The first question that comes up while discussing influencer marketing is: Who is an Influencer?
Whether on social media platforms or other channels, an influencer is a person who holds the power to influence people’s purchasing decisions due to their authority, reputation, knowledge, or connections.
Influencer marketing acknowledges the need for trust and recommendations that consumers want to see. Since people already follow the promoter and see him as the industry leader, the recommendations they make about the products are very important. When you develop a relationship with an influential person, you can tap into that power and grow your reputation. There are many ways in which promoters can help promote your products and, thereby, your business:
- They may like or share content that you post on social media.
- They can give you space on their website to write a blog post.
- They can let you in on their forums.
Different types of influencers can be seen in marketing today, who present themselves in multiple ways across multitude of channels. They can be distinguished by their content, the number of followers, and reputation in a particular niche.
How Much Should Influencers Charge to Promote Your Products?
Influencer marketing is a type of marketing where a company partners with an influential person to drive engagement or sales from the followers of the creator. Generally, two types of influencers currently lead the current marketing landscape, namely, micro-influencers (who have followers between 1,000 and 100,000) and macro-influencers (who have more than 100,000 followers). These influencers make anywhere between $1000 and $1 million per post. You must understand how to determine the Budget For Influencer Marketing or what you should pay to an influencer based on their posts and the platform they use to showcase their content.
Expected Costs of Influencer Marketing on Different Marketing Platforms
Social media platforms offer different prices to influencers, depending on how many posts reach at least 1000 followers. The pay scale guide is presented below:
- Instagram: On Instagram, about 80 percent of people charge an average price of $10 for every post that reaches 1000 followers. Influencers with more than 10,000 followers charge $100 per post, influencers with 100,000 followers charge $1000 per post, and influencers with 1,000,000 followers charge $10,000 per post and so on. Additionally, celebrity creators or influencers charge outside this rule of thumb depending on their popularity and followers.
- Facebook: About 1 billion people use Facebook every day, charging an average price of $25 per post that reaches 1000 followers. The pay scale of Facebook influencers with 10,000 followers for product promotions is $250 per post. Influencers with 100,000 followers charge $2500 per post and influencers with 1,000,000 followers charge $25,000 per post and so on. An important point about Facebook influencers is that when an established influencer gains more marketing experience in their field, the platform offers the Brand Collabs Manager status for promoting their products and services so that their followers can follow the recommendations.
- Twitter: Another famous and engaging social media platform is Twitter, with 330 million daily users. Twitter has fewer users compared to Facebook. Though Twitter does not pay much to its audience, it offers the lowest influencer marketing prices compared to other social media networks. But entrepreneurs can promote their products by collaborating or building marketing relationships with influencers. On Twitter, influencers with 1000 followers get $2 per post, lower than Facebook or Instagram. Twitter’s pay scale for its users: influencers with 10,000 followers charge $20 per post, influencers with 100,000 followers charge $200 per post, and influencers with 1,000,000 followers charge $2000 per post.
- YouTube: Nearly 1 billion users visit YouTube every day. It provides business access to new or beginner influencers at an average of $20 per 100 subscribers and videos. Influencers with more than one million subscribers get paid much more. YouTubers with 10,000 subscribers charge $200 per video, YouTubers with 100,000 subscribers charge $2000 per video, and YouTubers with 1,000,000 subscribers charge $20,000 per video. Moreover, YouTubers with more than 1 million subscribers charge approximately $50,000 per video.
- Snapchat: Snapchat has an average of 188 million users and several influencers. Excluding influencers with more than one million followers, on average, Snapchat offers $10 per post to influences with 1000 followers. Influencers with 10,000 followers charge $100 per post, those with 100,000 followers charge $1000 per post, and ones with 1,000,000 followers charge $10,000 per post. Influencers use Snapchat storytellers to promote products and services to increase engagement.
Factors Determining Influencer Marketing Pricing
Influencers are paid to promote your products, depending on various factors such as pricing models, platform, products or services, point of contact, etc. A few of these factors that affect influencer marketing pricing are:
- Pricing model: This can be pay-per-post, pay-per-click, pay-per-subscribers, pay-per-view, or pay-per-acquisition. Pay-per-post counts the total number of posts requested. Pay-per-click depends on the total number of clicks seen in posts with CTAs (Call to Action). A post’s conversion rate is represented by pay-per-acquisition, ranging from purchasing to joining. Pay-per-subscriber depends on the number of subscribers a creator has, and pay-per-view is a result-driven pricing model that counts average views on an influencer’s content.
- Platform: Platform is a crucial factor affecting influencer marketing pricing. For example, YouTube creators would charge you more compared to Twitter. In the same way, these prices may vary, as it depends on the platform you choose and your target audience. Audiences on a platform maximize your campaign’s success.
- Product or service: The price and target audience of your product or service can also impact your marketing prices. If your company sells luxury watches for an average price of $ 1000, for example, you need to work with an influential person that your target audience loves and trusts for those types of recommendations. Wise promoters consider this too. This is why promoters who can reach high-earning audiences often charge extra for their services. This is also why companies with high-value products or services tend to pay more for strong marketing. It’s good news for your company if your business is selling something cheap.
The best influencers hold a reputation in their specific niche on multiple platforms, they provide a place for their viewers to find genuine- unbiased recommendations on the products they are interested in. This basically means influencers are paid based on the number of followers, rate of engagement, content and expertise among other things. Ultimately the amount you pay would depend on the results you expect to achieve and the overall marketing budget you have.