As a content marketer, I have always been willing to join forces to increase a brand’s appeal and reach. When one of my freelance clients needed brand growth on a budget, I was ready to jump on board Influencer marketing Game.
Who hasn’t seen or read the hype about the power of influencers? I mean, the data shows that “almost 50 percent of Millennials worldwide find influencer recommendations more appealing than regular advertising.”
However, I encountered difficulties as it was time to take the following steps to collaborate with influencers. I had no idea how influencer pricing worked and how to budget for it.
To find my way, I went all out: I dug into pricing data, researched different partnership options, and got tips from people who had been through it before.
This blog describes the complete overview of what I learned. Let’s get into the real side of influencer pricing and budgeting, shall we?
Table of contents
How much do influencers cost?
The short answer is the same old phrase from every marketer’s guide: “It depends on.” In other words, if you want to set a magic number for influencer pricing right from the start, you’re navigating a maze.
Does this mean there is no data or benchmarks to follow? Luckily not. When I looked at the available research, I found some general industry benchmarks as a starting point.
According to a Statista survey 2024:
- 22.4 percent of marketing agencies and brands invest 10 to 20 percent of their marketing budget in influencer marketing.
- Interestingly, 26 percent are willing to spend more than 40 percent of their budget on this digital marketing activity.
This got me curious: What do these budgets look like in dollar terms? Finally, marketing budgets vary.
Then I searched further and came across this data Influencer Marketing Hubwhich shows the wide range of brand spending in relation to influencer budgets.
While almost half (47%) of brands will spend less than $10,000 in 2024, about 8-20% of brands will also spend anywhere between $11,000 and $500,000!
I know there’s a lot of variety here. Lost? That was me too. So I dug deeper to learn more about how much influencers cost, how to choose from them, and figure out a budget.
The different types of influencer partnerships and how much they cost
I found that influencer pricing depends on several factors such as:
- The social platform you want to use it on.
- The type of influencer (based on the number of followers).
- The type of partnership or exchange you enter into with them.
Other factors such as the industry or niche, the engagement rates of the influencers and the content format also play a role here.
A lot of things are happening at the same time, and even if excellence in any of these aspects is positively correlated with influencer prices, it doesn’t always work in a linear fashion. More on that later.
(Want a quick refresher on influencer marketing at this point? Check out our free guide Influencer Marketing Guide.)
What are the popular social platforms for influencer marketing?
Accordingly The State of Influencer Marketing Benchmark Report 2024The top five social media platforms for influencer marketing include:
- TikTok (68.8 percent)
- Instagram (46.7 percent)
- YouTube (33.1 percent)
- Facebook (27.5 percent)
- X (formerly Twitter) (9.9 percent)
Their data suggests that YouTube is the most expensive platform on this list, followed by Instagram and TikTok. This also makes sense as YouTube is mainly dominated by videos and therefore requires more investment in producing videos.
Does this mean you get a lower ROI from YouTube? No.
Depending on where your ideal customers are and what content they prefer, your goal should be to shortlist the platform(s) you want to use. This will work for you.
Next, you need to decide which type of influencer you want to pursue.
What are the different influencer tiers based on follower count?
There are five levels to choose from based on the number of followers. (And no, most followers may not always mean the best.)
I’ve discussed the options available and some reasons to choose or omit them below:
Nano-influencers (influencers with 1,000 to 10,000 followers)
While the relatively small audience of these influencers may result in a lower overall reach, I recommend not viewing this as a red flag.
Nano-influencers often have higher engagement rates and more personal connections with their followers, which can be great.
Micro-influencers (influencers with 10,000 – 100,000 followers)
By and large, micro-influencers tend to focus on niches. This can make them particularly effective if you want to run targeted campaigns.
Medium-sized influencers (influencers with 100,000 – 1 million followers)
These influencers are popular because they offer a balance of reach and engagement. They can be a fantastic choice if you want to scale your influencer campaigns.
Macro-influencers (influencers with 1 million – 10 million followers)
This group has a significant reach and with its help you can quickly increase your brand visibility. However, it’s important to note that this group may lack the personal touch of smaller influencers.
Mega influencers (influencers with more than 10 million followers)
These influencers are the big fish in the industry. Although they offer the widest reach, their engagement rates may not be as high as smaller influencers.
So how do you choose from the options?
First, narrow down the ones in your domain. Next, look at their “personality.”
That’s the advice I got Emir AtliCRO of HocketStack.
Emir summed it up: “While you look at the number of followers, their personality is the most important factor when choosing influencers for your B2B influencer campaign. They must fit your brand’s voice to make the partnership successful.”
What possible types of influencer partnerships are there?
Not all influencer partnerships are created equal. Most of them share a press kit with different options. Here’s a breakdown of the most common options.
