When it comes to influencer marketing, it’s difficult to know how much marketers should pay for creative collaborations.
Inzpire.me’s own pricing formula works by paying creators flat fees and compensating them for performance (impressions and engagements).
That’s because pay-per-click and pay-per-acquisition deals are often considered unfair among influencers. Some brands pay by follower size which isn’t recommended as reach can increase with larger follower count. Lastly, product per post payments tend to be unacceptable among most creators.
The influencer marketing company found that the average cost per 1,000 impressions was €21, whilst the average cost per engagement was €0.2.
It recommends a pricing formula that involves calculating estimated engagements and impressions (Instagram benchmark table above), using the standard CPM (€21) and CPE (€0.2) provided and plug these values into the following formula (impression):
For engagements, the company recommends to calculate:
But there are certain things marketers must consider when calculating fees. These include influencer content quality, their audience demographics, reliability and brand fit.
Creators themselves consider factors such as production cost and time constraints, deadlines, exclusivity, content rights and campaign complexity when setting their price.
Ultimately, having a pricing strategy allows brands to price influencers consistently.