Working with an influencer marketing agency is one of the best ways for brands to launch successful influencer marketing campaigns. Influencer marketing agencies can handle everything from finding and contracting with relevant influencers to reporting metrics that show the effectiveness of the campaigns.
Since many professionals aren’t familiar with influencer marketing agencies, in this post, we’re going to break down what they are and how much they charge. Let’s get into it.
What Are Influencer Marketing Agencies?
Influencer marketing agencies are companies that connect brands with influencers and help run influencer marketing campaigns.
The process of working with an influencer marketing agency will typically follow these general steps:
- The brand reaches out to an influencer marketing agency to start developing a successful influencer marketing strategy.
- Together, the brand and the influencer marketing agency decide what type of influencer campaign to run (e.g. video reviews).
- The agency starts the influencer recruitment process and suggests a variety of different influencers as possible participants in the campaign.
- The brand selects its influencers and launches the campaign.
- As the campaign proceeds, the influencer marketing agency tracks and reports the results of the campaign.
- The influencer marketing agency will also usually manage payment to the influencers and reactivation if necessary.
Though this process seems fairly simple, there’s a lot of work going on behind the scenes at the influencer marketing agencies to make it all flow smoothly.
How Much Do Influencer Marketing Agencies Charge?
To do all this work on behalf of brands, influencer marketing agencies do charge a fee. You may be wondering — How much does it cost to hire an influencer marketing agency?
The truth is that it’s difficult to give an exact answer to this question. First, different influencer marketing agencies use different influencer marketing pricing models. Some might use a flat-fee structure while others charge a percentage of your campaign budget.
Second, the size and scope of your influencer marketing campaign will also have a strong impact on how much influencer marketing agencies charge.
The best way to get an idea of what influencer marketing agencies would charge to run your campaign is to reach out for estimates from a few of your top candidates.
Another common question about influencer marketing agency fees is — how do influencer marketing agencies get paid?
It’s a common misconception that the influencers in an influencer marketing agency’s network pay the agency directly. This is not the case. Instead, influencer marketing agencies charge their clients a fee for managing their influencer campaigns. Some pricing models that influencer marketing agencies use include:
- Fixed-rate pricing
- A percentage cut of return on investment (ROI)
- Value-based pricing
- Monthly/weekly rates for contracted clients
In any of these pricing models, the brands are the ones who pay the influencer marketing agencies they work with, not the influencers.
What Are Typical Influencer Rates?
Marketers for brands often want to know — how much do influencers charge per post? And, how much does it cost to hire an influencer?
These questions are simply too broad to answer accurately. Influencers charge an incredible variety of prices per post, from $0 to over $1 million. Everything from the niche to the influencer’s follower count to the social media platform itself can affect how much an influencer charges for a post.
Take Instagram as an example.
If you wanted to run an influencer marketing campaign on Instagram, you might wonder, “how much does it cost to hire an Instagram influencer?” Except, there’s no Instagram influencer pricing calculator or formula for the exact cost per follower on Instagram.
In general, you can expect to pay between $100 and $500 per sponsored Instagram post by a micro influencer and $10,000 or more for posts by mega influencers. That’s a very wide range! Additionally, factors like the duration of the campaign and the type of content can also shift this pricing.
Keep in mind that Youtube influencer rates and TikTok influencer pricing are also going to be different in most cases.
Lionize Can Help Your Company Build a Successful Influencer Marketing Strategy
There’s nothing more valuable than your time. Whether you are interested in implementing your first influencer marketing strategy at your company or have already tried to, Lionize can turn hours of work a week into minutes.
Why spend your time trying to learn the ins and outs of influencer marketing when you can turn to an expert to handle it for you? At Lionize, our team understands the difficulty of running large-scale influencer marketing campaigns. Our goal is to use automation, expertise, and machine learning to make the process as simple as possible for you.