As influencer marketing has grown, so have fees. Still, there is no industry standard or rate card for how much brands should be paying for different forms of activation.
For brands that work at scale with influencers, often micro and nano, gifting has been and is the most common model. Overall, however, a flat fee is most common for brands that don't work daily with influencers, and popular in combination with barter deals (gifting).
Below are the most common payment and gifting models summarized.
Gifting
Approach
In-kind
Pros
Can provide content at scale
Budget required for product only
Can be an effective trial to identify high-performing influencers
Cons
No obligation to deliver
Content quality may be variable
Price point has to be low enough to gift without guarantee of return
Flat fee
Approach
Pay-for-play
Pros
Low admin requirements
Meets expectations
Cons
Not related to outcomes (unless bonus is agreed)
Often requires large budgets
Performance based
Approach
Affiliate marketing
Pros
Inceasingly common
Motivates influencers to meet KPIs
Cons
Risks becoming transactional
Not yet widely adopted
Commission
Approach
Reward-style
Pros
Gifted product is the only upfront cost
Incentivises influencer to convert to sales
Cons
Influencer becomes salesperson rather than collaborator
Feels very commercial to audiences
Design collaboration
Approach
Co-creation
Pros
Involves influencer in product process
Incentivises influencer to share design collaboration