1. Sponsored Content
This is the simplest rule: Influencers create posts. This can be text, images, videos or podcasts that introduce your brand’s product or service.
Costs can vary depending on the type of content and factors such as influencer reach and engagement. (I have shared more details in the coming sections.)
2. Affiliate Marketing
In this model, influencers promote your brand’s products and earn a percentage commission on sales generated through their unique affiliate links.
This approach often requires less upfront investment and could therefore be an excellent option to minimize risks and increase conversions. As a baseball stadium it is average affiliate commission rate varies between 5 and 30 percent (far, I know).
3. Product sowing
Another approach to influencer partnerships is to ship products for free in exchange for honest (hopefully positive) reviews.
While this arrangement may work for nano or micro influencers, those with larger followings may not be willing, so keep that in mind.
While this may seem like a low-budget option, consider the potential cost of the products you’re giving away.
4. Acquisitions
You can also partner with influencers for social media takeovers. The influencer manages your brand’s account for a set period of time.
The cost of such a partnership depends on factors such as the influencer’s reach and the duration of the acquisition.
5. Events and experiences
Another popular type of influencer partnership is to host them at events or experiences. This helps generate a lot of buzz and content.
Costs would vary depending on the size of the event and include travel, accommodation and other compensation for the influencer’s time.
6. Long-term partnerships
Last but not least, long-term relationships with influencers are another option.
These could lead to better results overall due to the ongoing authenticity. However, these partnerships require larger commitments.
While this is all much-needed background theory, I know you need numbers to make concrete decisions. (I was in the same boat.)
What is the pricing for influencers?
Here is an estimate of estimated influencer pricing, sorted by platform and influencer type, for sponsored content partnership types, compiled by Influencer Marketing Hub.
Nano influencers
- TikTok (per post): $5-$25
- Instagram (per post): $10-$100
- YouTube (per video): $20-$200
- Facebook (per post): $25-250
- X (per post): $2-$20
Micro-influencers
- TikTok (per post): $25-$125
- Instagram (per post): $100-$500
- YouTube (per video): $200-$1,000
- Facebook (per post): $250-$1,250
- X (per post): $20-$100
Medium-sized influencers
- TikTok (per post): $125-$1,250
- Instagram (per post): $500-$5,000
- YouTube (per video): $1,000-$10,000
- Facebook (per post): $1,250-$12,500
- X (per post): $100-$1,000
Macro influencers
- TikTok (per post): $1,250-$2,500
- Instagram (per post): $5,000-$10,000
- YouTube (per video): $10,000-$20,000
- Facebook (per post): $12,500-$25,000
- X (per post): $1,000-$2,000
Mega or celebrity influencers
- TikTok (per post): $2,500+
- Instagram (per post): $10,000+
- YouTube (per video): $20,000+
- Facebook (per post): $25,000+
- X (per post): $2,000+
I would say treat this table as your influencer pricing for 101 lessons. Now let’s move on to a structured approach to setting your influencer budget.
How to set your influencer budget
Here is a step-by-step guide you can follow.
Step 1: Define your marketing goals.
First, clarify what you want to achieve with influencer marketing. This will help you decide which influencers to work with, which personalities to look for, which campaigns to prioritize, and how much to budget.
Let’s say you’re looking at brand awareness. Then maybe work with influencers with larger followings and look at sponsored content.
If your focus is sales, opt for influencers with high engagement rates and a penchant for affiliate marketing. There is no one-size-fits-all solution; It depends on what you need the help of influencers for.
Step 2: Remember your total marketing budget.
Next, remember your total marketing budget. After all, your influencer marketing will be a special part of this, right?
Although industry benchmarks suggest that most spend less than 10 or over 40 percent of their marketing budget on influencers, be specific your Priorities.
I found out about this after a conversation with Mina Kozmanthe marketing manager at Speakap. He explained: “A successful influencer campaign fits seamlessly into your overall marketing strategy (not the other way around).”
Therefore, budgeting must be a balancing act to grow your brand without compromising on measurable profits. With this in mind, it is helpful to provide the influencer budgeting percentage that seems reasonable to achieve financial and strategic goals.
Kozman says, “If you can’t find any, your company may want to focus on channels with proven ROI that are both predictable and scalable.”
Step 3: Start estimating costs.
Once the goals, ICP, influencer pricing benchmarks, and overall budget are clarified, you need to shortlist people and partnerships and estimate costs.
With tools like upswing, BuzzSumoAnd Influencer.co can help you easily identify influencers based on engagement rates, audience demographics, and past performance. Once you’ve made your shortlist, start putting together quotes to estimate costs.
