This is how much Instagram Influencer cost
Knowing how much budget to allocate to influencer partnerships can be difficult for businesses looking to grow on Instagram.
Instagram influencer partnerships are the best-performing platform for brands to reach new audiences quickly, with an average 3.21% engagement rate compared to 1.5% across all social networks.
So what exactly is a fair asking rate?
How do you present your value to potential partners?
What are essential things to consider when agreeing on a collaboration?
Calculating the Cost of Instagram Influencers
While many micro-influencers are still willing to exchange the complimentary product for promotion, today’s biggest Instagram influencers are charging major bucks to create posts for brands as their accounts have become their primary source of income.
Setting Fair Influencer Marketing Costs
While there is no one-size-fits-all pricing, many digital marketers adhere to the one cent per follower (or $100 per 10K followers) rule, but only as a starting point for their calculation.
You can adjust and consider other factors, such as engagement rate, client budget, campaign length, and other partnership specifics. This allows you to be competitive and ensure you get the most value.
Partnering with Big Instagram Influencers (100K+ Followers)
A partnership with a prominent influencer often comes with a hefty price tag, but the investment can pay off!
Considering advertisers spend upwards of $5 million (excluding production costs) for a 30-second Super Bowl commercial to reach more than 100 million viewers — who may or may not be the brand’s target audience — an influencer partnership with a niche audience doesn’t seem like a bad business idea.
A series of Instagram posts by a fashion blogger with 500,000 followers and a cult-following could sell out an entire product line within 24 hours.
Partnering With Micro-Influencers (10K – 100K Followers)
One of the most significant benefits of working with micro-influencers is that they tend to retain higher levels of engagement than top-tier influencers.
Micro-influencers also have the added benefit of reaching a smaller, targeted niche.
In a recent influencer marketing study, Neoreach concludes, “the larger the influencer, the lower the ROI.”
It’s reported that influencers with 50K to 250K followers deliver a 30% better ROI per dollar spent than macro-influencers and 20% better than influencers with 1+ million followers.
They also tend to come with a smaller price tag than more prominent influencers.
In-Kind Influencer Partnerships
While cash is the most desired form of payment, in-kind campaigns can still be a meaningful exchange.
Many influencers with a smaller following are happy to do in-kind partnerships, especially when they are already a brand advocate.
If you’re a more prominent brand reaching out to a follower looking to grow, the chance to repost an influencer’s photo to your larger audience may even be an added incentive!
Brand Affiliates
The link in bio is prime real estate – and influencers are teaming up with brands to use it for affiliate marketing.
In most cases, influencers are set up with a unique URL that offers their followers a special discount. Once followers click through to the site and purchase, affiliates will receive a percentage of the sale!
While some influencers may prefer cash upfront, affiliate programs can be a win-win for both businesses and affiliates (and followers receiving the discount!).
Setting Clear Goals For Your Partnership with Instagram Influencers
Using influencers to generate brand awareness can benefit almost any business if the partnership's goals are established early on.
Although the ROI in influencer marketing isn’t instant, having familiar faces back your product or brand helps establish trust among potential customers, which is invaluable in the long run. It’s essential to spend more time thinking about your strategy and campaign goals than the dollar amount associated with your campaign.
Setting up crystal clear Instagram marketing goals will drive initial planning decisions on whether to execute campaigns based on short-term partnerships (for example, three Instagram posts about a new product release) or longer-term contracts that specify ongoing deliverables over an extended period.
Think about what you’re looking for in the Instagram influencer’s audience to do due to your partnership.
Are you looking to gain followers?
To increase sales?
Build brand awareness?
These are all great things to consider when determining the value of a potential Instagram influencer marketing partnership.
Setting a Budget
While your budget may heavily depend on the details, it’s a good idea to have a baseline price or starting point to work from.
Calculating the ROI of Instagram Influencers
Influencer marketing gives brands a unique opportunity to reach a niche and engaged audience.
After analyzing more than 2,000 influencer campaigns, Neoreach calculated a total earned media value (EMV) averaging 5.2x per $1 spent. Every dollar spent on influencer marketing results in five times as many interactions as the same marketing dollars spent on paid advertising.
Some of the most common performance metrics you can use for measuring the impact of your influencer marketing are:
• Engagement rate: likes, comments, shares
• Brand sentiment: how people are talking about your brand
• Traffic: customers visiting your website
• Sales: conversions and revenues generated
Want to learn more about how your business can benefit from Instagram influencers?
We’re here to help you with your strategy, content, and engagement.
If you need any help or have any questions, send me an email at Joanna@goenge.com.
Enjoy Instagramming!