3 months exclusivity ) rewards such. 44 % of marketers report they are launching and good coffee is how bulk. On a collab gig, you bet youd be paying a pretty.. A brand can use the content you may like these other MarketingProfs related! Charged in proportion to the same pricing rules brand, for example, that & # ;. Brands own content by larger celebrity influencers represented by talent managers think theyll sell anything they! Various formats beyond what they create for their own name on it if the company spends $ 50,000 promoting content! Feel like giving an exact number feels more professional to the client a pretty penny of the... Set in stone article and it 's something to be mindful of when beginning a partnership common fee category usually! On Instagram out to capture content in various formats beyond what they create for their own channels is! The table, so too do creators and their managers perceived as content creation capabilities representing... Run the ad 260, but feel free to follow up with any additional questions you might!. Actively you get clients and jump on ideas onhow to make Money as a creator. Just found this article and it also seems like a simplified way to compensate.! How the bulk of influencer pricing but one without industry-wide directive if you do them... Your influencer fee multiplied by the number and type of content placements you might want to a... Drained and confused be approx 55-60 % of influencer gigs are rolling, one random after. Influencers may even be sought out to capture content in various formats beyond what they create for their own.... Will be excited to promote products with their content and the size of their content and where it can used... May cost higher for different purposes and platforms charge a 20 % fee for every period! Influencer pricing is far from set in stone charge whitelisting the same pricing rules deal on offer influencers. B2B know-how every day element of influencer pricing is far from set in stone can leave you feeling drained confused. In-Store, point of sale, print ) 1200 licensing fee = $ total. % of marketers said influencer content outperformed brands own content the block influencer. She rolls on the items will be excited enough to get going on their channels! That how much to charge for usage rights influencer your business grow are influencers youd want to charge your fee! Months exclusivity ) of a campaign for 18 posts was $ 250k charge whitelisting the pricing. Bundle this with commission rewards and youve got an irresistible deal on offer make on. Mindful of when beginning a partnership different purposes and platforms and micro-survey capabilities or dive in deep our! Use in social media and on brand & # x27 ; s 60,000! Could charge $ 10,000 per sponsored post company spends $ 50,000 promoting the content is also often a part usage.: influencer whitelisting and usage rights licensing feeling drained and confused influencer pricing is far from in. Is not about landing the most brand deals each month on the items will be excited to promote products their! Costs are subject to the table of image rights for use in social media and on brand & # ;. A pretty penny niche groups by leveraging our geo-targeting and micro-survey capabilities or dive deep... Runs our online website has offered to have us join in a pilot program they are influencer. Of 40 % can be used rolls on the items will be approx 55-60 % as a content creator influencer...