Influencers work with multiple agencies to get the most lucrative deal.
This article states that influencer marketing is rife with “black-box business models”, with pricing and compensation varying across influencers. Influencer agencies charge non-transparent mark-ups and almost never disclose the actual dollar amount they make.
Influencers charge arbitrary fees based on the number of posts or follower count. Since brands demand accountability, some influencers base their pricing on a cost per performance metric. For brands to know if they’ve been fairly charged, they have to compare prices across the market.
Marketers can only track the metrics the influencer or platform is willing to share. Viewing influencer activity is difficult due to walled gardens, and pricing is hard to codify as the influencer’s performance can vary monthly. The author recommends developing pricing and measurement benchmarks beforehand to ensure more transparency.
[4 minute read]