Pricing of influencers are all over the map depending on the brands financing them. How do you calculate your value as a lower tier influencer and how much should you expect in payment for your work?
As marketing tactics are morphing, alternatives emerge – blurring the lines between content and ways of promoting it. Figuring out who to trust and follow has become an essential part of marketing promotion, where influencers are changing the way brands promote their products. Every marketer is being preached to by ‘experts‘ to have a distinctive brand that stands out among the many similar enterprises. So why not get a collaborative partner to sell that brand? Someone who already have a unique voice in the market and a devoted following?
Today, mega influencers have all started to charge for their marketing services and created a lucrative business around their own social presence – sending out media-kits with set prices to interested brands. However for micro- or macro influencers, more often than not, marketers try to entice influencers by giving them free products. By doing so, marketers can achieve free promotion of their products by having influencers wear or show off these items without any payment from the brand itself. This has over the last couple of years been a smart tactic to market products to thousands, even millions of people. However, times are changing. With marketing laws being updated for the online space and loopholes being closed, lower tier influencers can also get paid for their services. Even though free is still the way to go for many micro- and macro influencers, the industry is evolving. So maybe you, the influencer, should too?
Much of the business surrounding influencer marketing is still viewed by many as an arbitrage, meaning pricing is far from being clarified or pinned down. One of the reasons for this is the lack of information regarding influencers general performance in terms of engagement, which makes marketers hesitate in using influencer marketing. Even though famous influencers have set prices, costs do not reflect the level of professional expertise and how accommodating an influencer is to work with. So, how should you as an influencer value yourself and the work you’re providing?
How will you be approached by brands?
As of now, many businesses approaches lower tier influencer, as we already mentioned with free products, in hopes of having the items shared by the influencer. Looking away from this practise, if a marketer got in touch with you through the Discover Platform on Woomio and were in the process of negotiating a collaboration – how would that approach occur and what practises are common during the developing phase of a campaign?
Normally, after a brand has picked their influencer candidate, they set up a meet and greet. The company will lay out their idea and ask you to pitch some ideas for how you would want to sell the product to your audience. It’s important to take this process seriously! Many companies are still sceptical towards influencer marketing. Some might waver or back out if they feel that your pitch is not thought through or not in line with the brand’s wishes.
Additionally, no matter what your suggestion or idea might be, brands will hesitate to rely on content creators if they get the sense that your influencer profile is just empty followers. Brands will simply not pick influencers who have no engagement or creative content to show for.
What should you expect to be payed?
Costs will always wary for micro- and macro influencers depending on what a certain brand will request out of you. Are you producing your own creative content? Meaning image, video or blog-post? Obviously text being the cheapest, all the way up to producing a video. Do you require a lot of assets from the brand to have your idea come to fruition? Will you as an influencer have to travel somewhere, which social platforms does the brand wish to share the campaign, etc, etc, etc…
With each requirement to complete the campaign, your earnings should increase along with it. Naturally, making an estimated value of your audience and how much leverage that gives you, is a good start-off point in figuring out your worth. Based on this information brands will try to determine your financial value based on your social following and calculate how much they are willing to pay for your followers engagement. This all depends on how niche your audience is and how engaged they are with the content you have posted in the past.
There are usually two ways of deciding the price rate of your followers. The more conventional approach, after having settled the requirements, is to set up the desired costs per thousand (CPM) for your followers. The project as a whole should then have a rate range to go along with the campaign. The newest approach thus far is creating a rate range that is based on individuals instead of group of thousands. By setting the goal based on the number of people reached, it might change the work load of the campaign for the influencer. This boils down to influencers having to create more content on their social platforms if one or the several posts originally agreed upon did not reach the required amount of people.
Often marketers will ask the influencer to set the pricing you feel is fair for the work. The reason marketers occasionally to do this is because influencers often underestimate their own worth, resulting in earning less than what brands themselves would have normally expected to pay.
There are also plenty of instances where marketers offer up a price to the influencer, but the point is: Do not be scared to aim high and negotiate the price of your work. Since the influencer sits on the audience, you have leverage over marketers in the sense that your audience trust and listens to you. Still, try to come to an agreement, where both you and the marketer allow some room in terms of pricing.
Influencer marketing is on the rise
Have you ever considered why brands are so inclined now to use influencer marketing? As always, financial reasons play into this rapid development. Many brands see it as a cheaper investment than a smaller self-produced ad campaign. Usually, companies also have to invest less in a influencer program than traditional marketing.
Creating high quality content is essential when demanding a certain price for your work. Just don’t overdo it and demand prices that doesn’t match up with your performance. The important thing is striking a balance that work for you as an influencer and the collaborating brand.
Influencer marketing brings with it good earnings more often than not, so remember your value and entice brands further by bringing back impressive ROI.