Did you know that at least 17% of companies devote over half of their marketing budget solely toward influencer marketing? We’re talking between $100k-$500k a year per company spent just on influencers alone. And with the number of influencers rising every day and the popularity of traditional marketing tactics such as editorial publications declining, it’s no wonder why businesses are deciding to jump into influencer marketing!
Even though there is no debate on the importance of influencer partnerships in 2022, one thing that is constantly discussed is influencer rates of pay. How do you determine how much you want to pay an influencer? What is too much or too little? Is it okay to negotiate? Today, we’re breaking down everything you need to know to help determine how much you should be paying your influencers.
Influencer marketing pay rate factors
The first thing you need to understand is that it is not easy or one way to determine influencer rates. With each new influencer you work with, you should expect to pay a different rate. But what are those factors that help determine the rate you should be paying your influencers? Let’s get into it.
1. Follower and average engagement rate
First and foremost, you need to look at the influencer’s stats. Their followership and engagement rate are the initial factors you’re going to want to take into account. Influencer followership is typically broken down into a few universal categories:
Nano-influencers: 1k-10k followers
Micro-influencers:10k-50k followers
Mid-tier influencers: 50k-500k followers
Macro-influencers: 500k-2 million followers
Mega-influencers: 2 million+ followers
While follower count is important, what is actually crucial is their engagement rate. The influencer’s engagement rate will be able to give you a better idea of how many of their followers are liking, saving, commenting, and sharing their content. Once you look into engagement rates, you may be surprised that the macro- and mega-influencers have a less-engaged following than you may have thought! Overall, what this means is that the higher the follower reach and engagement rate, the higher you should expect to pay the creator.
2. Social media platform
Many content creators have a larger following on one platform over the other. So, if you’re partnering with someone who has 10k followers on Instagram but 100k on TikTok, you should expect to pay them more if you want them to post on their TikTok account. Additionally, certain platforms require more time spent filming/editing. Take YouTube for example. It’s much easier to create a 15-second TikTok video than it is a 10-minute YouTube video.
3. Content deliverables
Speaking of content, the type and amount of content you’re asking for will also determine the price you pay. Video content will always be more expensive compared to stills and the longer the video, the higher the price. Additionally, if you’re asking for content that does not feature any other brands, that may also drive the price up as well. For example, some YouTubers offer a dedicated video talking only about your brand for a higher rate or just a brand mention in one of their organic videos for a cheaper price.
If you’re looking to get the most bang for your buck, try offering a content package. This could be a mix of videos/stills, content posted on different platforms, etc. Many influencers will feel better with a discounted rate if they know you’re committing to a larger content ask.
4. Usage rights
What are you looking to do with this content? Do you just want them to post it on their social profiles? Do you want to post it on your page and turn it into a social ad? Are you looking to include it in email blasts or add it to your website? These are all usage terms that you have to discuss with the influencer beforehand and may increase the price of the partnership.
5. Exclusivity
Depending on the type of influencer partnership you’re looking for, you may want to ask for a non-compete agreement for a specified length of time. Exclusivity means that this influencer will not post about any other competitor brand for the outlined timeframe. While this is great to help the partnership feel more authentic, it will increase the influencer rate significantly because it means the creator is missing out on other potential income.
6. Brand budget
At the end of the day, you need to consider your brand and project budget. If you have a lower budget, you will want to target nano or micro-creators instead of one macro-influencer. This will get you more content and a diversified audience reach. It’s perfectly fine to negotiate with influencers based on your budget but keep in mind that for many of them, this is their only source of income.
Influencer marketing can be a rocky terrain to cover at first. Whether you need help building out your influencer community or simply need assistance launching a campaign, let INKED help you achieve all of your social media goals!
