You're faced with an influencer demanding a higher fee. How do you handle the unexpected negotiation twist?

First think why they arrived at the price they arrived at. Was it arbitrary? Was it the price they’ve received before from tougher brands? Is it what their manager has told them they should charge? Once you know this - it is more clear how to move forward.

When an influencer asks for a higher fee, start by evaluating whether their new rate aligns with their performance and impact. For example, if an influencer with a massive following and high engagement rates is asking for more money, their request might be reasonable. Next, talk with them to understand why they’re asking for more. Maybe they’ve grown their audience or offer additional services now. Check your budget to see if you can afford the increase. If not, you could negotiate other benefits or alter the campaign’s scope to make it work. For instance, if your budget doesn’t stretch to their new rate, you might offer extra exposure or a longer campaign instead.

When an influencer demands a higher fee, first reassess their value to your campaign by evaluating metrics like audience engagement, content quality, and brand alignment. Consider if their unique contributions justify the increased cost. Analyzing not just their follower count but also engagement rates and audience demographics provides a comprehensive view of their worth, enabling informed decisions on whether to meet their price or initiate further negotiations.

When facing an influencer demanding a higher fee, start by emphasizing the principles of supply and demand. Explain that the current market is saturated with influencers, making it a highly competitive environment. Highlight that while their work is valued, there are many other influencers available. Offer to explore alternative compensation models, such as performance-based pay or long-term collaboration, to find a mutually beneficial agreement. This approach balances respect for their demands with market realities.

I shouldn’t really be saying this but most influencers suffer from poor deal flow, so them countering with an inflated price is usually a bluff to end up settling on a slightly higher, yet nonetheless higher price. I would recommend maintaining price, and perhaps explaining how you reached your initial price offer.

When faced with an influencer demanding a higher fee, maintain flexibility in your negotiation approach. Assess your budget for possible adjustments and consider compromises such as modifying the scope of work or extending payment terms. Proposing a performance-based payment model can also align interests by linking additional compensation to specific campaign results. This strategy demonstrates your appreciation for the influencer’s work while protecting your financial resources.

Clear communication is important when negotiating with an influencer. It helps build a strong partnership and reduces conflicts, leading to a smoother collaboration.

If you have a thorough and complex pricing model - likely you will be alone in this case. In most cases influencers will arbitrarily pick a number that “sounds good”, so if you arrive with, and explain a more competent model, you will likely have much more negotiation power.

In most if not all cases, influencers are highly replaceable - in the sense that there will be someone nearly identical to them in audience size, audience demographics, etc. I highly suggest shopping around.

Anticipate future negotiations by setting crystal-clear contract terms from the start. Outline deliverables, payment, and scope in detail, and stay updated on market trends. This proactive approach helps you avoid surprises and ensures you're ready for any fee increases down the line.