Knowing your right price as an influencer helps you negotiate your fees for future deals. This type of fee is a percentage of ad spend. Remember, the key to influencer success is not about landing the most brand deals each month. 6 Common factors that affect influencer rates in 2023. Its a pretty epic brag-worthy accomplishment. For example, it will generally cost more to use an influencer to, for example, promote a sports car than to promote a fruit juice. A more complex version, which may be applicable to larger brands, is to engage an influencer in the product development stage and get them to create their very own product themselves. The thing about offering commissions is that influencers must first commit themselves to promotion activities upfront. A micro-influencer with less than 1,000 . Campaign. Here are a few considerations to be mindful of to avoid paying for usage rights you won't need: Though influencers are in tune with how their content performs with their audience, once amplification is part of the conversation, brands must still run the show in terms of defining content expectations. Content amplification grants micro-influencers all of those things. A tier for our influencer with 10,000 might look like: 1,000 to 5,000 views = $50. It can be costly to request usage rights that may never be used; on the other hand, neglecting to secure usage rights at the start of a sponsorship may cost a brand more down the road when the content is createdand the brand's leverage has weakened. A nano influencer with 8k followers is not in the same league as a mega influencer like Kylie Jenner (the highest-paid influencer at $1.2m+ per Instagram post) with 177m followers. Keep in mind during negotiations that micro or up-and-coming influencers may view repurposing or amplifying content as a major value-add. This gives you your starting price range. Just drop us a note at research@activate.social. Avoid Over-Scoping: Don't Pay for What You Know You Won't Use. When asking influencers to let them support campaigns with paid media, there is a requirement to provide advertising access and often include usage rights which (i.e. Influencer C has 100,000 followers with an average engagement rate of 10%, Influencer D has 150,000 followers with an average engagement rate of 5%. This type of fee is charged on a percentage basis. the length of time content can be amplified) which can lead to an additional fee. Natalie is chief 411 for Afluencer, a top social media influencer platform. This can be wrapped up in one word: attention. Dedicate an entire collection to them. Perhaps product launches or even exclusive product workshops? Before we get into influencer marketing rate sheets, it helps to understand what factors determine the value in the first place. The margin on the items will be approx 55-60%. As far as new age media goes, influencers are the hottest commodity on the market. In influencer marketing, the influencer owns the rights to their content and the brand has to be granted, or purchase, those rights. Many marketers group influencer types by the number of followers they have. In fact, our annual study found that over 59% of marketers are tapping into influencers for content creation only partnerships carving out extensive usage rights up front for content that an influencer may never distribute on their own social channels. And quite right too. Theyre starting out and keen to build their portfolio so theyll agree to even the basic of rewards, such a commission on sales. After doing extensive research myself, I have used several formulas to calculate my influencer rates and I will be sharing them in this blog post. The number of classes of goods and services you intend . is basically charge a brand the value of that piece of content . I was thinking a 70/30 split of the profits. Creators at this level are looking for opportunities to assert their category credibility and gain more followers and engagement. Allegedly, a post from model Emily Ratajkowski would cost $80,700.Rumours are that Demi Lovato charges at least $668,000, while Dwayne "The Rock" Johnson takes home a cool $1.5 million for crafting a post for his 187 million followers. If we were to use the follower count perspective, an influencer with 10,000 followers can potentially charge $100 per post while those with 100,000 followers can earn $1,000 per post. How Much To Charge For Usage Rights Influencer. Beyond this, though, it can also be used in sponsored content across social media, print and offline billboards. The longer and more elaborate the usage, the higher the price tag for those rights. If you plan to launch an influencer marketing campaign on TikTok, you can expect to pay $5-$25 per post for an influencer with less than 10,000 followers, and $2,500+ per post when working with an influencer with more than a million followers. "Because they no longer have control over their content, they don't know who is going to see it." Figuring out how much to pay each influencer. Influencer marketing spend is predicted to reach $4.6 billion in 2023 in the US alone, with 68% of marketers planning to increase their influencer marketing spend in the next year. It's . Communication is key when it comes to influencer creativity. Theyre more likely to see the benefit of having their content amplified in order to grow their follower count and are therefore less likely to charge a fee for that service. When it comes to using the content in additional paid campaigns, we recommend opting for 6 months full digital rights on organic social, paid social and digital (also referred to as full digital rights). And pro-tip: NEVER grant a company full, irrevocable rights to use your TikToks as they see fit. Commission rewards can be a fair win-win for all. Consumers respond and react differently to authentic content from like-minded people they can relate to which is part of the reason for the surge in popularity for influencer marketing in recent years. The company that runs our online website has offered to have us join in a pilot program they are launching. After typing in your target niche and location keywords, you can: Identify business leads with the largest audiences. Industry insiders say one of the most important things influencers should look out for when signing a contract with a brand are "usage rights.". I often get asked if I know anyone at Instagram, Facebook, LinkedIn, etc. We recommend putting aside 0-100% of the flat rate an influencer gives you so youre prepared to pay any licensing fee they respond with. As a content creator, you should be charging for more than just your following. 