Influencer marketing has rightfully earned its place as one of the most effective digital marketing strategies. People trust people more than faceless businesses and traditional advertising. Customers demand 100% authenticity and real-life reviews before parting with their cash, so now’s the time to start planning your budget for influencer marketing. https://runfrictionless.com/b2b-white-paper-service/

1. THE ESSENTIAL GUIDE TO
Planning Your Influencer
Marketing Budget.

2. .INTRODUCTION
.VALUE PROPOSITION
.INFLUENCER COMPENSATION
.COMPLIANCE FEES
- 3
- 6
- 9
- 13
.LABOR FEES - 15

3. .RESOURCES
.INFLUENCER TECHNOLOGY
.MEDIA SPACE
.INFLUENCER BUDGET TIP SHEET
- 23
- 17
- 19
- 21
.KEY TAKEAWAYS - 22

4. INTRODUCTION
Influencer marketing has rightfully earned its place as one
of the most effective digital marketing strategies. People
trust people more than faceless businesses and traditional
advertising. Customers demand 100% authenticity and
real-life reviews before parting with their cash, so now’s
the time to start planning your budget for influencer
marketing.
With so many campaign types and compensation models, it can be
difficult to know where to start. We'll help you understand the key
factors that determine your influencer marketing budget so you can
plan how much to spend. Know the costs upfront so you can
concentrate on launching your next campaign!
3
Introduction

5. Influencer marketing has seen a year-on-year
increase in spending. The coronavirus pandemic has
in fact accelerated industry growth, jumping from
$9.7B in 2020 to $13.8B in 2021.
HOW MUCH DO BRANDS
SPEND ON INFLUENCER MARKETING?
Brands favor digital strategies such as influencer
marketing to capitalize on the wider trends in
eCommerce and social commerce. 62% of marketers
will increase their influencer marketing spend in 2021,
compared to last year. With 38% allocating 10-20%
of their marketing budget to influencer marketing.
4
Introduction

6. We explored 6 critical budgeting areas:
| Value proposition
| Influencer compensation
| Compliance fees
| Labor fees
| Influencer Technology
| Media space
5

7. VALUE
PROPOSITION

8. You've found your ideal influencer who can drive
your message to their audience. But what does
the influencer get in return? Creating a value
proposition to entice an influencer to work with
you is one of the most important aspects of your
offer.
WHY DO YOU NEED A
VALUE PROPOSITION?
Your offer should be appealing, without costing you a
fortune. Incentives such as free products, VIP benefits,
and event passes have a higher perceived value to the
influencer, while the actual cost to your brand is lower.
CREATE AN OFFER THAT'S WIN-WIN
Value Proposition 7

9. _Exclusive access to new products
_Publishing privileges on research results/ features/
upgrades/etc
_Official badges to add to sites or social media profiles
(‘Official Brand Partner’, ‘Brand Ambassador’ etc.)
_VIP experiences (for the influencer or selected members
of their audience)
OFFER INCENTIVES SUCH AS -
8
CREATE VALUE FOR YOUR
INFLUENCER & THEIR AUDIENCE
Creators prefer partnerships that offer value to their
followers, such as discount codes and free product
giveaways which helps them to maintain high
audience engagement.
Value Proposition

10. INFLUENCER
COMPENSATION

11. Nowadays most influencers expect some form of
monetary compensation, or a combination of payment
and product samples.
Product gifting or free subscriptions in return
for social media promotion can work well with
brand ambassadors or organic influencers as
they're already fans of your brand.
You may agree on a one-off fee based on the
content delivered by the influencer. This
approach allows for more straightforward
budget prediction; however, it can leave
several grey areas for marketers when it comes
to predicting an influencer's reach.
PRODUCT SAMPLING ONE-OFF FEE
Organic influencers are 7x more likely to
accept a free collaboration.
10
INFLUENCER PAYMENT
MODELS
TOP TIP
Influencer Compensation

12. _Cost per Engagement (CPE) – the number of likes, shares, or comments
_Cost per Acquisition (CPA) – the number of sales or leads generated
_Cost per Click (CPC) – the number of actions taken when consumers
interact with your influencer’s post(s)
WHAT YOU'LL PAY IS BASED ON -
Performance-based pricing enables marketers to deep-
dive into post-campaign data and pays influencers for
conversions towards which they have made a
measurable contribution. Remember, if the influencer
delivers beyond expectation, you will pay more.
11
PERFORMANCE BASED
PRICING
Influencer Compensation

13. This model compensates influencers by paying them a
percentage of the profits from each sale they generate. Brands
can use tools such as Upfluence to generate custom discount
codes and affiliate links for their influencers.
AFFILIATE MARKETING
An affiliate model offers brands clearer attribution and
performance tracking, which minimizes the risk of low ROI as
payment is based on influencers' performance.
Influencers benefit too, as they can earn income over time, and
have the potential to earn more than charging a one-off fee.
Influencer payment fees will vary depending on the type of influencer and the
level of effort and commitment required for the campaign. Leveraging pre-
existing relationships with influential customers will be cheaper than working
with celebrity influencers.
12
Influencer Compensation

