Perhaps one of the hottest topics in influencer marketing is rates. Why? Because as most people will tell you, influencer marketing behaves a lot like the wild west, with nearly no standards and limited transparency on how to price your work. While we don’t recommend pricing calculators as there are so many factors that go into pricing creative work, we know this is a hot topic amongst creators. To help you in finding the right rate, we are compiling our best tips on pricing from our past AMA’s!
P.S. Want to help make pricing more transparent? Share your campaigns & stats for our future pricing database.
In our past AMA with Blair Enns, he suggests creators ask: What is the project worth to the client? Pepsico paid design firm Arnell $1 million to redesign the logo. Nike paid $200 originally for the Nike Swoosh. Logos and branding changes can have a profound impact on a company's revenues and brand recognition. Be sure to consider what value the company is receiving from your creative work when pricing your content.
When we heard from Aleks from Magic Links, she suggested creators ought to leverage their affiliate links data to demonstrate to brands that their audience is interested in the brand. Including these metrics shows the authentic influence you have with your community and further shows that you are a natural fit for the brand. Not to mention, being able to demonstrate the financial contribution you bring can help you effectively follow the suggestions from Blair in pricing based on value rather than just for your time.
If the Covid pandemic has taught us anything, it is that content is extremely valuable to brands! In our past AMA with Steph from advised by Steph, she recommends accounting for the following when setting your rate:
According to Enns, your client will inevitably want to compare your prices, so give them something to compare them to with options in your proposal. Three options is generally considered the best as your client will, on average, pick the middle option to avoid overpaying or underbuying. This works both for creative campaigns in general, as well as social media campaigns where you can offer different bundles of deliverables in each pricing tier.
Taking into account the above pieces, Steph advises that you know the lowest rate you would feel comfortable completing a campaign for that still ensures you are fairly compensated. Consider this a non-negotiable and keep it in mind when negotiating with potential brands partners. If a brand can’t meet that rate, know that it is time to walk away!
Aleks notes that lots of brands are increasingly interested in working with smaller creators. So if you are working on growing your account, don’t fret! However, you are more likely to work with these brands on a gifted basis or for low-level flat rate campaigns (say $200). This is where being able to demonstrate your efficacy with affiliate links and data can really come in handy.
Steph suggests the following ratios once you have determined your base rate for a single image Instagram post.
We have gathered the top tips for growing on Instagram, as well as sharing some results from our own testing of these commonly shared growth strategies.