Why influencers don’t like affiliate programs—and what it means for brands

For brands, influencer affiliate programs have emerged as a key marketing tool. The tactic—where creators are paid on a per-sale or per-lead basis for promoting a brand or its products—has become increasingly popular as brands look to better measure influencer marketing’s impact while cutting costs. It’s a markedly different approach from the traditional influencer marketing payment structure, in which a brand pays a creator an upfront fee for creating content regardless of how that content performs. Read more: Influencer marketing is using affiliate marketing tactics But apparently, creators aren’t as enthusiastic. Nearly 94% of influencers surveyed by influencer marketing agency The Motherhood said they prefer to work for a flat-fee stipend as opposed to a commission-based structure. The Motherhood surveyed 200 creators with a range of audience sizes, from just a few thousand followers to more than 100,000, as part of a report that will be released today. “Influencers are noting more brands approaching them for this type of programming—without negotiating a base rate—and they’re not here for it,” The Motherhood VP of Client Services Deanna Tomaselli said in an email. But many influencers have had to deal with it, which explains why more creators are captioning social media posts with phrases like “use my code INFLUENCER10 for a discount” these days. (The codes are used for tracking where the sale came from.) Check out the latest Ad Age events and award programs What it means for brands “Commission-based influencer partnerships and flat-fee campaigns—or a hybrid compensation model—all can have a place in a brand’s marketing mix,” The Motherhood Executive VP of Operations Brittney Coburn said in an email. Also read: 5 influencer marketing trends to watch in 2024 For instance, offering a base pay in addition to commission could make influencers more enthusiastic about accepting a brand deal. The Motherhood survey found that only 17.2% of creators surveyed are willing to work with brands on an “affiliate/commision-only basis” without a base fee. Just under half of respondents said they might be willing to work without a base fee depending on the commission rate. Are influencers willing to work with brands on an affiliate-basis with an agreed upon commission structure, without a flat fee base? Source: The Motherhood When asked about the minimum commission rate that influencers require for commission-only deals, the most common response—26.7% of those surveyed—said that they are not willing to sign onto a commission-only deal regardless of the commission rate. Minimum commission rates influencers expect for affiliate work This is work done without a base fee Source: The Motherhood Influencers weren’t shy about explaining why they prefer flat-fee compensation to an affiliate model. “The reason I work on a flat fee basis is because even if a sale is not made from someone seeing my content, it is still brand awareness and gets the consumer one step closer to making a purchase,” creator Dest Ramos told The Motherhood. Influencers “just want to be compensated fairly” for the work they’ve done for brands, Coburn said. “Influencer marketing is still relatively young compared to all of the other parts of the marketing mix,” she continued. Essentially, influencers want to ensure that they will be paid for the content they spent time creating for a brand regardless of whether that content generates a sale or lead. There is sometimes “a lack of understanding or lack of education on both sides: an influencer asking for a certain fee because they think that is fair and equitable to them, and then a brand understanding on their side what is fair and equitable … there can be a disconnect,” Coburn said. Part of the disconnect stems from marketers wanting to use influencers as a bottom-of-funnel channel rather than a brand awareness method, she said. “The role of an influencer in an awareness campaign for a new brand obviously differs from that of a creator driving bottom-of-the-funnel conversion for a well-known product or service, so first mapping influencer marketing to where it can make the most impact is essential in determining the engagement and compensation model,” Coburn said. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here

Why influencers don’t like affiliate programs—and what it means for brands

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