Influencer marketing can be cost-effective but also very expensive. In order to set up a campaign with a good ROI, you need to know how to estimate the price of a partnership.
How much should your influencers be paid? This is a question that you should think about before proposing a partnership because if the influencer does not like the financial compensation, your collaboration will be refused without a discussion! So to save the influencer's time and yours, it is better to estimate in advance how much you would like to spend for your partnership. That doesn't mean, there won't be negotiations, but at least you know what to expect!
First of all, know that when you open an influencer audit, Favikon will always give you an estimation of the price of your partnerships. These estimates are made using data from several market studies, so you can rely on them seamlessly! 😇 This is a good thing to have in mind before bargaining with an influencer.
When talking about level of influence, several factors are taken into account. There is of course the reach of the influencer, the size of their audience (the number of subscribers), but more importantly: the engagement rate, i.e. the commitment of subscribers to a publication (number of likes, comments...).
One might think that influencers with the largest community will get better engagement rates, but this is generally not the case. The engagement rate is often linked with how close the influencer is from their community. If their followers feel like they are easily reachable and approachable, they are more likely to engage with their content. An influencer can also boost their engagement by creating for their community, for instance by asking for their opinions, etc.
The level of influence is the factor that will have the greatest impact on the remuneration of a partnership because it provides a guarantee of visibility.
Depending on the chosen platform, a partnership will be more or less effective, and not consequently more or less expensive! And this is normal because each platform has its own type of audience and resources (story, filters, swipe up ...).
For instance, collaborating with a TikToker is often less expensive than working with a YouTuber or an Instagram influencer. This can be explained by two reasons. Firstly, TikTok is still a relatively new platform that brands are slowly considering for their marketing strategy. Secondly, TikTok algorithm can be unpredictable so it is hard to guarantee the efficiency of an ad.
The type of content and the time of realization dedicated to it will affect the price. Indeed, a video that requires creative ideas, editing and budget will cost more than a simple story. In other words, the more effort you put in, the more you'll get your hands on it! Overall videos tend to be more expensive because they take more time. Reels and TikToks even though they are quite short can actually be time-consuming, especially if there are a lot of transitions.
It also depends on the duration and the number of posts you are asking them to do. For instance, a story will always be less expensive because it is temporary content.
Of course, the number of posts you ask for will affect the price.
I imagine that you want to work with an influencer who specializes in your brand's sector. However, the remuneration will not be the same depending on the content creator's theme. In other words, if you choose to start an influencer campaign to introduce your brand’s new anti-aging serum, prepare yourself mentally! Your bank account might get a little overheated.
Indeed, the costs in the beauty industry will be much higher than that of the gaming industry (as long as your influencer's community is high! And yes, the different criteria are interdependent with each other).
Moreover if you chose an influencer from a niche industry, they might be more expensive. Since there aren't many influencers in their niche, they are in a position of power to negotiate with brands.
Just imagine. Your favorite brand offers you a partnership. It's totally up to you, but personally I’d say "yes" right away, if it were only to test the product/service or participate in the project in question.
Thus, the appeal of the content creator to the brand is a determining factor regarding the remuneration of the partnership. If the influencer already likes the product, the better he or she has been using it for some time, the more likely he or she is to talk about it for a small compensation.
This is why it can be interesting to select your influencers by researching UGC (User Generated Content). Perhaps an influencer has already talked about your brand, or tag you in a post, meaning that they like your brand.
It is obvious that the currency, the inflation rate, the monetization of certain benefits, will be different from one country to another. Influencer marketing is no exception to the rule: the market price will not be the same from one country to another. If you ask a Vietnamese influencer to create a story for your brand, it will certainly have a lower cost than the story produced by a French influencer.
Of course this table is indicative, there is no rule concerning the rates because it depends on many criteria ! 🚨
One last important thing to know, micro-influencers without a legal status cannot be paid in money. You will then have to find alternatives such as :
So before reaching out to an influencer make sure that you have done some research about the influencer, the type of content they usually post and the hashtags he uses. You should be precise about what you want when contacting them. You should include in your message the number of posts, the duration of the campaign and the type of content. It will be easier for the influencer to evaluate how much they wish to be paid for this collaboration. You can include your budget in the first message with your influencer but it's not necessary. Your first message should be about convincing the influencer to work with you, so instead highlight your brand's values, the originality of the collaboration and why the influencer can benefit from this partnership.
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