I’ve been working with a few US brands that want to price influencer campaigns entirely on ROI, and it’s way more complicated than it sounds.
Here’s the disconnect I keep running into: brands think ROI means “how much revenue did this generate?” Creators think it means “how much reach and engagement did I deliver?” Those aren’t the same thing, and if you price based on one definition, someone’s going to feel ripped off.
Last month, I worked on a campaign where the creator delivered amazing engagement metrics—40% higher engagement rate than average for their tier. By creator standards, that’s exceptional performance. But the brand’s sales team said the conversion rate was lower than expected, so they didn’t want to pay more.
Who’s right? Both of them, kind of. The creator nailed their part (attention and engagement). The brand’s conversion funnel just wasn’t optimized for the traffic the creator drove.
I’ve been thinking about this as a problem that needs a clearer framework. What if ROI-driven pricing worked like this:
Tier 1 (Creator-Focused ROI): Pay based on reach and engagement metrics. Creator gets paid for doing their job—driving attention. This works for awareness campaigns where conversion isn’t the immediate goal.
Tier 2 (Shared ROI): Pay based on traffic driven to a tracked link, conversions, or other measurable action. Creator and brand share upside if performance exceeds baseline. This requires proper attribution tracking.
Tier 3 (Brand-Focused ROI): Pay based entirely on sales generated or other business outcome. Higher risk for the creator, but potentially higher upside. Only works with products that have clear, trackable conversion.
The key insight is that you can’t use the same ROI definition for all campaigns. Some are awareness plays where engagement IS the ROI. Others are direct response where sales are. And most are somewhere in between.
I started proposing this framework to brands and creators, and it actually opens up the conversation. Instead of arguing about what ROI means, we decide upfront which tier we’re operating in, and price accordingly.
What’s your experience? Do you use ROI-based pricing, or do you find it too complicated to implement at scale?