When it comes to influencer marketing, brands need to be aware of the various pricing models and the factors that affect the cost of services. It's important to understand that you get what you pay for when it comes to digital marketing, and influencer marketing is no exception. In this article, we'll discuss the different pricing models, the factors that affect influencer marketing prices, and how to determine if you're paying the right amount for an influencer. Before we dive into the details, it's important to note that brands that reach agreements directly with influencers can expect different prices than if they go through an influencer agency.
Generally, agencies draw their own percentages between 10% and 40%. If an agency operates on a percentage pricing model, you can expect to pay between 10 and 15% of your total monthly ad spend for the service. When it comes to Influencer Managers, typically they receive 10-20% compensation for branded offers based on the size of the offer and how it was obtained. This is a massive price range that challenges businesses because a variety of factors affect influencer marketing prices.
The best way to determine if you're paying the right amount for an influencer is to measure the ROI (return on investment) of your influencer marketing campaign. How much you should budget for influencer marketing depends largely on the goals you want to achieve with your influencer marketing campaigns and the tactics you'll use to achieve it. If your audience uses more than one social network, it makes sense that your influencer marketing strategy includes more than one platform. In almost all cases, an agency scales its influencer marketing prices based on the number of posts requested.
There are also several influencer marketing agencies that exist to connect influencers with brands that want to hire them, but that's not where their services stop. The only way brands can determine if an influencer agency is charging them fairly is by comparing prices across the market. Because of the prevalence of agencies that promote “low-cost” or “cheap” influencer marketing pricing, it's critical to educate your team and company decision makers about their non-existent value. Brands like to use influencers for affiliate marketing because having a payment tied to a production like this tends to make influencers more effusive with their product.