Influencer-based marketing can be mutually beneficial, helping you and them. However, you must use a payment calculation to limit overall expenses. Otherwise, you may overspend on their help, wasting money in the long run. Here are several tips to help you estimate a suitable payment for influence services.
Calculate the Influencer’s Engagement Rates
Typically, an influencer will charge between $100 and $1 million per post, depending on size. Most campaigns set charges by evaluating their engagement levels. Therefore, the more users they engage, the more you will need to pay them.
Since engagement criteria differ by platform, you may pay varying amounts for each. Nevertheless, you should determine the quality level of their engagement. Also, marketers usually pay less for lower-quality engagement.
Consequently, a marketer will doll out around $1,000 per 100,000 followers on Instagram. Yet, they double that and pay close to $2,000 per 100,000 YouTube followers.
Utilize Gifting and Rewards
Savvy influencers understand the value of a gift, so they often request them on a campaign. High-level influencers ask about gift-only collaborations, limiting the cash value of their service. Furthermore, many influencers know gift cards can be used as a gateway to future business. In addition, these cards cost less than actual cash, decreasing expenditure overall.
If you decide to commit to a gift-based campaign, make sure the influencers feel valued. Yet, most businesses only reserve these campaigns for micro-and nano-influencers. Always take their typical engagement levels into consideration when creating new campaigns.
Send Influencers Tickets to Events for Free
If you are marketing a travel destination, you may send free tickets to the influencer. This has been established for a long time as a suitable payment arrangement.
Once they have gone on the trip, they can post coverage of the destination. After their posts are uploaded, followers will see them and ask for information. Thus, inviting an influencer on a trip can produce reciprocal benefits.
Another reason it makes sense to comp trips is authenticity. Since the trip will be more authentic, the influencer’s posts will be more effective.
Deliver a Rebate for Items They Buy
Occasionally, brands will notice their customer base contains an influencer. In many cases, you can entice them by offering a rebate on something they have bought. By discounting the items they purchase, you can spread brand influence without investing.
An additional option would be to award them a commission for any sales sent via their link. If that is the case, you can pay influencers based on the number of sales generated. As a result, the company will not expend resources unless there is a payoff.
Pay Them Based on Posts or Sponsored Content
Today’s online marketing campaigns often base compensation on post volume. For each post made, the company will invest some predetermined dollar amount.
For example, Facebook influence is sold for $25 per post per 1,000 followers. However, Twitter posts cost around $2 per post for every 1,000 followers, so costs differ. Many blogs charge $60 per post for every 1,000 unique visitors, adding to the total investment.
Specialists in certain niches may set their rates differently, charging more or less. Generally, small businesses should look at one or two influencers. Then, they can focus on building an enduring partnership with them.
Evaluate Their Performance and Reward Them Accordingly
Performance-based partnerships are often the most cost-effective choice, as your costs are limited. Unless the campaign produces measurable results, your company may not spend anything.
If you choose to follow a performance-based method, select a suitable metric to track. For example, award payments based on purchases, subscriptions, or bookings sold. Likewise, many companies limit expenditure by awarding influencers for sign-ups or downloads.
Implement a Hybrid Approach to Pay Them
In some cases, a hybrid approach is utilized, limiting upfront investment. Using this approach gives an influencer a fixed amount per post, and they earn more for added sales. Unless more sales are closed, they will only receive the fixed upfront investment. Nonetheless, the influencer still receives something to compensate for their efforts.
Influencing social media followers is big business and can pay off handsomely. But, you should carefully consider what is spent on these campaigns, or else you might end up overpaying.
