The influencer marketing industry is often difficult for brands and influencers alike to navigate successfully.
As influencer marketing continues to grow more and more popular, influencer marketing agencies have also become increasingly important. They bridge the divide between influencers and brands to create productive, mutually-beneficial relationships.
Still, there are a lot of things people want to know about influencer marketing agencies. Let’s break down some of those questions, starting with “what is an influencer marketing agency, exactly?”
What Is an Influencer Marketing Agency?
Influencer marketing agencies are companies that specialize in developing relationships between influencers and brands. Generally, influencer marketing agencies take on the tasks essential to running a successful influencer marketing campaign including:
- Creating a successful influencer marketing strategy.
- Finding and recruiting suitable influencers for brand campaigns.
- Managing the selected influencer partners.
- Reporting critical metrics about the effectiveness of each campaign.
The value of influencer marketing agencies is specialized knowledge and experience in the world of influencer marketing. Rather than trying to figure out all the intricacies of influencer marketing themselves, brands turn to influencer marketing agencies to handle their influencer campaigns for them.
Influencer marketing agencies aren’t just for major brands, either. Influencer marketing for small businesses is very popular and effective. Plus, working with an influencer marketing agency can help control influencer marketing costs for a small business.
How Do Influencer Marketing Agencies Work?
There are several different kinds of influencer marketing agencies, and they don’t all work the same way.
Some influencer marketing agencies specialize in influencer campaigns on certain social media platforms like Instagram or Facebook. Others create networks of specific types of influencers, such as micro influencers.
In general, influencer marketing agencies work by building relationships with influencers who want to work with brands. These may be mega influencers with millions of followers, micro influencers with tens of thousands of followers, or anything in between. The stronger an influencer marketing agency’s influencer network is, the more it has to offer brands.
When a company comes to an influencer marketing agency to run a campaign, the agency dips into its network of influencers to find the ideal ones for that brand.
Influencer Marketing Agency Pricing
You may be wondering, “How much should I budget for influencer marketing?”
If you plan to work with an influencer marketing agency, you should factor the agency’s fees into your total budget for your influencer marketing campaign. So, how much do influencer marketing agencies charge?
Unfortunately, it can be hard to estimate how much you will have to pay in influencer marketing agency fees. Many agencies don’t have set prices. Instead, they create individualized influencer marketing pricing models for each brand based on their needs and the type of influencer marketing campaign they want to run.
A key factor in how much you will pay in total for your influencer marketing campaign is the prices set by the influencers you work with.
How Much Do Influencers Charge Per Post?
Influencers have the freedom to set the prices they charge per post based on several metrics like how many followers they have. The social media platform you choose for your campaign also affects the price.
One influencer with the same follower count on both Instagram and TikTok could have different responses to “how much to charge for an Instagram post” and “how much to charge for a TikTok post.”
As a general guideline, you can expect to pay at least $100 to $500 for a sponsored Instagram post by a micro influencer. Nano influencer rates are even lower.
How Much do Influencers Pay Their Agents?
Another common question related to influencer marketing prices is — How much do influencers pay their agents?
It’s important to note that influencers don’t pay influencer marketing agencies. Influencers only pay their agents if they have one, and influencer agents are different from influencer marketing agencies.
Most influencers pay their agents around 10 to 20% of their brand deal income, but this is entirely separate from what influencer marketing agencies charge brands.
How Do Instagram Influencers Work with Influencer Marketing Agencies?
To work with Instagram influencers, influencer marketing agencies start by looking for influencers with a strong online presence. Different influencer marketing agencies have different methods for finding the best influencers to add to their networks.
The agency identifies these influencers and then vets them to ensure they’re a good fit.
Once the Instagram influencers are a part of the agency’s network, the agency can propose these influencers to brands hoping to run an Instagram campaign. The influencers may also need to apply to be selected by the brand.
When Should You Use an Influencer Marketing Agency for Your Business?
You should use an influencer marketing agency if you’re interested in influencer marketing for your business but don’t have the time or expertise to run a campaign in-house.
A full-service influencer marketing agency like Lionize can take care of all the details of your campaign for you. Feel free to contact us with any questions or get started with a free trial today!