What Are the Charges for Collaborating with Influencers on Xiaohongshu in India?

Collaborating with influencers on Xiaohongshu has taken off among many Indian brands. Compared to other platforms, the costs of collaborating with Xiaohongshu influencers are much lower. However, that does not mean you get top results for less money.

The most important thing is to analyze how much Xiaohongshu influencers charge for collaborations and why they charge those amounts.

📊 Content Tiers of Xiaohongshu Influencers

Before we start discussing pricing, it is important to understand the content tiers of Xiaohongshu influencers.

1. KOLs (Key Opinion Leaders)

KOLs are the top-tier influencers on Xiaohongshu. They have a significant number of followers and engagement rates. However, they have very strict guidelines on collaborating with brands. They vet the brands carefully before agreeing to partner with them.

KOLs often charge more than the average Xiaohongshu influencer. KOLs will charge between $400 to more than $2,000 for a single post.

2. Class A Influencers

Class A influencers also have a considerable following and engagement on Xiaohongshu. Therefore, they have a wider reach than the average Xiaohongshu influencer. They charge lower fees than KOLs, ranging between $150 to $400 for a single post.

3. Class B Influencers

Class B influencers have a smaller reach than Class A influencers. However, they have built a loyal audience base and tend to have higher engagement rates. They charge between $20 to $150 for a single post.

4. Class C Influencers

Class C influencers are the smallest tier of influencers on Xiaohongshu. They charge between $10 to $30 for a single post.

5. Class D Influencers

Class D influencers are considered regular Xiaohongshu users. They have no established influence but might have a decent follower base or high engagement rates. They charge $0 to $10 for a single post.

💰 Packages Influencers Offer

There are three main packages Xiaohongshu influencers offer their clients. They are:

1. Product Review

Many Xiaohongshu influencers charge a flat fee for a product review. They will create a post showing them using the product and share their honest opinion about it. The price can vary significantly depending on the influencer’s reach. A flat fee for a product review can cost anywhere from $50 to $2,000.

2. Video Showcase

Many Xiaohongshu influencers combine product reviews with video showcases. Xiaohongshu users tend to engage with videos more than images. Therefore, Xiaohongshu influencers are more inclined to create videos. A video showcase can vary in price, like a product review. It can cost $100 or more, and if the influencer is a KOL, it can cost over $2,000.

3. Giveaway

A giveaway is an excellent way to engage an influencer’s audience and promote your products. Xiaohongshu influencers often charge a flat fee for running a giveaway. The flat fee can cost anywhere from $100 to $2,000.

🏷️ Paid Collaborations vs Unpaid Collaborations

Most Xiaohongshu influencers prefer paid collaborations. They tend to avoid unpaid collaborations because many brands lack a proper marketing strategy.

However, different influencers have different methods of collaboration. Some Xiaohongshu influencers might agree to unpaid collaborations, while others might not.

Unpaid collaborations can also have different structures. Some Xiaohongshu influencers might only ask for products. Others might seek a commission on sales generated from their referrals.

1. Products Only

Some Xiaohongshu influencers accept products instead of cash for collaborations. They will usually ask for products worth the same amount they would charge for their services. For example, if a Xiaohongshu influencer charges $100 for a post, they will only accept products worth $100 for a collaboration.

2. Commission Only

Some Xiaohongshu influencers will only accept a commission on sales they generate. They will ask for a unique referral code or link to track sales.

For instance, if a Xiaohongshu influencer has 5% of their audience convert on a $20 product, they would earn $1 for every product sold. If the influencer generates 100 sales, they would earn $100 in commission.

3. Products and Commission

There are also Xiaohongshu influencers who will only collaborate for a combination of products and commission. They will ask for products and a commission on sales they generate.

Many Xiaohongshu influencers often prefer commission-based collaborations. Xiaohongshu users engage with sales posts. Therefore, brands can generate organic traffic and have more sales.

👉 Cost of Influencer Management Agencies

Influencer management agencies are an excellent way for brands to collaborate with Xiaohongshu influencers. These agencies often have many established influencers on their roster.

Brands can save time and effort by working with an influencer management agency. However, many influencer management agencies charge a fee for their services.

1. Retainer Fee

Some influencer management agencies charge a retainer fee for their services. They will have brands sign a contract, and brands will pay a monthly fee.

Retainer fees can vary from $300 to $1,000 per month. Influencer management agencies that charge retainer fees will usually have different packages. The more expensive packages will likely provide more influencers for collaborations.

2. Commission-Based Fee

Other influencer management agencies charge fees based on the sales generated from influencer collaborations. For example, if a Xiaohongshu influencer sells 100 products worth $20 each, the total sales would generate $2,000.

If the influencer management agency has a 15% commission, they would earn $300 from the sales. Brands can save money by paying a commission-based fee, but they might spend more if many sales are generated.

3. Flat Fee

Lastly, some influencer management agencies charge a flat fee for their services. They usually charge a single fee for collaboration with a Xiaohongshu influencer.

Flat fees typically vary between $300 to $1,000, depending on the agency and the influencer’s reach.

