An Influencers Guide to Compensation Negotiations | by Social Proof | Apr, 2022

As an influencer, it can be so exciting to receive emails from brands asking for partnership, but can also be stressful and confusing when it comes down to taking rates. Brands are notorious for asking for high-quality deliverables while paying less than stellar compensation rates — so how can influencers be prepared to negotiate a fair rate? To start, you’ll need to know and understand the contributing factors that go into calculating your rate.

The first thing you’ll want to understand is your distribution fee.

• Distribution fee — how much it will cost you to feature brands on your social channel

How do you calculate this? Distribution fees are determined by the following:

• Follower count and reach — Brands are aiming for awareness and want good exposure so always make sure you leverage how big your reach is. The larger your following, the more you can charge.

• Engagement rate — is calculated by the number of likes and comments (engagements) divided by your total followers then multiplying it by 100 (ER= Engagements / Followers * 100) The higher your engagement rate, the better.
• Demographics — is your follower count their target audience the brand is looking for? If yes, your value increases!
• Notoriety — do followers outside of your immediate follower count know who you are? How recognizable are you?
• Talent fees / agency fees — will you need to pay a percentage of your compensation to an agent/agency?
• Exclusivity — will you need to turn down deals with competitor brands for a certain amount of time? If yes, this revenue loss is something you should be compensated for.
• Cross channel promotion — are you expected to share on multiple channels?
• Deliverables — how many pieces of content will you be asked to create? The more effort it will take to create these pieces, the more you should be compensated.
• Additional usage — is the content being created getting recycled or repurposed on other channels? If yes, make sure you’re being compensated for it.

If you’re still feeling unsure and confused, here’s a quick 2022 compensation breakdown featuring the average rates for 2022.

Instagram
Nano-influencers: $10–$100 per post
Micro-influencers: $100–$500 per post
Mid-tier influencers: $500–$5,000 per post
Macro-influencers: $5,000–$10,000 per post
Mega-influencers: $10,000+ per post
Celebrities: Varies, but $1+ million isn’t unheard of

YouTube
Nano-influencers: $20–$200 per video
Micro-influencers: $200–$1,000 per video
Mid-tier influencers: $1,000–$10,000 per video
Macro-influencers: $10,000–$20,000 per post
Mega-influencers: $20,000+ per post

TikTok
Nano-influencers: $5–$25 per post
Micro-influencers: $25–$125 per post
Mid-tier influencers: $125–$1,250 per post
Macro-influencers: $1,250–$2,500 per post
Mega-influencers: $2,500+ per post

Twitter
Nano-influencers: $2–$20 per post
Micro-influencers: $20–$100 per post
Mid-tier influencers: $100–$1,000 per post
Macro-influencers: $1,000–$2,000 per post
Mega-influencers: $2,000+ per post

Facebook
Nano-influencers: $25–$250 per post
Micro-influencers: $250–$1,250 per post
Mid-tier influencers: $1,250–$12,500 per post
Macro-influencers: $12,500–$25,000 per post
Mega-influencers: $25,000+ per post