TIA Tiktok

6 Factors That Impact Influencer Rates

Kaela Johnson
Written By
Kaela Johnson
Published On
Feb 15, 2022
An influencer holding dollar bills in front of her face

When brands want to make a huge impact on social media, turning to influencer marketing is almost always the smartest choice. It truly is a worthy investment if you play your cards right. 

But how much exactly would your brand need to invest in this strategy? And what are the factors that impact influencer rates?

Find out everything you need to know from one of the trailblazers in the influencer marketing scene, The Influence Agency.

What is Influencer Marketing?

Influencer marketing is a strategy that involves brand and product endorsements from individuals with a significant social following. They are considered “experts” in their chosen niche/category and have built trust with their audience.

The main purpose of this tactic is to drive brand awareness.

an influencer creating content for a brand partnership

What Impacts Instagram Influencer Rates?

1. Amount of Followers

One of the elements that influencer rates are based on is the individual’s amount of followers. Whether you’re thinking about teaming up with an influencer who has 5,000 followers or one with 100k followers, each type comes with different benefits and drawbacks.  

Check out the types of influencers based on their following and usual attributes below: 

Nano (1K – 9.9K followers)

  • High engagement rate
  • Low cost-per-engagement
  • Loyal following
  • Limited brand experience
  • Less recognizable

Micro (10k – 49.9K followers)

  • Centralized audience
  • Experienced creators
  • Lower reach
  • Niche categories
  • Variable pricing

Macro (50K – 99.9K followers)

  • Experienced
  • High reach
  • High-quality content
  • Lower engagement
  • May have additional fees when negotiating with

Celebrity (100K+ followers)

  • Recognized outside social media platforms
  • High production value
  • Cultural influence
  • Higher cost + cost-per-engagement 
  • Lower engagement

2. Engagement

Engagement is such a vital factor that impacts influencer rates. In fact, marketers tend to put so much more importance on engagement rates than follower size. 

It’s easy to think that influencers with more followers have better engagement (likes and comments)—but that isn’t always true. An influencer with 100k followers could actually have a much more engaging audience than someone with 500k followers. 

Ultimately, your aim is to connect with an audience that actually pays attention. If they don’t interact with your chosen influencer’s content, then that would be such a waste of your marketing efforts. 

Using the right tools to uncover the audience of an influencer is an essential step you need to take before sealing an influencer marketing deal. 

3. Industry Type

The global influencer market size hit a record value of $13.8 billion in 2021—a clear indication of how effective this strategy is and just how many influencers are rising to social media stardom. 

There are influencers for every type of industry you can possibly think of including: 

Social media influencer rates depend heavily on the industry that they belong to. Usually, if there aren’t many personalities available under a particular industry, then that results in higher rates. 

4. Type of Content

What type of content do you plan on asking the influencer to produce? Will it be posts, videos, or written content? 

The content type that will be created is another factor that impacts influencer rates. Each type of content requires a different amount of time, effort, and creativity to complete. Through these respective rates according to type, influencers can make sure they’re being fairly compensated for their hard work. 

a person filming video content for an influencer marketing campaign

5. Usage Rights

Where will you be reusing the content produced by the influencers you’ve partnered with? Whether you will be reusing the content on social media, your website, or billboards, this also affects influencer rates. Usually, more usage rights result in higher pay. 

Your rights regarding where you can repurpose content is something that needs to be clearly stated in the agreement.

6. Exclusivity

Ideally, you wouldn’t want the influencer you’ve teamed up with to be promoting a competitor brand. Such a conflict of interest doesn’t look so great from the perspective of audiences.

While you can’t request influencers to refrain from partnering with similar brands eternally, you can come up with an agreement that includes a reasonable lock-out period. The longer the lock-out period, the higher the influencer rates usually are. 

How Much Should You Pay For An Influencer?

Convinced that influencer marketing is the right strategy for your brand? Then, the next step is to leave it all up to The Influence Agency to produce a campaign that puts you in the spotlight. 

Whether you’re a world-class brand or a start-up, our team has worked with businesses of all kinds to design stellar influencer marketing campaigns that always exceed expectations.

When you work with us, you can rest assured that we’ll connect you with the perfect influencers who embody your brand. Whether it’s influencer rates or usage rights, the experts on our team will help you establish a partnership that’s everything you’re looking for. 

Contact us today to learn more. 

ABOUT THE AUTHOR

  • Kaela Johnson is a Client Success Manager at TIA focusing on influencer marketing programs with North American lifestyle brands. Outside of the WFH office, she considers herself to be a pop-culture enthusiast and meme master.

4
Share this

ABOUT THE AUTHOR

  • Kaela Johnson is a Client Success Manager at TIA focusing on influencer marketing programs with North American lifestyle brands. Outside of the WFH office, she considers herself to be a pop-culture enthusiast and meme master.



Read more from Influencer Marketing


SUBSCRIBE TO OUR NEWSLETTER

Stay up to date with the latest marketing, social media tips, guides and news.



EXPLORE BY TOPICS

Read what our clients have to say

Universal Music

"At Universal Music, we are frequently tasked with launching new albums and products with little to no notice which can prove challenging for traditional agencies.
The team at the Influence Agency have proven time and time again their ability to be both nimble and efficient at delivering influencer campaigns that are strategically targeted, creative and most importantly impactful with our artists audiences."

Fraser MacKenzie -
U Music

Plan International

"The Influence Agency is phenomenal. They’re incredible outside-the-box thinkers and we’re a great alternative to the traditional marketing efforts taken for the NFP I work for. We worked directly with Stephanie and Tom, both who had a high level understanding of the industry and a completely professional approach to social promotion. Looking forward to working with their team again!"

Nicki Lamont -
Plan International

Distorted

"As a creator, it was so easy working with The Influence Agency. They've put me forward for a number of awesome campaigns and have given me full creative control to execute them. I can't wait to work with them in the future!"

Distorted Lens -
@distorted.lens

The Rosé Picnic

"The Influence Agency has been a huge part of our success for The Rose Picnic!! We love working with the team and look forward to many more great years together!"

Adam Julian Mahgoub -
Rosé Picnic

Exodus Festival Las Vegas

"The Influence Agency is by far one of the best agencies I've worked with in Toronto. They provide so much value to each and every one of their clients, and I've had the pleasure of working with them on many different campaigns. Not only are they professional, but very personable. They are a delight to work with, and I would recommend them to anyone interested in growing their brand or business in an meaningful and creative way."

Kassandra Nunes -
Exodus Festival Las Vegas

Mel Inspired

"Having blogged for 10 years and having worked with a plethora of agencies, The Influence Agency team has been one of the top agencies I've connected with. Their ability to both balance creator relations and interests, while maintaining the priorities of their brands is incredibly impressive. As a creator, the team is always supportive and responsive and truly makes developing branded content seamless! I always look forward to working with them!"

Mel Inspired -
@melhwang

map
Icon

Connect With Us!

    Icon
    The Influence Agency: Influencer Marketing Toronto