It doesn’t always have to be the classic remuneration model in influencer marketing

How performance-based models work in influencer campaigns

There are numerous methods of compensation in influencer marketing. However, few of them are known to the masses. We’ll explain why it doesn’t always have to be the classic remuneration model in influencer marketing and what sensible alternatives there are.

Fixed remuneration in influencer marketing

Most of us who know a bit about influencer campaigns or perhaps have already implemented one know it: In most cases, we focus on classic fixed compensation. This means that the creator and the company agree on a fee before the campaign is implemented and this is then paid out after completion. This is exactly the right approach for branding and awareness campaigns.

However, if performance is the primary objective, other compensation models may make sense.

Performance-based compensation in influencer marketing

If performance is the main goal of a campaign to be implemented, it can be exciting to also agree on a performance-based payment. This can be implemented, for example, in the form of a CPC (cost per click), CPO (cost per order) or CPL (cost per lead) deal.

But be careful: Companies must ensure that these models are still attractive for the selected creators. The remuneration per model should therefore not be set too low.

Our recommendation: A hybrid model

Our recommendation when companies and creators implement a campaign together and it comes to compensation is quite clear: a hybrid model.

This means that creators are paid a fixed fee for their content production and the views generated. In addition, however, they also participate in the performance success and are therefore remunerated on top, based on performance. In this way, creators are additionally and intrinsically motivated to really convince their own community of the value of the offer.

However, it is particularly important that companies keep in mind that influencer campaigns are not just about performance. The creators also offer enormous added value beyond this, for which it is worth investing marketing budget.

Compensation Tips from Lookfamed Campaign Management

So if you’re planning your next influencer campaign soon, think beyond the traditional compensation model. Want more specific insights into compensation models? Our Head of Campaign Management Marie has summarized them in a (German) video.