Managing compensation & logistics

While the value of incentive is the thing that’s usually most at the forefront of companies’ minds when entering into business negotiations, there are other factors that you have to take into account when setting up a collaboration with an influencer.

3.4. Managing compensation & logistics

Invoices

Invoices are valuable to both you and the influencer, as they show the amount, date and other important information about any payment transactions between the parties. They’re also a way to keep track of income and expenses.

Planning for invoices

Who issues the invoice?
The influencer. In some situations, large companies may have templates that they provide to an influencer to fill out. But regardless, it’s the influencer’s responsibility to bill for their services. If you’re working with a full-time influencer who has a manager, this process will already be familiar to them. Keep in mind that if the collaboration is paid only in product, an invoice isn’t necessary. And for some minimal fees, often when working with nano or micro influencers, the brand may opt to just pay them without invoices.


When will the invoice come?
You may speak with influencers who want you to pay them upfront, or half upfront and half after. But the majority of collaborations are billed after all the influencer’s work for the campaign has been published.


You’ll usually have 30 days from the issuing date of the invoice to pay it. If you’re going to receive invoices from the influencers working on your campaign, it’s a good idea to straighten out the details during negotiations to make sure that everyone is on the same page and both parties can plan and prepare accordingly.

Issuing a good invoice

To send out an invoice that’s complete and correct, make sure you include the following information:

  • Invoice number - a reference number to identify each particular invoice
  • Issue date - to know exactly when the invoice was sent
  • Sender info - the name of the influencer, tax address, contact email, and tax ID*
  • Recipient info - the name of the business, tax address, contact email and tax ID*
  • Description of services - a description of rendered services and their costs
  • Subtotal - the price before tax
  • Tax rate and total - the tax rate and total tax charged, if applicable
  • Total to be paid - the final amount that needs to be paid
  • Pay-by date - the payment deadline, often 30 days from the issue date
  • Payment method - how the invoice should be paid, for example by bank transfer, PayPal, etc.
  • Bank/PayPal info - any relevant information necessary to make the payment

*Tax ID varies a bit from country to country. In the United States, the two most common tax IDs are a social security number (SSN) and employer identification number (EIN). In Spain, for example, this number is called the código de identificación fiscal (CIF). Check with a certified accountant in the relevant country to ensure that you’re correctly handling any and all tax issues.

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Logistics

In the majority of collaborations, influencers receive products from the brand they’re working with. But, moving physical objects requires additional time and labor. This is where logistics comes into the game.


Shipping basics

There are some different ways you can send products to influencers:

A voucher - send the influencer a voucher for the agreed-upon value, and they can later use it in your physical or online store


A shipment - physically send the influencer the product (maybe it’s a specific product for the campaign, or maybe you let them choose what they like from a catalog)

The second option obviously includes shipping & handling. There are a multitude of companies out there that can handle all your shipping needs - FedEx, UPS, SEUR, DHL, etc. Compare them and decide which works best for you and which operates in the area you need to reach. Always make sure the shipping company gives you a tracking number so you can ensure that the product arrives.

Tips for good logistics

If you’re working with many influencers, use vouchers. They can buy what they like and it’s less stressful for you. However, if you’re working with just a few influencers, take the time and effort to send them the package. And if you can personalize it in some way, all the better. The influencer is likely to publish more if they see that you’ve put time into your package.


Once you’ve shipped out the product, notify the influencer that the package is on its way, and tell them approximately how long it should take to arrive.


If the package doesn’t arrive, check the tracking. You may want to give the influencer the tracking number so they can watch out for the package. Or you may need to contract your shipping company to sort out any issues. Check to see if the package was delivered to a pickup point. If the influencer doesn’t receive the package and it’s sent back to you, assess the situation and decide if it’s worth sending out again.

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