Beyond followers First of all, brands that reach agreements directly with influencers can expect different prices than if they go through an influencer agency, which draws its own percentages generally 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. How much do you pay an Influencer Manager, right? Typically, most Influencer Managers receive 10-20% compensation for branded offers based on the size of the offer and how it was obtained. It's a massive price range that challenges businesses because a variety of factors affect influencer marketing prices.
Influencer marketing is one of the most effective ways to reach your target audience, especially on social media platforms. One of the best ways 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.
Whenever you research the prices of digital marketing, whether for influencers or social media marketing, remember that you get what you pay for with these services. Find out in this handy guide, which covers everything you need to know about influencer marketing pricing. Agencies that could get away with raising rates or selling expertise they don't have are likely to optimize as brands demand more color from their influencer campaigns. There are a few things to consider when setting up your budget, namely your influencer marketing objectives and whether or not you will use influencer marketing tools or an influencer marketing agency.
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. Influencer marketing is about hiring a content creator to create sponsored content that promotes your brand to their audience.
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.