How should you arrive at right pricing for the influencers?
Influencer marketing is one of the most successful ways to contact your target audience. However, influencer expenses might vary greatly depending on your industry, business goals, platforms you are targeting, posting frequency, and other factors. How do you identify the appropriate influencer for your brand without spending a fortune?
Creating branded content includes time, effort, talent, and production costs. And not always have an option to pay via merchandise or gifts. Paying the proper price is worthwhile and also encourages creators to do more brands. But what is the appropriate price?
Continue reading to discover the best method for determining rates, the ballpark cost of various types of posts, and other elements that may effect influencer pricing for your next influencer marketing campaign.
How do you calculate reasonable Instagram influencer payout?
There are techniques to ensure that brands gain value from sponsored posts and that influencers are fairly compensated for their efforts. Rates should be based on an influencer’s genuine follower count and engagement rate, but other criteria such as talent, star power, or access to a specific audience such as notable followers can also have an impact. Covering any expenses related with a shoot (such renting a studio, employing a hairstylist, et cetera) will also be a concern. Most pricing begins with one of these basic formulas and progresses upward from there.
- Engagement rate per post + extras for type of post (x #of posts) + extra factors = total rate.
- The unspoken industry standard is Cost per view (CPV) as per industry + extras for type of post (x # of posts) + additional factors = total rate.
- Cost per view changes a lot from Beauty & personal care to Ed-Tech to finance. E..g, in one specific cases we wanted to target freelancer communities via youtube long form cost and since there was scarcity of such creators, we had to pay per post. We had a similar case with the remittance category too. Depending on the TAM and use cases, the CPV may vary from 10 Paisa to say 2-3 Rs.
Factors Influencing Influencer Rates
There are a variety of elements that can determine how much an influencer costs for their services and it is very common that an influencer may charge different commercials for different brands. Influencer marketing is a reputable business, and influencers base their pricing on what brands are willing to pay. These are the elements you can bet on to have an impact:
- Social Media Platform: Some influencers may charge the same amount for the same type of post regardless of the channel, but the rates usually vary across channels. After all, each social media site has a different audience type, and creative resources vary as well.
- Influencer Reach: Reach is the number of people the influencer has access to through their platform. This is mostly determined by the number of followers or subscribers the influencer has and the number of people they have the potential to reach.Influencers are classified according to their reach. This is not sacrosanct and should be treated in ballpark only:
- Nano-influencers: 1,000–10,000 followers
- Micro-influencers: 10,000–50,000 followers
- Mid-tier influencers: 50,000–500,000 followers
- Macro-influencers: 500,000–1,000,000 followers
- Mega-influencers: 1,000,000+ followers
- Content Types: The type of content you request from an influencer will also have an effect on the fee. This is due to the fact that influencers will need to invest energy,time, and resources into creating the content, and different forms of content necessitate different things. Consider how much content the influencer will need to develop and whether they or you will provide the necessary resources. The more effort it takes to develop the stuff you are requesting, the more it will cost.
- Engagement of Followers: Look closely at how much an influencer’s audience genuinely participates and interacts with their content. The more involved their followers are, the more effective your message will be. You might also want to explore comment quality while doing this.
- Specialization or Industry: Popular categories will have more accessible influencers and lower pricing than niches with considerably fewer influencers. You can also look at the industries that an influencer’s audience prefers to ensure that hiring them for your company makes sense.
- Rights of Use: If you intend to reuse an influencer’s content, ensure that you discuss it in advance and specify the terms in the influencer contract.
- Exclusivity: Influencers earn money by endorsing different brands. It is possible that you will pick an influencer that your competition also wants to use. In this case, you may wish to request that the influencer sign a non-compete agreement or exclusivity clause as part of their influencer contract, which prohibits them from supporting a competitor for a set amount of time.
What Should You Consider When Pricing an Influencer?
Influencer rates can differ significantly. To ensure that an influencer is demanding a fair rate, brands should look at:
- Influencer marketing ROI
- Standard influencer rates and rate cards
- Previous campaign performance
How Much Money Do Influencers Make Per Post?
The amount influencers make is depending on quite a few criteria and not straight forward. The following are the top five social media sites for influencer marketing as per brand’s choice:
- Instagram (93%)
- TikTok (68%)
- Facebook (68%)
- YouTube (48%)
- Twitter (32%)
How to Find a Low-Cost Influencer?
Finding the ideal influencer for your brand is a delicate balance between what you can spend and their influencer prices. Here are a few points you can keep in mind:
- Influencer Marketing Objectives: The money you should spend for influencer marketing is heavily influenced by the objectives you would like to accomplish with your campaigns and the strategies you’ll use to get there. Some frequent goals are increasing social engagement, raising brand exposure, and making more purchases.
- Influencer Marketing Platforms: There are numerous influencer marketing platforms available to help you locate influencers for your company.
- Influencer Marketing Firms: There are also various influencer marketing organizations that exist to connect influencers with brands who wish to hire them, but their services do not end there. These agencies will help brands build an influencer marketing strategy, implement that plan, and maintain their influencer marketing campaigns.
Although influencer marketing might be costly, the returns can be incredibly useful, with 41 percent of businesses reporting greater success with an influencer marketing campaign than a standard ad effort in one poll.
Fun Fact: The number of YouTube channels that made at least $10,000 in revenue was up more than 40% year over year in 2022.