Influencer marketing is now one of the fastest growing channels for brands to connect with their target market – outpacing organic search, email marketing, and paid search etc. As such, marketers are now seeking for suitable methods to come up with the right budget for their influencer marketing campaigns.
In a recent study carried out by Linqia, 39% of marketers disclosed that they intend to raise their influencer marketing budget. Although, 35% indicated that they are still not sure about how to increase their budget, only 5% affirmed that they will reduce their budget. While the other 21% said that their budget will remain unchanged.
The Linqia study also revealed that a majority of marketers will spend anywhere from $25,000 to $100,000 on influencer marketing. Only 7% of marketers in the study indicated that they intend to spend less than $10,000 on their influencer marketing campaigns.
If you’re wondering how much you should pay your influencers for their efforts, you’re not alone. In fact, hundreds of marketers are asking the same question.
So how much exactly should you pay your influencers?
How much influencers are paid for campaigns
There’s no one-size-fits-all formula to figure out how much influencers are paid across various social platforms. However, several different studies have been conducted to decipher the amount different marketers pay influencers.
In a recent study by Bloglovin, they found that 84% of micro-influencers request for $250 or less for a sponsored post on Instagram. Also, 97% of micro-influencers request for not more than $500 for each post on Instagram.
For a post on Facebook, 90% of the respondents who took part in the survey revealed that they charged less than $250 for a sponsored post. Meanwhile, on Twitter, 90% of respondents disclosed that they charge less than $150 for every sponsored tweet. While 96% of the same respondents revealed that they charge less than $200 for a sponsored post on Twitter.
According to the study, the cost of blog posts are slightly different. Up to 87% of micro-influencers charge $500 or less per blog post. However, 96% of micro-influencers do not charge higher than $1000 per blog post.
Based on the findings of the study, with a budget of $5000, you can reach up to 200,000 Instagram followers. With that same budget, you could reach up to 125,000 Facebook users, 315,000 blog subscribers or 315,000 twitter followers.
Furthermore, according to influencer tech firm HYPR, the cost of each post for influencers with 500,000 to 1 million followers across social networks is $5000 – $10,000.
A Snapchat influencer with three million to seven million followers can charge, on average, $75,000 for a snap while one with 50,000 to 500,000 followers can charge, on average, $1,000 for a snap, according to Captiv8.
Also, Dummies analyzed the cost of working with influencer bloggers who partner with brands on sponsored posts and their exposure. Here’s the outcome of that study:
- $175 per collaboration for blogs with 10,000 monthly impressions.
- $500 per collaboration for blogs with 100,000 to 500,000 monthly impressions.
- $1,000-$5,000 per collaboration for blogs that receive 500,000+ monthly impressions.
Why are influencer marketing budget rising?
Crowdtap carried out a study to evaluate how influencers view their partnerships with brands. Up to 67% of influencers in that study disclosed that they are interested in working with brands that provide them with competitive compensation.
Findings from a Tomoson study also revealed that businesses earn $6.50 for each dollar invested on influencers and the top 13% boasts of earning $20 or even more. That’s considered a valuable ROI bearing in mind that more than half of marketers see customers they acquire via influencer marketing as top-quality prospects.
So how much should you pay your influencers?
The amount you’ll pay your influencers depend on the size of your company, the influencer you chose to work with (some influencers are mega, while others are micro depending on the size of their community), the objectives you intend to achieve, the strategies you intend to employ, for instance, will the influencer be involved in the content creation process, or will the influencer be required to create content or just share an already created content etc.
Also, the platform you intend to use for your campaign and how long you want the campaign to last will ultimately determine how much your influencers will ask for.
With theright.fit we have inbuilt pricing guides and the image below gives you a rate guide to work to when offering campaigns to talent. You can easily set your budget as ‘open to quotes’ so influencers and content creators can pitch you their ideas, and rates for various platforms. Streamlining this process is all a part of what we do at theright.fit!