THIS IS HOW PRICING WORKS IN INFLUENCER MARKETING
How influencers get paid
Have you ever wondered how influencers actually earn their money, how the prices in influencer marketing are made up and what work is behind stories and postings? Then you’ve come to the right place in this blog post because we’re clearing up about pricing in influencer marketing!
What do influencers earn?
Let’s start by saying: If you always thought that the payment of influencers is only based on the number of followers, you’re actually wrong. Because the remuneration of influencers in the context of campaigns and collaborations is influenced by many more key figures.
In general, it can be said that the services of influencers, for example in the form of feed postings or Instagram Stories, are defined via prices. The customer should therefore ask himself, similarly to other marketing measures: What does the influencer offer and what is an appropriate price for this service? The “problem”: there is no standard pricing in influencer marketing. This means that you can’t make a blanket statement that one influencer with 100,000 followers can charge sum x and another with 500,000 followers can charge the higher sum y. This fact poses a problem above all because customers – understandably – often cannot comprehend this at first glance.
How to pay influencers
Auf den Preis zielen aber eben, wie bereits angesprochen, nicht nur die Follower ein, sondern vor allem nocHowever, as already mentioned, it is not only the followers that are aimed at the price, but above all much more important key figures in influencer marketing, namely the strength of the community, the fit of brand and influencer, the effort on the part of the influencer and also the utilization of the latter. Example:
Two influencers each have 500,000 followers. Many customers therefore assume that both also demand the same remuneration for the same service. However, what the customer may not know is that one of the influencers reaches about 250,000 people a day with his Instagram Stories, while the other “only” reaches 50,000. Because of this, it is so important that as a client, you always ask for the insights of the respective influencer first in order to be aware of such relevant metrics.
The influencer’s community is also important. If he has built up a strong bond with it, it is much more likely that the followers will follow his purchase recommendations. Another important aspect: the utilization of the influencer. Here, too, the rule of supply and demand applies, because the influencer’s advertising space has an enormous value in today’s digital world. Of course, they should also be appropriately compensated for this.
Conclusion – Here’s how to do it right!
Influencer marketing is quite a complex topic, especially when it comes to pricing. However, if you deal with it sufficiently and analyze the influencers you want to work with in detail, the prices will quickly make more sense. Very important in the remuneration of an influencer are important key figures such as reach, engagement rate, the individual utilization, the fit to the company and, above all, the bond between influencer and his followers. If all these points are taken into account, pricing in influencer marketing works much better, all parties are sufficiently compensated and are satisfied with the collaboration.