CHINA influencer collaboration pricing and payment guidelines macro-influencers

In today’s digital marketing era, partnering with headline web celebrities has become an important strategy for many brands to raise their visibility and expand their market share. However, reasonable pricing and choosing the right payment method are crucial to ensure the smooth running of the partnership and maximize the benefits for both parties. The following is a detailed introduction to the pricing and payment of China’s head netroots cooperation. I. Pricing Standard Number and quality of fans: Head Netstars usually have a large fan base, and the number of fans is an important factor affecting pricing. Generally speaking, the higher the number of fans, the wider the coverage of their influence, and the higher the cooperation offer. However, the quality of fans should not be ignored, if the netroots fans are active, high spending power and highly compatible with the brand’s target audience, such as high-end beauty brands, netroots fans are mostly young women with high demand for beauty and strong spending power, then even if the number of fans is relatively small, the pricing may also be higher. Interaction rate: The interaction rate reflects the degree of closeness between the Netroots and their fans and the degree of fan engagement. Higher liking, commenting and sharing figures mean that the content posted by a NetroStar can effectively reach and trigger positive responses from fans. For example, a fashion head NetroStar who gets tens of thousands of comments and a large number of likes every time he releases an outfit-sharing video, and whose interaction rate is much higher than that of similar types of NetroStars, will have a greater advantage in terms of cooperation pricing. Usually, netizens with high interaction rate have more potential to promote brand communication and product sales, so the pricing will be increased accordingly. Content quality: Quality content is the core of attracting fans and maintaining the influence of the netroots. Having professional content creation ability, such as beautiful video production, vivid, interesting and infectious copywriting, etc., can provide a better presentation effect for brand display. Take the food head netroots as an example, its production of video is not only beautiful, detailed and vivid introduction of dishes, but also can be integrated into the interesting story or creative, so that the audience in the viewing of a strong desire to buy, this kind of netroots cooperation pricing naturally not low. Brand cooperation requirements: If the brand has special requirements for cooperation, such as the need for netroots to customize exclusive content for the brand, participate in the brand’s offline activities, and focus on the release of promotional content in a specific period of time, etc., it will affect the final pricing. For example, the brand requires the netroots to release several different forms of promotional content every day during the critical week of the new product launch, which will greatly increase the workload and time cost of the netroots and the pricing will be increased compared to the regular frequency of cooperation release. From some actual cases, some national brands reported that the head anchor in the beauty category cooperation, commission requirements up to 80%. This reflects the strong voice of the head netroots in specific areas and the impact on the pricing of cooperation. The pricing of head netizens in different industries also varies. Generally speaking, the cooperation fee of head netizens is generally higher than that of other industries, such as beauty, fashion, mother and child, which are popular and relatively high profit industries. Second, the payment method “Pit fee + commission” mode: this is the most common payment method. The pit fee is a fixed fee paid by the brand for the display position in the netroots’ live broadcasting room or content, which is paid to the netroots regardless of the final sales of the product. Commission, on the other hand, is calculated based on a certain percentage of the actual sales amount of the product paid to the netroots. For example, a brand and the head of the netroots cooperation live with goods, paid 50,000 yuan pit fee, and agreed to pay 20% of sales commission. If the final sales of this live broadcast is 1 million yuan, then the brand needs to pay an additional 200,000 yuan commission, for a total of 250,000 yuan in cooperation costs. Pure commission model: for brands whose products have high awareness and market competitiveness. Netroots do not charge pitfall fees, and only get a certain percentage of commission from the sales amount of the product. For example, the popular products of some international famous brands, due to its own traffic and topic degree, the netroots are willing to cooperate in the form of pure commission, expecting to obtain considerable income through the high sales of the products. Like the release of Apple’s new cell phone, if it cooperates with the head netroots to promote it, it may adopt the pure commission model. Additional traffic fees and giveaways: Some netroots will ask brands to invest additional traffic fees on top of pit fees and commissions for boosting live broadcast or content exposure. For example, when Blue Moon worked with the Guangdong couple, the brand invested tens of millions of dollars in traffic fees . In addition, the provision of giveaways is also a common way, the brand needs to provide a certain number of products as giveaways, to facilitate the netroots in the process of bringing goods to attract traffic and enhance the participation of fans. In terms of the payment process, under the live carry mode, brands usually need to pay a fixed live service fee (i.e., pit fee) to the netroots or their affiliates before the live task occurs, and set up a commission ratio with each other on the e-commerce platform. When the live broadcast is over, the commission settlement and payment will be completed on the live broadcast platform with the actual effective sales as the base. Under the short-video celebrity advertising and other content e-commerce operation service mode, the payment method is in accordance with the contract, in addition to settlement through the e-commerce platform, the brand often combines the pre-payment and installment payment to settle the payment with the netizen. Risks and Cautions Pricing Reasonability Assessment: When cooperating with the head netizens, brands should fully assess whether the netizen’s pricing matches the value they bring. It should not only look at the popularity and number of fans, but also take into account the effect of past cooperation cases, the degree of fit between fans and the brand and other factors. Avoid overpayment of cooperation fees, resulting in an imbalance of input-output ratio, affecting the overall marketing effectiveness of the brand. Payment security: No matter which payment method you choose, you should ensure the security and legality of the payment process. Sign a detailed cooperation contract to clarify the rights and obligations of both parties, including the payment amount, payment time nodes, payment methods, breach of contract and other key terms. In the payment process, try to choose a formal and guaranteed payment platform to avoid financial losses or cooperation disputes due to problems in the payment process. Data authenticity verification: The fan data, interaction data, and sales data provided by Netflix may be false. Brands should verify the data in the cooperation process through third-party data monitoring platforms or their own data analysis teams. Ensure that the fees paid are based on real and effective data performance to avoid suffering losses due to falsified data. In short, to cooperate with China’s head netizens, it is necessary to consider a variety of factors in pricing and payment, and make decisions carefully in order to realize the mutual benefit and win-win situation between brands and netizens.