Ultimate Guide For Influencers: How Much To Charge For A Sponsored Post
When it comes to how much to charge for a sponsored post there is no real consensus. However, it is extremely important that you know your worth especially when first you’re first starting out. There is often a misconception that big brands will always have a big budget but it is important to note that they can also flip it and say that they’re giving you good exposure by choosing you to represent them. To help you strike the right balance and to unblur these lines we have devised a simplified guide to help you nail those campaigns for the right price.
Let’s start off by defining the key terms…
CPM: This stands for ‘Cost Per Thousand’ and is a marketing metric that brands tend to use when they want to gain the most exposure. It allows marketers to easily identify which marketing tactic e.g. Instagram, Twitter, Facebook will reach the most individuals and shows the cost while doing so.
CPE: This stands for ‘Cost Per Engagement’ and is a marketing metric that provides a better indicator of sales as it measures how much an influencer’s followers interact with a post e.g. by liking, commenting and sharing.
CPM Benchmarks to consider…
The average CPM varies per social channel and as it stands Instagram is currently still the cheapest, you can access further information on these figures here.
The benchmarks for each social channel range between the below figures:
It is up to you to determine which end of the spectrum you will place yourself as this is subjective we cannot do this on your behalf.
Calculating your prices based on CPM…
Once you’ve decided your benchmark figure for the social channel you are estimating your CPM for, you need to multiply this by your number of followers and then divide by 1000.
For the sake of the example let’s say you are estimating your CPM for Instagram, you’ve decided your benchmark price of $5 and you have 25,000.
You take 5 x 25,000 = 125,000 then 125,000 / 1000 = $125
For sponsored blog post you use the same method but with UMV (unique monthly views), instead of following.
When it comes to engagement rate, not all platforms are equal e.g. Instagram receives the most engagement as opposed to Facebook and Twitter.
The higher reach an influencer has, the lower engagement rate tends to be as they have a bigger following to engage with their posts.
Micro-Influencers tend to have a higher engagement rate which makes their CPE lower as their followers engage more with them. However, on the flip-side their CPM is often higher so it is important to take note of both engagement rate and CPM.
Understanding Instagram enagement rates
ZINE CPE Benchmarks to consider…
Calculating your prices based on CPE
First take your engagement rate (ER) which is displayed on your media kit and multiply this by the number of your followers to convert it from percentage (%) to a number.
E.g. If you have a 5% engagement rate, and 50,000 followers: 3% * 50,000 = 1,500
This means that on average you receive 1,500 likes per post
Then multiply your engagement rate as a number (1,500) by the benchmark CPE stated above.
Again, you should be the one to determine which end of the spectrum you consider yourself as this is subjective we cannot do this on your behalf. Consider things like the time and effort you put into your posts.
E.g. take a CPE of $0.30 for example: $0.30 * 1,500 = $450
Look out for our automated engagement rate process coming soon to your media kit!
In the meantime if you ever have any issues or still feel unsure on how much to charge please utilise our live chat and we will be at hand to help!
I’m Influencer Marketing Executive here at ZINE, where I manage communications of over 50,000 influencers. I’m obsessed with coffee, shopping and makeup.