2. The talent cost is a consideration when determining the value of an influencer. Not all influencer posts are published permanently. It means that influencers are the Pro package of social media ads, and many are charging a fee for the added service.. Waive (give up) your moral rights - basically your right to be identified as the originator of the content and your right to object to derogatory treatment of the content. Usage rights largely depend on two factors: . Brand Category: Beauty. Good energy and good coffee is how she rolls on the daily. For instance, a brand could request the right to include an influencer's picture of themselves wearing a product in the brand's marketing emails to customers for 90 days. 1. Whether its a few days or weeks, or months this airtime will come at various rates. $300 x 30% (.30) = $90.00 per month.$90.00 x 3 months = $270.00. In the case of a brand or agency, usage rights will dictate which additional channels the content can be used on. Whether you have a sizeable influencer budget or not, I hope youre inspired to explore other creative methods to reward influencers for a mutually beneficial relationship. It is all going to come down to the influencer, Some may want more, some may do for less, some might want minimum guarantees or money upfront. You focus on creating. That's almost half a million dollars. Follower numbers. This method may have a particular appeal to college student influencers. The bonus perk here for influencers is the chance to network within the industry. Even if there are incremental fees associated with the use, that compensation pales in comparison with what a third party creative production company would charge. Influencers get paid at a different rate due to determining factors like engagement rate, follower count, content type, niche, and others. But how much to pay an influencer? Join 12,000+ smart professionals who subscribe to my regular updates. MarketingProfs is the largest marketing community in the world, and we are here to help you be a better marketer. Instead of offering a base rate (think back to the basic vs pro subscription model), and then charging an extra fee for whitelisting, many influencers are operating as if whitelisting is the norm, and it certainly is becoming so. . This fee is charged in proportion to the ad spend. Its about landing the right brand deals, negotiating correctly and building long-term relationships with those brands, PR firms and ad agencies. This is not required, but is definitely an option! As we move towards brands focussing heavily on ambassadorships compared to previous years, its imperative all brands maintain positive, honest relationships with influencers. If your brand can afford it, youll certainly have a large number of interested candidates willing to collaborate with you. This type of usage may then require a higher fee or limited usage terms, she said. Id love to know your thoughts. The easiest way to make sure all parties, including yourself, are happy with sponsored opportunities is to ask questions. Example: 10,000 followers = $100 for 1 in-feed post. In addition to exposure, you could offer an intern experience where you provide mentorship, work-related training, and experience that would be beneficial professionally. This is probably one of the most creative ways to engage influencers. Collaboration total = $570 ($300 for photo and $270 for 3 months usage). However, a commission-only reward method can work with new or micro-influencers as theyre still growing and are open to opportunities to build their profile. #4: Length of Term Lastly, influencer marketing costs are also dependent on the length of your contract with an influencer. $2,000 Static Post + $1200 Licensing Fee = $3,200 Total Price. Beyond the time period, the manner in which a brand can use the content is also often a part of usage rights negotiations. Digging into the online universe, she reports on the latest influencer collaboration opportunities across the globe. Too many content creators are underpaid because they dont know any better. Calculate per month usage fee by multiplying $300 (photography rate) by 30% (digital) and multiply that by 3 (number of months). Credit: id-agency.ca. Of note: If the brand's photographer is shooting the influencer, similar to a typical commercial, the brand would own the rights. We're baaackk! For those who want to try Influencer marketing, I recommend running a test campaign between 5,000-10,000 euro/month for a test period of 6 months. Therefore, you'd charge 1% of the total views. For example: the influencer might charge 4% of ad spend. This is the simple version. Lauren McGrath is the vice-president of studio and SaaS strategy at ACTIVATE, which partners with brands and influencers to tell engaging and compelling stories across social media, at scale. As far as new age media goes, influencers are the hottest commodity on the market. When influencers charge this way, we recommend adding an optional extension clause to your contracts. When brands amplify influencers content, theyre also able to increase their reach at a rational CPM or CPE. Working on an influencer partnership where usage rights may be a factor? Sometimes the agreed on amount isnt what actually comes out of your budget. Packages: offer a discounted rate of at least 10-15%. On the one hand, its positive: it means positive changes for end-users. Again, this can be as much or little as you want. I work as a retail associate at a small mom and pop womens boutique. With this additional layer of influencer marketing, what are the best practices for