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Brand Ambassadors -- What is a fair compensation?

What is a fair revenue sharing plan (what % of net sales over what period of time)? What is a fair range of equity to offer (vesting over what period of time)? This is for a consumer (beauty) product. Any sample agreements around this would be much appreciated. Thanks in advance!

4 Replies

Aleksey Klempner
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Aleksey Klempner Entrepreneur • Advisor
Entrepreneur, Executive, Angel Investor
I would just give them a promo code where they earn $$ per sale. How much would depend on your unit economics and CPA. No equity. ICA and W-9 should be used so you can report on their earnings EOY.
Matthew Brown
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Matthew Brown Entrepreneur
Advisor, Contractor, Seeker of Truth
Hello Peter, This comes down to your individual business plan, how much overhead does it take to run your company & what sort of marketing budget do you have? You can not just ask, what is fair, without deciding what is first fair for you, what sort of ROI are you looking for here? Do you have previous CPA information that you've run? Just because an influencer has 1,000,000 subcribers, does not make them more valuable than someone with 100,000 subs. the niche & audience engagements are very important as well. When it comes to numbers i've seen, I typically see a 15 - 30% rev-split, now where this revenue is coming from, being gross or net, I do not know, that's up to you to decide. My rule of thumb is, a safety precaution if you will, just estimate that the Influencer will have an average conversion range of 0.3% - 3% then push forward. Good luck! , Matthew Brown
Leslie Robert Wolfe
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Leslie Robert Wolfe Entrepreneur
Founder - ThunderAccessNews.com ... Commissioner, Chamber Of Commerce Network
Basically, your making people an affiliate. Any sales they refer is "found money." Get as many as you can ...
John Mousseau
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John Mousseau Advisor
Proven Management & Marketing Consultant | I Focus on My Passions So You Can Focus on Yours.
Hi Peter. From my experience having worked in the experiential/event marketing industry on the client and agency side for 20+ years, using brand ambassadors to help generate awareness for your brand can be a smart tactic if done right. BA's are an extension of your brand so selecting so who they are and paying them accordingly is critical. In my experience, you get what you pay for so offering BA's a revenue share only plan is a risky proposition that I wouldn't recommend. It could work if you know the BA's personally and they are willing to take the risk with you because of a prior relationship. If not, I think getting committed BA's will be a challenge. I'd be happy to talk to your more about this to let me know and we can arrange to talk.
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