From 50 to 550,000 Dollars per Post, we have seen it all: Small influencers who charge next to nothing for a whole bunch of posts and celebs asking for jaw-dropping amounts of money for one single Instagram picture. Some demands seem just downright audacious, but are they justified? Let’s break down how to price an influencer!
These three factors have to be taken into consideration when negotiating with influencers or their agencies.
1. Channel Metrics
Generally, there are qualitative and quantitative factors which impact the pricing. Influencer metrics have to be considered, of course. 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 Example of bad audience quality of an influencer
But of course, the best audience quality is invaluable if the wrong audience is addressed! A good target group fit is essential.
If you launch a product for the French market which targets women, the influencer should ideally reach a majority of French female followers.
Example of good target group fit for French female followers
Example of bad target group fit for French female followers
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.
Brand and influencer environment of Chiara Ferragni
3. Content Quality
Visual platforms 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.
Instagram channel of Julie Sarinana
Keep in mind: Influencers are 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.
Watch our on-demand webinar during which Robert Lebenhagen, CEO of InfluencerDB, talks about how to price the work of influencers and explains both soft and hard factors in more detail.
Relevant metrics, prestige and content quality flow into the consideration of how to price an influencer, but in the end, various more factors might impact the salary. Oftentimes, marketers can get a better deal for several postings rather than a single one and also for content pieces which include a posting, an Instagram or Snapchat story and a blog post.
Additionally, the prestige of the brand might impact the pricing: High-fashion brands are immensely valuable for influencers regarding their own status and the influencers are excited to be part of a campaign with the brand.
Also, a promising long-term cooperation with a high-class brand and being invited to exclusive brand events like product launches can certainly affect the price negotiation.