Industry Insider Details: The Skinny on Micro-Influencer Pricing in 2019
When courting a micro-influencer it is important not to assume that the creator will work with your brand for nothing. Experience has shown us that though small, micro-influencers are certainly mighty, packing a punch with personality and engagement that deserve compensation accordingly.
General Rules of Thumb
As it has been said time and time again, influencer are ultimately the ones who decide how they price themselves. That said there are general loose rules of thumb to help estimate pricing for both large and small influencers alike. Below is a simple matrix with pricing estimates for creators on two top platforms: Instagram and YouTube.
When to Offer Product or Payment?
There is no definitive rule for when to offer an influencer product or payment. When thinking of a micro-influencer, brands often jump to the conclusion that they can offer product or services in lieu of monetary compensation because the influencer has a smaller audience. Industry research has shown that 69% of influencers, both large and small, have accepted free product or services for sponsored content. That said, it’s not always a good fit for every sponsored partnership.
There are occasions when it makes sense. Sponsored trips or events where the influencer is receiving an all inclusive experience in exchange for content may not warrant monetary compensation. The same can be said for simple branded collaborations where the influencer’s task is straightforward and the influencer receives a quality in-kind product or service equaling or superseding typical micro-influencer fees. Moreover, if the brand or product is a true fit for the influencer. They may be willing to accept in-kind compensation for the relevant content it provides.
On the other hand, there are occasions where in-kind compensation may not do the trick. For instance, sponsored products or services of lower price value may justify tacking on monetary compensation.
Other Factors That Can Affect Compensation
As you’ve heard in the past, always be mindful of other factors that can affect compensation:
Usage Rights: If the brand is planning to repurpose the influencer created content, they should consider paid compensation with additional allowance for the extended usage rights.
- Standard usage rights only include typical reposting and repurposing content for social media only.
- Requests to further amplify, distribute, or repurpose content with mid-tier and top-tier influencers typically incur fees that can easily be 2–4x times the influencer’s post rate. Given that, micro-influencers should be compensated accordingly.
Exclusivity: If the brand requires exclusivity and bars the influencer from working with competitive brands, they should consider paid compensation with additional allowance for the exclusivity.
- Category exclusivity beyond 1–2 weeks generally warrants additional paid compensation. Keep in mind that micro-influencers typically book fewer and smaller brand collaborations so requests for exclusivity can place serious limitations on their business.
Timing: Influencers of all sizes require adequate time to create content and complete the work. After all, creators balance organic content, other sponsored collaborations, and their lives.
- Quick turnarounds or sudden changes to the scope of work may justify additional compensation (paid or unpaid).
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Want to learn more about Bloglovin’ or ACTIVATE? Just drop us a note at research@activate.social.
