Influencer marketing refers to a social media marketing method wherein companies or brands collaborate with influencers to promote the products or services offered by the brand. Influencers have a good number of followers and when they endorse a particular product or speak well of a service, it gets good attention.
Since influencers already have an audience that engages with them, promoting your products or services through them would be a good idea. By collaborating with the right influencers and designing a well-structured campaign, you can create awareness around your products and services effectively.
When you invest in any kind of social media marketing process, you will have to invest some amount of money. When you opt for influencer marketing, you should be ready to spend some money as well. While spending money is something you know you need to do, how much to spend is the question.
Before spending money on influencer marketing, you should have some idea about how much different influencers charge, what you can gain by putting in a certain amount of money, and the different ways in which you can leverage influencer marketing. If you spend wisely and correctly, you should get the desired results.
Market Standards
While an influencer can charge the amount of money they wish to for carrying out different activities on behalf of a friend, there are some prices and figures that are determined or driven by the market. If an influencer has 10,000 followers, the market says they would charge anywhere between $250 and $450.
When you are confused about how much you should pay an influencer or want to know about different costs like the cost of micro influencer marketing, you could consider getting in touch with a professional agency that helps companies execute digital marketing processes. When you work with such an agency, you can be sure about paying the right price or spending the right amount of money on influencer marketing services.
How Much You Should Spend
Overspending on influencer marketing does no good to a business. When you spend $1000 on influencer marketing and witness your profits increase by $100, it means your efforts and money have gone to waste. A lot of business owners believe the more they spend on influencer marketing, the more their business grows. That’s not how things work.
Even if you spend a small amount of money on influencer marketing but the campaign makes an impact, your business will gain hugely from it. If the influencer has a good reach, their audience engages with them and the content they create to promote a product or service is good, you will see good returns coming your way.
Sometimes, while investing in influencer marketing, brands observe the strategies employed by other businesses and try to replicate them. Instead of doing that, you should try to gather an understanding of your needs and why you want to opt for influencer marketing. You should customize ideas and methods based on your needs, requirements, and objectives.
Here are some of the factors determining how much a small business should pay an influencer:
Reach
One of the factors that determines the amount of money an influencer will charge is the kind of reach they have. If an influencer has 1, 00, 000 followers, they are bound to charge more than somebody who has 10, 000 followers. The more the reach of an influencer, the more will be the amount of money charged by them.
Apart from the number of followers an influencer has, one must also consider the kind of engagement they assure you of. Many influencers have a large number of followers but their posts do not get enough traction. An influencer, despite having a limited number of followers, could charge a lot of money if the engagement on their posts is very high.
Content
Sometimes, an influencer creates content on their own and there are times when the business puts together the content and gives it to the influencer to promote or endorse. On many occasions, the influencer and the brand collaborate and come up with ideas and concepts to create the kind of content that would do the trick for them.
Creating new content requires one to invest time, energy, and effort. If an influencer is given the responsibility to produce content and the brand does not offer them any support in this regard, the former is bound to charge a higher amount for their services. If you are a small business that wants to control its influencer marketing costs, you should create the content and give it to the influencer.
Deliverables
If you are wondering what is the amount of money you will have to pay an influencer or what would be the cost of micro-influencer marketing, you should know it will largely depend on the things they are expected to deliver. The number of deliverables and the duration of the collaboration play key roles in determining the amount of money a business will have to spend on influencer marketing.
The amount of money you have to pay an influencer for a static feed post would be much less than what you need to pay them to put up an Instagram reel. Depending on the budget you have, you should decide on the number and type of deliverables you would want them to deliver. You should also be sure that those deliverables will do some good to your business.
Time
When you reach out to an influencer for a collaboration, one of the first things they will ask you is the amount of time they would need to spend on the project. The more the amount of time you expect an influencer to set aside for the promotional activities of your brand, the more will the amount of money charged by them.
If the influencer is in another city and you expect them to create some content on their own and post it at their convenience, they will not charge much. However, if you expect them to fly down to a particular location to shoot an advertising campaign for your brand, they will have to give you more time and therefore, they will charge more.
Jenny Watson 
Awais Shamsi