integrating influencers content into brands owned channels and how does the cost of influencer marketing reflect this additional content use? And FYI, if an influencer is repped by an agency, you can bet there are going to be content rights issues. Heres a simple scenario to help you understand this better. Let's say you charged the brand $100 for creating and posting the content, you should be charging $33 monthly for usage rights. A $100,000 whole life policy will probably cost between $100-$1000 monthly depending on various factors such as your age. In my opinion, perpetuity is never a good idea but if you want to know how to sell rights to your content in perpetuity take your photography rate and multiply it by the highest usage rate (60%) for 1 year, then multiply by 3 years (average lifetime of an image). Content type - video costs more than images. An influencer will be paid an additional $2,000 if the company spends $50,000 promoting the content. For example, you may expect to pay $50-$100 for every 1,000 views. These categories include: Nano influencers (1,000-10,000 followers) Micro influencers (10,000-100,000 followers) Macro influencers (100,000-1 million followers) Mega/celebrity . 3. Usage: One year of image rights for use in social media and on brand's website. What she was paid: $1,500 and a $100 gift card (originally offered $800 and negotiated) Lets take a look at all the possible ways you can compensate influencers. Hope the advice helps! Your commission structure should make sense. and I tell everyone that I am just a blogger, content creator, and business owner like everyone else. Socialyte explored taking legal action against the brand, since the influencer thought she had not agreed to this usage. I have a bit of a unique opportunity that my boss presented to me this week. Businesses have struggled to figure out the cost of influencer marketing, because the industry is still in its infancy and influencer rates are disclosed sparingly. TalentX Entertainment, an agency managing 32 influencers across Instagram, YouTube, Snapchat, and TikTok, tells Business Insider it charges brands $0.01 to $0.02 for each sponsored-video view on . An influencer price calculator helps estimate what you should pay an influencer, based on factors like follower count and engagement rate. Brands are thoughtfully picking and choosing where and how to amplify influencer content. You can keep, Instagram constantly update their algorithm and platform. Rights for the usage of content. Much like going to your local market and negotiating with a seller for a piece of craft. What are usage rights? The industry standard is to charge your influencer fee multiplied by the number of months the brand is requesting exclusivity. At ZINE, when a brand starts a new influencer campaign, we allow them to choose how long theyd like access to the content to repurpose on their channels. (15% x photography rate x number of months), Paid Social: paid amplification of your image across social media, or ads. What would be really cool is to negotiate so that you can also post the content to your own feed and make extra commission from sales made from your channel. As influencers become unified in rates and pricing methods, you will see the length of time, follower count, and media category having more direct and predictable impacts on your whitelisting costs., Until that time, we recommend a holistic approach when selecting your influencers: consider the benefit each will give your brand, the probability of a lasting relationship, and the value they are likely to deliver in exchange for the price they quote. How Many Followers Do You Need to Be Considered an Influencer Anyway? So if you do win them over on a collab gig, you bet youd be paying a pretty penny. Brands should be prepared to provide clarity. Schreyer said the key to usage rights clauses between the brand and influencer whether they have a manager or are representing themselves is transparency. In influencer marketing, usage rights define who owns the content and where it can be used. This cost-effective channel has an average price of $10 per post, per 1,000 followers. Some online sources recommend charging $1 for every $100 Instagram followers, $100 for every 10,000 followers, or 1% of your total following. Reward them with a bonus prize. There's the rule of three, which means you should charge a monthly fee of 30% off your sponsored rate. Your commission offer should be worth their while. "When usage becomes broader, more money is asked for," Schreyer said. According to our 2019 study, 44% of marketers report they are repurposing influencer content more than once per month. Usage rights vary from influencer to influencer, brand to brand and talent agency to talent agency. Most brands opt to using influencers content within organic digital advertising. More Posts For Influencers The most typical scenario for Influencer whitelisting is when a brand and Influencer are already working together on a collaboration, and the brand wants to get more out of the partnership by including whitelisting permissions. Some social media celebrities can charge 10K$ for one sponsored post when others can cost you 100$. Not sure if you have a following or they would be able to track it, but since they are creating content for you, it might be a great way to also expand your influence and other companies might find you and offer you similar gigs. The amount of money you can earn with 100k followers doesnt necessarily depend on your follower count. This is a flat fee on top of the photo rights you would charge. When in doubt about the exclusivity requirements, ask! They are reportedly earning from $500-$200,000 per video/content. In fact, over 59% of marketers are tapping influencers for content creation-only partnershipsoutlining extensive usage rights up front for content that an influencer may never even distribute on his or her own social channels. Before you learn how to calculate anything, you will need to know your influencer fee, which is basically the price for posting on your social media platforms. In addition, influencers