Influencer pricing – this will make you understand the different pricing models


Influencer pricing – this will make you understand the different pricing models

The evolving internet and the role of influencer pricing

Social media is ever evolving and so is influencer pricing. With Instagram and Snapchat, giving exposure like nothing we’ve seen before, they’ve created a type of celebrity, one who shines among his or her own ‘tribe’. Think Kim Kardashian. The reality show star, famous for being famous, has enough endorsements to give her a significant income. Or maybe Lilly Singh is more your type? The Canadian YouTube comedy star of Asian origin has a devoted tribe hanging on to her every word. They buy stuff she likes. If anyone’s in a position to influence the buying tastes of their followers, these are the ones. And there are others. Celebrities endorsing brands is not a new concept. But today’s social media celebrities do it differently. If Lilly Singh endorses a lipstick in an FB post, it may look like a post. But it’s an ad. That’s the thing. So how is the size of their paycheck calculated and?


CPM (Cost Per Mile)

Some brands calculate the cost of influencer campaigns using CPM. The ‘mile’ in this case is ‘mille’, French for ‘a thousand’. In CPM, the influencer pricing is calculated by how many followers the influencer has. If the influencer has 20,000 followers and the CPM is around 10€ he will receive approximately 200€. The CMP also varies depending on the content quality, region, and other factors.


CPE (Cost Per Engagement)

In CPE pricing structure, the advertiser pays only if a reader engages with the ad content. For this influencer pricing, an interactive type of ad is necessary. A reader may be asked to participate in a poll, click on an ad and expand it to a full page spread, play a game or visit the advertiser’s website.


Daily rate for events

Last year, on a visit to Dublin, the Irish capital, I heard some girls screaming hysterically in a leading bookshop on Dublin’s main street. A famous YouTuber was present to promote his new book. He was selling his own product and I’m sure he was gratified with the adoration. But do brands pay influencers to make personal appearances? Personal endorsements and appearances are an old advertising strategy. According to a report in HuffPost, Kim Kardashian was paid $300,000.00 for a personal appearance on New Year’s Eve in 2012. If you want to book Lilly Singh for a speaking engagement, have your money ready. According to the Internet site where companies wishing to book her for are directed, her fee’s no less than $5,000.00. And that’s only for starters.


Affiliate marketing

Affiliate marketing is a way for a company to sell its products by signing up individuals or companies (“affiliates”) who market the company’s products for a commission.

There are two ways to approach affiliate marketing: You can offer an affiliate program to others or you can sign up to be another business’s affiliate. As the business driving an affiliate program, you’ll pay your affiliates a commission fee for every lead or sale they drive to your website. Your main goal should be to find affiliates who’ll reach untapped markets. For example, an influencer on Instagram who is trusted by his community and belongs to a niche group offers the possibility to reach potential customers you otherwise would hardly to never reach.


Media buyout

A Media Buyout is basically an advance payment for future use of a particular photo, set of photos or a video. Instead of paying the influencer residuals (repeat payments each time the photo /video is used), the client and the agency negotiate a one-time fee that allows the client to use the photo(s) / video(S) as many times as they’d like. A win/win situation which keeps the influencer happy and ensures profitable results for the brand is the ultimate aim for everyone.

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