Finance
5 Tips for Calculation Your Influencer Marketing Budget
Let’s start with killer statistics. Over 80% of social media users trust influencers when they recommend a product or service. An indicative figure, isn’t it?
And here is another statistical fact. Cristiano Ronaldo will ask on average $750,000 for his post recommending your product. If you have this money, then you may calmly not read further. And if you don’t have such an amount, then we have prepared this article to help you navigate the prices of influencers and distribute your budget as correctly as possible.
Proceed from the Platform
So, the first thing you need to know about budget planning for influencer marketing is that the prices for such advertising differ depending on the social platform, as well as on the number of subscribers. Let’s look at real examples.
Facebook is considered the most expensive platform, both in terms of targeted advertising and in terms of paying for the hard work of influencers. For example,
On average, one post will cost $ 25, per 1000 followers. Further, prices will increase in proportion to the number of subscribers. Thus,
- a post from an influencer who has 10,000 followers will cost $250
- 100,000 followers = $2500 per post
- and by the best laws of mathematics, an influencer with 1,000,000 followers could charge $25,000 per post.
Obviously, it is worth considering the last option only if you are sure that the audience of the influencer will definitely be interested in your product or service and the result will exceed the investment. Or at least, you will get a huge number of hot potential leads with which you can effectively work on at a lower cost.
Influencer marketing works best on Instagram, and the prices here are slightly lower than on Facebook. So, the average price for a post with 1,000 subscribers starts at $ 10. Further, you can calculate the final price depending on how many subscribers the influencer has in total – the algorithm is the same as for Facebook. Also, remember that only a post through influencer won’t help you much, also research on Hashtags for Instagram and find some truly popular and famous hashtags for your campaign, and give those tags to them while posting to better get engagement and response.
Youtube
One YouTube video will cost $20 per thousand subscribers. But keep in mind that since the video is in the wake of popularity and this trend is not going to subside, many influencers feel free to ask for more in return for a live audience that will definitely watch the video to the end. Plus, the video gives you a better chance to showcase your product or service, so it’s very possible that this approach makes the most sense.
Twitter is the cheapest platform for influencer marketing, and at the same time, it also has its own effect. If you just want to start by testing the format of working with influencers and the response among the audience, then you should start with this platform, since the price starts at two dollars per post with a thousand subscribers.
Snapchat
Be careful with Snapchat because the audience here is specific. If you are not sure that your segment is here, then your efforts do not make sense. And the price for the post is the same as on Instagram. So ceteris paribus, it makes more sense to choose Instagram in the end.
Decide Whether You Will Hire an Agency
You can contact influencers in two ways – the first is to try to establish contact yourself, the second is to hire a specialist. Each of the ways has its pluses and minuses.
If you manage to contact the influencer yourself, then you are likely to pay less. However, practice shows that influencers are more willing to make contact with specialized companies, since they immediately filter out uninteresting offers, and leave only the most expensive requests that most closely match the target audience of the influencer.
Calculate the Total
So, the calculation algorithm is as follows.
- Find the right influencer on the site you need.
- See how many subscribers he or she has.
- Multiply the average post price with 1000 subscribers by the number of thousands of subscribers of a certain influencer.
- Get the total.
Search for the Best Option
Obviously, it doesn’t make sense to target the most popular influencers, since although they have wide coverage, the prices for their help are extremely high, plus you cannot be sure that the entire target audience will be interested in your product or service.
Therefore, it is necessary to seek a middle ground. It is much better to collaborate with niche influencers, the direction of activity of which is maximally consistent with your product or service. Thus, you can pay a reasonable price, and sometimes even agree on mutually beneficial conditions, plus a post dedicated to you will be maximally effective even with less coverage.
And Where to Get the Money for This?
As you can see, this is not an opportunity that you can get for free. It makes no sense for influencers to influence without money. Yes, in some cases you will be able to negotiate and give your influencer a product or service if he really likes it, but in practice real money is more in demand.
Therefore, if you are sure that you need influencer marketing, but now you do not have the opportunity to find free money for this purpose, you can easily lend a little on the Lendgenuis website. In this case, you do not need to go to the bank, prove your solvency, collect a lot of documents and report for every penny spent.
Mónica Rodríguez is a writer, art historian, and editor located in the tropical island of Puerto Rico. She specializes in Art History, Art Conservation, History, Literature, Finance, Tech, Wellness, and Travel. In her free time, she’s usually roaming the halls of the museum or the local bookstore surrounded by stacks of books.
