Organic vs. Paid Influencer Partnerships: Which is Right for Your Business?
One of the biggest changes to the media landscape over the past decade has been the rise of influencers. Influencers are the new editors! The word “influencer” typically makes people think of a blogger or LTK fashionista, but thanks to social media and platforms like Substack, an influencer today can be anyone from a small business owner to an interior designer.
While the mega influencer (1 million+ followers) is typically out of reach for a small business to partner with, micro and nano influencers can be incredibly impactful.
An influencer can put your business on the map, give credibility, and introduce your brand to potential customers – ultimately leading to sales. There are two main options for structuring an influencer partnership: organic and paid. Each approach has its pros and cons and understanding them will help you determine which one is the best fit for your business. Let’s dive in!
Inside our membership we give a full lesson on influencer partnerships + templates for your outreach. Join now and get access to our Live Q&A later this month with a special influencer guest!
Organic Partnerships
What Is an Organic Influencer Partnership?
An organic influencer partnership happens when an influencer promotes a product or service without monetary compensation. These are typically coordinated by gifting product or a service to an influencer. Specific deliverables might be requested in exchange, such as images or posts, or something might be gifted in hopes that they will want to share it. Organic partnerships are the most accessible, affordable option and often where we advise a new or small business to focus their influencer marketing efforts.
Pros of Organic Influencer Partnerships:
Authenticity - These partnerships feel more genuine to audiences since the influencer is sharing your product voluntarily, without a #ad. It gives their followers the impression that they truly love your brand
More affordable- Organic partnerships are less costly while it requires gifting goods/services to try, there is no monetary exchange upfront
Long-term relationship building - If an influencer genuinely loves your brand, they may continue to create mentions and agree to future collaborations without the need for monetary compensation
Cons of Organic Influencer Partnerships:
Limited control - Less control over if, how and when an influencer promotes a business
Unpredictable results - Without a formal agreement, there’s no guarantee that the influencer will post or post on a specific day/time
Limited Usage Rights – Restrictions on the content created and how it can be used
Paid Partnerships
What Is a Paid Influencer Partnership?
A paid influencer partnership is a financial agreement where an influencer is compensated for promoting a product or service. These tend to be coordinated with formal agreements/contracts that outline deliverables, timing and usage rights. The amount of compensation will depend on the influencer’s following, rates, and the scope of deliverables and usage rights. For example, being able to use an influencer’s content in perpetuity or for paid ads will likely be a higher rate.
Paid influencer partnerships are often out of reach for small businesses, but when there is budget, these structured partnerships can be very beneficial.
Pros of Paid Influencer Partnerships:
Control over messaging and content - Since there is a payment and contract, clear guidelines can be given on the messaging, content and timing of the posts
Guaranteed posts and deliverables - Instead of hoping for the best, there is the ability to request specific deliverables in advance
Secures usage rights – A formal contract will outline usage rights over any agreed upon content
Cons of Paid Influencer Partnerships:
Cost - Paid partnerships can be expensive, especially when working with mega influencers or celebrities
*Pro Tip: as a small business, focus on niche, nano-influencers (under 10k followers)
Less authentic - Some followers may view paid promotions as less authentic since they typically have #ad or other promotion disclosure copy
This month inside our membership we are doing a deep dive on how to coordinate partnerships, both from a brand perspective as well as from a content creator/expert perspective. Want to learn more? Sign up here and get access to our special influencer guest Q&A!
~ Carla and Kathryn
