How Much Does Working With Influencers Cost?
If you've been in business for the last 1-5 years, chances are you've heard of the term influencer marketing once or twice before. Nowadays, there are influencers for nearly every niche market out there, and there are several reasons why hiring them for your business makes sense.
With all the talk surrounding influencer marketing, you might be feeling a little... overwhelmed, to say the least. And it's true: there's a lot to think about. Finding influencers you'd like to reach out to is only half the battle. Probably the most important part of sealing the deal is naming the right price, and if you're new to this, you're probably wondering, "How much do influencers cost?"
Research shows that 84% of micro-influencers charge less than $250 per sponsored Instagram post. 97% of those influencers charge less than $500. Pricing can vary depending on a number of factors, and just like an overall social media strategy: it's very rarely one-size-fits-all. Consider these points:
Influencer marketing can range from something as simple as one Instagram photo to something as extensive as a trip to Necker Island. Obviously, more work = more $$$. For example, filming, editing, uploading, and promoting a YouTube video can take an influencer 8 hours or more, so starting with a fair hourly pay rate can help form your offer price. But that's not the only factor to consider...
Vanity metrics aren't everything, but you should take audience size into account. Obviously, you won't pay a micro-influencer with 1,000 followers the same as an influencer with a million, but make sure those followers are authentic before paying up. Unfortunately, a small segment of influencers allegedly purchase or bribe followers, resulting in a high vanity number with low engagement rates -- meaning less clicks to your product and less conversation about it on social. Working with a partner like us can help you audit audiences before making an offer so you can rest assured your money is going to the right place.
Level of Engagement
Authentic or not, engagement rates can vary from person to person. An influencer with a tight, niche audience will likely garner higher engagement rates than a more broadly-focused influencer, regardless of follower count. This is exactly why you shouldn't be basing pay rates off of vanity metrics alone. Most influencers will know their engagement rate offhand, but if not -- you can use this simple formula: the number of likes + comments of the influencer's last 10 posts divided by 10, divided by their total number of followers. The higher this number, the more they can charge... (and they know it, so don't try to sell them short!)
Remember: negotiation is a part of business. Unless your budget is firm, expect a bit of back and forth before deciding on a mutually beneficial pay rate. And of course, if you need help drafting the emails or planning the campaigns, our team of influencer marketing experts are here to help.