Our Senior Brand Partnerships Manager, Taylor Kintop, is sharing the behind-the-scenes of what our team looks at when putting together rates for our creators.
Let’s dive in!
In the vein of transparency, we thought it best to share with you all how we price our creators. While some might say that this is sharing a bit of our secret sauce, we feel that it is imperative to share what is going on behind the scenes at Parker.
The conversation around influencer marketing + rates right now is incredibly one-sided. There are a lot of corporate professionals talking about how out-of-touch creators and managers are, upset with how the industry has developed over the last few years yet none of these people have ever priced a piece of content or developed a rate card for a content creator. They look at the rates provided and how they match up against their specific and unique need. While all of these viewpoints are incredibly valid, we’re missing the other side of the discussion – and that’s because those people don’t live on LinkedIn. So as the constant bridge between these two worlds, we felt it best to share our point of view.
At the end of this article, you may still think some influencers are overpriced – and you might not be wrong! We’re not here to convince you that every person is appropriately charging and that everything is fair. For as many times as we’ve increased rates when onboarding a new creator, we have equally decreased rates. This article is just going to show you the behind-the-scenes math (yes, math) that is going into these calculations.
When pulling together rates, we look at the following areas:
Performance – First things first. How many impressions are they receiving on each piece of content? Stories, in-feed, reels, TikTok, YT Shorts, etc. How does this compare to other creators of their size? Do they see a large dip in performance when the content is sponsored? If so, what do those metrics look like?
Influence – Out of everyone that follows this person, how many people are actively watching their stories? What percentage of people that are viewing the stories are clicking? What do typical sales look like for this person? What type of revenue are they generating for the brand? What does their average order value look like?
Demand – How frequently is their schedule booked? How far in advance do brands need to reach out to book? How many inquiries are they receiving on average to book one spot? This one is straight out of your high-school Economics book!
Credibility – Is this creator truly brand loyal or do they work with anyone that approaches them? Does this creator take on five partnerships a day or one per week? Is their audience used to consistently seeing the same brands or does it seem like their preferences change with the wind? This all plays into their reputation, and what type of ambassador they will be for your brand.
Uniqueness – Are they home design account that creates content that looks like everything else you see? How many of them are there in the influencer space? What type of value do they bring to a partnership?
These five pillars of pricing allow us to charge appropriately for any type of campaign, and for any specific creator. There is no magic hat that we generate our rates from, but if you find one, please be sure to send us the link.