How Much Do Influencers Cost?
Here is a full breakdown of the key criteria that goes into determining how much influencers cost, and tips on negotiating influencer rates. Keep reading to learn how influencer rates are determined and my best negotiating tips or watch the Youtube video here.
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Now, the first thing that we need to address is that there is no one size fits all when it comes to influencer rates. It's very common for influencers in the same tier to have completely different rates. This may seem like an inconvenience to you as a brand but there is some good to not having it a one size fits all. When it comes to influencer marketing as a business owner, if there was a one size fits all, then you may end up overpaying an influencer who doesn't have the same credibility or skills as another influencer.
Okay, so now for the juicy part, let's get into some criteria that go into determining influence rates.
Influencer Rate Criteria
Influencer rate criteria consist of three things:
The first criterion is time. Now this one just means that different deliverables will take different amounts of time.
And if you do not know, deliverables are just the type of content that the influencer is going to make. So let's say that you are asking an influencer to collaborate on a campaign and you are asking them to make a YouTube video and a reel. Now those two pieces of content are going to take considerably more time than if you were just asking them to create a story slide and a static post for you. And so here is when you, as a business owner, really truly need to understand what you're asking the influencer to do, which will help you understand why the rate will be higher for these types of deliverables versus these.
Now the second criterion is effort. So this one you can think about it like this. If you are just asking the influencer to create a one-time campaign for you then that is going to take less effort than if you're working with the influencer on a longer term partnership.
Let's say you're asking them to partner with you for three to six months on an ongoing campaign. That ongoing campaign is going to take more effort when it comes to thinking of the creative concepts for the campaign, creating the actual content, and making any changes that you may need to be done. And so you can see that that long-term partnership will take so much more effort than a one time campaign.
The next criterion is experience. This one is just, that you are going to pay more for somebody who has more experience. It is not fair to an influencer who has been in their industry in their certain niche for 10 years, creating content for brands to be paid the same amount as an influencer who has just gotten started within the last two years.
Although the influencer within the last two years does deserve to be rightly compensated. for their time, and effort. Their experience does not match up to the 10-plus years that the other influencer has. And so you need to compensate based on experience too.
Pro Tip: Always ask for their media kit, this document will give you some insight on previous campaigns + the results they were able to get.
Have supporting details to back up your counteroffer.
What I like to do is I like to look at some key insights and present that to the influencer when it is time to negotiate.
So some of the key insights that I like to use and refer to are:
Engagement rate: you need to know how engaged the influencer's audience is with their content.
Previous partnerships: you need to know if the influencer has worked with brands on the same competitive level as you. If they haven't then that's something that you can bring to their attention when you are negotiating.
Quality of content: are their pictures clear or are they not blurry? Are they also keeping up with the times, you know, social media is forever changing and you need to work with influencers who are keeping up with the certain creative level that is going on on social media at the time.
Understand what you are asking for
So this includes the criteria I mentioned above, time, effort, and experience, but it also includes, things like usage rights and exclusivity. Usage rights really just mean that you were asking the influencer to use their image or the content that they create for you beyond the scope of the campaign. Exclusivity just means that you are asking the influencer to decline partnerships from other competitive brands in your industry for a set amount of time.
Pro Tip: By working with several influencers on a campaign you can compromise shorter terms for usage rights and exclusivity.
Always counter with a solution
A perfect counteroffer with a solution does the following: acknowledges the influencer rate, and acknowledges the value that they provide while explaining why the counter is beneficial for them.
For example let's say that the influencer rate is $5,000, but you want to counter with $3,500.
So you would say:
"Thank you so much for providing your rate of $5,000 for this X deliverable. We are so looking forward to working with you and your brand, we absolutely love the type of content that you're creating. And we really value you as a creator. Currently, we are able to offer you $3,500. It's deliverable with the promise and expectation that we would like to work with you on a long-term partnership basis. We would love to start this working partnership with you with this campaign at 3,500 and revisit your original during our spring campaign."
Understand when it is time to move on.
Negotiations can only go so far. There is only so much back and forth that should be done between you and an influencer before you realize that it is just not going to be a good fit and you have to move on from the situation.
You never want to be rude or disrespectful about it. The key part, if you cannot come to an agreement with an influencer when it comes to negotiation, is to keep a line open for reconnecting. Just keep it short, simple, and sweet.
Influencer Rate Ranges
And finally, let's talk about some average influencer rates. Now, again, there is not one size fits all when it comes to influence rates. So just please take these with a grain of salt.
Nano influencers (1000 -10,000 followers): $80 to $500.
Micro influencers (10,000 - 100,000) $400 to $3,000.
Macro influencers (100,000 - 1M) $5,000 to $10,000.
Mega influencers (1M+) $50,000 and more.