A recent survey reported in Campaign revealed some 86 per cent of marketers were not entirely sure how influencer fees are calculated.
Being in the dark about the pricing structure for influencers leaves the door open to overpay them for a collaboration, and consequently affects your planned return on investment.
So here’s a few pointers to be aware of when calculating your influencer fees.
Many marketers get sucked into thinking follower or subscriber counts are the determination for the value of an influencer.
This often better suits influencers who can inflate their prices accordingly, even if their view counts do not fall in line with what would be expected given their subscribers, and can be even more dangerous for marketers falling foul of influencers who boost these figures with paid for or ‘fake’ subscriptions.
As a general rule it is best to ignore follower counts altogether and focus instead on what matters most to the success of your campaign, namely, the number of views and interactions of the audience, or as we put it in influencer marketing, the engagement rate.
When analysing your desired influencer view counts and engagement rates, that is the number of likes, comments and shares the content gets divided by the number of views, do not just look at their last piece of content.
It is much more accurate to take an average of their past several videos, aim for 10, excluding content that is older than three months old (if the influencer is growing then going too far back skews the average) and the newest (which might not have reached its full potential).
Once you have your averages, make a calculation based on your planned cost per view.
Bear in mind ‘richer’ countries, e.g. USA, will demand a higher cost per view – i.e. above 10 cents – and that you will pay more for a full content as opposed to a mention.
With European countries you might be able to go as low as three to five cents.
Now you have your starting point for negotiation.
Make the offer, explaining your argumentation, and see how it goes with the influencer or their talent manager. Don’t be too stringent in your offering or too cheap with your cost per view, influencers put a lot of effort into the production of sponsored content and have a right to be fairly compensated. If you shoot too low with your first offering, you run the risk that they will not respond to you.
If you are working with an influencer who has a talent manager, be aware their fee will also be included in the price.
For more things to look out for when selecting influencers, check out this article.
You can also get a checklist here.