Why Influencers Are No Longer Interested in Free Products (And Why You Should Pay Them)
In the ever-evolving landscape of influencer marketing, brands often find themselves puzzled by the lack of quality creators signing up for campaigns that offer free products instead of monetary compensation. This misalignment leads to disappointing results, with brands seeing little to no ROI from their campaigns.
To bridge this gap, it's crucial to understand why influencers are turning away from free product campaigns and why investing in paid marketing is a more effective strategy.
Its 2024, pay your creators!
1. Quality Work Requires Compensation đ°
Producing high-quality content takes significant time and effort. Unless your products are of high value or have strong brand equity, top-tier creators are unlikely to participate. Creators view their work as a profession, and like any professional, they expect fair compensation for their skills and time.
2. Attracting Novice Creators âī¸
Product sponsorship campaigns often attract novice creators who are just starting on their journey. These creators may lack the experience and skills necessary to produce content that effectively promotes your brand, leading to subpar results. If content quality matters, pay your creators.
3. Abundance of Free Samples đĻ´
The market is saturated with brands offering free products in exchange for shoutouts. Creators are inundated with such offers, making it less appealing to accept free products as compensation. They prefer campaigns that offer monetary rewards, reflecting the value they spent to build up an audience, the time needed to create the content, and the opportunity cost of otherwise working on a paid collaboration.
4. Tax Implications đ¨ââī¸
Creators are legally required to report all free products they receive as taxable income. This means that every gift comes with a tax liability, making it financially burdensome for individuals to accept free products without monetary compensation. Essentially, they are paying to advertise for your brand, which is not a sustainable or attractive proposition.
Strategies for Brands with Minimal Budgets
1. Work with UGC Creators
User-generated content (UGC) creators are often more affordable and can produce quality videos for a fraction of the cost. A good budget will fall between $150 - $300 per video to get impactful content. Check out this video from one of the creators Homerunpet engaged through Pawjourr.
2. Negotiate Bundle Prices
Ask creators for bundle prices to get a package deal on multiple pieces of content. This approach can save costs while ensuring a steady stream of promotional material.
3. Start Small and Scale
Begin by working with 2-3 creators to understand what type of content resonates with your audience. Once you've identified successful content strategies, scale up your efforts accordingly. This is a good approach if you are still figuring out influencer marketing and evaluating how efficient it is as a strategy.
Conclusion
By investing in paid marketing, you not only ensure quality content and higher engagement but also build stronger, more professional relationships with influencers. If budget constraints are a concern, explore alternative strategies such as collaborating with UGC creators or negotiating bundle deals.
If you are looking for an efficient and affordable way to recruit and work with pet influencers, check out Pawjourr. It is a self-serve platform for brands to create campaigns, connect with influencers, and get a constant stream of content.
Ultimately, valuing the work of creators and compensating them fairly will lead to more effective and successful marketing campaigns.
