How Much Should I Pay an Influencer? (The Ultimate Formula to not Overpay)

When it comes to working with influencers, one of the most common questions that brands have is:

How much should we pay an influencer to promote our product??

It can be tricky to figure out the right amount to pay, but it’s important to make sure you’re not overpaying or underpaying an influencer.

In this blog, we’ll explain the formula that we have been using for years in order to determine how much to pay an influencer, and we’ll give you some tips on how to stay within budget when working with them.

Paying Out An Influencer

There are some things that you should consider before deciding on a fair rate:

  • The true size of their audience and engagement level
  • How many posts they’ll be doing for you
  • The type of posts you want created.

We recommend starting with a base rate and then working up or down depending on these factors.

At Socially Elite Marketing, we use a particular formula that we have found to be by far the most cost effective way to pay an influencer.

And don’t worry, unlike other marketing agencies, we are happy to share our formula because we have nothing to hide!

But first, there are 3 major ways to pay an influencer.

  1. Flatrate
  2. Revshare/Commission Only
  3. Hybrid

In a perfect world, all influencers would have an amazing audience that they know inside out and would want to promote for commission. however this is RARELY the case. Out of 10,000 influencers, you might come across 1 heavy hitter that understands how much more money they can earn through commissions.

Here is a breakdown of each method.

  1. Flat Rate – This is when you agree to pay an influencer a flat rate for a promotion. The terms of the agreement are up to you, but typically on a flat rate you either pay upon delivery or up to 2 weeks after delivery. In some cases brands pay up to 45 days after delivery of the content delivery, but we highly discourage this as it does not make for great long term relationships. Our advice is to pay within 1-2 weeks of the influencer posting. In some cases if you have a longer funnel and you want to ensure the influencer keeps the content up for a longer period of time then you may go up to 45 days. But we suggest that you put the length that you want the content up in the agreement before even of the content in the agreement. Most of the time this is 1 year to forever.

Here is the formula that we use to ensure we are paying the correct flat rate amount.

Influencer Payout Per Post Formula

Avg number of engagements over the last 10 posts (Likes, comments, shares)/1000 X a CPA between $15-$30

Example:

If an Influencer averages a total of 300 likes, 40 Comments, and 10 shares per post = 350 engagements.

350 engagements / 1000 = 0.35

0.35 x $30 CPA = $10.50 per post.

Simple!

Using this formula we have been able to determine the actual value an influencer will bring to you.

2.Commission – In order to minimize risk, some people opt to simply pay influencers on commission. This strategy is effective for micro-influencers and Incredibly large influencers who have a buying audience.

Typically it will take an affiliate tracking software to ensure that all sales are tracked and all links and discount codes are properly managed.

Take a look at our blog titled What is the best affiliate tracking platform? to learn about which softwares get our top votes for promotion tracking and management.

3.Hybrid – We only suggest this method once you have found an incredibly heavy hitting influencer that has shown you proven results.

This is just like it sounds. You pay the influencers a flat rate, + a small commission once that promotion surpasses a threshold.

Here is an example of what hybrid terms might look like:

Influencer A gets a flatrate of $1,000

After a total of $5,000 worth of sales, influencer gets a 10% commission on all sales after $5,000.

Again, we only suggest that you do this with long term, proven partners that you trust!

What type of posts should you be asking for?

When looking for a post, ask yourself the following questions:

  • What is the goal of this campaign? Brand awareness? Direct response (sales)?-Who is my target market? etc.
  • What platform is the audience coming from? For example: Youtubers tend to have higher converting audiences than instagram because people tend to go to youtube in order to learn.
  • What type of content do I want? Remember, organic looking video content tends to be favored by most social media algorithms.

One last thing to remember: Most influencers try to charge WAY more than they are “worth”.

Consider the following:

-Most influencers aren’t business minded and don’t even consider that you need to make money back on your investment immediately. They think it is for brand awareness so the metrics don’t matter to them.

-Many influencers have over inflated ego’s and believe their value is higher than it really is. They legitimately think they are celebrities and should be charging Kim K. Prices. To make matters worse, they don’t know how to calculate their real value and will simply throw a price at you in hopes that you bite. Most influencers would be surprised if they knew what they were really worth per post!-Many influencers don’t care if YOU lose money. They care that THEY are making money.

We have found that this formula works best when determining the true value of an Influencer and helps us not overpay for our clients.

