When determining overall costs, there are a few factors to take into consideration.
As we’ll cover shortly, the platform you choose will have a huge impact on how much you end up paying an influencer.
Keep in mind here, the number of channels used will also have an effect on pricing.
For example, some deals are made exclusively for promotion on a specific platform like Instagram, while others may want to cross-promote content across multiple channels.
The more channels used, the more you’re likely to pay.
This is another big one.
For obvious reasons, the larger an influencer’s following, the more expensive they’re likely to be.
Take celebrities. They generally have huge followings and drive high costs.
Some of the highest paid social media marketing influencers are celebrities
Some of the highest paid social media influencers are celebrities
But that doesn’t mean that enlisting the aid of the Selena Gomez’s out there is the best bet for your business.
Often, a huge follower number doesn’t equate to quality followers. And if their audience isn’t in line with your brand, your message won’t resonate – no matter how many people hear or see it.
For most brands, it’s best to stick with micro-influencers. They tend to have smaller follower counts, but their audience is like-minded and more readily influenced based on similar interests.
Because they’re smaller, they cost less. And because they have a closer relationship with their audience, a brand recommendation will resonate more.
In marketing, that’s what we call a win/win.
The Scope of Work
Are you providing the content? Or will the influencer be supplying it?
Are we talking static images or full videos?
This will also have to do with the quality of posts this person typically produces. If they continuously provide high-quality, edited videos, and spend time going through product reviews, etc., it stands to reason that they would cost more than a product placement shot.
Also included in the scope are how many posts you expect and the frequency you want them posted.
The quality and overall scope of work required by the influencer will have a definite effect on what their costs end up being.
Exclusivity and Usage Rights
On the more technical side, you have to give some thought to the contract agreements you intend to make with influencers.
Some brands may not want the influencers they partner with working for competitive brands during the campaign.
If that’s so, you’ll have to take the duration of the campaign into consideration. You can expect to pay more for exclusive access to that influencer for that period of time.
Another factor to be aware of is your overall access to the influencer’s content. If they’re creating content for your brand, you may have to pay more for rights to that content after the campaign has ended.
Direct Partnership Vs. Agency
And lastly, you’ll have to factor in any extra costs associated with finding and contracting your influencer.
If you’re finding them on your own and negotiating your own contract, you’ll likely pay less.
But if you work through an agency, you’ll have commissions and agency fees to contend with.
Similarly, influencer marketing tools like RewardStyle and Onalytica often come with hefty monthly subscription fees for influencer discovery, management tools, and reporting.