Online platforms offer a lot of chances for influencers to turn their passions into money making ventures regardless of their location, age or orientation. As influencer marketing continues to boom, you don’t need to have millions or hundreds of thousands of followers to secure a deal.
Currently, those with just over 1000 followers also known as nano influencers are capable of making some money through deals with local brands.
Content creators of any age are getting deals worth lots of money to promote a product on their content. For example, Ryan's World is a YouTube channel by 9-year-old Ryan Kaji. He is the best paid kid if not the best. He earns deals from toy companies and pushes their sales with his toy review videos. Below we have a list of the different influencers’ tiers and how much they make.
You may be wondering how is the cost of influencer marketing determined, or how do brands decide on what to pay an influencer? According to the set standard of payment in monetary form, an influencer charges $100 for every 10,000 followers per post.
So, an influencer with 10,000 followers will earn $100 per post and one with 100,000 followers will earn $10,000 per post. This does not include the gifts that the influencer will receive. And although this is the standard price, it is not mandatory as several other factors determine how much an influencer earns.
There are a few other factors to consider when thinking about how much an influencer charges.
1. The number of posts: An influencer will charge more for multiple posts than they would for one single post. This is because they are dedicating more time to promoting your brand.
2. The level of engagement: If an influencer has a high level of engagement (likes, comments, and shares) it means that their followers are engaged with their content. An influencer will likely charge more for a post if they know it will generate a lot of engagement.
3. The type of product or service: If the product or service is something that requires a lot of explanation or is complex, the influencer will likely charge more. This is because they will need to spend more time creating content that accurately represents the product or service.
4. The size of the brand: If the brand is a large company with a lot of followers, the influencer will likely charge more. This is because they will be reaching a larger audience and their content will have more impact.
5. The location: An influencer in a large city will likely charge more than an influencer in a small town. This is because they have a larger audience and their content is more likely to get more return-on-investment (ROI).
6. The platform: Although the charges for influencing might be the same, some factors may cause variation in the charges. For instance, each social media platform has a different audience type and creator resources vary (Geyser, 2021). An influencer on Instagram will likely charge more than an influencer on Snapchat. This is because the former has a wider reach and the latter requires less time to create content.
7. Where the ad will be promoted/cross-posted: An influencer who uses multiple platforms (Instagram, YouTube, Snapchat) will likely charge more than one who only uses one platform. This is because they have a larger audience and their content is more likely to get more return-on-investment (ROI).
8. Industry specialization: If an influencer specializes in a particular industry (e.g., fashion, automotive, travel), they will likely charge more for branded posts. People will not trust a travel influencer if they suddenly start talking about the automotive industry. Each influencer has their own personal brand that they have built and nurtured over time.
Celebrity influencers with 1 million followers are at the very top of the influencer tiers. They can command between $250,000 and $500,000 for a single post on social media.
Some of the world's most popular Instagrammers like Selena Gomez and Cristiano Ronaldo have tens of millions of followers and can demand $500,000 or more for a promotional post. According to an analysis by Hopper HQ, Cristiano Ronaldo is the highest-paid Instagram influencer earning $1.6 million from influencer marketing. He earns more than any other influencer per sponsored post (Armstrong, 2021).
This kind of commanding power comes from their immense global influence on all those following or watching him. Any action they take can build or break a brand. For example, when Cristiano Ronaldo moved two bottles of Coca-Cola from cameras during a pre-game press conference and said he'd rather drink water, $4 billion was wiped off the soft drink giant's market value.
It shows that as an influencer he can sway public opinion and thus bring high ROI.
Given the high cost of working with super celebrities, some brands that are doing pretty well but do not have $1 million to pay for a post are preferring to work with macro-influencers. Macro-influencers have 500,000 to 1,000,000 followers. An influencer with this kind of following can demand up to $10,000 per post or simply $100 per 10,000 followers.
Although brands have to pay this kind of money, many factors go into the rate for a campaign marketing plan. This includes the platform used and the influencer's engagement rate. An influencer with 1+ million followers on YouTube earns approximately $100,000 to $250,000 per video.
Mid-tier influencers are those influencers with 50,000 – 500,000 followers. They can be very beneficial in influencer marketing campaigns because most of them are not celebrities but individuals who have built a following by consistently posting about specific topics. Brands can work with them for a fraction of the cost of working with celebrities. A brand can expect to pay around $500 to $5,000 per post, and rates go up incrementally from there based on the size of an influencer's following.
Micro-Influencers are individuals with 10,000 – 50,000 followers. Given the small number of followers, micro-influencers boast higher engagement and closer relationships with followers. Brands can work with them for a fraction of the cost of working with celebrities or macro-influencers. A brand can expect to pay around $100 to $500 per post, and rates go up incrementally from there based on the size of an influencer's following.
Nano-influencers are individuals with 1,000 to 10,000 followers. They have a highly engaged following because their followers often relate to them on a more personal level. Rates for working with a nano-influencers start at $25 per post and go up incrementally from there based on the size of an influencer's following (Business Of Apps, 2021).
According to a 2019 survey by Mediakix, the best social media platforms for influencer marketing include:
The 2019 reports did not have TikTok included because it had not gained widespread popularity until 2020. TikTok is now a major player in the influencer marketing industry after its boom during the pandemic. According to a 2020 report by search engine journal, the top influencer marketing platforms are:
Other Ways Influencers are Making Money
Physical product creation and eCommerce: Some influencers are creating and selling their own physical products, such as clothing, accessories, and home goods. They set up their own eCommerce stores to sell these products.
Podcast subscriptions: Influencers are also starting their own podcasts and charging listeners a monthly or yearly subscription fee to have access to all of their episodes.
Webinars: In addition to podcasts, some influencers are also conducting webinars. They will offer access to a limited number of people for a set price.
Public appearances as a brand ambassador: Influencers with a large following can also get paid to make public appearances as brand ambassador.This might include speaking at an event or attending a red carpet event.
Content membership sites: Influencers are also setting up content membership sites where people can pay a monthly or yearly subscription fee to have access to all of the influencer's exclusive content.
Affiliate marketing: Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.
Sponsored posts: Sponsored posts are blog posts, videos, or social media posts that are paid for by a company or individual. The content creator is typically paid to promote the product or service in their post.
As you can see, there is no one-size-fits-all answer to how much influencers make. It all depends on the size of their following, their engagement rate, and the platform they are using. Nevertheless, it is clear that influencer marketing is a powerful tool that can bring high ROI for brands if used correctly.
It doesn't matter the age or the number of followers, anyone can benefit from this industry as long as they put a little effort into their area of specialization.
Armstrong, Martin. "Infographic: The Most Expensive Influence on Instagram." Statista Infographics,2 July 2021, www.statista.com/chart/25237/instragram-celebrities-highest-sponsored-post-earnings/#:
Business Of Apps. "Influencer Marketing Costs." Business of Apps, 16 June 2021, www.businessofapps.com/marketplace/influencer-marketing/research/influencer-marketing-costs/.
Geyser, Werner. "Influencer Rates: How Much Do Influencers Really Cost in 2021?" InfluencerMarketingHub, 28 June 2021,influencermarketinghub.com/influencer-rates/.
Jarboe, Greg. "How Do Social Media Algorithms Work?" Search Engine Journal, 16 Sept. 2020, www.searchenginejournal.com/how-social-media-algorithms-work/380642/#close.
Mediakix. "How to Choose the Right Social Media Channels for Influencer Marketing." Mediakix,7 Aug. 2019,mediakix.com/blog/how-to-choose-social-media-channels-influencer-marketing/.