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Redefining How Content Creators Are Compensated

Its talked about everyday in our space, conversations around money and how we set rates for peoples time involved in a brand collaboration.  We feel we've got this right by setting a formula to our pricing which we've included below.  

Some research which came out a couple of weeks ago stated that in 2015 $100m was spent, per month just on Instagram alone.  Now there are ways to do this well and ways it will not be as effective.  We believe holding product up (or product placement) is really, just a shame.  Ultimately, influencer marketing is about a partnership with the brand where the audience, the content creator and the brand generate equal benefit from sponsored collaborations.

You can see above in the graph how sponsored content is growing just on instagram in the US alone, (also, here they are just tracking #sp #ad #sponsored, which some people aren't actually including in posts, so with that in mind the numbers could in fact be a lot, lot larger). 

You can see above just how effective that can be with some cases of good and not so good.  The top 10 sponsored campaigns generating 645,000 engagements per post and the top campaign with One Direction and Honda Civic tour of 5 posts generating 3.5m likes and comments (not to mention the larger more passive audience that didn't engage - its huge). 

So how do we define the monetary value of such a commercial partnerships?  Do we just stick our finger up in the air and guess?  Yep, you're right... No, we don't do that.

We measure the audience we're talking to, the value of that audience, whether its 100k or 60m its going to depend on the demographic, the engagement expectations, growth rates, the type of content we're posting out (for instance a question might get more engagements than a statement), and a whole manner of other calculations, which to be fair, will change from campaign to campaign.

Then its about the time the content creator spends on the project and this involves creative concepts, meetings, development, filming, editing, etc etc.  Often some of these costs will be a 3rd party being involved and supporting the content generation, but then its just including their costs into a proposal outline.

Its quite simple really.  By developing this thinking to create this calculation, we're actually redefining this whole space and whilst we're a small, new business (with big ambitions) we really feel strongly around this subject.


Social Talent - Social Media Talent Management & Influencer Marketing Agency. 

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