It’s become well known in the marketing world that social media influencers provide a real return in the form of high-quality leads, conversions and brand awareness across all platforms. Because of this many influencers now also require payment for their services.
We’ve noticed a decrease of trust in big brands and traditional advertising; this could be in part due to the prevalence of influencer content, with consumers favouring word-of-mouth and peer-reviewed products. Brands that invest in this type of marketing see an average of $6.85 in value from every dollar spent on their influencer program.
So how do you know what is a reasonable price to pay an influencer?
There is no precise cookie-cutter formula (despite what some influencer apps may tell you) and many factors you should consider before starting negotiations.
Here are a few factors we take into consideration;
What is your objective? – Define what sort of relationship you are hoping for and your expectations, to help you keep a clear vision of what you want to achieve, and how much you are willing to pay for it. Defining your goals at the start will streamline the process.
Who is your target market? – So you’ve found an influencer, but how relevant are they to your target audience? Think carefully about whether your message will resonate with their fans. Don’t be afraid to ask for stats to justify their fees, getting an idea of their followings age, gender and location are particularly important and provide room for negotiation.
What is their following? – This is the most obvious metric, but doesn’t always tell the whole story. If you’re looking for influencers to promote your product, a high following is great, however an influencer who is skilled/qualified with a lower following may be a better investment. Also keep a look out for purchased fans (see below) a genuine following is essential.
Who’s watching? – Look at the likes, comments and shares across all of their accounts over a period of time. A high engagement rate means an active, captivated audience who are responding to their content. It may be a better strategy in the long term to engage micro influencers (smaller following) who have the same engagement rate as their more famous counterparts, with a smaller investment.
Work out what you’re paying for? – Authenticity is best, and great content is worth paying for. Keep in mind how much you would pay a professional to produce a similar project. Some content takes a lot longer to create; recipes, blogs, and styling can all take a lot of time and expertise to produce. Some influencers have qualifications so bring a level of skill and experience others don’t have.
Our proven approach is to define goals with our clients, work collaboratively and negotiate with each influencer to ensure we get the best of their skill, while ensuring all stakeholders are happy with the rate agreed.
Are you interested in working on your influencer strategy? Get in touch, we’d love to chat to you; [email protected]