14. COMPLIANCE FEES

15. WHAT ARE COMPLIANCE FEES?
Be prepared to pay for compliance fees: these can
include the legal or administrative costs associated with
preparing influencer contracts, non-disclosure
agreements, exclusivity or content rights.
If you plan on working with an influencer long-term or on projects with
large payout sums, ensuring your contract and brief have specific legal
and marketing guidelines is of critical importance. This will help protect
both brands and influencers by preventing non-compliance and making
the campaign expectations clear to both sides.
WHEN TO INCLUDE THEM?
14
Compliance Fees

16. LABOR FEES

17. CONTENT CREATION
Top-quality content requires a decent slice of your
marketing budget. Whether it's in-house, done by the
influencer or you outsource it to freelancers, don't forget
to include content creation in your final budget.
Content creation can be time-consuming.
Consider outsourcing it to a subject matter
expert, freelancer, or agency that specializes in
creating engaging campaign materials. All
content and visual production should be
sourced professionally to ensure the highest
quality with the most impact.
IMPACTFUL CONTENT
You can get even more value from your influencer
marketing content by repurposing it into new
formats such as paid ad campaigns, testimonials,
newsletters, and organic brand content.
Amplifying content on additional channels will
help you reach new audiences and save resources
spent on content creation.
MAKE IT GO FURTHER
16
Labor Fees

18. INFLUENCER
TECHNOLOGY

19. Investing in influencer marketing software will help you run impactful campaigns while
saving your marketing team time and effort.
With the ability to manage your campaigns from A to Z, from identification to
outreach, sending briefs, making payments, and tracking performance, influencer
marketing technology is a worthwhile investment!
TECHNOLOGY
SCALE YOUR CAMPAIGNS
WITH
18
Upfluence helps you find the best influencers thanks to 20+
advanced search filters and tools to uncover influencers within your
network. Scale your campaigns with automation and eCommerce
intergartions. Try our all-in-one campaign management dashboard
to track results and calculate ROI.
UPFLUENCE SOFTWARE
Influencer Technology

20. MEDIA
SPACE

21. You can increase the reach of your
campaign by paying for social media
ads, website ads, newsletter
sponsorships or paid press distribution.
Don’t forget about extra costs such as
hosting your website, creating landing
pages for campaigns, sending product
samples or hosting events.
AMPLIFY YOUR
CAMPAIGN
20
Media Space

22. INFLUENCER BUDGET TIP SHEET
Decide how many influencers you'd like to work with over
the year, and for how long.
Prioritize organic influencers and brand advocates, who'll
be cheaper for collaborations.
Create a cost-effective value propostion, combining
monetary & non-monetary incentives.
21
Use Upfluence's suggested price feature to calculate
influencer payments.
Watch out for hidden costs such as compliance fees and
labor costs.
Calculate ROI using EMV and revenue generation from
conversions.

23. Be sure to plan for all eventual costs from the
beginning. Influencer marketing payout fees
aren’t the only thing you should be budgeting
for. Keep an eye on the extra time and costs
associated with running a successful campaign.
Consider investing in an all-in-one influencer
marketing software such as Upfluence, to help
you automate key tasks and boost operational
efficiency. Manage every aspect of your
campaign in one dashboard that facilitates
influencer payment and ROI calculation.
Whichever payment model you're going to use,
make sure both parties are committed to it and
stick to it!
KEY TAKEAWAYS
Your budget can be the deciding factor when it
comes to the effectiveness of your campaign. If
you don’t allocate enough, your influencer
impact could fall short of expectation. If you
spend too much, it’s possible you won’t get the
ROI you were hoping for.
Don't leave it to chance, if you have questions
about how Upfluence can help you manage
your influencer budget, get in touch with our
team.
22

24. RESOURCES
EBOOKS
The Ultimate Guide to Boosting
Shopify Sales With Influencers
Read now
A Complete Guide:
Understanding Influencer Types
Read now
BLOGS
4 Ways to Incentivize
Influencers
Read now
Discover more ebooks, white
papers and resources
23
Choosing Between Influencer
Payment vs. Product
Read now
Discover more influencer marketing
blogs and free resources

25. Speak with an expert
JOIN OVER 1600+ HAPPY CUSTOMERS
Build authentic influencer partnerships by activating your
network with Upfluence software. Streamline outreach,
campaign management and reporting with a host of
integrations. Deliver the highest ROI with a unique software
offering tailored to eCommerce success.
www.upfluence.com hey@upfluence.com