If you are looking for a company that can help you find and work with the right influencers for your brand, please reach out to us at Socially Elite Marketing. We would be happy to help you!

Socially Elite Marketing is a full-service social media marketing agency that helps brands connect with their target audience through influencer marketing.

Connect with us today to learn more about how we can help you grow your business!

How to find the best influencers to promote your brand (and a few things you want to avoid)

Have you ever wanted to work with an Instagram influencer but didn’t know how, where, or who to find?

Let’s say that is your case. You might be saying: “I already pay for ads on social media and don’t need any more exposure. It won’t make a difference if I work with an influencer or not.”

Well, here’s the thing: you would only be partially correct about that. Working with influencers will expose your brand to a new audience. Millennials and other generations spend more than nine hours per week on social media and about 30 minutes of it comes from organic content (as opposed to paid ads). There is a huge opportunity there.

Working with influencers can get you new leads and help build brand awareness. In addition to that, social media users tend to have a positive view of Instagrammers’ products, so their word-of-mouth impact would be huge for your company. If they like the product and you provide them with good service, they will most likely tell their friends about it and you just got yourself a strong referral system.

“[Remember] that wherever your audience might be, influencers speak the same language as them – social media.”

On the other hand, if you can’t correctly identify who would be an optimal fit for your brand and what the best strategy to use is, working with influencers could be a nightmare.

This article will help you find the best influencers for your brand and how to approach them; we will also discuss some “do nots.”

Many people underestimate the power of an endorsement from an influential social media user. They do realize that it has influence on their audience, but they do not know to what extent.

Let’s go over some numbers: the same as every year, influencer marketing will be a $5 billion industry by 2020 . On top of that, 92% of customers trust recommendations from their peers and people whose opinions they value. These statistics show how far an endorsement can go and why you should consider using influencer marketing as part of your strategy.

Ideal profile of an influencer for your brand.

Before you think about contacting the first person that has a lot of followers, it is important to find out who would be the right type of person to work with.

When looking for someone to promote your products, there are a few traits you should consider:

❌They might have a lot of followers, but if they do not match your brand’s image or they are not going to be able to connect with their audience, it won’t make any difference. Do some research on the influencer and see whether he/she has worked with similar brands before.

❌It is important to consider whether the influencer is actually social media savvy. This will make it easier for you to communicate with him/her and they will be able to understand your needs better.

❌Talking about money, do not spend any if you are not sure that it would be worth it. If the numbers are too high, there might be better options.

❌ Would you rather have someone that has 20,000 followers but only gets 10 likes per post or someone with 200 followers that get 50 likes? The answer should be clear. It is not just about the numbers, it is about engagement.

That being said, the ideal influencer for your brand will actually see themselves as part of the company. They will not be doing it for the money but to help your brand get more exposure and because they like it.

“It is important to consider whether the influencer is actually social media savvy.”

Now that you know who an ideal influencer would be, how do find him/her? It might seem like a daunting task at first, but actually it is much easier than you might think.

✅The first option would be to look for them by yourself. It does not have to take too long if you use some tools that are available on the Internet. For example, Top 10K helps you find influencers based on specific keywords or hashtags they use in their posts.

✅You can also think about using influencer marketing agencies or specialist companies that already have a big database of influencers and their contact information. Sociallyelitemarketing.com is your best option as we have thousands of influencers that we strictly vet. Unlike most brands who allow any “influencer” with a pulse onto their platforms. We will not only find the right person but also get in touch with him/her on your behalf so you do not even need to worry about it anymore.

✅And lastly, do not forget to look at your competitors. If they have managed to get an influencer that is already working with them, it might be a good idea for you to use this method too.

“Your brand will never go wrong if it has the people behind it who truly believe in what they are saying.”

Once you have found some potential influencers, there are still some things you want to avoid.

✅You do not want to get too many influencers at the same time. Just think about it, if you have 1 million followers and another person has 2 million, there is no way anyone would be able to tell which one of you is better than the other. It will actually just look like a competition and people will wonder who sponsored who.

✅Do not get influencers that are popular but only because they post selfies all day long. There is no point in getting someone who does not know how social media works and does not understand what brands need from them.

✅It goes without saying that you should never pay for fake or purchased followers . If an influencer’s audience does not come from real interactions with their posts, it means that they are not actually engaging with what the influencer is saying. And this would be counterproductive, because you would just end up paying for nothing.

