One of the key factors in approaching Instagram Influencers the right way is the price of collaboration. You want to keep your marketing budget as low as possible, but you do not want to make lowball offers. About one-third of influencers cite this as the reason they refuse to work with a brand.
Not sure how much you should pay Instagram influencers? There are several factors you should consider. Let’s take a closer look.
According to Following
As you can probably imagine, the rate will depend on the level of influence of the influencer.
In terms of following, the terms and values may vary, but eMarketer uses nano (500 to 5000), micro (5000 to 30,000), power (30,000 to 500,000), and celebrity (more than 500,000).
You will want to engage an influencer with a large following if your goal is brand awareness. A large following typically means a broader reach. Unfortunately, the effectiveness of this type of campaign also means a bigger budget.
According to Engagement
The number of followers is not the only criteria you should consider, however. This is especially true if your goal is conversions. You should target influencers with higher engagement.
You can calculate an influencer’s engagement by adding the number of comments, likes, shares, clicks, and other types of interactions with a post. You then divide that sum by the number of followers and then multiply it by 100.
If you get a low number, do not be discouraged. The average rate of engagement on Instagram is 2.21% as of 2017.
The good news is that research shows that engagement is a much more reliable indicator of influence than following. Since nano and micro-influencers tend to have more dedicated followers, this means you can offer lower rates while avoiding the perception of low-balling an influencer.
A recent survey also showed that Instagram Stories are becoming more popular in influencer marketing. This is because they are more sincere and allow outbound links.
As you can see in the above chart, influencer rates also vary depending on the type of content. Since Stories typically cost less than videos and posts, your marketing budget just got a lot more manageable.
According to Impact
Another factor that can affect your influencer marketing cost is the model you use. You can offer to pay a fixed rate per post, or you can pay for the number of views.
The average cost per 1000 engagement (likes, follows, clicks, comments, etc.) ranges from $150 to $750, depending on the influencer’s following size and reputation.
Both of these approaches have their merits. A fixed rate per post means you have better control over your spending.
On the other hand, pay for views will largely depend on the quality of influencer’s content. The better the content, the more views. In most cases, micro and nano-influencers are willing to work with either model, so the choice is yours.
Influencer marketing is effective if you can get Instagram influencers to collaborate with your brand. It helps to know the going rates so you can avoid overpaying or underpaying them. This brief guide on the costs of Instagram influencers should help.
If you want to know more about how to approach Instagram influencers the right way, check the full infographic by iFluenz.
(Image courtesy: iFluenz)
Yann Benichou is a software engineer and a tech and social media enthusiast. He recently started to blog about influencer marketing for iFluenz.