A Guide for Influencers: How Much Should You Charge?
Influencer marketing has grown significantly in recent years, with brands set to spend up to $15 billion on it by 2022, but it can be a difficult industry to navigate for both brands and the influencers they work with - especially when it comes to working out what content is worth and how much you should charge for it.
To help simplify things, we’ve put together this quickfire guide for influencers. We cover:
The categories of influencer based on number of followers
What is engagement rate?
What is considered a good engagement rate?
How do engagement rates differ between platforms?
Pricing brackets: What should you charge for brand partnerships?
Further resources, including information about the influencer pay gap and advertising regulations (ASA)
Number of followers
Different organisations, brands and agencies will use different definitions for influencer types based on their number of followers, so as an influencer, you might be referred to under different categories depending on who you work with. To give you an idea of where you fall on the scale, influencer marketing platform Upfluence defines influencer categories as:
Micro-influencer: less than 15k followers
Regular-influencer: between 15k and 50k followers
Rising-influencer: between 50k and 100k followers
Mid-influencer: between 100k and 500k followers
Macro-influencer: between 500k and 1 million followers
Mega-influencer: more than 1 million followers
You might also see the following influencer categories:
Nano-influencer: 1k-10k followers
Micro-influencer: 10k-50k followers
Mid-tier influencer: 50k-500k followers
Macro-influencer: 500k-1 million followers
Mega-influencer: more than 1 million followers
Engagement rates
Engagement rate is a formula that measures the amount of interaction social content earns relative to reach or other audience figures, and includes things like reactions, comments and shares.
Although brands and agencies will look at your follower count, your engagement rate will be a more important metric in most cases because it is a better indicator of your relationship with your community and the value you can provide for the brand. Like with all of your analytics, it’s important to keep track of your stats, and that includes tracking your engagement rate. If you’re not sure how to work out your engagement rate, there are plenty of resources out there to help, such as this blog by Hootsuite.
So how do you know whether your engagement rate is good or not? A recent report by SevenSix Agency concluded that a good engagement rate can be defined as 2% and above for all influencers. Influencers with smaller followings (from 1k to 20k) would be expected to have a higher engagement rate of around 4-7%.
Difference between platforms
If you’re an influencer over on a platform like TikTok, the engagement rates above look a bit off to you, and that’s to be expected. There is a significant difference in the average engagement rates between platforms, with Instagram and YouTube influencers’ engagement rates coming in markedly lower than TikTok influencers’, which can be far greater.
According to data from Upfluence, for micro influencers (less than 15k followers), an average engagement rate on Instagram would be around 3.86%, while for the same number of followers on TikTok it would be around 17.96%. Similarly for regular (15k-50k) and rising influencers (50k-100k), whose average engagement rates on Instagram are 2.39% and 1.87% respectively, TikTok sees them achieving far higher engagement rates. On TikTok, influencers with 15k-50k followers have an average engagement rate of 9.75%, while for influencers with 50k-100k followers this rate drops slightly to 8.37%.
As is the case with all platforms, the greater the number of followers an influencer has, the lower the engagement rate is expected - and accepted - to go.
Pricing brackets: What should you charge?
Based on discussions with brands and experts, SevenSix Agency published the following pricing brackets for brand partnerships on Instagram based on an influencer’s number of followers (and assuming a good engagement rate as indicated above):
1k-5k - £100-£250
5k-10k - £250-£450
10k-20k - £500-£1000
20k-30k - £800-£1800
30k-50k - £1500-£2500
50k-100k - £2000-£4000
100k+ - £3000+
Depending on campaign ROI expectations, gifting may also be an appropriate form of payment for influencers with 10k followers or less.
Further resources
Influencer marketing is still a young industry and so there are issues when it comes to standardisation and regulation. Transparency is the best way for influencers, brands and agencies to work towards a fairer system for everyone. Here are a list of resources to learn more:
@influencerpaygap account on Instagram
This account, set up by Adesuwa Ajayi, allows influencers to share anonymous stories about their experiences working with brands and offers an insight into how other influencers are being treated and what they are charging for campaigns.
Lifting the Lid: The Influencer Pricing Report by SevenSix Agency
SevenSix Agency conducted an industry-wide survey into influencer pricing in November and December 2020. Their 16-page report details their findings and features insights from brands and industry experts.
SocialDay’s article: Uncovering the Influencer Pay Gap: What Does the Research Show and How Can We Tackle It?
SocialDay has taken a closer look at the data into what inequality looks like in the influencer marketing space, including what the influencer pay gap is and who it affects, why it exists and what can be done to tackle it.
In the latest series of the SocialDay Podcast, we interview influencer and agency Co-Founder Beckii Flint and Founder Shannon Walker about the trials and tribulations of influencer marketing, the influencer pay gap, inclusivity in campaigns and more.
The ASA’s Influencers’ Guide
The Advertising Standards Association is the organisation that oversees any advertising and marketing activity, including influencer marketing. It’s important to understand what you’re allowed to do and how to do it correctly to avoid difficulties and penalties for your content.
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