1. Your brand’s reputation

Large, well-known international brands that have high brand awareness in China tend to have an easier time negotiating with KOLs than niche brands or those that are new to the market. Why? Because a larger brand has an established reputation, and that makes the KOL’s job easier. Consumers also have some trust in the brand and will be more easily influenced by the KOL’s content. And for micro or mid-tier influencers, collaborating with household brands satisfies their vanity and heightens their own reputation.

2. Whether the product fits their niche 

If your product is related to the KOL’s area of expertise and is a natural fit, it will be easier for them to create content surrounding it. Their audience will be receptive to that content, and the influencer will have to do less to ensure the post performs well. While they may be able to create content about products outside their niche, it takes a lot more effort and they will risk a backlash from their audience if they appear to be “selling out”. In those cases, they are likely to charge more.

3. The cost of the item

Luxury brands willing to gift a product generally have an advantage when it comes to negotiating content prices. Depending on the cost of the item and the prestige of the brand, KOLs may be willing to barter with the brand, sometimes even foregoing a fee entirely or providing a steep discount if it is an item they covet. If the item must be returned after the campaign or the influencer has to create content purely based on images, the cost is likely to be much higher.

4. Content format requirements

This depends on the platform. Certain types of content take much more effort and cost more. Photo posts on the social media and e-commerce platform Xiaohongshu (aka Red) tend to cost less than video posts. The videos are limited to 60 seconds in length, leaving KOLs to figure out how to communicate lots of information and convert fans into customers in a short time. Unlike Weibo and Douyin, where a brief text typically accompanies video posts, videos on Xiaohongshu are often followed by 500-1,000-word articles.

5. Requirements for how the product must appear in the content 

Content that is all about one product or brand appears less natural, and KOLs must work harder to gain the trust of viewers, as opposed to a post that integrates a product with other products. It is highly unlikely that a fashion influencer would suggest to her followers to dress themselves head-to-toe in only one brand, so combining a brand’s items with other pieces to create a look will come across as more authentic. The most popular posts on Xiaohongshu are those which compare products with similar items from different brands. While the KOL might eventually recommend readers buy one brand, it would make a more realistic argument if the KOL is able to explain why it is better than the competition.

6. KPIs

Expectations and requirements for campaign results may also affect how much the influencer charges. Success measured by click-through rates and driving sales puts more pressure on the KOL than brand awareness related to KPIs, such as impressions or engagement, as long as the brand has realistic expectations.

KOL marketing in China is expensive, as the KOLs devote much time and effort to produce content and develop their audience. But if you can understand what factors KOLs consider when determining their quotes, you can ensure that your brand isn’t spending more than it should.

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