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How to Price Yourself as an Influencer

November 16, 2017 Influencer Martketing, Instagram, Social media, Uncategorised Tags: , , , ,

Many influencers on our roster also work independently with brands and have been asking about the topic of pricing, so today we’d like to finally answer all of their questions. It’s much more advantageous to base yourself on the industry, than to rely on the offers made to you when choosing your prices. For this reason we’ll be showing some interesting numbers that should help you do just that.

 

What Does it Cost to Be on TV?

If an influencer has the same reach than a TV show, do you think they should charge as much per view as ABC? According to TV price charts for 2016–17 the price for a 30 second ad on television ranged from 700,000$ during Sunday Night Football on ABC to about 25,000$ for television’s less popular shows. In terms of cost per view this would mean about 0.047$ per view for Football and about 0.025$ per view for less popular shows. If you had 10K IG followers for example according to TV prices you could charge between $250 and $470. Now let’s compare these figures to those we see on social media.

 

Now Back to Social Media

Long before the rise of Instagram, bloggers would work with brands creating content for their blogs and email newsletters. Let’s compare IG posts to blog posts, which have had more time to understand pricing. To calculate their fees bloggers often add up their total reach on all of their platforms and charge 100$ for every 10,000 views. For example, a blogger that has around 15,000 clicks on her blog and email newsletter, has 5,000 Fb fans and 17,000 Twitter followers would charge the following amount for one blog post and one round of social media promotion:

15,000 (Blog+Email) + 5,000 (Fb) + 17,000 (Twitter) = 37,000 reach or 370$

This blogger and social media influencer would be able to charge between 350$ and 400$ per post. Combining all these services when working with brands allows influencers to increase their prices and offer more value when working independently. As you can see it’s a good idea to build a following on multiple platforms in addition to IG. If we compare these prices to television ads these bloggers are pricing themselves at 0.01$ per view, which is three times cheaper than TV. However, being able to simultaneously grow audiences on Fb, Twitter, IG, email and blog and charge based on your total reach allows influencers to charge higher amounts and quickly grow their reach.

 

Now Instagram

The numbers above are very general, but are often used as a benchmark for influencer pricing. On Instagram on the other hand, there are many factors than can impact the price you should charge during a collaboration. As a rule, it’s often assumed that the more niche your audience is, the more companies are willing to pay for sponsorship. It makes sense that a running shoe brand would rather collaborate with a fitness influencer with a focus on running than another fitness influencer not focused on a specific sport. Some companies also have higher influencer marketing budgets and some industries as a whole spend more on marketing and influencers than others.

For those that have been reading our past blog posts we talk a lot about how engagement comes before follower count when we rate influence on social media. This is becoming truer every day, but when it comes to pricing the follower count is still the most important metric. The data in the graph below comes from the 66AGENCY roster:

Compare the information above to data we collected from the influencer platform influence.co, where influencers individually indicate their rates on their profiles:

  • Influencers with between 5k-10k followers charge on average 94.11$ ($0.012/view)
  • Influencers wih between 10k-25k followers charge on average 113.69$ ($0.0065/view)
  • Influencers wih between 25k-50k followers charge on average 160.90$ ($0.0043/view)

Micro-influencers charge more per view for their services, while middle and macro-influencers charge significantly less. In addition, when we compared data for female and male influencers we also found that male influencers charged at least 10% more in all micro, middle or macro-influencer categories.

We also know that the influencer category can have an impact on price. According to an AdAge article published last year, top earning influencers are found in the fashion modeling niche. These influencers charge on average 300$ per post. Using influence.co data, these are the average fees for one post in the 5 most popular influencer categories on IG:

  • Travel: $184.39
  • Lifestyle: $181.89
  • Fitness: $180.88
  • Fashion : $170.87
  • Beauty: $157.73

According to this data, the highest paying influencer category is not fashion, but travel. If the average is higher, this means there’s more demand for this type of influencer and someone in that category could be charging more than influencers in different categories that have the same number of followers.

Are more specific niches, like in our running shoe example, worth more to brands? We collected the same information for 5 randomly selected influencer categories that are less popular and more specific:

  • Artist: $135.47
  • Pets: $142.33
  • Music: $189.58
  • Business: $258.00
  • Mom: $266.71

So according to this information, the assumption that the more specific the influencer’s niche, the higher their fees is not totally accurate. We can see that mom and business influencers do seem to charge higher average fees/post, however categories like artist and pets clearly have lower averages.

 

What Else Affects Influencer Fees?

Remember that there are many other variables that affect the price influencers can charge:

  • Higher engagement rates on a profile should lead to higher fees per post
  • The time required from the influencer to participate in the collaboration
  • Whether services are combined using other platforms to promote the branded content
  • The type of content asked for, which could be videos, photos or features in a Story
  • Of course, if you really love a brand you might be willing to do more to be able to close the deal on the collaboration

 

Conclusion

As an influencer marketing agency, we know from experience how difficult it is for brands to find the right influencers. As an influencer stay up-to-date with trends and changes in influencer pricing. Start to evaluate your fees based on your follower count, influencer category, engagement and the amount of effort you have to put into a campaign. Lastly, if based on those variables you think you have been undervaluing your work, don’t hesitate to ask for a higher fee.

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Sources

http://blog.hashtagpaid.com/know-your-worth-factors-consider-when-pricing-your-sponsored-posts/?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter-november-2017

http://adage.com/article/news/tv-ad-pricing-chart/305899/

https://tvseriesfinale.com/tv-show/cw-2016-17-season-ratings/

https://influence.co