Transparency, especially in a ‘new’ / emerging industry is imperative for it to become a staple. So when we’re asked ‘how do influencer agencies make money’ it’s not a question from which we shy away. With that in mind, here’s the main way that Colossal Influence makes money as an influencer marketing agency.
Pitching, securing and brokering brand deals for influencers
Colossal Influence work with brands and PR agencies to secure deals with influencers that meet specific campaign criteria. This will be based on their social reach, demographics, and follower engagement.
We spend a significant amount of our time pitching our exclusive talent roster to brands. We’re also super worried about how many ‘influencer talent agencies’ have become glorified email administrators.
These deals can be anything from a brand ambassadorship to a product placement or sponsorship or events. All of these opportunities generate revenue for the influencer.
Brands then pay these contracts either up front, on completion or more likely 30 / 45 days NET post role (we’re not too sure why either). We handle all payment administration – allocating funds between influencers, invoices and most annoyingly chasing payments, which remains endemic.
We’re transparent with our terms and more than happy to show all negotiations when asked to any creator with Colossal.
Our rate falls between 10% and 20% and tends to be between 15%-17.5%. Colossal will also take over existing brand deals and work with them at 0%.
We implore all social media influencers to ask a) what is their talent management agency or influencer talent manager doing to generate revenue b) what commission are they’re taking? and c) until you establish a trustworthy relationship, can I see the contract you’re signing on my behalf so I can check the rate you’re accepting?
If an influencer manager or influencer agency has a problem with that then find out why. If you’re not happy with the answers then are you working with the right people? It’s an influencer talent managers privilege to work with and represent you, it shouldn’t be the other way round.
What else does that involve?
The above involves so much admin that it’s never as simple as pitching a rate, agreeing and getting paid on completion.
The reality is that at Colossal we’re pitching you (as a creator) for multiple roles as day. Many of which you might not even hear about. Once in a position where we think there is a chance it will move on we’ll let you know.
So creating, editing, proofreading and working on contracts, all the admin of the pitching and negotiating the best deal, the back and forth working on marketing strategy and then post role the invoicing and chasing payments, which in itself can be a full time job.
Just to clarify, this isn’t the only way that Colossal makes money, but it is the main one. There’s also a bunch more ideas. If you want to find out more, contact us today!
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