“Make sure that you do not get influencers that are popular but only because they post selfies all day long.”

Once you have found some great potential influencers and paid them for their work, there is one more step to take before you continue on your path of success. It is important to make sure that both sides respect each other and want to build a relationship based on honesty and openness. You should also think about how there will be no surprises later down the line since it might affect the images or products of your brand in a negative way . Always communicate honestly with your audience and influencers.

“It is important to have a clear agreement with your influencer from the start.”

… and of course, always remember that a satisfied customer is a great source of referral for both you and your business. So be nice 🙂

What is Influencer Whitelisting and 5 easy steps to set it up.

In order to maximize the potential of your influencer marketing program, you should be using Influencer whitelisting. What is influencer Whitelisting? It’s a process that allows businesses to handpick the best and most influential social media users for their brand or product. By doing this, businesses can ensure that they are getting the most out of their marketing dollars by working with only those who have proven expertise in their industry and have significant reach among consumers on social media platforms like Facebook Instagram Twitter Tumblr Pinterest Reddit Snapchat YouTube Google+ etcetera (insert other relevant platforms). In this blog post we will explain how influencer whitelisting works step by step as well as discuss some benefits it offers e-commerce businesses just like yours.

So what is Influencer Whitelisting? Simple, its the process of hand picking the best and most influential social media users to promote your brand or product, connecting to their Facebook Business accounts, and putting paid ad spend behind the content they are buying. By doing this, businesses can ensure that they are getting the most out their marketing dollars by maximizing. the reach of the content that they are already paying for when they hire influencers.

How Influencer Whitelisting Works: Step by Step

Step 1: The first step in the influencer whitelisting process is finding the right social media users to work with.

This can be done in a variety of ways, but some of the most common include using keyword searches, sorting through user profiles, or browsing curated lists. If thats not your cup of tea, just email us at promos@sociallyelitemarketing.com and we will gladly handle this process for you from A-Z. Once you have identified a few potential candidates, it’s important to research their backgrounds and determine whether or not they are a good fit for your brand. You want to make sure that their following, engagement, and reach are all real. Because let’s be honest, Instagram is full of fraudulent influencers.

Seriously…

In fact studies have shown that a jaw dropping 82% of “influencers” are actively paying for fake followers and engagement.

If you aren’t paying $500- $2,000 a month for a software that can identify fake followers then you could be at risk of paying for expensive promotions to fake followers.

Step 2: Once you have figured out who you want to work with, the next step is identifying the marketing angle, script, and product that you want promoted.

 For example if you have selected 5-10 influencers and you have an e-commerce store selling a “better sleep” product, you want each influencer promoting the same angle, with the same product, in the same format. The reason we want this to be done is because these promotions will be viewed as a testimonial. IE If the promotion is setup correctly you will be reaching loads of potential buyers that need social proof in order to even click the link. You are going to want to use video content for this IE front facing selfie videos of influencers speaking as naturally as possible to the camera in an informal setting. You will also want to provide a loose script, and a nice package containing the product and so me fun goodies like cookbooks, a coaster, a water bottle, tshirt, etc that they can unbox and show genuine surprise for.

Step 3: Once your angle is bulletproof and your package is pretty enough for an unboxing, you will want to prep for outreach.

We won’t go into detail on an outreach script here but the key components are to let the influencers know that the intent is to connect to their facebook business page and do sponsored posts through their page. Most influencers are completely fine with this because that just means a ton of free exposure for them.

Step 4: The next step is to send the influencer a link to connect to their instagram where they can connect to your Facebook business account with one click.

This is a very easy step and most people can figure it out with no issues. If you have questions on this step shoot us an email!

Step 5: Now that you’re connected, all you have to do is wait for the content from the influencer, and start your promotions!

And thats it! Thats how influencer whitelisting works, step by step!

We’ve found that this is the most effective way to do influencer marketing as it gives you complete control over your budget, without risking wasting money on fake followers.

Additionally, this process ensures that your promotions will be seen by real people who are likely to buy your product.

So what are you waiting for? Start whitelisting your favorite influencers today!

And if you need help getting started, feel free to apply to our program at https://www.sociallyelitemarketing.com/brand-signup/

We would love to get setup with this amazing new way to promote!

Happy Influencing!