How Much Should You Pay Influencers?

One of the most common questions we get asked as influencer marketers is how much should you should pay influencers? 

Unfortunately, no matter what you may read, or been told by software or marketplaces, there’s no straight forward answer as briefs, brands and demand change. 

There are however 7 things you should consider:

Reach and Engagement: Of course, the more reach they have (not followers) and more engagements they receive, the more you can expect to pay. If engagement is a KPI, a good guide we try to work to is to never pay over $1 per engagement so look at what engagement their typical content receives and judge from there.  

Supply and demand: Simple economics here – if the influencer is in demand you can expect to pay more. This could be seasonal demand or simply because the influencer is extremely well popular with brands.

Industry or Specialisation: The type of content the influencer creates can also affect the price. For example, influencers in the beauty or fashion categories tend to command higher rates than those in other categories.

Fandom: As with any job, the more desirable the gig, the more flexible you will be with your rates. Seek out fans of your brand to work with as not only will their endorsements be more authentic, they will often provide more value. 

Effort: Consider how much effort the influencer will need to put in to create the content. If it requires a lot of effort, such as a long form high-quality video on YouTube or a video that requires a huge amount of editing or craft, you can expect to pay more.

Usage: If you plan to use the influencers content as part of a broader campaign with paid support, you can only expect to pay more than if you only expect them to post organically. If your plan is the former, always be sure to discuss that with them ahead of time and outline the terms in the contract.  

Agency Fees and Superannuation: If the influencer is with a talent agency, there will likely be additional fees to consider. If not included within the quote, always be sure to check. These ASF’s (Agency service fees) typically vary from 10 – 20%. Superannuation may also be charged on top however most agencies still account for this within their talent fee. 

Remember, there’s no one-size-fits-all answer to how much you should pay social influencers in Australia. Each influencer and campaign is unique. By taking these factors into account, you can come up with a fair rate that works for both you and the influencer. 

Good luck!