Influencer Pricing | Factors to Consider When Choosing Influencers

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What Determines Influencer Pricing

Ana Vanevska

Social Media Guru

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Even though no one can claim that influencer marketing is still some new or incomprehensible thing, many businesses are still struggling to find the right approach to influencer pricing.

There are many factors that need to be considered when an influencer and a brand decide to work together. Such as reach, audience size, content production, and testimonial effect.

All of these factors will have an impact on the pricing negotiation. And so they should be considered ahead of time as it will help avoid dead-end negotiations. Thus allowing brands and influencers to focus only on partnerships that have the potential to be mutually beneficial.

Video Conference | Determining Influencer Pricing

Influencer Partnerships: Quantity or Quality

If a brand and influencer can’t come to a pricing agreement, then the contract could fail even after weeks of back-and-forth. Many brands take the approach of quantity over quality. Choosing to invest in a large number of cheaper single deals in order to gain a competitive advantage.

We know a long-term, high-quality partnership with the right influencer comes with higher up-front costs. However, it can prove to be more effective than collaborating with several influencers at the same time. At least this way, there is room to build on the relationship and improve over time.

Text Quality and Quantity on a weighing scale

Negotiating Influencer Pricing

During the negotiation process, the brand and influencer need to come to an agreement about the price and everything that will be covered. Even though both parties have a say, only one can determine the final price.

When it comes to influencer marketing, it’s usually the influencer who has the final say. That is of course only if they are high-quality influencers. One who can offer unique, individual content that will support the brand. And also help the brand to expand its audience and capitalize on its initial investment.

Influencers who fit these criteria are well aware of their position and can utilize it to negotiate a higher price.

Influener in pink sweater speaking in front of the camera

On the other hand, emerging influencers are often unsure of what they have to offer. Therefore, they’re more inclined to take a brand’s first offer just to start building their reputation and experience. While cheaper, their inexperience can also have an effect on the outcome of the marketing campaign. You would certainly expect smaller results when compared to already established personalities.

In order for influencer pricing to be fair for both parties, it needs to reflect the values that the influencer offers. What form of value is more relevant will depend on the brand’s goals.

Graph depicting value offered rising above influencer cost

Does the Pricing Reflect What the Influencer Has to Offer?

The first thing to consider is the value of their content production. Influencers whose follower numbers are a result of their high-quality, authentic content understand what their community wants from them. And they know the best way to create and deliver the content. They’re also experts in their chosen social media platforms. So you can certainly count on them to produce content for your brand that will resonate with the audience.

The second thing to consider is the reach that an influencer has. An influencer who has a high reach is very valuable, especially to a brand that wants to boost its brand awareness. However, choosing an influencer simply for their reach when they don’t even fit with your brand’s values can quickly backfire. There is a high chance that their followers will look at the collaboration as being inauthentic.




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