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Should Influencers Be Paid Based on Engagement?

As the influencer marketing industry matures, brands are looking to solution providers to aid in the required management, not only to identify influencers and manage relationships, but also to direct how those influencers get paid for the work they do.

Some brands offer project-based fees, sometimes influencers set the price - each social post costs "X" amount of dollars, or sometimes influencers require a retainer-based fee. That's not always a scalable, efficient or effect approach however, but things are starting to change as agencies are waking up to the possibility of alternatives.

Influencer marketing solution provider MATTR, for example, recently announced a Cost Per Engagement pricing model. By standardizing the way their clients' influencers are paid, MATTR hopes to provide some much needed peace of mind to brands and influencers that the payment structure is fair. Brands not only lessen the risk of campaigns that don't result in engagement but content creators (influencers) are motivated and incentivized to create more compelling content and fulfill the order essentially.

“We see client CEOs checking Instagram for their influencers’ posts,” said Jack Holt, CEO of MATTR. “They're demanding more accountability. It’s about creating a system that’s transparent and will work well into the future for both brands and influencers.”
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