may even be sought out to capture content in various formats beyond what they create for their own channels, Five Whitepaper Design Mistakes That Are Costing You Leads, What the Most Successful Content Marketers Do Differently, How Being Strategic About Content Development Can Boost Results and Save Time and Money: Ahava Leibtag on Marketing Smarts [Podcast], Five Serious Content Marketing Mistakes You Need to Avoid, Your First New Content Marketing Tool for 2023 Should Be Your Sales Team, How to Create a B2B Marketing Podcast in 2023And Why You Should. . Promote your business on Instagram. Did you know that one of the top reasons a person leaves their job is because they feel unappreciated? The industry standard is to charge your influencer fee multiplied by the number of months the brand is requesting exclusivity. Influencer marketing budgets are increasing year-on-year and as brands begin to prioritise repurposing influencer content to increase the longevity of their campaigns and creatives, conversations about usage rights regulations need to happen. Any brand deal negotiation should discuss rates and fees and what's included in those prices. YouTube. Facebook. On TikTok, where she boasts 1.6 million followers, Tori . Writing a blog post is also another talent. Use these rates as a base but remember the factors discussed earlier. The standard marketing usage rights consist of a 30-90 day window, and that's plenty of time to utilize influencer content for your own social media marketing. Often times this means your influencers now must create content with a larger customer segment than just their following in mind (or youll need permission to edit copy to appeal to various segments). Macro-influencers may not fly with a commission-only offer you may need to bring more to the table. Usage Rights. If she's not creating fun content features for brands, you'll catch her producing social media videos for them too. Cash payouts are extremely attractive to influencers. With 70% of marketers reporting increased influencer marketing budgets in 2019, the opportunities for content amplification and republishing will only continue to grow. With outlets ranging from brand social channels On the other hand, the talent fee covers all the costs you need in creating the content. Sponsored Instagram post cost will depend on the quality of their content and the size of their audience. Interesting! And producing a 1-minute Instagram video is not the same value as a 20-minute YouTube video. The main variables that factor into the cost of influencer content usage rights are timing and placement: the length of time in which a brand may be looking to repurpose content, and where that content will be repurposed. 10,001 to 50,000 views = $500. A brand could also request to re-share an influencer's Instagram Story on its own account. In-Feed Post: $100 per 10,000 followers (x3 for above average engagement rate). Its important to first understand the value you bring to the table. In 2021, nano-influencers charged right around $800. She said brands have sought more access and control as the industry has developed, which is why usage rights have popped up in contracts more frequently. If an influencer creates an idea, produces content, and posts in his . Those clauses generally outline both how long the brand can use the content and the ways it is allowed to. Power-influencers (people with between 30,000 and 500,000 followers) will charge you, on average, $775 per post for video content, $210 for story content, and $507 for image content. Sharing how to figure out how much to charge for sponsored posts. Brands and marketers are bringing continuous value to influencer partnerships by repurposing influencer content. Usage rights, once considered a bit of an afterthought in talent negotiations for sponsored content, are now a primary factor in influencer pricing and one of the first questions that come up in partnership discussions. On the flip side, failing to secure the necessary usage rights up front means brands lose negotiating leverage in obtaining usage rights after the content is created. - Estimated price range: This is the price range you can charge for a collaboration. Well be covering a number of ways you can reward influencers. Heres where your own pickiness will cost you. Now under reels bonuses it says You cant monetize with reels bonuses at this time its been about 2 months that I havent been able to monetize. March 1, 2023 / 7:48 PM / AP. Ninja Outreach makes business lead generation easy and fast. Exclusivity: Cannot work with competitors for one month. With whitelisting, the brand runs paid ads using a post made on the Influencer's account. Generally, marketers approach usage rights in the following time increments: And where the content will be repurposed: Finally, ownership comes into play: Though many up-and-coming influencers are open to work-for-hire deals, more established creators are reluctant to grant a brand full ownership over their content without significant compensation. Natalie Weber is an expert on Influencer Marketing. Perhaps product launches or even exclusive product workshops? (30% x photography rate x number of months), Digital: digital marketing including websites, email marketing, banner ads, whitelisting, etc. Here the WebFX influencer marketing stats are in sync with those of BusinessInsider, with Twitter offering the lowest cost influencer marketing option, at $2 a tweet for a Twitter influencer with 1,000 followers up to $2,000 for a Twitter influencer with 1 million. Update their algorithm and platform landing the right brand deals, negotiating correctly and long-term! Usage may then require a higher fee or limited usage terms, she said of ways can. Who owns the content is also often a part of usage rights define who the... More money is asked for, '' schreyer said the key to rights! Its positive: it means that influencers must first commit themselves to promotion activities upfront one hand, its:! S almost half a million dollars to your contracts Instagram, Facebook,,. 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