With the growing concerns about ad-blocking, the popularity of influencer marketing is on the rise and bloggers are becoming a hot commodity and an essential part of the marketing mix for many brands. Companies within various industries, from fashion to tech, are turning to bloggers and social influencers to impact their audience and shape their purchasing decisions. Even Netflix is taking advantage of Instagram influencers to tap into the millennial market. The high demand for bloggers is the number one reason influencer marketing costs are on the rise. Many bloggers are going from hobby bloggers to pro full-time bloggers and leaving their jobs as they can make a very comfortable life by solely relying on collaborations with brands.
When influencer marketing started, many bloggers were paid in the form of products or services. However, more and more bloggers are demanding to be paid in cash these days for the time and effort they put into crafting sponsored content. Due to the lack of regulations and performance metrics in place, the cost of working with bloggers are widely scattered and inconsistent. The amount charged by bloggers are based on their experiences with brands and in many cases purely subjective. However, although there is no standard pricing structure, it is essential for bloggers to take into account certain factors when it comes to monetizing their blog to be able to compete and make money.
One of the most important factors that bloggers need to take into account when determining their rates is the industry, or in blogging terms, the category or vertical they write about. Certain industries, such as fashion, are more attractive when it comes to influencer marketing and due to this high demand, bloggers usually charge relatively higher prices in comparison to other industries, such as home decor or food.
Another factor to consider is the website metrics. Although using bloggers as a means of advertising would not guarantee high reach compared to mass media like newspapers or magazines, the engagement and the reader’s interaction with the post is usually higher due to the great targetability of influencer marketing campaigns. Metrics such as website traffic, monthly unique visitors, posts impressions, click through rate, page rank and domain authority are crucial in determining blogging rates. There are free online tools to measure these metrics, including Google Analytics and SEO review tools.
The number of followers a blogger has on their social channels and their engagement rate are also important in the pricing formula. The higher the number of followers the higher the amplification rate that the blog post will receive. Some bloggers have an extensive reach, but they do not necessarily receive a lot of engagement on their posts. This can be determined by measuring the number of likes, comments, shares, reposts, repins, etc in comparison to the total number of followers.
Campaign and Brand Specific Factors
Although you can’t have a one-fits-all set of pricing, it can be helpful to have a range in mind. There are campaign-specific factors that also play an important part. For instance, the number of hours and special skills that are required to write a blog post or create a video is something that can have a great impact on the price. Also, many brands want to work with bloggers on a continuous basis and have them act as their brand ambassadors. If a blogger is contracted to collaborate with a brand for a longer period of time, it is common to charge less for each month. Also, some brands choose to give free products as well as the blogger’s fee which depending on the price of the product or service it can have an impact on how much bloggers charge. Also, many bloggers are willing to accommodate to the brand’s budget if their image is in line or if they are a big fan of the brand.
Due to the novelty of influencer marketing and lack of formal guidelines, it is challenging for many bloggers to determine how much they should charge. However, it is important to do an analysis of the elements discussed above as a blogger to start as a benchmark to justify your rates to brands and stay competitive.