Influencer Marketing is widely spread in almost every social media platform. However money spent by the brands on Instagram influencers skyrockets each year. According to the Statista report, in 2018 only global spendings on Instagram influencers amounted to over 5.67 billion dollars, whereas in 2020 the figure reached 8 billion.
The numbers speak for themselves: more and more brands are cutting their expenses in other traditional channels of advertising, investing them in a more effective channel, which is Influencer marketing.
When it comes to the best possible rates, influencers have lots of opportunities to test different rates and see whether brands reaching out to them are willing to pay the price. Depending on the demand, they can adjust their rates accordingly any time . Here’s how this happens: After deciding how much to charge for an instagram post or story, influencers sit and wait. If they see lots of brands coming to them over and over again, they know their “customers” are satisfied with the results and are ready to pay the amount every time. In this case they can try to increase their rates a little and test again.
But what if you are a brand? How can you determine what’s the best possible price especially when it’s your first time collaboration and you don’t have much data to lean on? It’s like going on a blind date: you never know what to expect. If you have outreached influencers before, you may know that part of them sends their rates immediately. But how do you know if the game is indeed worth the candle? You don’t want to pay more than you should, do you?
As if this were an easy problem, there are even bigger challenges out there. What about the situation when an influencer asks about the budget you want to spend? You find yourself at a loss, trying to figure out the right amount without having the slightest idea about their rates. On the one hand, you don’t want to suggest more than their rates . And on the other hand, you may simply offend influencers by offering too little of a budget for their talent.
Instagram money calculator can help you out with that. It analyses the profile of the influencer you are interested in and suggests the best price range to make you feel more confident while negotiating the price.
Now you know whether the price suggested by an influencer is fair.
What’s more, you can be braver while suggesting a budget.
Time to:accept the price or start negotiating!
Unlike other calculators, Instagram Money Calculator determines the influencers’ range not solely based on the number of their followers, but also considering a more accurate factor — the Mango Score. The latter includes not only the number of followers, but also the engagement rate and comments/like ratio of the influencer’s posts.
We know that an influencer may have millions of followers but give too little value for the amount you paid them. Whereas another influencer with much less followers can bring more credibility, sales and exposure because of having more engaged followers and more genuine content.
As mentioned previously Instagram Money Calculator takes into account rather versatile calculations:
The importance of the engagement rate cannot be understated. iIt is literally the first thing to take into account when assessing influencer profiles. Go check out yourself! Two influencers with almost the same followers range may have completely different engagement rates. And on the other hand, influencers having completely different followers range (for example, one may have 1 million followers, while the other —150k followers) may have the same average number of likes.
That’s all about how engaged audiences can be and how they interact with the content shared.
Although the number of followers alone is never that important by itself, it should be considered along with other metrics. Is 1% engagement rate good? No? Well, it’s pretty awesome, when you talk about an influencer with a 5 million audience. But it’s a poor result for an influencer with 100K followers. These two metrics always go hand in hand and should be analysed together
Have you noticed that some influencers have pretty many likes, but only several or no comments under their posts. It’s because writing a comment takes time and effort: you need to think of a way to express your thoughts and feelings.
That’s why comments are so much more appreciated and desired than likes. According to the recent updates of Instagram’s algorithm, Instagram gives more value to comments than likes, thus promoting harder the posts that have more comments than likes.
Note that currently you cannot use Instagram Money Calculator for the pricing calculations of nano-influencers with less than 10k followers. But we’re working to bring it to you really soon.