On Instagram, finding the right pricing isn’t always easy. There are a variety of factors involved that go beyond the influencer’s number of followers. With no official pricing method, marketers are left with no reference to set their prices.
So how much should you pay your Instagram influencers?
Step 1: start with the followers
If you have read our post about Micro Influencers, you know that Instagram influencer pricing rates can fall anywhere between a couple of hundreds to millions of dollars. However, brands tend to favor small partnerships.
66% of businesses report that they pay under USD$250 per post.
As the number of followers will be a crucial factor for your campaign’s success, it is a good starting point for your pricing rate calculation. Marketers tend to adhere to the one cent per follower rule (for example, 200$ for 20,000 followers).
Step 2: adjust to other metrics
From there, you can adjust your pricing to include other factors that will impact your campaign. Metrics can include:
- Campaign length
- Usage rights
Think of what is expected from your influencer. A simple mention of your brand will not cost you as much as a picture of the Instagramer endorsing your product.
Instagram influencers with a higher engagement rate are more likely to yield better results when entering a partnership. If you are not sure of your influencer’s engagement potential, here are 5 tips to detect fake followers.
Partnering with celebrities
If you want to partner with a well-known influencer, be ready to pay the price! For example, Kim Kardashian reportedly charges up to $500,000 to post a picture for her 112 million Instagram followers. As a result, such sponsorships are favored by luxury brands with high marketing budget.
Partnering with celebrities can have benefits that go well beyond the number of fans exposed to your product. Well-known Influencers can have a significant impact on your brand perception. Such sponsors have a very dynamic community and higher engagement rates. This means that their fans are paying attention to their content and taking action.
Note that negotiating with a celebrity is not as easy as it can be with a micro-influencer. Famous Instagramers will have set pricing rates, and they might not want to endorse your brand if you don’t fit with their values.