Influencer marketing is appealing for many reasons, but for smaller and newer brands, one of its greatest assets is that it can be incredibly affordable. How affordable? Well, that all depends. We are going to take a look at the various elements that can determine how much influencer marketing will cost you.
The more followers an influencer has, the more compensation they can demand. For example, someone with one million followers may be able to command $20,000 for a campaign. Chances are you will not have this kind of money in your budget. But that is not necessarily a bad thing since micro influencers often get better results for smaller and newer brands anyhow.
Compensation to the influencer does not need to be measured in dollar amounts alone. If there is something you can offer the influencer besides money, this can help to drive down the costs of your campaign. Some options to consider are product as payment, exchanging services, cross promotion, inviting them to events, and sending them on trips.
Different platforms have different standard rates. This is in part due to the different conversion rates and the different types of campaigns each platform facilitates. According to DigiDay, the following are standard rates for some of the more popular influencer platforms:
Instagram: $1,000 per 100,000 followers
Snapchat: Starting at $500 per campaign in 24 hours
YouTube: Roughly $2,000 per 100,000 followers
The above rates are based on the idea of a flat-fee agreement. However, that is not often the best way to go. Instead, you can work out an agreement to pay a certain amount per sale, per engagement, or some other specific action that you are wanting their audience to take. This allows you to pay not for the campaign itself but for the results it delivers. It may also incentivize the influencer to work harder on the campaign.
One option available to you is to work with influencers who are not interested in charging you at all. This comes with a few advantages—the most obvious one being you do not need to pay them. Other benefits are that they tend to be brand loyalists and since there is minimal risk in working with them, if the reward is also small, there is no harm to you. However, this also means not having any editorial control over the content or analytics to help you measure the success of their work. As such, if you are going to work with free influencers, you should work with paid ones as well.