- 1. What is influencer pricing?
- 2. Factors that impact the influencer pricing
- 3. Steps to price an influencer
- 4. Influencer pricing formula
- 5. Tips and tricks
Table of contents
One of the most common questions that influencer marketers usually ask themselves is "How much should we pay for that influencer?" There is no border in paying for an influencer. From 50 to 550,000 dollars per post, we have seen it all. Is it true that celebrity influencer Selena Gomez earns 500,000 Dollars per Instagram post or beauty influencer Huda Kattan demands 18,000 for a sponsored content? This wiki is created to help marketers evaluating the monetary value of an influencer, thereby be able to answer those questions.
What is influencer pricing?
Social media provides these leaders with the opportunity to connect with millions of followers and for topics or genres that have attracted brands into working partnerships. These changes make the actual cost of influencer management a relevant topic for competitive business. The costs are based on a number of factors that change from industry to industry and influencer to influencer.
The past model of influencer management was created as agencies promoted their clients. These were famous athletes, actors, politicians, and musicians. Getting the brand support of these individuals required agencies to work as the frontmen when representing the world’s most famous identities.
The branch of marketing occurring today provides an individual influencer with more pricing control during negotiating. This is also true when negotiating through a team or online directory. These reasons are why influencer pricing follows an almost fail-proof model by using trackable metrics.
Factors that impact the influencer pricing
There are many factors have to be taken into consideration when negotiating with influencers or their agencies, such as marketing metrics, prestige & authenticity, content quality, etc. InfluencerDB experts clustered these factors into two categories called "soft factors" and "hard factors". Simply speaking, the hard factors are defined by precise numbers, while the soft factors have to be evaluated for each individual case.
Brand fit and authenticity
This factor itself includes the brand environment of an influencer. A high-class fashion brand should aim for influencers who position themselves in a high-class brand environment instead of working with low-priced brands. A good brand fit supports the authenticity of an influencer which reflects on the promoted brand as well.
Similar to the brand environment, the engaged influencers are an aspect which impacts this soft factor. If a fashion influencer surrounds herself with other successful influencers with a great reputation in this sector, the value of the influencer will increase and so will her worth for brands.
The content quality is another soft factor and has to be evaluated for each case individually. It all comes down to how valuable a content piece is for the brand.
If a campaign mainly focuses on the reach of influencers, the content quality might be a secondary factor. Thus, the value of a content piece for a brand depends on the campaign objectives.
Media value per post
The media value per post is an indicator of how valuable the activities of an Instagram channel are. This metric is calculated with the help of Instagram’s CPM of approximately 5$.
The better the audience, the better the influencer! An active and engaged audience is essential for influencers and influencer marketing campaigns. There is no point in creating content for dead-end users and companies would not want to pay for inactive followers who do not even see the campaign posts in their feeds, let alone express interest in the brand or the products displayed.
Target Group Accuracy
An active and engaged audience is great, but it is completely useless if it is not the right audience. Target group accuracy is key! For brands, it is important to identify the audience data of one influencer, find out how many of these followers are actually in their target group and reach those users which live in the countries the brand’s products are sold in.
Steps to price an influencer
1. Evaluate the influencer marketing metrics
Generally, there are qualitative and quantitative factors which impact the pricing. Influencer metrics have to be considered and evaluated by the marketers on their own or using influencer marketing platforms. These metrics include far more than just the reach of an influencer. The engagement rates of a channel are an important indicator of the followers’ activity levels and involvement towards an influencer and their content.
The general activity of followers also impacts the audience quality. Active and engaged followers who follow only as much content as they can consume are highly valuable, which increases the value of the influencer as well.
Example of good audience quality of an influencer using InfluencerDB premium software
Example of bad audience quality of an influencer using InfluencerDB premium software
Additionally, the best audience quality is invaluable if the wrong audience is addressed! A good target group's demographics fit (gender, region, age, etc) is essential for any influencer marketing campaign.
2. Measure the prestige and authenticity
We all know that celebrity influencers can charge skyrocketing prices for their postings. So apparently there seems to be a difference in the wages of star influencers compared to regular influencers. But even within the girl next door sector, the prices vary.
Authenticity is the keyword here. A makeup artist who promotes beauty products enjoys maximum credibility and a fashion influencer frequently working with high-class fashion brands conveys expertise in this field. How to price an influencer also depends on the standing of an influencer in his or her scene. If an influencer attracts other influencers and brands on a regular level, the influencer’s prestige in the influencer sector is high and the influencer’s value increases.
3. Assess the content quality
Visual social media sites like Instagram live on the concept of pretty pictures, so last but definitely not least, the content quality of a channel flows into the pricing of an influencer. High-quality pictures require maximum effort and need to be compensated accordingly.
Keep in mind that influencers need to be the perfect content producers. One of their greatest assets is that they do not simply serve as a testimonial for a brand, but also produce the content for the cooperations themselves. Thus, companies even save money and get the full package by working with content-producing influencers.
Influencer pricing formula
Media Value per Post, in $
Audience Quality, in %
Target Group Accuracy, in %
Brand Fit, on a scale of 0.5 to 1.5
Content Value, based on the quality of $50 to $1,000
This influencer pricing formula takes all necessary influencer marketing metrics into account. Nonetheless, the soft factors have to be evaluated by each brand and for each cooperation individually. Two influencer channels might look similar at first glance and have the same follower number, but an in-depth analysis might reveal that the channels strongly differ regarding audience quality and target group fit.
Keep in mind that this formula is not a fixed pricing system but serves as a means of orientation for marketers. The final price for a cooperation has to be negotiated with the influencer or management and can differ from the result of our calculation. Marketers should aim for a lower value than the calculated one to get the best deal. Keep in mind that factors like long-term relations between influencers and brands impact the pricing as well also affect the pricing procedure. Marketers need to be exceptionally subtle while negotiating the price with influencers to not only maximizing the return on investment (ROI) but also maintaining a fruitful relationship.
Tips and tricks
The pricing for influencers often follows a model that takes into account a cost per post format. Doing so allows brands to gauge the overall outcomes of an ad campaign. Content is the primary medium that influencers use to spread their messages with. The more of it they create, the more promotional opportunities they provide brands.
Here are some common metrics for costs per post:
- $250 per post
- $75 for less than 1,000 followers per posts
- $750 for 100,000 or more followers
- An average of one cent per follower