Influencers vs UGC Creators. What’s the difference?

The content creator space has become saturated and tricky to navigate – especially if you’re a small business owner new to marketing and the social media world. Where do you even start?

First, it’s important to understand what you’re hoping to achieve with influencers or UGC Creators. Are you…

• Looking for content to use for advertising?

• Aiming to have content made that relays a specific message across about your brand/product/service?

• Hoping to leverage someone’s existing following?

• Align your brand or products with creators who have a similar demographic?

All of these are fantastic goals to have when thinking about UGC creators or influencers. But wait – what are these words? And what’s the difference between the two? Let’s break it down:

Content Creator / Influencer:

Is someone who has a large, influential social media platform who creates content for a living. Their content exists on their pages, and brands pay them for placement.  

Occasionally, they will agree to gifted collaborations, but only if this is something they are genuinely interested in. When brands work with them, they typically charge a fee per deliverables.  

 Working with influencers is great if your goals are:

• Brand awareness to specific demographics

• Establish brand love + trust

• Brand alignments and product placements

UGC Creator:

UGC stands of “User Generated Content”. This initially stemmed from actual consumers posting non-sponsored reviews on their own pages - hence the term “user generated”. However, as this style of content began to generate sales, brands quickly learned that this style of social proof went a long way for their marketing, specifically within paid Social Media Marketing.

Hiring UGC Creators are great options for businesses who need these content pieces without having to pay for the following and impressions. UGC Creators likely may not have a social media following, because that’s not their goal. Their goal is to get you “influencer-like” content without paying for the impressions.

 Working with UGC Creators is great if your goals are:

• Content to use for your own ad campaigns

• Content for your pages organically, such as TikTok and Instagram

Common FAQ’s when working with content creators:

I paid an influencer and gifted them my product. Why can’t I use their content for ads?

You can, but you’ll have to pay usage fees. This is because when you paid for that content piece, you were basically paying them for posting that content piece. Think of social media posts on their pages as ad spaces.

So when you’d like to use their content in ads, you’ll need to pay for usage rights to that content.

 But my product is so expensive! Isn’t that enough payment for placement?

Influencers have to pay taxes on the value of your product. Come tax season, this creator has to mark the value of your product down as $ income. And unfortunately, vacuum cleaners or skincare products don’t pay the bills.

This even goes towards brand trips and vacations; while it may seem sweet to get invited to a $10K vacation as an influencer, they have to pay tax on that, so it’s not actually free.

If I hire an influencer, do I get a say in what kind of video they produce?

Absolutely. You can provide a brief that includes talking points and video guidelines. You can also request for revisions if necessary.

It is recommended that you give the influencer more creative license to create the videos, as they tend to be the masters of their craft and know how to create high performing videos.

How do I know if I can use the content I’ve paid for in ads?

Just ask! Before setting up your contract, always ask the creator what the deliverables include, and how they feel about reposting or advertising purposes.

OK. But if I pay a UGC creator, I can use that content in ads?

Correct! You didn’t pay for that initial “ad space”, you just paid for the video, which you’re then free to use as you wish.

I want to hire an influencer because I’m not trying to hire an actor and have a real commercial. What do you think?

The goal with UGC is that it looks just like an organic post made by an influencer. So yes, technically they are “acting” it’s not a set up that looks like a big production. These videos are shot in people’s homes, with their at-home set up.

How much do influencers or UGC creators cost?

This is an unregulated industry, and the cost for deliverables varies from creator to creator. Cost variables can be: following size, engagement rate, quality of the content. UGC creators tend to be more cost effective, because you aren’t paying for their following.

 I reached out to an influencer and they have a way cheaper rate for UGC. What does this mean?

This means that you will be paying the creator for the images/video but it does NOT include them posting to their feeds, or usage fees. It’s best to confirm how you can use this content before agreeing to their terms to ensure you’re both happy with the results.