If you have any experience with influencer marketing, you’ve likely found yourself wondering how much do influencers charge. The easy answer is, it depends who you want to hire.
You could always go the celebrity influencer route. Everyone from Kylie Jenner to Justin Bieber will lend their sizable audiences for an amount that could be close to, or over $1 million a post. Which means you’ll need a very healthy budget, as well as a product and team that’s suited for a high-profile celeb.
If you’d like to get more out of your influencer marketing budget, you can opt to work with non-celebrity influencers. These influencers can reach a more engaged audience that is more likely to check out or buy your product or services due to an increased level of trust with their influencer.
There are three types of influencers that your brand can use:
- Macro-influencers have between 100,000 and one million followers
- Micro-influencers have between 10,000 and 100,000 followers
- Nano-influencers have between 1,000 and 10,000
But don’t judge an influencer based solely on the type of influencer they are or the size of their audience. Influencer marketing is all about engagement, and a smaller influencer with 1,000 active fans can be a better fit and lead to better ROI than their larger counterparts.
Types of Influencer Compensation
It’s important to understand how much influencers charge so that you can set our marketing budget, but not all payments have to be cash-value. When brands reach out to influencers, the company can choose to go the route of providing the product to the individual in exchange for their promotion.
This type of influencer partnership works best when collaborating with micro and nano influencers because they may have audiences that work with your specific product or service.
The way it works is simple. First, sync up with your influencer via private message or email, explain your expectations and the overall campaign. Let them know that you’d like to share some product with them in exchange for a post where they share their experience with the product.
Assuming there’s a natural synergy between your brand and their audience, there’s not much else you’ll need to do. Once they receive your shipment, they’ll create and upload a video or photo featuring your product. Ensure they have a tracking code per post, which allows you to track the impact of their post on your social media channels and website.
When working with nano influencers, you may have the influencer post a specific, single product on their platform to promote. Having the repetition of a product, like a monthly subscription box, will engrain your company in the minds of the audience.
Micro-influencers have a larger audience than nano influencers, making it wise for your company to coordinate with the influencer a set number of posts about specific products. Sending the influencer products to promote on their social media will give your business more exposure because the audience will see more of your services or products.
With both micro and nano influencers, it’s important to remember that you are branding your business. By giving out your product in exchange with the expectation of a positive message or review instead of paying them. That’s why you need to make sure you research your influencer and their audience carefully.
Money will always be the biggest barrier to overcome, no matter how much influencers charge, when searching for an influencer to promote your product or service.
Given the financial cost of influencer promotional partnerships, it’s crucial to know how much influencers charge per post and to choose the right individual to promote your company. Typically, the influencers you want to work with for money-driven promotions are macro and micro-influencers.
The cost of promotion occurs on an individual basis, but in our experience on setting up campaigns, you’ll want to allocate somewhere around $4 to $9 for every 1,000 followers you wish to reach. So, for example, if you are designing a campaign with a micro-influencer to reach 100,000 people, you’ll want a budget around $500 to $1,000. This budget doesn’t include the cost of product or any additional company resources to manage the campaign.
With smaller influencers, your budget will take you farther because their followers are more engaged, engaging almost up to 10 percent of their total audience on average. And when you pull audiences together across multiple influencers, those audiences can be more than five times more engaged and likely to buy products than the audiences belonging to a celebrity, who likely has a limited relationship with their millions of followers.
Working with macro-influencers can run a higher price tag, given they have much more exposure to a broader audience. Considering how much influencers charge per post can have a heavy hand on the decision process. Given the standard $1,000 per 100,000 followers that companies have reported paying, your company can be spending up to $1.3 million to reach Kylie Jenner’s 140 million followers with one post.
To prevent wasting money and keep track of how your funds are being allocated, your company should invest in the right influencer marketing software. Along with understanding the ROI your influencers are providing, an influencer marketing software can help you find new influencers, pay your existing ones, and attribute all actions back to the proper influencer and campaign so you always know whether you’re spending your money wisely.
How to Track Your Influencers
- Affiliate links are specific URLs designed for your chosen influencer, containing a custom affiliate ID and username. The influencer advertises their link, along with an incentive like a discount or free product, for the audience members to click when advertising your brand’s product or service.
- Discount Codes are similar to affiliate links given that they are specific to each influencer. Influencers can promote their discount code to their social media posts when promoting your company’s products or services. The audience members can apply this code at checkout on your company website to receive money off their orders.
Both options can also provide a commission to the influencer when their audience makes a purchase from their post. Your company can also easily record the traffic being sent from the influencer’s social media to your website.
Depending on how much an Instagram influencer charges per post, it may be in your companies’ best interest to supply them with an affiliate link.
To help implement influencer partnerships into your marketing plan, connect with us to see how we can help you manage, connect with, and recruit high quality influencers for your company.