How to Set Influencer Compensation
When running an influencer marketing campaign, one of the most challenging tasks is knowing how much to pay an influencer. The work an influencer does is extremely important to your brand as it not only brings value, but also draws in potential customers. Using micro-influencers to represent your brand is a sure way to reach the target audience of your choice. Influencers take their jobs seriously and do their best to create the best-looking content. For this reason, it is important that their time and creativity are appreciated and compensated accordingly.
Each influencer will have their own way of assigning compensation. When working with influencers, it is essential to ask for media kits and engagement reports. By doing so, you will have a better understanding of the engagement they receive per post and their reach, which can help determine what influencers of similar sizes are also charging.It is crucial to keep in mind that every influencer isn’t the same, and so when comparing prices, it is also essential to consider the quality of content that an influencer puts out.
Pricing for Stories vs. Feed Posts
On average, a feed post will range anywhere between $100-$450 per post for influencers with under 30,000 followers. These rates will change significantly as the influencer goes from a micro-influencer to a macro-influencer. The more followers an influencer has, the more reach and engagement their branded posts are likely to receive. As a general guide, you can expect that influencers will price their story posts at about 1/3 or ¼ of what a feed post will cost. However, this also varies on the following size of an influencer and the engagement they typically receive on feed and story posts.
How Embold Helps
With Embold, we try to make this process as easy for you as possible. The platform has a pricing algorithm that makes it easy for advertisers to know the market value for each influencer. This algorithm was designed by interviewing hundreds of influencers and taking both industry data and engagement from each person. Then, we built out a compensation algorithm that allows advertisers and influencers to know what to pay influencers for each campaign. While this algorithm predicts a suggested price, it is not uncommon for influencers to set their compensation either lower or higher. However, this is a general guide and can help make the compensation process run smoothly.
Valuing the work an influencer does is crucial in order to run a successful campaign. It is important to note their work is not always easy and that their creativity is what makes a campaign so successful. Personal testimonies from influencers are so rewarding to a brand, as people are more likely to listen to trusted peers compared to advertisements. At Embold, we provide advertisers with all the tools necessary to run a successful campaign. These tools include suggested compensation rates for each influencer, a filtered list of Canadian influencers, and continuous access to updated analytics during a campaign. If you’re ready to launch your influencer marketing campaign today, book a consultation by clicking here or by visiting: https://embold.co/getstarted/