Six Factors That Determine Creator Pay Rates

Sarah Barbod
Sarah Barbod
Sep 7, 2022

Creators are running the world of social content, and consumers are taking notice. A March 2022 survey conducted by Statista found that 58% of consumers follow at least one virtual influencer in the United States. On a global scale, the influencer marketing industry is valued at $16.4B, demonstrating the tremendous opportunity—and profitability—surrounding the partnership between brands and creators.

As the creator economy continues to develop standard practices, content creators increasingly recognize the value they bring to businesses, and expect appropriate payment for their services. Businesses across multiple industries have followed suit, normalizing contracts that detail the assets the content creator is expected to produce and the corresponding compensation.

How to Determine Creator Pay Rates

Pay rates for creators continue to evolve. Overall, when determining pay rates for its creator community, businesses might consider the general value of a creator as both a brand and a distribution channel, along with the following six factors.

Audience Size and Reach

From the nano follower count to the mega level, the size of a creator’s following directly impacts their reach. Organizations can take inventory of a creator’s audience to see if it includes the brand’s consumer segment. If so, businesses can further analyze audience penetration to determine an equitable pay rate for the creator or creators selected for a campaign.

Creative Agency

Consider how much work the creator will put into the activation, along with any support they will require from you and outside vendors. Does the creator build content themselves? Will there be additional cameras, sets, and makeup artists? Review the total scope of the content that the creator will produce to determine an appropriate pay rate.

Likeness

How valuable will the name, photograph, or other multimedia assets from the creator be for your campaign and brand? Will the creator’s likeness be easily identifiable to your consumer segment? This will affect whether your target audience can relate to the creator, and it can help determine the value that the creator brings and what compensation is appropriate.

Creator's Distribution Channels

Because each social channel has a specific audience type, it’s important to establish whether a creator is the right fit for your campaign and brand. Businesses might consider reviewing the number of followers a creator has per channel and the amount of impressions the creator receives. Then, evaluate the creator’s total reach and how their social channels correspond with your brand’s target audience.

What Are You Paying For?

Consider how many assets you’re asking the creator to produce. Whether it’s a few posts, a single video, or a package of posts and reels, will the creator require a production company and travel expenses? Are you paying for paid media or use in advertising rights? Each asset, and the degree of time and effort it takes to create, should be taken into consideration when determining compensation.

What's the Strategy?

Clearly defining whether your campaign is pursuing reach, engagement, or a different metric can help inform your pay rate. It’s also important to remember that not every creator delivers the same value for certain products and brands. For example, a nano creator might be a better fit for a regional brand than a macro or mega creator with millions of followers. Conversely, a high follower count can reach a global audience that might otherwise be out of reach for the brand’s regional offering. Reviewing the creator’s audience data to see how much of your consumer segment is part of the creator’s audience can help influence your compensation decisions.

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Next Steps

These six factors highlight a complex set of considerations that businesses might review to determine pay rates for creator communities. Once the pay rate has been finalized, actually executing the payment can be a challenge for many businesses. Platforms with an integrated creator payment solution can help ensure compliance is met, proper visibility is provided for creators, and payment is integrated into campaign workflows that don’t interrupt cross-departmental processes.

Interested in a more in-depth analysis of creator pay rates?

Download Guide to Paying Creators