How much should you really be paying influencers to collaborate with you on campaigns?
If you’re one of the many brands that will be working with influencers in 2018, you’re probably wondering how much you should be budgeting for your upcoming influencer marketing campaign.
According to Social Media Today, 48% of U.S. marketers are planning to ramp up their influencer campaign budgets this year because it is proving to be such an effective marketing tactic, particularly because user sharing is a key factor in search and social media algorithms.
Factors that influence the cost of working with influencers
There really is no exact answer to how much to pay influencers but there are a few factors that will influence the cost of your campaign:
- Social Media Platform. The social media platforms that you use for your influencer campaign will play a role in the cost. Influencer charge different rates per post based on the platform, with Instagram generally being the most expensive.
- Number of Followers. The more followers an influencer has, the more they will typically charge per post. This is because your brand will have the potential to reach more people.
- Your Product. Overall, the more expensive your product is, the more an influencer is going to charge you to promote it so factor that in when setting your budget.
- Agency Fees. If you have chosen to work with an agency instead of approaching influencers directly, you can expect to pay a bit more since the agency will charge you a fee.
The average cost of influencer posts
A report by Influence.co recently looked at influencers on Instagram and found that each sector had very different price averages per post and the number of followers that an influencer had also made a difference to the price.
Dummies took a look into the cost of working with bloggers and video influencers and these were the results:
- 10,000 to 50,000 monthly blog impressions: $175 to $250 per post
- 50,000 to 100,000 monthly blog impressions: $250 to $500 per post
- 100,000 to 500,000 monthly blog impressions: $500 to $1,000 per post
- 500,000+ monthly blog impressions: $1,000 to $5,000+ per post
- 50,000 to 100,000 channel subscribers: $500 to $1,000 per video
- 100,000 to 500,000 channel subscribers $1,000 to $3,000 per video
- 500,000+ channel subscribers: $3,000 to 5,000+ per video
Is it really necessary to pay influencers?
While some influencers might be willing to work with your brand for free, they will most likely still need to get something out of the partnership. Giving them discounts or free products are just some examples of non-monetary compensation options.
Also, most influencers won’t be willing to produce original content without some sort of compensation. It’s important to remember that a lot of influencers rely on marketing campaigns to pay the bills so it may be difficult to come across someone who is willing to work for “free”.
Choosing to work with influencers for free also doesn’t give you as much control over your campaigns. For example, most paid freelancers will send all posts to the brands they’re working with before they go out, allowing them to make sure that it meets campaign and brand requirements.
Tips for working with influencers
There are a few different approaches that you can take when working with influencers that will help you decide who you want to work with and how you want to pay them.
- Start by setting your campaign goals. Your campaign goals will help determine what type of influencer you should work with. For example, micro influencers are generally better if you’re looking to drive a lot of engagement. Influence.co showed that influencers with 1,000 followers generated an average engagement rate of 15.1%. Macro-influencers are better for campaigns that have a primary goal of creating more brand awareness.
- Discuss pricing at the start. It’s always better to discuss an influencer’s rates right at the start instead of realizing later on that you can’t afford them. Be sure to have a suggested rate ready as some influencers may ask you what you’re willing to pay. If you would like to try a few influencers out first, you could always offer them non-monetary compensation in exchange for a trial post.
- Aim to develop a relationship. While there is a time and place for once-off campaigns, brands always see much better results if they develop long-term relationships with their chosen influencers. This is because the influencer really gets to spend time understanding your brand, your goals and your audience, which will enhance your results over the long term.
- Always track your results. A lot of brands will compensate influencers based on performance but you don’t have to go this route. Either way, it’s imperative for you to track your ROI in order to gauge which influencers your audience is responding to and whether influencer marketing is working for your brand at all.
- Treat influencers like professionals. It’s important to remember that influencers don’t simply sit around on social media all day, they’ve spent time building a loyal following using creative, entertaining and informative content so it’s important to treat an influencer partnership in the same way that you would treat any other professional relationship.
When done correctly, influencer marketing campaigns can take your brand’s online presence to all new heights but it all starts with having the right strategy and budget in place and most importantly, working with the right influencers for your brand.
How will you be using influencer marketing to promote your brand in 2018?