# ECONOMIC MODEL
## Trends On Influence — RFP Influencer Agency
## LATAM Airlines Group | May 2026

---

# 1. COMMISSION STRUCTURE

## 1.1 Fee Model

In accordance with LATAM's requirements, we operate under a **percentage-based commission model on influencer contracting value**.

### Agency commission: 15%

The commission is calculated on the net contracting value of each influencer.

**Example:**
- Influencer value: USD 1,000
- Agency commission (15%): USD 150
- Total payment: USD 1,150

### What the commission covers:

The 15% commission covers the full scope of agency services:

**Strategy and planning:**
- Strategic planning aligned with each LATAM team (Branding, Growth, Loyalty, LATAM Pass)
- Market-specific strategy adaptation
- Creator-facing creative proposals tailored to each campaign

**Curation and selection:**
- Two-stage intelligent curation (AI + human validation)
- Comprehensive vetting of each creator (competitors, conduct, audience, risk)
- Shortlist presentation with analytical data and rationale
- Ongoing discovery of new profiles by market and niche

**End-to-end management:**
- Creator negotiation and contracting
- Image rights management
- Onboarding aligned with LATAM values and guidelines
- Creative briefing, script review, content review
- Publication coordination and scheduling
- Iteration and feedback management with creators
- Exclusivity management and compliance

**Technology (at no additional cost):**
- Access to the Campaign Command Center (real-time dashboard)
- Cross-audience overlap analysis
- Proprietary post-comparison algorithm
- Sentiment analysis and social listening
- Operational management platform

**Monitoring and reporting:**
- Real-time monitoring of active campaigns
- Per-activation report (5 days post-publication)
- Consolidated monthly report
- Monthly benchmark and trend analysis
- Integration with Google Analytics and Meta Platforms

**Financial management:**
- Creator payment processing
- Invoice management and tax documentation by market
- Budget reconciliation
- Monthly financial report

**Governance:**
- Governance rituals (kickoff, status, reviews, benchmark)
- Reputational crisis protocol
- Ongoing brand safety

## 1.2 Reference Estimation

Based on LATAM's approximate annual reference spend of USD 4,000,000:

| Item | Annual estimate (USD) |
|---|---|
| Creator investment | ~3,478,000 |
| Agency commission (15%) | ~522,000 |
| **Total influencer management** | **~4,000,000** |

**Note:** Production, travel, and logistics costs are additional and detailed in the following sections.

---

# 2. DELIVERABLE COSTS

## 2.1 Campaign-Associated Costs

Influencer deliverable costs (production, image rights, per diems, accommodations, etc.) will be reported on a line-item basis per campaign, following this process:

1. **Pre-campaign:** Detailed cost quotation per campaign, submitted to the LATAM Marketing team for prior approval
2. **Execution:** Management and execution in accordance with the approved budget
3. **Post-campaign:** Expense report with supporting documentation

### Cost types per campaign:

| Cost type | Description | Commission applies? |
|---|---|---|
| Influencer fee | Contracting value per activation | Yes (15%) |
| Additional production | Specialized equipment, premium editing, photography | No — pass-through cost |
| Image rights (extension) | Extension of rights beyond the base period | No — pass-through cost |
| Per diems and accommodation | Subject to LATAM caps (Section 3) | No — reimbursable cost |
| Transfers | Subject to LATAM caps (Section 3) | No — reimbursable cost |

---

# 3. TRAVEL AND LOGISTICS COSTS

## 3.1 Price Caps

We adhere to the maximum prices established by LATAM for influencer travel:

| Item | International cap (USD) | Domestic cap (USD) |
|---|---|---|
| Hotel per night (per person) | 145 | 110 |
| Transfer (per trip) | 28 | 28 |
| Per diem (per day) | 65 | 40 |

## 3.2 Conditions

- Travel and logistics costs will be pre-approved by LATAM's Marketing and Procurement teams prior to execution
- If any line item exceeds the established cap, it will be submitted for prior approval by LATAM Marketing and Procurement
- **Airline tickets:** Provided directly by LATAM
- **Reimbursement:** Against expense reports (receipts/invoices), with no additional agency commission
- **Agency accompaniment:** Travel costs for the agency team accompanying an influencer are reimbursable, subject to the same caps

## 3.3 Travel Financial Management

- Per-trip budget pre-approved via email
- No execution may proceed without formal approval from both areas (Marketing and Procurement)
- Detailed post-trip expense report with supporting documentation
- Contingency management coordinated with LATAM's operational team

---

# 4. COMMERCIAL TERMS

## 4.1 Response to LATAM Standard Conditions

| Commercial condition | LATAM condition | Trends On Influence response |
|---|---|---|
| **Payment terms** | 90 days from invoice receipt | **Accepted** |
| **Billing** | Monthly in arrears with prior approval | **Accepted** |
| **Contract** | LATAM standard form | **Accepted** |
| **Contract period** | 2 years, renewable | **Accepted** |
| **Termination for convenience by LATAM** | 30 calendar days, no penalty | **Accepted** |
| **Termination by supplier** | 60 calendar days before expiration | **Accepted** |
| **Exclusivity** | Non-exclusive | **Accepted** |
| **Pricing** | No price adjustments | **Accepted** |
| **Company tenure** | More than 2 years | **Compliant** |

## 4.2 Billing by Market

- Billing in the local currency of each country where services are rendered
- Purchase Order (PO) required prior to invoice issuance
- 90-day payment terms from invoice receipt
- Exchange rate: as of PO issuance date
- Contracting structure adaptable by market (case-by-case assessment with LATAM Procurement)

## 4.3 Commission Model — Clarifications

- The commission applies **exclusively** to influencer contracting value
- **No commission** applies to travel costs, logistics, additional production, or reimbursable expenses
- The commission is calculated on the influencer's net value: if the influencer costs USD 1,000 and the commission is 15%, the total invoiced amount is USD 1,150
- Full transparency: LATAM will have visibility into the influencer value and the agency commission as separate line items on every quotation and invoice

---

# 5. MODEL SUMMARY

```
+------------------------------------------+
|       INFLUENCER INVESTMENT              |
|       (managed by the agency,            |
|        approved by LATAM)                |
+------------------------------------------+
                    |
                    v
+------------------------------------------+
|       AGENCY COMMISSION (15%)            |
|       Calculated on influencer value.    |
|       Includes:                          |
|       - Strategy and planning            |
|       - AI + human curation              |
|       - End-to-end management            |
|       - 4 proprietary technologies       |
|       - Real-time dashboard              |
|       - Monitoring and reporting         |
|       - Financial management             |
|       - Governance and compliance        |
+------------------------------------------+
                    |
                    v
+------------------------------------------+
|       ADDITIONAL COSTS                   |
|       (reimbursable, no commission)      |
|       - Additional production            |
|       - Travel and logistics             |
|       - Per diems and accommodation      |
|       - Travel insurance                 |
+------------------------------------------+
```

**Transparency principle:** The agency earns on the commission, not on creator markup. Our incentive is to find the best creator at the best price — not the most expensive one.

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*Confidential document prepared by Trends On Influence for LATAM Airlines Group S.A.*
*May 2026*