How to (Reasonably) Negotiate With Influencers in 2023

Picture this: you're a passionate entrepreneur with a groundbreaking DTC product that you believe can change lives. Your days are spent tirelessly working on your brand, juggling multiple tasks, and ensuring your product reaches the right people.

You've tried it all, from Facebook ads to TikTok campaigns, but you're just not getting the results you envisioned.

Meanwhile, you've heard about the incredible impact that influencer marketing can have on brand growth, and you can't help but feel intrigued.

However, every time you reach out to an influencer, the fees they quote make your jaw drop. You begin to wonder if partnering with influencers is even worth the investment or if it's just another marketing fad that will leave you feeling burned.

The frustration mounts, but your brand needs the exposure to thrive.

In this blog post, we'll show how to negotiate with influencers in 2023 without breaking the bank or offending them, and without getting ripped off in the world of influencer marketing.

But before we go to the strategy, let's address the concerns that might be holding you back: the fear of not finding influencers to partner with, the temptation to cave into their high fee demands, or the worry that securing influencers without breaking the bank is simply unattainable.

The Influencer Landscape: Why there's no shortage of opportunities for DTC brands

As a DTC brand, it's natural to feel apprehensive about approaching influencers, especially if you've faced rejection in the past.

But here are two truths and no lie:

1. There are thousands of influencers out there for every category,

2. And they need you just as much as you need them, if not more.

Influencers rely on brand partnerships to maintain their income and continue creating content. This means that while they may have a considerable following, their success is often contingent on collaborations with brands like yours.

Many influencers are actively seeking opportunities to work with innovative DTC brands that align with their personal brand and values (even if you don’t pay them the big bucks)

So, if an influencer says no to you, don't be disheartened.

Remember that there are countless other influencers who could be a perfect match for your brand. This mindset will not only put you at ease but also empower you during negotiations, knowing that you're not solely dependent on a single influencer for your marketing success.

To further ease your concerns, keep in mind that there is a whole spectrum of influencers available to partner with, from mega-influencers to micro- and nano-influencers.

‍

These smaller-scale influencers often have a more engaged and loyal audience, making them an excellent choice for ecommerce brands seeking genuine connections and authentic endorsements.

So, even if a high-profile influencer turns you down, there's a world of opportunity waiting for you with other influencers who are just as capable of driving growth for your brand.

And we have examples to prove this. Check out how Pura Vida became a favorite among millennials using influencer marketing without spending a lot. or how Liquid Death made canned water cool by tapping into all levels of influencers.

While influencer collaborations can be an invaluable marketing tool, it's essential not to cave into unreasonable demands that could jeopardize your brand's finances.

It's always better to forge partnerships built on shared values and a genuine belief in your product, rather than compromising your brand's integrity for short-term gains. By staying true to your vision and seeking out influencers who align with your goals, you'll create lasting, impactful relationships that will drive your brand's success.

Now, let's get to the strategy.

The winning secret: Create a good offer

To make a deal with influencers, you need to present them with an irresistible offer. An offer that not only benefits them but also their fans. Here's a winning formula to create a solid offer:

Choose Your Offer Components

Your offer should consist of:

• A free product or some added perks

• A commission for the influencer — Give them a percentage of the sale made through them

• A discount for their fans

Remember, an ambassador offer works better than a simple affiliate offer. It should include all three components to make it truly irresistible.

Let's explore each of these components a little more.

Determine When to Send a Free Product

Send a free product when it's valuable (usually above $50). If your product is a luxury item (above $200), you can offer it for free or at a significant discount to the influencer. If your product is lower-value (below $20), add other appealing components, such as swag, access to a community, or brand alignment eg: Vegan influencers would love receiving free vegan chips even if they don’t cost too much.

Set the Right Commission

To decide on the commission, consider these factors:

• Your customer acquisition cost (CAC) on other channels

• Your competitors' commission rates

• Your profit margins

Ensure that you're still profitable after offering commissions and discounts.

Offer a Discount for Their Fans

Provide a discount to the influencer's fans that is higher than your site-wide discount. This gives them the incentive to purchase through the influencer's affiliate link, which in turn benefits both the influencer and you.

With these tips in mind, your offer could look something like this:

• A free product from the collection along with some cool swag.

• A generous 20% commission on every sale made through a unique referral link.

• A special 15% discount for your audience that is not available anywhere else.

To make your offer even more attractive, consider incorporating performance bonuses and exclusive perks that not only incentivize influencers to go above and beyond but also make them feel like valued partners:

1. Performance Bonuses: Offer additional rewards based on the influencer's performance. For example, if they drive a certain number of sales or reach specific engagement milestones, provide them with extra commission or other benefits.

2. Exclusive Perks: Provide influencers with special privileges, such as early access to new products, invitations to exclusive events, or the chance to collaborate on product development.

Don't close the doors, yet: Handling objections from influencers on your offer

When pitching commission-only plus free products offer to influencers, you'll likely receive a wide range of responses. But don't be disheartened by those that may seem like rejections; instead, view them as opportunities for negotiation.

The key to winning over influencers isn't to beg or play the "small brand" card, but to be strategic in showcasing the value they'll receive from partnering with you.

Let's look at tactics to help you negotiate effectively, emphasizing the benefits for both parties and turning those initial hesitations into enthusiastic agreements.

