How much should influencers be paid?
Size and engagement of the follower base
Number one criteria: size! The bigger the influencer’s community on social networks, the higher their rates.
For example, a study by American startup Captiv8 shows that an influencer with between 100,000 and 500,000 followers is paid around 5,000 dollars for each Instagram post, while an influencer with between 3 and 7 million followers can charge an average of 75,000 dollars.
For the same community on YouTube, you would have to pay nearly 190,000 dollars to a Youtubers agency.
The size of the fan base should be combined with the follower engagement rate.
The more engaged a community is (shares, clicks, etc.), the higher the price of a post.
The success of an influence campaign depends on its viral nature and therefore on the likelihood of the community interacting with the content shared by the influential personality.
It is worth noting that most influencers play off the various partnership proposals against each other, thus raising the bids.
Extent of the input
However, an influencer’s price also depends on the extent of the support provided. Is it text, a photo, a video?
Is it content creation or just sharing? There are many possibilities and they do not all require the same amount of work.
Not surprisingly, content creation requires larger budgets, since it requires the influencer to be more involved.
This usually results in a creative campaign that is relevant to the influencer’s community.
If the advertiser wants to use the influencer’s image on media other than social networks (POS, billboards, TV advertising, etc.), an additional budget must also be allocated.
Choice of social network
Another important factor in determining the price of an influencer campaign is the choice of social network.
The best paid social network is YouTube, since it demands a high level of involvement in the creative process; while Twitter is on the other end of the spectrum.
Relationship between the influencer and the brand
Finally, how close the influencer is to the brand, product or project and how attractive it is to him or her can also be decisive factors in pricing.
After all, an influencer who already uses the product or is already a fan of a particular brand will be more open to contract negotiation.
The campaign will also be positively impacted because it will gain credibility and authenticity.
To allow advertisers to quickly estimate a fair price for a product placement and influence campaign, Kolsquare has developed an algorithm on its influencer marketing platform that calculates an estimated price for a post, based on various key parameters.