Influencer Payments - Best Practices

by Thibault

If you are reading this, you are probably a brand running influencer programs on different social media channels, in different countries and to different size of influencers. Indeed, influencer partnerships are getting more and more complex with payments based on outcomes and programs that stretch over longer periods of time.

Not knowing how much a brand should pay its influencers, through what payment method and when to pay them is very common. In this blog post, we will try to answer the most frequently asked questions around influencer payments and make sure, as a brand, you can run best in class campaigns with high influencer participation and satisfaction on that matter.

1- How much should I pay?

This is the most frequently asked question by brands using our Capssion platform. Brands are running campaigns on different platforms (Instagram, TikTok, YouTube and others), in different countries and are working with influencers of all sizes. The question of how much the payout should be is a tough one to answer as there is no definite answer, but also because it evolves in time. A payout that is relevant now might not be relevant and attractive in a few weeks. This is why we always tell brands that do not have an idea of the average payout in a given country by platform and influencer size to always start by questioning the influencers.

On Capssion, you can list “sponsored” campaigns with a list of deliverables you want the influencer to execute on your campaign/job. The influencer will look at the expected deliverables and quote you for it. The beauty of receiving dozens of quoted applications will give you a “feel” for the true market value of what you are asking for. It will be rather easy spotting the ones who are asking for too much money and the ones who are underpaying themselves. Getting those quotes is an amazing starting point.

2- When should I pay?

Pay them on time

Most brands are used to working in house with long payment terms (over 30 days after deliverables) or with agencies that are even slower in paying the influencers that work with you (usually 60 days payment terms). Did you know that getting paid fast is the number concern from influencers in 2021? There is nothing more frustrating for an influencer than to have to wait for weeks for a job that you did on time. Therefore, we always recommend brands to pay when the job is done or within days of it. We understand that paying influencers through your finance team, getting their payment details, and covering payment for payment fees are painful; this is why we ask the brands to deposit the money on Capssion prior to approving the influencers. The money is put in escrow until the job is completed and released on the day the deliverables are live. This guarantees you minimal operational pain and maximum influencer satisfaction.

3- In what currency?

Pay in local currency when you can

You are probably running influencer marketing campaigns in several countries and an error that a lot of brands do when they launch their first campaigns in new markets is to pay influencers in $USD. You should always try as much as you can to list jobs in the influencers’ local currencies for a couple of reasons. First of all, they might not know the conversion of USD to their local currency. You will remove the pain of having to figure out the equivalent in their own currency. Secondly, if you pay them in a foreign currency, they will have to pay conversion fees when they receive your money. Always make sure influencers receive exactly the net amount you promised them to avoid any influencer complaints.

On Capssion, every influencer is paid in their local currency and the conversion happens on the day the money is wired for perfect transparency on conversion potential discussions. As long as the terms are set before the collaboration starts, you should be covered.

4- Through what payment methods?

Bank transfers are outdated: they are slow, operationally painful to do and expensive as they will incur high payment fees. Our number one advice on that matter is for you to find the most used app/service in the country you are running the campaign to pay your influencers. But most importantly, give them options. Giving influencers different options will allow them to make informed decisions on the charges they are willing the take on and the speed at which they can receive their money. We always, at Capssion, offer influencers at least two options to get paid wherever they are in the world. Our integration with PayPal allows us to pay influencer with low payment fees, fast and in local currency. However, there are some conversion fees that are deducted. If you choose to cash out your money from your Capssion wallet as an influencer to your bank account, we will charge a fixed payment fee. Options will make influencers understand that you are trying the best you can to pay them. And that already goes a long way.

Give several payment options

5- How do I easily monitor and calculate variable payments?

If you run campaigns with payouts based on sales commission, traffic generated by unique visitor, number of post impressions, engagement rate, number of conversations initiated or other variable outcomes, we know it’s complex to monitor and calculate the payouts you are supposed to send out. This is why we will always recommend using an App that will do that for you automatically simply because the pain is not worth it.

At Capssion, we automatically calculate for you the commission the influencer gets on the sales their content generated, and the same goes for all other variable outcome you might choose. We do this through smart integrations (Shopify, Refersion, and social media platforms). The time of spreadsheets and long email threads has ended! Give yourself the luxury of not having to do that.

These are the answers to the five most frequently asked questions around influencer payments. I hope this blog post was helpful and that we will see you soon on Capssion, the all-in-one influencer marketing platform for e-commerce brands!

Written by Thibault

Thibault is a cofounder of Capssion