"Here's my fee"

When influencers quote their fees upfront, use these tactics:

• Leverage social proof: Name-drop other influencers who have already partnered with your brand. For example, "Hey there, we appreciate your fee structure, but we're looking for ambassadors with whom we can build long-term partnerships. We're already working with Sara Kay and Harry Young, who are passionate ambassadors for our brand. We'd love to have you on board as well!"

• Crunch the numbers: Break down the potential earnings for the influencer, comparing their fee to the long-term income they could receive. For instance, "Based on our average order value of $50, if you make two posts and generate at least five sales, you'd be close to your $300 quoted fee. Plus, you'd be earning continuous passive income!"

• Offer a minimum guarantee: Assure the influencer that they will receive a base amount even if they don't reach a certain sales target. You can say: "If you don't generate at least $300 in commissions, we'll guarantee you a minimum payment of $100. This way, you'll have a safety net while enjoying the unlimited earning potential."

• Base plus bonus: Propose a combination of an upfront fee and commissions. For example, you can say, "We'll pay you $150 upfront, and you'll earn a 10% commission on every sale. This guarantees a base income while giving you the chance to earn more as sales grow."

"I don't do affiliate"

When an influencer is reluctant to engage in affiliate marketing, try these approaches:

• Propose a secondary platform: Suggest collaborating on a platform with a smaller following. For example, "We noticed you have 5,000 followers on TikTok. Would you be open to posting commission-based content there, helping you diversify your income streams and allowing us to build a relationship together?"

• Get more for your money: If the influencer is worth the investment, negotiate additional content or usage rights for the same fee. You can say, "For your $300 fee, could you create two Instagram Reels instead of one? This way, we can maximize our investment while providing you with the income you desire."

How can you calculate if the influencer is worth the money and then how much should you actually pay them?

There's a data-driven approach to this rather than just taking a gut-feeling route.

All you have to do is install the SARAL's chrome extension, open the creator's social media profile, and click on the SARAL extension in your browser.

You will see a dashboard in the right top corner with the influencer's engagement rate, % of people that regularly engage with their content, and most importantly a fair fee that you can pay them for collaboration.

SARAL's algorithm takes into account the influencer's past content performance and industry standards when calculating a fee. By using this data-driven approach, you can be confident that you're not overpaying or undervaluing the influencer's work.

While SARAL provides a helpful starting point, it's essential to also consider your brand's budget and marketing objectives. Evaluate whether the influencer's fee aligns with your financial constraints and if partnering with them will help you achieve your goals.

The foundation for success: Building relationships with creators

Even when influencers say no to a collaboration, it's essential not to close the door on the relationship. Remember, circumstances and interests change, and what wasn't a good fit today might be a perfect match tomorrow.

Instead of treating a "no" as a dead end, see it as a chance to build rapport and establish a foundation for possible collaborations down the line. Maintain a positive attitude toward them and show genuine interest in their work.

Here are tips on how to build relationships even with creators who've said no to collaborating with you, ensuring that you're in a prime position to revisit the partnership when the time is right:

1. Send a free product anyway: If an influencer turns down your offer, don't be disheartened. You can still send them a free product, accompanied by a heartfelt, personalized note. This thoughtful gesture can leave a lasting impression, potentially leading to a change of heart down the line. The influencer might post about your product. And even if they don't, their positive experience may result in invaluable word-of-mouth promotion among their circle of friends.

2. Offer a discount for creators: If your products are on the pricier side, extend a generous discount to influencers who decline your initial offer. This alternative not only expresses your appreciation for their work but also demonstrates your brand's flexibility. By providing an attractive discount, you may pique their interest in your products and keep the door open for future collaborations.

3. Collaborate on a giveaway: Organizing a joint giveaway with an influencer can generate buzz and excitement among their audience. This approach allows the influencer to provide value to their followers while promoting your brand. Make sure to outline the giveaway's rules and requirements clearly, ensuring a smooth experience for everyone involved. A successful giveaway could be the starting point for an ongoing partnership.

4. Keep the conversation going: Don't interpret every "no" as a final rejection. Some influencers may need more time to warm up to your brand, or their work schedules might not permit collaboration at the moment. Set reminders to follow up with those who provide a soft no, using tools like SARAL. Regular check-ins can demonstrate your commitment to building a relationship and may eventually lead to a "yes."

5. Share valuable content: Another way to strengthen your relationship with influencers is by sharing useful, relevant content that aligns with their interests or niche. This could include industry news, trends, or insights that they can use to inform their content creation. By consistently providing value, you position yourself as a valuable resource and increase the likelihood of future collaborations.

Final Thoughts

As we've explored throughout this blog, the art of negotiating with influencers in 2023 requires a blend of strategy, creativity, and persistence. It's essential to strike the right balance between making a compelling offer and respecting the value that influencers bring to your brand. And don't forget that collaboration isn't just about getting the best deal for your business; it's also about fostering long-term partnerships that can benefit both parties.

It's also important to stay up to date with influencers' evolving preferences, industry trends, and new ideas when you are in a space that's constantly evolving.

To make sure you're always in the know about the latest trends and tactics in the influencer marketing world, consider subscribing to the SARAL No BS Influencer Marketing Newsletter. You'll be better equipped to build successful partnerships with influencers and get the most value out of your collaborations. Signup today 👉

‍