While you’ll of course add fees, you’ll want to consider provisions for factors like content creation costs (if applicable), advertising expenses for boosting posts, measurement tools, and contract drafting fees.
Want a formula to scientifically select and rank influencers based on cost? David Gaylord, former chief of staff at Shopify, Create an equation for average cost per mile (CPM).. This allows you to compare influencers based on cost.
Step 4: Negotiate influencer terms and contracts.
Next, it’s time to start negotiating and shaping your plans. Serial entrepreneur Srish Agrawalwho has used influencer help extensively for his brand “Wall Decore and Gifting D2C,” gave me a great tip: When negotiating price, align expectations and clearly define the expected activity.
Srish explained, “These should not just be results like ‘X$ worth of sales’ as results cannot be guaranteed.” Agrawal also emphasized clarifying content rights. In his opinion, these are necessary for a “seamless and peaceful transaction”. I can only agree!
Step 5: Test, Track and Measure.
So far, so good? Now you have to start the campaigns and intensively monitor their success.
Kazzy KhazaalFounder and CEO of Dreamwell.ai, emphasized: “The biggest mystery in influencer marketing is: How much is an influencer ad worth?”
Khazaal explains: “Brands are overrated left, right and center and can’t see it until it’s too late.” You don’t want to be late, so invest in careful follow-up to ensure you’re getting value your Investment.
Start by using KPIs like engagement rate, click-through rate, or conversions to understand what’s working and what needs to be optimized before scaling. Tools like HubSpot Analytics, Google Analytics, Sprout Socialor BuzzSumo can be invaluable for analyzing influencer performance and refining your strategies.
Step 6: Adjust as needed.
Finally, remember that maintaining flexibility is crucial when working on influencer budgeting.
“Think of your B2B influencer marketing budget as a dynamic blueprint rather than a fixed plan,” he advises Vahbiz CooperDigital Marketing Manager at Demandbase. She recommended providing a core budget to cover essentials while also providing a “wildcard fund.”
In other words, have a flexible section ready to take advantage of unexpected influencer collaborations or real-time trends that arise during the campaign.
This approach allows you to remain agile, experiment with unconventional strategies, and capitalize on opportunities to achieve outsized impact without strictly adhering to initial budget assumptions.
Best practices for setting the right budget
While setting the right budget is part of the influencer pricing equation, you should also keep it in mind for holistic success.
1. Be transparent.
Transparency is crucial to building trust with influencers. Communicate expectations, budget limits, and campaign goals with influencers to set the stage for good budgeting and a successful partnership.
2. Align internally.
Collaborate with other departments such as sales and product teams before launching. Consider their input when planning budgets and strategizing for influencer campaigns that resonate across the board.
3. Stay up to date with trends.
Influencer marketing is constantly evolving. Therefore, you need to make sure that you are up to date with industry trends.
I realized this when Eric MelchorFounder of B2B PodPros, pointed out that YouTube is now the top platform for podcast consumption.
If you work with podcasters with a YouTube channel, you need to know that you will need to ask them to include a video ad from your brand in their video episode.
“Otherwise you miss out on reaching new target groups,” explained Eric.
4. Observe to identify any malpractices.
The best approach is to keep everything crystal clear from the start. Sometimes influencers make exaggerated performance claims. They generate false engagement by paying for followers who may not be real people.
Signs of such misconduct include sudden spikes in follower growth, inconsistent engagement and rates, or repetitive comments.
“Don’t take what’s quoted in your media kit at face value,” recommended Melchor. He gave this example: “If you work with podcasters, ask for proof of their download number.
5. Consider influencer longevity
Building long-term relationships rather than one-off collaborations with influencers is another ideal approach in the long run.
Although this may require more commitment, it helps ensure consistent brand messaging and creates authenticity.
6. Don’t underestimate contingencies
Budget overruns can occur for a variety of reasons, such as unexpected influencer fees or last-minute additional content requests. Always have some money available for unexpected expenses to ensure flexibility if challenges arise.
7. Don’t worry about clicks and conversions
Tomasz NiezgodaCo-Founder and CMO of SEO Surfer, gave me this final excellent tip. In his words: “Marketing is more than clicks and conversions.” After all, you may never know if an influencer campaign influenced someone to buy your product months later.
Niezgoda advised: “Trust your intuition, build relationships and remember that lasting brand perception takes time. “Play the long game and don’t expect overnight results.”
Start your influencer marketing budget
You’ve seen that setting an influencer budget is not a one-size-fits-all task. It’s about aligning your goals, understanding the market, and choosing partnerships that fit your brand.
With all the influencer pricing information and budget details I’ve shared, you should be ready to explore with confidence. My opinion: start sooner rather than later. Otherwise wouldn’t you miss a huge opportunity?