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Influencer marketing is basically the digital version of word-of-mouth advertizing, and it's absolutely thriving. Right now, it's valued at a whopping $21.1 billion (yes, billion), so you know it’s not just a trend.
Simply put, people don’t trust traditional ads like they used to.
Instead, they turn to influencers ranging from celebrities to everyday people who they trust for recommendations. What makes influencers so powerful is their authenticity and the genuine connection they have with their followers.
Brands have picked up on this, and if you’re reading this, you’re likely among them yourself and are now getting into the details of how everything works.
To make it a little bit easier on you, we’ve prepared this guide to talk about influencer payments.
Did you know that it’s been forecasted that influencer marketing spending in the U.S. alone is expected to exceed $1 trillion in 2025?
The number is a definite shocker, but it’s true. In this section, we’ll talk about why that is – or what influencer marketing brings to the table:
Word-of-mouth has always been one of the best ways to market a product.
Influencer marketing takes this to a whole new level because it gives personal recommendations a massive reach. A huge 92% of consumers trust recommendations from friends, family, or influencers more than any other form of advertising.
Unlike big corporations, influencers feel like real people. They share personal stories, experiences, and opinions, which makes their content much more engaging.
So, if you don’t want your ad to be automatically tuned out by the audience, you have to give it that human voice.
Many influencers are seen as experts in their niche – whether it’s fashion, gaming, beauty, fitness, or whatever else. That trust translates to marketing power, which translates to more revenue for you.
Almost half (47%, to be exact) of internet users use ad blockers, which means brands have to find new ways to reach their audience. This, combined with the general ad fatigue we’ve already mentioned, is what makes traditional marketing less effective than ever before.
Content from influencers performs a lot better than brand-made content, boosting engagement rates by up to 8x. Their followers see them as friends rather than advertisers, which makes their recommendations much more impactful.
Plus, studies show that influencer-led campaigns can improve customer retention by about 5% compared to other marketing strategies.
There’s no one-size-fits-all approach to influencer payments. Different brands use different methods depending on their goals, the influencer’s reach, and the type of campaign.
Here are the most common ways influencers get paid:
One of the simplest forms of payment is sending influencers free products.
This works well for both small and large influencers, especially when the product aligns with their personal brand. Followers love seeing influencers use and review products naturally.
Brands also compensate influencers with exclusive experiences, like event tickets, vacations, or VIP access. The idea is that influencers will create content around these experiences, oftentimes without you even needing them to do so.
https://www.tiktok.com/@torriwebster/video/7222449612219616517?q=influencer%20trip&t=1738870540903
Some brands offer store credit or rebates instead of cash payments. This method is common with smaller influencers, but it needs to be handled carefully to make sure compensation is fair.
What you decide to pay your influencer is up to you – and so is how you decide to do it. There are the most popular payment models most brands rely on:
We’ve already briefly touched on this topic, but here, we’re going to go into detail about the different factors that can help you decide how to pay your influencer a fair rate.
Here’s what to keep in mind:
Influencers aren’t all the same, and they’re divided based on their follower count.
In this section, we’ll mention some terms you’ve likely already come across somewhere. So, we’re just going to give you a brief overview of what each tier means and what the benefits of each are:
Nano-influencers have smaller audiences, but their engagement rates are typically much higher than their more popular peers’.
Their followers trust them deeply, so their recommendations feel like advice from a friend. Brands love working with them for their authenticity and ability to reach niche communities.
https://www.instagram.com/p/B2jKf8DpuFX/
Micro-influencers give you the benefits of both a solid audience size with high engagement.
They tend to be experts in their field, and brands typically partner with them for targeted marketing campaigns.
https://www.instagram.com/p/DFvkRsOza6y/
These influencers have a wider reach but still maintain relatability with their audience. They’re great for driving purchasing decisions while still keeping their engagement rates relatively high.
https://www.instagram.com/p/DE_hhdlNwQJ/
This tier includes influencers who are usually professional bloggers, vloggers, or celebrities outside their social media presence.
The main benefit they bring is their super broad reach and ability to spread awareness, but their engagement rates can be lower than smaller influencers’.
https://www.instagram.com/p/DFdHXegvp7D/
With massive reach, these influencers are the go-to for global brand campaigns.
While engagement rates might not be as strong, their influence can do wonders for your brand’s visibility overnight.
https://www.instagram.com/p/C2Nw13rJMjH/
Each social media platform has its own influencer ecosystem. This also means that there are content styles and payment expectations that differ from platform to platform.
Here’s what you can expect on the most popular platforms:
Instagram is one of the most popular places for influencer marketing. There’s a huge focus on Reels and Stories right now, and influencers are ready to cater to that kind of content.
As a brand, here’s the pricing you can expect:
https://www.instagram.com/p/C7wjPerxWmR/?img_index=1
TikTok’s very fast growth has made it a top destination for influencer marketing, but the content is a little bit more niche – TikTok audiences prefer more quirky and raw videos.
Here’s how much that could set you back:
https://www.tiktok.com/@brentrivera/video/7452984476637908270
YouTube is the go-to for long-form content, which is perfect for tutorials, how-tos, and more in-depth product reviews.
Rates vary widely, from $500 for smaller creators, but, as with any other SM platform, influencer collaboration pricing and payment guidelines for macro-influencers aren’t a joke – you can expect to pay as high as $20,000+ for top-tier influencers.
A general rule of thumb is $20 per 1,000 subscribers per video.
https://www.youtube.com/watch?v=f3DfJxvkN-8
As we near the end of this guide, we’re not going to leave you to fend for yourself.
Here are the top 5 influencer platforms that make influencer payments super easy:
Influencer Hero makes influencer payments simple and transparent. It supports both commission-based and flat-fee payments, and it can automate payouts, too.
It’s also worth mentioning that it works globally with multiple currencies and payment methods.
Pricing: Starts at $349/month, monthly commitment
Best For: D2C e-commerce brands and marketing agencies
Grin makes sure that all payouts are quick by using PayPal. It also automates tax compliance and offers real-time tracking to keep everything organized.
Pricing: Starts at $2.5K/month, annual commitment
Best For: E-commerce brands and agencies running larger campaigns
impact.com gives you a lot of flexibility with payment structures. You can adjust commissions based on performance, set up electronic contracts, and pay influencers only after results are delivered.
It’s built for scale and supports global payments.
Pricing: Custom pricing, monthly commitment, free trial available
Best For: Enterprise companies
Shopify Collabs is a budget-friendly way to manage influencer payments.
It automates commissions, adjusts payouts for refunds, and (obviously) integrates with Shopify, making it a great entry-level option for store owners.
https://cdn.shopify.com/app-store/listing_images/a48f805d99a4948755fcfd3bd15d1aec/desktop_screenshot/CLPkmP-l4IQDEAE=.png?height=720&width=1280 source: https://apps.shopify.com/collabs
Pricing: Starts at $25/month, monthly commitment, free trial available
Best For: Shopify sellers looking for an easy-to-use influencer payment solution
UGC Factory handles everything from scriptwriting to filming, editing, and performance analysis, so you get top-notch video ads without the hassle.
They also have a network of experienced creators and direct-response-trained editors!
Pricing: Starts at a 3-month commitment, custom pricing
Best For: Brands looking for quality UGC ads at scale
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