📢 Payment Methods

Now that we know how much Xiaohongshu influencers charge for collaborations, brands need to decide how to pay influencers.

Many Xiaohongshu influencers will often have specific payment methods they prefer. Therefore, brands should be flexible when deciding how to pay influencers.

1. UnionPay

UnionPay is a popular online payment method in China. It serves as a bridge between banks and consumers. Xiaohongshu influencers often prefer to use UnionPay, especially KOLs.

2. WeChat Pay

WeChat Pay is a built-in feature of the WeChat app. Many Xiaohongshu influencers also prefer to use WeChat Pay.

3. Alipay

Many Xiaohongshu influencers also use Alipay. Alipay is a popular payment method in China like WeChat Pay and UnionPay.

4. PayPal

Xiaohongshu influencers who have experience working with foreign brands often accept PayPal. PayPal is one of the most popular online payment methods globally.

5. Cryptocurrency

There are also Xiaohongshu influencers that accept cryptocurrency. However, this payment method is relatively rare.

🛑 Always Sign Contracts

Contracts are essential when collaborating with Xiaohongshu influencers. Xiaohongshu influencers should always sign contracts with brands. Contracts will help both parties avoid disputes.

There are many influencer management agencies in India that will help brands and Xiaohongshu influencers sign contracts. However, many small to medium-sized brands may not want to work with influencer management agencies.

Brands can use influencer contract templates available online and customize them to their needs.

Many contracts should include the following clauses:

1. Deliverables

The deliverables clause will specify what the Xiaohongshu influencer must do for the brand. It will detail the number of posts, types of posts, and when the posts should go live.

2. Payment Terms

The payment terms clause will specify payment details. It will state how much the Xiaohongshu influencer will earn from the collaboration and how they will get paid.

3. Usage Rights

The usage rights clause will state the brand’s rights over the Xiaohongshu influencer’s content. Brands will usually want rights to use the content across various marketing channels.

4. Confidentiality

The confidentiality clause will stop the Xiaohongshu influencer from leaking sensitive information about the brand.

5. Termination Clause

The termination clause will specify how to cancel the collaboration, what happens if a collaboration gets canceled, and what happens if the influencer fails to deliver.

📌 Track Metrics

Brands that collaborate with Xiaohongshu influencers need to track certain metrics. Tracking metrics will determine whether influencer collaborations are effective or not.

1. Engagement Rate

The engagement rate measures the number of people who engage with a post compared to how many followers the influencer has. A higher engagement rate means a more engaged audience, which leads to more sales.

A Xiaohongshu influencer’s engagement rate can be calculated by using the following formula:

[\text{Engagement Rate} = \left( \frac{\text{Likes} + \text{Comments}}{\text{Followers}} \right) \times 100]

For example, if a Xiaohongshu influencer has 100 likes and 10 comments on a post, their engagement rate will be calculated as follows:

[\text{Engagement Rate} = \left( \frac{100 + 10}{2000} \right) \times 100 = 5.5%]

If a Xiaohongshu influencer has an engagement rate between 1% to 5%, they have a decent audience. However, if a Xiaohongshu influencer has an engagement rate above 5%, they have a highly engaged audience.

2. Traffic

Tracking traffic is essential for brands collaborating with Xiaohongshu influencers. Knowing how much web traffic is generated from influencers will determine how effective they are.

Brands can track how much traffic Xiaohongshu influencers generate by using UTM tags. UTM tags are special codes that you attach to a URL that you want to track.

For example, a brand can add the following UTM code to their website URL:

https://www.example.com/?utm_source=xiaohongshu&utm_medium=influencer&utm_campaign=product_launch

The UTM code will track how many users clicked that specific link. Brands can analyze the UTM code data within web analytics tools like Google Analytics.

3. Sales

Finally, brands should track how many sales Xiaohongshu influencers generate. Tracking sales will determine whether influencer collaborations are worth the money or not.

Brands can track sales using the same UTM tags mentioned previously. Brands can also give Xiaohongshu influencers discount codes or referral codes to track sales.

For example, if a Xiaohongshu influencer has a referral code called “DREAMY10,” they will earn 10% of a sale for every customer that uses the code.

Xiaohongshu influencers can also embed their referral codes in links to track sales. For example, brands can provide a link like the following:

https://www.example.com/?ref=DREAMY10

👋 Conclusion

Xiaohongshu influencer collaborations are quite popular among Indian brands. Xiaohongshu influencers are generally affordable compared to influencers on other platforms.

Many Xiaohongshu influencers have varying prices for collaborations. The most prominent Xiaohongshu influencers are KOLs, and they can charge between $400 to over $2,000 for a single post.

There are also influencer management agencies in India that can help brands find Xiaohongshu influencers. Many influencer management agencies charge fees for their services, ranging between $300 to over $1,000 per month.

Finally, branding collaborating with Xiaohongshu influencers should always sign contracts. Contracts will help both parties avoid disputes.

BaoLiba will continue to update Xiaohongshu influencer marketing trends in India. Please stay tuned for more!