Influencer marketing broadens the audience for your company
and appeals to a generation sick of overdone and unreliable advertising.
Consumers are more likely to believe recommendations from influencers (61%)
than from a brand\’s social media account (38%).
Even if you\’re familiar with influencer marketing and
branded content, everyone has an opinion on influencer pricing. Determining the
ideal influencer for your company, the channels you want them to broadcast on,
and how much you should pay them can be challenging because there isn\’t a
common way to quantify performance in influencer marketing.
Things to think about before
collaborating with influencers
Think carefully about your strategy and objectives before
contacting influencers.
What are your objectives?
Create a spreadsheet or planning document with your goals
listed and your key performance indicators (KPI) listed to determine the
effectiveness of your cooperation. The KPIs listed below are an excellent place
to start:
·
Amplify brand awareness
·
Greater sales (you can also track affiliate
sales in as a KPI in Shopify Collabs)
·
Gain more supporters
·
Affiliate promotion
An organization will pay a third party to recommend goods or
services to its audience through an affiliate marketing sales strategy. In
exchange, the third party gets a commission for referring customers. Because it
is low-risk and a commission is only paid once things are purchased, the
majority of brands run affiliate programs.
Production protocols
Although you probably won\’t need to worry about production
arrangements, it\’s still a good idea to understand what they entail. Depending
on your company and relationship, you might need to take into account:
What plans might need to be made if your influencers are
anticipated to travel?
·
Do they require studio rental?
·
What kind of tools do they require to create
content?
·
Calendar for creating content?
Be sure to account for the time it will take the influencer
to create the necessary material. If you request several postings within a
short period of time, influencers who are in high demand and have other
obligations might be reluctant to accept your offer. You should budget a few
extra weeks for discussions and final agreements in order to accommodate for
that.
Pricing for Instagram influencers
A typical Instagram post in 2021 cost $1170, and an
Instagram story cost $906 on average. Even if these projections are average
influences, it is useful to forecast your budget.
Influencer compensation should be determined by follower and
engagement metrics. Talent and access to a certain audience are two more
elements that can affect a charge.
Influencers typically have fee sheets for the content they
are willing to create. When simulating and forecasting results, use those rates
as the default values. The influencers may not even need to negotiate a
collaboration because they are aware of their following and reach. The typical
Instagram influencer rate sheet depending on reach is as follows, according to
Influencer Marketing Hub:
$10 to $100 each post for Nano influencers (1000–10,000
followers).
Micro influencers: $100 to $500 each post (10,000–50,000
followers).
$500 to $5,000 per post for mid-tier influencers
(50,000–500,000 followers).
Macro influencers: $5000 to $10,000 each post
(500,000–1,000,000 followers).
Mega influencers: $10k+ per post for those with 1,000,000+
followers
The industry average is $100 for every 10,000 followers as a
starting point. The following formulas can serve as general guidelines:
The overall rate is $100 divided by the number of postings
and other factors (such as costs associated with the shoot, usage, and
exclusivity).
Alternately, you can calculate 4% of an influencer\’s
following and add the quantity of posts and other factors to reach your final
estimate of their base rate.
Pricing for TikTok influencers
A sponsored TikTok typically costs $3,514. That ranks second
highest after YouTube, where the average video price is $4,491. Even if a
TikTok costs three times as much as an Instagram post, developing video content
takes more time than doing so.
Using a TikTok influencer is your best option if you have a
budget and want to address a younger audience. TikTok is expected to exceed
Instagram\’s 37.3 million Gen Z users this year, reaching 41.4 million.
Additionally, TikTok\’s algorithm enables a higher level of involvement, which
increases your likelihood of going viral considerably more than on other
platforms.
TikTok is a lot more recent service than Instagram, so the
prices range even more. IZEA reports that the following represents the typical
cost per TikTok based on influencer tier:
Nano influencers: $800 per post (1000–10,000 followers).
Micro influencers: $1,500 per post (10,000–50,000
followers).
Mid-tier influencers: $3,000 per post (50,000–500,000
followers).
$5,000 per post for macro influencers (500,000–1,000,000
followers).
Mega-influencers with one million followers or more: $7,001+
per post
David Gaylord uses the following technique to determine
influencer value for his Bushbalm brand, which provides products to treat dark
spots, razor burn, and other frequently disregarded skin irritations naturally:
Average views, likes, and comments from an influencer\’s last
five pieces of content divided by the cost of the material is known as their
cost per thousand (CPM).