• Presents or honors.
• A combined excursion or event.
• Refunding or store credit.
• Fee for content licensing.
• Per-post payment.
• Only for performance.

Fixed rate plus a performance incentive

Influencer marketing has a strong future. Influencer marketing is expanding quickly, which presents new issues for marketers. But even for novices, there are always methods to get beyond those challenges.

What influencer marketing costs

Whether you’re dealing with the Kylie Jenners of the world or lesser influencers, you’ll learn the top seven ways to pay influencers in this guide so that you can establish a partnership that is successful and mutually beneficial.

The greatest strategy for developing a successful influencer program is to take the time to carefully examine your partnership and select the setup that works best for both parties. To put it another way: individualize and adapt.

7 strategies to compensate influencers

• Presents or prizes
• Event or vacation compensation Store credit or rebates
• Cost of content licensing
• For each post
• Solely in performance

Contingent fee plus performance bonus

Influencer marketing has a strong future. By 2022, the industry’s worth might reach $15 billion, and for good reason.

Marketers concur that influencer marketing is costly.

Popular macro- and mega-influencers are quite expensive; Kylie Jenner, for instance, charges a staggering $1 million for each sponsored Instagram post. It makes sense that marketers would include the rising influencer expenses as one of their top challenges. Influencer marketing is expanding quickly, which presents new issues for marketers. Many marketers lack the flexibility to tailor payouts and incentives to suit a wide portfolio of influencers, although many now diversify their influencer partner portfolio to include more affordable micro- and nano-influencers.

The price and benefit of influencer campaigns

Influencer marketing will continue to cost between $100 and $1 million for each post in 2021. The majority of influencer marketers use pay-per-post, and engagement is by far the most popular metric for gauging their success. Influencers are being paid a fixed fee with a performance incentive and even performance-only payments have gained popularity as a result of the increased demand to demonstrate ROI. These kinds of payments help compensate for problems caused by followers who have been paid or by low-quality engagement, which can be challenging for businesses to identify and have a negative influence on impact and ROI (ROI).