I’ve been thinking about a problem that costs me sleep: I allocate money to influencers based on their follower count or my gut sense of fit, and then I… hope it works. I pay the full fee regardless of whether the campaign actually moves the needle.
That feels backwards. Every other marketing channel I run is tied to outcomes—paid ads have ROAS targets, email has conversion benchmarks, even organic team goals are pegged to engagement metrics. But influencer work is this weird gray area where I’m paying for “posts” or “reach,” and the actual result is treated like it’s unknowable.
I started researching performance-based models, and it seems like some brands are building contracts where influencers get a base fee + bonus for hitting engagement targets, or commission on actual sales attributed to their posts. Makes sense in theory. But in practice, I’m not sure how to structure this without either:
- Underpaying creators (they’re not going to accept low base fees)
- Buying crappy performance targets (setting a 3% ER target when they can reliably hit 8% is a bad deal for them)
- Creating infrastructure overhead I don’t have (tracking attribution, managing variable payments)
The brands I know who’ve pulled this off seem to have figured something out about how to set realistic targets, price the base + bonus fairly, and actually track performance without losing their minds.
How do you actually design a performance-based influencer budget that creators are excited about and that actually incentivizes good work instead of just gaming metrics?