How Much Do Influencers on China's Taobao Live Charge for Brand Collaborations?
When it comes to influencer marketing in China, it’s essential to get the pricing correct from the start of any contacts with influencers. A recent report published on Baoliba indicated that China’s Taobao Live influencers earn an average of $2,000 per post. The report also indicated that over 70% of top influencers earn over $4,000 per post.
Many Western brands have used various strategies to enter the Chinese market, including high-profile partnerships with KOLs (Key Opinion Leaders). But they have often had difficulty navigating the complexities of pricing and contracts pertaining to KOL collaborations.
So, let’s look at how Taobao Live influencers use pricing strategies to determine their fees for collaborations with brands.
💰 Pricing Strategies for Brand Collaborations
Taobao Live influencers utilize a variety of strategies when determining their fees for collaborations with brands.
🪙 Base Price
A base price is the essential fee an influencer will charge for collaboration activities. The base price for Taobao Live influencers can vary significantly depending on the influencer’s reach and engagement metrics.
According to a survey conducted by Baoliba, the average base fee that KOLs on Taobao charge was $1,263 per post as of 2023.
The price per post can be affected by the drive time of the live stream, during which viewers can engage with the influencer and ask questions about the products the influencer is trying to sell.
For instance, a celebrity influencer with millions of followers may charge $4,000 or more for a single live stream that lasts over 3 hours.
🛍️ Other Pricing Charges
In addition to the base price, other pricing charges can be associated with brand collaborations.
For example, many Taobao Live influencers charge extra for additional promotional content outside of the main live stream.
This may include promotional posts on Weibo, which has over 570 million active users. Influencers may also charge extra for sponsored content on Douyin, or TikTok as it’s known abroad.
An influencer with a sizeable following may charge an additional $400 to $600 for posting 2 promotional posts on Weibo.
💵 Commission Based Pricing
Another pricing strategy utilized by Chinese influencers is commission-based pricing.
In this case, there would likely be little or no base price charged. Instead, the influencer would earn a commission for every sale they were able to generate.
On Taobao, many influencers use affiliate links that direct viewers to the site when users click on a product being promoted and then make a purchase.
These affiliate links enable the influencer to earn a commission of anywhere from 10% to 50% on products sold.
For example, if a product costs $100 and the influencer has a 20% commission on sales, they would earn $20 for each sale they generate based on purchases made through their affiliate link.
While commission-based pricing may have less potential for higher earnings, it can be ideal for smaller influencers with lower reach and engagement metrics.
🛒 Cost Per Action Pricing
Cost per action, or CPA pricing, is another viable option for pricing collaborations among Taobao Live influencers.
In CPA pricing, the influencer is paid for taking specific actions that a brand wants, such as posting promotional videos on Douyin or Weibo.
Because brands often want influencers to promote their products on several platforms, this pricing strategy can sometimes work better for everyone involved.
For example, some influencers may agree to receive a higher commission if they provide other promotional services, such as posting promotional videos on Douyin and Weibo.
📊 Survey Results
According to a survey conducted by Baoliba, the average extra payment charged by Taobao Live influencers for extra promotional content was $429 per post.
The survey found that the majority of Taobao influencers preferred to use commission-based pricing, as this resulted in earning an average of $1,031 per post.
Overall, CPA pricing provides both brands and influencers with a more flexible payment structure.
📉 Flat Rate Pricing
Flat rate pricing is another method that Taobao Live influencers may use to determine their fees for collaborations.
With flat rate pricing, the price is not affected by conversions or the number of sales generated. Instead, there is a set price agreed upon at the outset of the collaboration.
This pricing method is often more attractive to brands who want to control their costs more effectively.
Flat rate pricing can also be ideal for the influencer. For example, if an influencer is able to sell out a company’s entire inventory from a single promotion, they will earn a handsome payday.
🔥 Custom Pricing
Some Taobao Live influencers may also use custom pricing based on each brand collaboration.
This can be especially true for celebrity influencers.
Custom pricing allows influencers to charge what they think they are worth based on their follower counts, market niches, and audience engagement metrics.
For example, according to Baoliba, brand collaborations with celebrity influencers typically cost over $16,000 for a single live stream.
🌟 Results from a Recent Survey
In a recent survey conducted by Baoliba, 83% of respondents said they would charge a flat price for collaborations with brands, while 49% said they would be open to custom pricing.
The survey found that only 25% of respondents currently had a pricing structure that was based on the cost per action model.
📝 Pricing Metrics Used by Taobao Live Influencers
According to Baoliba, pricing metrics used by Taobao Live influencers can vary.
As shown in the graph below, 82% of Taobao Live influencers use follower count as an important metric when determining their fees for collaborations with brands.
59% of influencers consider the average number of viewers during previous live streams, while 40% consider audience engagement metrics.
👩🏫 Converting to a Western Pricing Model
Although Taobao Live influencers have adopted several methods to determine their fees, many Western brands are still unfamiliar with these pricing strategies.
This can lead to a disconnect between Taobao Live influencers, who are accustomed to charging in RMB, and Western brands, who want to pay in dollars or Euros.
When negotiating with Chinese influencers, it’s best to remember that their pricing may feel foreign or even exorbitant at first.
However, there are a few things that brands can do to ease the transition to this new pricing model.
📊 Use a Pricing Comparison Tool
One way to gain a better understanding of the costs associated with influencer marketing in China is to use a pricing comparison tool, such as the one available on Baoliba.
This tool has been developed specifically for Western brands that want to work with Chinese influencers.
The pricing comparison tool compares Chinese and western influencer marketing pricing models. This will provide you with a better idea of how to structure your pricing model when negotiating with Taobao Live influencers.
🤝 Work with a Global Influencer Marketing Platform
Working with a global influencer marketing platform that specializes in Chinese influencer marketing is a wise move that will save brands time and money.
Baoliba is one such platform that specializes exclusively in connecting Western brands with Chinese influencers for influencer marketing campaigns.
Baoliba has an extensive database of Chinese influencers on Taobao that brands can filter by their target demographics. Brands can also get estimated pricing strategies before reaching out to influencers.
Baoliba also manages all payments, which helps to alleviate any issues with currencies and payment processing.
🌻 Conclusion
China has become a dominant force in the worldwide influencer marketing space. Increasing your exposure to Chinese markets via Taobao Live influencers can produce significant returns for brands.
However, brands should have a better understanding of how pricing works among Chinese influencers, especially when it comes to Taobao Live influencers.
By learning how Taobao Live influencers price their collaborations with brands and working with a global influencer marketing platform like Baoliba, brands can maximize their chances for success with influencer marketing campaigns in China.
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