Recent reports show that influencer marketing is facing budget cuts as a result of the rising inflation. But we don’t believe that’s the case, as marketers, like never before, continue to increase their spending on creator partnership.
To use influencer marketing to scale your business, you need to first understand the ideal channel your prospects use. For a while, TikTok has been dominating with its short video formats, which has been copied by other social media platforms like Instagram, Facebook, and even YouTube.
With influencers at the forefront, you might start wondering…
How much do influencers cost?
That is the question of the ages, as long as influencer marketing is concerned. That is because there is no fixed rate. A lot of factors come into play when we discuss influencer rates, such as influencer reach and engagement, frequency of post, type of content, the platform, and even the number of followers.
In this article, we’ll expand on these factors, and how they influence how much you pay influencers for a campaign, or campaigns as the case may be.
Type of Influencer
When it comes to influencer pricing, no Influencers are made equal. The major determinant, however, is the number of followers an influencer has. We have numerous kinds of influencers, and they include:
- Celebrities or mega influencer - 1,000,000+ followers
- Macro-influencers - 500k - 1,000,000 followers
- Mid-tier influencers - 50k - 500k followers
- Micro-influencers - 10k - 50k followers
- Nano-influencers - 1k - 10k followers
Mega influencers have followers running into millions, and they often come with a hefty price tag. They are mostly celebrities who have achieved success in their various fields, either through the movie, music, or sports industry.
Macro influencers, on the other hand, often rise to fame through the web. They typically begin by creating a niche in the industry, either as a podcaster, vlogger, blogger, or perhaps social media star. Just like mega influencers, they have followers ranging from 500,000 to over a million followers.
Micro-influencers have less than a ten to fifty thousands followers, with nano-influencers having followers less than ten thousand. The type of influencer you work with determines how much you will pay and the amount of potential reach.
But the real deal, according to Dectech, are mid-tier influencers. Not only are they experts in their niche, their followers love them.
1. Social Media Channel
Whether you believe it or not, social media is like the core of the internet, keeping the world connected like never before. As a service marketplace founder, this means you can scale your platform without breaking the bank.
However, it is one of the intrinsic factors that determines influencer pricing or cost. After all, each social media channel has a different audience type and distinctive features that set them aside from other similar brands.
Some social media platforms are ideal for professionals and businesses, like LinkedIn. While others like TikTok can be pretty good to connect to generation Z, not forgetting Twitter, Instagram, and Facebook.
The amount influencers earn on these platforms varies, and the main determinant of the social media channel lies in your target market. If your goal is to recruit skilled workers or professionals for your marketplace, LinkedIn is often the best platform to begin.
2. Influencer reach
Here's another factor that you must consider before working with an influencer. Not only does influencer reach determine how far your campaigns will convert, but it also influences price. Celebrities with millions of followers are likely to charge over six figures, compared to mid-influencers.
However, a report by Detect uncovered that social media likes and comments don’t necessarily translate to sales. For the best result, you’re advised to use mid-influencers, since they are regarded as experts in their niche, with fans that love them.
When it comes to influencer rate - the higher the reach, the higher you’re likely to pay your influencer. This ensures you get value for your money - paying based on the amount of reach your campaign got.
You want to work with an influencer who specializes in your industry. That way, you're able to connect with your ideal target market. That, however, determines the price of your influencer campaign.
For example, hiring a fitness influencer to market a skilled-based marketplace rarely works. That makes market research a very crucial process, as that is how you discover where they hang out, and the influencers they cherish a lot.
Followers’ engagement rarely depends on the number of followers an influencer has. The more engagement your campaign attracts, the more you pay. For instance, Dwayne ‘The Rock’ takes home a whopping $1.5 for crafting a post for his 187 million followers, while a post from a model like Emily Ratajkowski will cost $80,000. Other factors that could influence the price of influencers are star power, talent, and the influencer’s access to a niche audience.
Most pricing starts with one of these baseline formula, like:
Engagement rate per post, + extra for post type, number of post, + extra factors = total rate
Take note that the unspoken industry standard for a post with 10,0000 followers is $100. When added with the type of post, the number of posts, and other additional factors, you get your total rate.
Engagement can be calculated by adding up all engagements on a post, such as likes, comments, clicks, and shares, dividing by follower count, and multiplying by 100.
5. Type of content
The type of content you asked your influencer to create also affects price, since lots of things go into creating a campaign, either a video, image, or perhaps, voice. They also include how much the influencer will need to create these posts.
Typically, the more effort it takes to create a campaign, the higher the influencer is likely to charge. If you're opting for a seasonal social media campaign, expect to pay a premium. The reason is simple, as high demand can lead to an increase in price toward seasonal campaigns.
Looking for the ideal influencer for your marketplace
The influencer you work with depends on the goal you're trying to achieve. For instance, you could be looking to create brand awareness, or maybe your goal is conversions. If the numbers are more important, working with a macro influencer is the deal.
If you have a deep pocket, maybe you can work with mega influencers and turn your marketplace around in seconds. But, the trick lies in finding the right macro, micro, or even nano-influencer in your industry.
You can find them on your target social media platforms, influencer marketing platforms, and blogging platforms. You can also use hashtag searches or even set up Google alerts for influencers in your niche.
If finding an influencer is too much work for you, you can work closely with an influencer marketing agency to find the ideal influencers for your brand. This approach is best, especially if you’re new in the marketplace.
There are lots of influencer marketing agencies your brand can work with, such as:
- Viral Nation
- Fanbytes, etc.
Influencer marketing is a way of using icons and public figures to connect with your ideal platform users. And dealing with the right influencer determines if you will get the value for your money. If you're still pretty new in the industry, it is best to work with an influencer marketing agency or expert versed in influencer marketing.
That way, you make the most of these incredible individuals whose influence is a big advantage to your service marketplace. And when you do finally get them on board, to help scale your brand fast, it is important to pay them instantly, after a job well done.
When you fail to pay your influencers instantly, you risk denting your relationship with your influencer. That is why companies like Adrecord, Memmo, Woshapp, and numerous other companies and professionals use Gigapay for instant payment.
You don't need to worry about insurance, pension, or taxes, we've got that covered. It's unbelievably easy to use, and we'd be happy to show you how it works. Go ahead and book a demo. :)