Budget Traps: 5 Hidden KOL Booking Costs That Could Cause You to Lose Money

Author: Chief Financial Officer, Height Media | Topic: Budget Management

When you receive a quotation from a KOC: “I charge 10 million VND per video.”, understand that this is only Direct Costs. To get that video successfully published, you will need to cover approximately 30-50% more in Indirect Costs again.

Without careful calculations, your 100 million VND campaign could rise to 150 million VND. Here are the 5 most common hidden fees:

1. Travel & Accommodation Costs

If you invite a KOC from Saigon to Hanoi for an opening event, or invite one to review a resort:

• Costs: Return flights, hotel accommodation, usually 4-5 stars, and daily meal and transport allowances.

• Note: KOCs usually request to bring 1 assistant or manager. You have to pay for the entire team, not just 1 person.

2. Production & Props Costs

KOCs are paid to film, but who handles the equipment and props?

• If the video requires a premium studio setting, specialist camera rental, cooking ingredients for a food reviewer or outfit accessories for a fashion creator...

• Rule: KOCs usually include this cost in their fee when it is small, but they charge extra as a bill-back if the concept is complex.

3. Usage Rights & Renewal Fees

This is the fee most likely to cause disagreement.

• The 10 million VND price usually covers only publication on the KOC's channel.

• If you want to use the video in advertisements, publish it on your website or print the KOC's image on leaflets, you must pay an additional Usage rights fee. After 3 or 6 months, if you want to continue using the content, you must pay Renewal fee.

4. Management & Operations Fees

If you book through an agency:

• You will pay a fee, usually 10-20%, known as an agency fee.

• Do not skimp on this expense: This fee pays for security, review processes, contracts and tax invoices. It is much cheaper than hiring an in-house employee to manage KOC relationships.

5. Tax

As discussed in previous articles:

• If working with an individual: gross up by an additional 10% for personal income tax.

• If working with an agency: add 8-10% VAT.

Conclusion

A good manager sees what lies beneath the surface. When preparing a booking budget, always add a Contingency Fund of approximately 10-15% of the total budget.

At Height Entertainment, the quotations we send clients are always All-in-one quotation. No additional charges and no last-minute surprises.