What Would You Pay for an Influencer to Use Your Services?
It is a question worth multiple billions of dollars, but it appears that very few people know the answer. We have all heard about the six-figure amounts that influencers such as Kylie Jenner and Cristiano Ronaldo can demand per post, and we tend to believe that this has a clear relation with the number of followers that they currently have. The concept that a person who has 500,000 followers must ask five times the price that a person who has 100,000 followers should ask may have made sense in the past, but the world has changed and the concept is no longer relevant. It is time for brand names and creators to also adapt to the changing environment.
It would appear that knowledge and research that motivate industry standards are falling behind as the market is expanding and influencer marketing becomes increasingly widespread. Concerns have been raised regarding return on investment (ROI), influencer pricing, and the worth of influencers for brands. As a result, you wind up with a market in which practices that are now considered antiquated are still used, and brands do not fully profit from their investments in influencer marketing.
The Notion That the Number of Followers Does Not Make a Difference is Outmoded
The value that marketers seek from influencers is not directly proportional to the number of followers that the influencers themselves have; rather, it is a scenario of the level of impact the influencers themselves can create and how effectively that influence can result in sales.
According to a recent report published by Humanz titled “How To Run Influencer Marketing Programs That Drive Sales”, the return on investment (ROI) of influencer marketing is approximately four times higher than traditional advertising but only slightly more than half of all influencer marketing promotions generate a favorable ROI. In addition, twenty percent of all influencers and content creators are accountable for eighty percent of all sales made by marketers, while less than five percent are accountable for more than half of all sales.
Therefore, if you are a content creator and you do not have the same number of followers as Kim Kardashian but you are nonetheless able to mobilize a dedicated and passionate customer base, you can and ought to raise your fee. Somebody like Andrew Schulz, who has spent several years cultivating an engaged audience, is a good illustration of this type of person.
After a disagreement with Netflix over restrictions, Schulz revealed earlier in the year that he used his entire life savings to purchase his comedy special back from the streaming service. Independently releasing it, he claims to have made back three times the amount he initially invested in just a few short weeks. In a system that is more traditional, the number of followers he has would not suggest the amount of money he could charge for content due to the fact that he has such an engaged audience.
The Steps Necessary to Put This Into Action
The worth of an influencer or content creator can be broken down into three components: first, the cost of the sales that they are able to produce; second, the value of the material that they are able to create on behalf of others; and third, the number of views that they are capable of generating naturally for that content. A further distinction that can be made is between those who create content and those who have influence.
They are the most skilled at maximizing the impact of their influence to boost sales. As a result, in addition to receiving payment for content creation, they will typically demand a commission on any products or services they sell.
The capacity of a content creator to produce content that is relatable to a specific community, of which the content provider is frequently a member, is the source of their work value. This content can be used by brands to improve discovery, marketing, how-tos, and even customer support for a much lower cost, at a greater speed, and on a larger scale than is possible through engagement with traditional advertising and content providers.
Content creators need to keep in mind the inherent value of the material that they are producing for the brand. Regarding either platform, the number of followers is less significant than the actual content produced or their capacity to exert influence.
Creators and brands will benefit more from their collaborations if they adhere to the following guidelines, which serve as a general rule of thumb:
- Don’t fixate on the number of people following you. Keep in mind that the return on investment (ROI) from content marketing is not directly proportional to the number of followers.
- Let’s identify how you will jointly and initially assess your level of success.
- Do you collaborate with creators to increase your brand’s visibility on social media?
- Do you want to increase sales and other related things?
- Consider the role that creators can play in your relationship with customers beyond the point of acquisition. Examine the current user journeys of your existing customers and map out the areas in which content from creators can add value.
- To create a sustainable network of legitimate brand endorses over the long term, you should try to limit one-time transaction-oriented collaborations and instead concentrate on intimate interactions. Begin on a modest scale, then expand.
- Make sure that content creators and influencers are feeling inspired to contribute to the growth of your brand. Maintain open communication with them and offer incentives.