Behind the Scenes of Influencer Management

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SushiVid works with more than 6,000 influencers a year, and we often deal with talent managers along the way. This e-book looks at what working through a talent management agency really costs compared with going direct, whether managed influencers perform better, and when a talent manager is worth it. You will see real rate comparisons, engagement data and practical advice for agencies, brands and influencers.

Why we looked into talent managers

Some talent managers are fantastic partners. Others are harder to work with than the influencers themselves. Setting work ethics aside, we have seen cases where an influencer gives us their direct rate while also being signed with a talent manager. We wanted to understand when to use a talent manager's KOL and when to engage the influencer directly.

Some of what follows may be controversial. Our aim is purely educational: we want to add to the industry's knowledge, not to harm anyone.

How we define influencer tiers

KOLs (Key Opinion Leaders) are sometimes used interchangeably with the words influencer or creator. For this e-book we grouped influencers into these tiers:

• Micro tier: 10,001 – 50,000 followers
• Mid tier: 50,001 – 100,000 followers
• Macro tier: 100,001 – 300,000 followers
• Alpha tier: 300,001 followers and above

Do you go direct, or through the talent management agency?

When we work with talent management companies, we try to respect their authority over their influencers and avoid contacting those influencers directly. But sometimes our team reaches out to an influencer first, only to find out later that the same influencer is also represented by a talent manager.

We evaluated six agencies and their KOL lists. We found that some influencers are simply "added" to a roster without being "exclusive".

Table 1.1: KOLs under different talent management agencies, and whether they can be contacted directly.

How much more do talent management agencies charge?

SushiVid has an average rate for each tier. The rates quoted by talent management agencies are much higher. This may include their charges for management, shooting and other benefits. But it can also hurt the KOL: if their rates are too high, they may get fewer jobs.

Table 1.2: Average Instagram Reels rates from 6 talent management agencies compared with SushiVid's rates (in RM).

Brands should weigh the pros and cons of each approach and choose the KOLs that best fit their needs and objectives.

Direct rates vs talent management rates: a side-by-side comparison

We then compared the cost of engaging influencers directly with the cost of going through a talent management agency or an individual manager. On average, influencer rates were about twice as high when quoted through talent management than when negotiated directly with the influencer.

To keep this anonymous, the influencers below are not connected to the talent management companies in Table 1.1. Please do not draw conclusions about any individual.

Table 1.3: KOL rates from talent management agencies compared with direct rates (IG Reels).

Where the money goes

When we work with an influencer through a talent manager, the client pays SushiVid 100% of the cost. Of that, SushiVid keeps 20% as a management fee, the talent agency receives 40%, and the influencer earns the remaining 40%. So when is that justified?

Are managed influencers better quality?

In Table 1.4 we compare influencers managed by talent management companies with influencers of a similar category, race (for a similar audience) and size from our platform. We then compare both with the platform's average engagement rate for that tier.

Table 1.4: KOL rates with and without a talent management agency, and SushiVid's average rate.

As the table shows, influencers managed by talent management companies do not necessarily deliver better engagement.

Do talent management companies help you become more famous?

From a brand's perspective

Why should we pay more for an influencer managed by a talent management company if their engagement is no higher than the average, or than another influencer of the same size?

From an influencer's perspective

This is where things get unclear. You need to understand exactly what your talent manager offers. If they help you secure jobs, they are not just a talent manager but an influencer marketing agency. If their job is to manage your calendar and all communication with brands, they are essentially your personal assistant, and should be paid from your overall fee rather than on top of it.

What a great talent management company can do: the "Little Apple" example

A really good example is Prodigee Asia, which has shown it can consistently create trends that go viral across the region. The original music video for "Little Apple" (Xiao Ping Guo) was recreated by artists such as Shaun Gibson, used as a dance mob song on Sports Day, performed in concerts and featured on TV shows in several languages, including English, Mandarin and Korean. One music video, adapted across many countries:

• Little Apple official music video: 4,087,368 views (18 Sept 2014)
• Shaun Gibson version: 9,024,665 views (24 Jul 2014)
• Dance mob: 1,844,211 views (11 Dec 2015)
• TV show performance by SNH48: 7,777,751 views (28 Feb 2020)
• Live stage performance by T-ara: 10,293,338 views (8 Dec 2014)

This is the true power of a Multi-Channel Network or talent management company: it can turn you into a celebrity through its network.

SushiVid's long-standing, trusted talent management agencies

Table 1.5: Long-standing, trusted talent management agencies.

Should you use talent managers, and how do you use them well?

As an agency

When we engage talent management agencies, we always ask whether the influencer is exclusive, to avoid misunderstandings. We also make sure they sign a vendor agreement with us and follow our pricing standards. When talent managers charge excessive fees, we avoid them where possible to help clients save costs.

As a brand

Only engage talent management agencies when a specific need comes up. For example, if you need gamer influencers, Galaxy Racer would be a good choice. Otherwise, choose an influencer marketing agency that is influencer-agnostic, so it puts the most impactful influencers on your campaign without bias.

As an influencer

Review contracts carefully before signing with a talent management company. Get references not only from influencers it currently manages, but also from influencers who have left the agency.

Our mission

At SushiVid, our mission goes beyond delivering great campaigns for clients. We want to move the industry forward through data-driven innovation and help set standards in a field built on human relationships. Agencies often play several roles, and people wear many hats, including freelance work. This shift is inevitable as we move into a post-pandemic norm with more remote work. Through it all, our aim stays the same: impactful work that delivers the best ROI for our clients.

Work with SushiVid

Want influencers chosen on merit, at fair rates? See how SushiVid runs managed influencer marketing campaigns, or check current market rates in our influencer marketing cost guide for Malaysia. Creators can join SushiVid here.

Frequently asked questions