Q&A: How PartnerCentric’s Innovative Tool Aims to Equalize Influencer Earnings and Combat Commission Poachers
As of late, social media content creators are not earning as much as they seem. Based on a study published in the Wall Street Journal, about 48% of creators earn less than $15,000 a year, and only 13% earn more than $100,000 a year. A number of commission poachers unjustly claim credit for sales that they don’t deserve by claiming as much as 33% of commissions.
PartnerCentric’s tool, Conversion Origination, is designed to combat this issue by accurately identifying the true driving forces behind sales, thereby ensuring fair compensation for those who authentically contribute to conversions.
In an exclusive Q&A interview, we had the opportunity to speak with Stephanie Harris, the founder & CEO of PartnerCentric, to delve into the intricacies of navigating the Partner and Creator Economies and to gain valuable insights into upcoming industry trends.
How does PartnerCentric’s new technology aim to address the issue of ‘commission poachers’ in the influencer marketing space, and what impact could this have on influencer marketing spending?
For too long, ‘Commission Poachers’ have been claiming credit at the final stage of the conversion process, unfairly taking commissions for sales they didn’t drive. Our latest feature, Conversion Origination, accurately identifies which publisher, affiliate, or influencer genuinely generates each sale and distinguishes them from those who falsely claim credit. PartnerCentric’s patented commission orchestration platform, FUSE Precision, ensures that commissions are fairly distributed to the rightful partners. This technology empowers marketers by providing a transparent view of campaign effectiveness and making data-backed decisions on where to allocate their budgets.
Given that only 13% of creator-earners make more than $100,000 annually, how does PartnerCentric’s Conversion Origination feature ensure that commissions are equitably allocated to influencers who genuinely drive sales?
Conversion Origination eliminates uncertainties about who led a shopper to make a purchase, while FUSE Precision ensures commissions are correctly allocated to the deserving influencer, affiliate, or publisher. Influencers are focused on creating consistent content for their followers and brand partners and may unknowingly miss out on earned commissions. Commission Poachers often claim an average of 26% (and up to 33%) of marketing spend by entering the purchase journey at the last moment, capturing earnings that rightfully belong to the original content creators.
In what ways could the equitable allocation of commissions, facilitated by PartnerCentric’s new tech, influence the decision of brands to invest more in influencer marketing?
This technology puts the power back in the hands of the marketers by offering a transparent view of their campaign effectiveness, clearly identifying which influencers and actions generated the most revenue, conversions, new customers, and returning customers. Simply, marketers can take budget from wasted spend, such as commission poaching, and allocate those dollars to more productive and incremental partners.
How might PartnerCentric’s FUSE Incrementality and Conversion Origination features help close the earnings gap between high-earning and lower-earning influencers?
PartnerCentric’s FUSE Incrementality and Conversion Origination features help close the earnings gap between high-earning and lower-earning influencers by providing precise data on the true impact of their efforts, enabling them to demonstrate their value and brand appeal more effectively. By proving their role in initiating customer interest and driving conversions, these influencers can negotiate better compensation and partnerships. Ultimately, this data-driven approach empowers lower-earning influencers to achieve higher earnings by aligning their incentives with proven performance.
What strategies can brands implement, alongside using tools like PartnerCentric’s, to ensure fair compensation and recognition for influencers who contribute significantly to their sales?
By establishing clear performance metrics and regularly reviewing influencer data to identify and recognize high performers, brands can implement tiered compensation models that reward influencers based on their proven contribution to sales, brand awareness, and engagement ensuring fair pay for significant impact. Additionally, fostering transparent communication and feedback loops can help align expectations and value recognition between the two.
How could PartnerCentric’s solution identify the true drivers of sales impact the overall transparency and trust in the influencer marketing industry, and what long-term effects might this have on influencer marketing budgets?
In an era where the Creator and Partnership Economies continue to blur, marketers need tech and services that redefine where they should invest their next dollar rather than dwell on past expenditures. Marketers recognize that influencers provide a direct line to the audiences that brands are trying to reach, but are tired of one-size-fits-all partner and influencer recommendations that waste valuable budgets on partners that take credit for work done at the last minute in the customer journey. It’s imperative to drive transparency and accountability to arm businesses with authentic brand-building and growth opportunities.