It has been proven in the current marketing scenario that influencer marketing is not only effective but has become the favourite marketing choice for brands. Brands and businesses are investing substantial amounts into influencer marketing. With respect to this new age of social media marketing, what small-scale brands and businesses want to know is how much influencers are charging. Or what are the factors affecting the remuneration of influencers?
Many factors are to be considered in order to compute how much an influencer charges. The costs may vary depending on the platform, industry, brand goals, and influencer tier. An influencer could be a celebrity, travel blogger, stand-up comedian, or any sort of content creator with a dedicated social following. In a broader term, any social media user with a large number of followers is considered an influencer. At the same time, the impact one could make is based on other factors such as engagement ratio, medium of communication, social media trends, etc. Above all these, the proportion of influence matters the most. An influencer should have the power to persuade his/her audience and make the followers take some sort of action. The power to influence the audience, whether to make them buy a product or service or sign-up on a site/event, is what makes an influencer powerful.
A brand must choose an influencer who is relevant to the brand’s industry. Also, the influencer should meet the brand values, and possess similar audience demography. Recent industry graphs show that a brand has to pay between $500 and $1 million for a sponsored post.
Collaboration Cost of Influencer Marketing
As discussed, there are various factors to be considered when determining how much an influencer charges. The parameters that impact influencer rates are as follows:
Engagement and Reach: This is basically the number of followers and subscribers that an influencer has. There are different influencer types, like micro, mega, macro, nano, etc. all based on the social following. The wider the audience, the higher the engagement rates.
Content Platform: The amount a content creator charges per post depends on many factors, including the social media platform they choose. Every social media platform possesses a different audience type. Influencers may also charge the same amount per post regardless of which channel it is posted on.
Type of Content: Every content requires the time and energy of the content creator or influencer. The more time and effort they take to create the content, the more money they can demand, or at least expect. Then again, the quality of content matters.
Industry Niche: A brand looks for an influencer who fits into the niche of business. The content creator must be industry-relevant. Popular niches have more influencers, so the rates are likely to be lower than niches with fewer influencers.
Types of Influencers and Rates
The average payment cycle of different influencers are as follows:
- Mega-influencers: $25,000+ per post
- Mid-tier influencers: $1,250–$12,500 per post
- Macro-influencers: $12,500–$25,000 per post
- Micro-influencers: $250–$1,250 per post
- Nano-influencers: $25–$250 per post
- Mega-influencers: $20,000+ per post
- Mid-tier influencers: $1,000–$10,000 per video
- Macro-influencers: $10,000–$20,000 per post
- Micro-influencers: $200–$1,000 per video
- Nano-influencers: $20–$200 per video
- Celebrities: Starts with minimum $1 million
- Mega-influencers: $10,000+ per post
- Mid-tier influencers: $500–$5,000 per post
- Micro-influencers: $100–$500 per post
- Macro-influencers: $5,000–$10,000 per post
- Nano-influencers: $10–$100 per post
Though an average amount can be assumed based on industry research, the accurate cost of an influencer will always be based on the discussed factors. For brands, stepping into the world of influencer marketing is a great idea. At the same time, the early struggle they are going to face is finding the right influencer with whom they can afford. Brands may either depend upon influencer marketing tools or they can approach a good influencer marketing agency.