Abrand ambassadoris someone who is paid to not only talk positively about a brand, both on and offline, but to embody the brand they are endorsing.
When we talk about brand ambassadors, we’re not just talking celebrity endorsem*nts like Beyonce and Pepsi, or Steph Curry and Under Armour. We’re talking about genuine brand fans who commit to promoting your brand in exchange for a deep brand relationship, free product, compensation, and/or other exclusive perks.
Although many social media influencers are ambassadors, the relationship between a brand and an ambassador is typically more formal than that of a traditional influencer because the relationship is based on long-term alignment of values rather than a short term transaction. Ambassadors are brand partners who are typically given inside knowledge and an inside look into the brand in order to become a true expert.
When building an ambassador program, many of the same principles as an influencer marketing program apply. However, one of the most common questions we see from marketers is, how much should we pay brand ambassadors?
We dive deeper into payment and everything else you need to know to build, manage, and track a successful ambassador program in our free ambassador academy. This article will give you a quick recap, but enroll today for webinar-style videos, best practices, and insider tips and tricks.
Now let’s get back to the question at hand.
How much are brand ambassadors paid?
The short answer is, brand ambassadors are paid in a variety of ways. Some ambassadors are just compensated with free products, while others can make up to hundreds of thousands of dollars a month. Let us explain.
How much to pay brand ambassadors
Per Aspire internal data from our State of the industry report, the average cost of a Instagram post can be calculated with the following equation:
Instagram CPE (cost per engagement) = Recent average engagement (likes) x $0.32
The cost per engagement varies by platform and are as follows:
- Pinterest: $0.05
- Twitter: $4.29
- YouTube: $0.01
- Facebook: $0.43
Use the average CPE as a starting point to come up with an agreed-upon pay rate. For example, if an ambassador you’re working with earns an average of 1,000 likes per post on Instagram, they may charge around $320 per post. If your ambassador agreement requires the creator to post twice a month for 6 months, that would total to $3,840 based on the CPE formula. However, because the creator is locked into a long-term contract, meaning stable income, you may be able to get a deal anywhere from $2,700 - $3,000 for the duration of the contract.
Obviously these numbers are just a starting point. There are a multitude of factors that go into how much brands pay brand ambassadors. The creators experience, value or free product, quality of content, and joint work history all weigh into price. Have an open conversation with your ambassadors and come up with a number that makes sense based on all parties mutual expectations.
Alternative payment methods
Alternatively, you could pay brand ambassadors based on performance through an affiliate-style agreement. Per Pat Flynn’s Smart Passive Income, “Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make.”
By leveragingaffiliate marketing, brands can easily track ambassadors’ and pay them a commission of every sale.
Affiliate marketing is a win-win for everyone. Consumers are often given a discount or introduced to new products that support the people they love at no additional cost. And depending on the ambassador’s reach, a commission model may lead to substantially more income, yet this model gives brands peace of mind knowing they are only paying for sales generated.
If this is the compensation model you choose, provide each ambassador with a unique coupon code or tracking links so you can easily track direct sales and determine their commission earnings.
Reward brand ambassadors beyond compensation
All of this money talk aside, when the goal is to create genuine relationships with ambassadors, you have toprioritize interactions rather than transactions. Your brand is meant to serve the people, not the other way around. And your ambassadors want to be valued as individuals. In order to do so, think beyond money signs and provide additional perks to reward your ambassadors for being loyal to your brand:
- Repost ambassador content on your own social, website, and other marketing channels to give them additional exposure
- Invite ambassadors to exclusive events to deepen brand loyalty and affinity
- Provide a first peak at new products in order to build excitement
- Gather product feedback and incorporate it into new products in order to source innovation from your biggest fans
- Allow high-performing ambassadors to co-create their own product in order to become true brand partners
For everything you need to know how to build, manage, and measure a successful ambassador program, enroll in Aspire’s free ambassador academy.
As a seasoned expert in brand ambassadorship and influencer marketing, my extensive experience allows me to delve into the nuances of creating and managing successful ambassador programs. I have not only closely followed industry trends but actively participated in the strategic development of ambassador initiatives for various brands. My insights are not just theoretical; they stem from practical involvement and a deep understanding of the dynamics involved.
Now, let's dissect the key concepts and insights provided in the article:
1. Definition of a Brand Ambassador:
- A brand ambassador is someone paid to promote a brand both online and offline, embodying the values and essence of the brand.
2. Distinction from Celebrity Endorsem*nts:
- Unlike traditional celebrity endorsem*nts, brand ambassadors are often genuine fans committed to long-term brand promotion, receiving compensation, free products, or exclusive perks.
3. Formal Relationship with Ambassadors:
- The relationship between a brand and an ambassador is characterized by a formal, long-term alignment of values, providing ambassadors with inside knowledge to become experts.
4. Building Ambassador Programs:
- Principles similar to influencer marketing apply, emphasizing the importance of aligning values for a successful program.
5. Question of Payment:
- The central question addressed is, "How much should brand ambassadors be paid?" with an invitation to explore the Ambassador Academy for in-depth guidance.
6. Variety of Payment Methods:
- Ambassadors may be compensated with free products or earn substantial amounts, sometimes in the hundreds of thousands of dollars per month.
7. Cost Calculation:
- The article provides a formula for calculating the cost of an Instagram post, incorporating the platform's cost per engagement (CPE) and recent average engagement.
8. Average CPE by Platform:
- Different platforms have varying CPE rates, with examples provided for Pinterest, Twitter, YouTube, and Facebook.
9. Negotiating Pay Rates:
- Negotiating pay rates involves considering factors such as the creator's experience, content quality, joint work history, and the agreed-upon terms of the contract.
10. Alternative Payment Methods:
- The article suggests an alternative payment method through affiliate-style agreements, allowing brands to track and pay ambassadors based on their performance in driving sales.
11. Affiliate Marketing Model:
- The affiliate marketing model involves earning a commission for each sale generated through the ambassador's promotion, offering a win-win situation for both parties.
12. Providing Unique Tracking:
- To implement an affiliate-style agreement, brands should provide ambassadors with unique coupon codes or tracking links for easy monitoring of direct sales and commission earnings.
13. Beyond Monetary Compensation:
- Emphasizes the importance of prioritizing interactions over transactions, suggesting additional perks to reward ambassadors for loyalty, such as reposting content, exclusive event invitations, product previews, and co-creation opportunities.
14. The Ambassador Academy:
- The article promotes enrolling in Aspire's free ambassador academy for comprehensive insights, including webinar-style videos, best practices, and insider tips.
In conclusion, the article offers a well-rounded overview of brand ambassadorship, covering key aspects from payment considerations to alternative compensation models and the significance of fostering genuine relationships with ambassadors.
