In our recent study, 28% of the influencers report that not knowing how much monetary compensation they should ask as their biggest challenge when working with advertisers. Moreover, we noticed that, although there’s plenty of articles on the art of negotiation with influencers, negotiation tips for influencers are almost nowhere to be found.
To help you content creators out there (especially the ones that don’t have a manager), we came up with 7 tips you can follow the next time you negotiate a sponsorship deal. We also chatted with Jack Saunders, the Managing Director at Exonia, and gained some additional insider insights on how to get the best deal for your next influencer marketing campaign.
At Matchmade, we work closely with both advertisers and influencers, and made it our mission to make influencer marketing great, easy, and transparent for everyone involved. Don’t forget to let us know what you think about this article by tweeting or emailing us at firstname.lastname@example.org.
When it comes to negotiating, the devil is in the detail: how much you get to leverage is influenced by the number of videos or streams you initially agreed to produce, their duration, their video type (integrated, dedicated videos), and the deal type (e.g. fixed fee, CPM, CPI, etc).
- Set monetary and non-monetary objectives
Are you looking for short term profits, or looking to collaborate with the advertiser you’re speaking with for the long haul? Thinking about what you want to achieve from the arrangement, and ranking your priorities can keep you in check throughout the entire process. You also get to use this opportunity to identify what your possible deal breakers are.
Here is a list of non-monetary benefits Jack Saunders from Exonia recommends to consider when you’re setting your objectives:
- Will this sponsorship give you access to an event or other opportunities to create content that you normally wouldn’t be able to create?
- Is the advertiser asking you to review and letting you keep their products as part of the arrangement?
- Is the advertiser offering you any other value? If they are a large brand, will they be showcasing you and your content on their platforms to drive new audiences to you?
- Will working with this advertiser be a good add to your portfolio?
- Most importantly, is it an advertiser you’re excited to work with?
- Look at it as a win-win situation
The negotiation is the start of the relationship you and the advertiser are building together. The underlying goal is to set boundaries that are satisfactory for both parties. So, there’s no need to be aggressive or confrontational — it’s a conversation on how to maximize joint outcomes. We encourage you to be honest about what you want, and even talk about your BATNA (best alternative to a negotiated agreement).. without oversharing.
More importantly, as Saunders puts it, “if an advertiser is interested in working with you, there’s normally a way to make it work as there’s a reason the advertiser is contacting you, and not another influencer.”
- Be realistic about your expectations
One way to do this is by doing research on the brand and the product you will be reviewing, and benchmarking it against similar products. Doing your homework will also give off the impression that you’re taking the partnership seriously. Another way is to ask the opposing party what they hope to achieve from the arrangement as it will help you figure out how far they will go or concede to get the outcome they want.
- Be respectful when setting out the terms of your influencer marketing campaign
Be responsive, listen to what the other party is asking for. Don’t make them wait for your response on purpose. More importantly, don’t let your ego get in the way. Not only are you setting the grounds for the relationship, but you are also getting to know each other so the process should be as amicable as possible. This rule applies even if you are seeking short term profits, since it’s always beneficial to keep good connections for future opportunities.
- Stay calm when the advertiser suggests a less ideal payout
Two reasons to not psych yourself out when the advertiser offers you an amount less than what you expected, or disagrees with your initial offer. The first being that you lose sight of what you want when you start reacting in an emotional manner. The second is that you will end up rushing the process and settling for an agreement that is not the most ideal (for you).
- Know your worth as a content creator
Have a good sense of what you bring to the table — find out what kind of results you can and have been delivering. You can start by looking into the flow of your subscriber/follower growth, engagement rate, the average viewership and the average view duration of your videos in the past 30 days. With numbers and data in hand, you will feel much more prepared and at ease when negotiating.
Saunders also adds: “[if] the advertiser is still offering you a lower amount than suggested, even after having a discussion about it, you can try to negotiate the non-monetary terms of the sponsorship. [For instance, reducing] the number of times you are required to feature the product in your content is an option.” Keep in mind that, sometimes, advertisers have a fixed spending budget, which means they are often far more flexible on non-monetary conditions.
- Know what added value you can offer
Aside from your main channel, do you have a large following on other social media platforms (e.g. Twitter, Facebook, Snapchat), or even a blog? If that’s the case (and depending on your goal), you can use it as leverage, and discuss with the advertiser whether it could be added to the agreement in exchange for a condition you want.
There you have it! Try these 7 tips the next time you are negotiating a sponsorship deal, and let us know how it went. If you have more tips you would like to add to this list or want to learn more about our intelligent influencer marketing platform, send us an email at email@example.com. We would love to hear your thoughts.
For more advice on influencer marketing, take a look at these following posts:
- Dear Influencers: How to Prepare for Your First Stream
- Dear Influencers: 3 Signs It’s Time to Hire a Manager
- Hear it from the Twitch Streamers: Tips for Sponsors and Aspiring Influencers
- Hear it from the YouTubers: Tips for Sponsors and Aspiring Influencers
- 5 Tips for Influencers on How to Work with Sponsors