Instagram is a popular home for influencers. The visual nature of the platform lends itself to product endorsements. The endorsements feel organic to followers, which is why some brands look specifically for Instagram influencers.
But, how much do you pay an Instagram influencer? Compensation for influencer marketing campaigns is a hot topic. Since it’s a fairly new way to advertise, there aren’t set benchmarks. However, IZEA has released a study that provides helpful insight on influencer payments.
Can you trade products for posts?
Before discussing the particulars, you might assume you can work with an influencer by simply sending him or her a free product as compensation. However, most influencers — 70% — prefer a combination of payment and a free product, according to Business of Apps.
Research shows just 5.7% of influencers are willing to work for product-only pay. These influencers are usually new to the industry with small audiences.
Factors that influence compensation
Influencer payments can vary widely. If you team up with a celebrity, you could pay hundreds of thousands of dollars. If you team up with a B2B influencer with a modest audience, you could pay a few thousand dollars. There are a handful of factors that can impact compensation, such as:
Influencers with mega audiences charge more. Kim Kardashian, for example, who has 306 million followers on Instagram, charges $300,000-$500,000 for one endorsement. While her payscale is certainly on the high end, it does show a direct correlation between compensation and audience size.
Type of content
Different types of content require different time commitments. An Instagram image is more affordable than a video. A product review is cheaper than an ebook. The more work it takes to create the content, the higher the cost.
A seasoned influencer will provide engagement rates for everyday traffic and for sponsored posts. Influencers with great engagement can charge more. Engagement rates between 2-3% are average, between 4-6% are excellent, and anything in the teens is considered viral.
If you find an influencer that really connects with your audience, you may want the influencer to work with your brand exclusively. If that’s the case, an influencer must sign a non-compete agreement and receive compensation that makes up for any contracts the influencer must turn down during that time.
How much do Instagram influencers charge?
Let’s talk specifics. Whether you’re a brand wondering about influencer payments or an influencer trying to set a price for your services, it helps to have some reference points. Fortunately, IZEA has studied Instagram influencer compensation and can offer insights.
Average cost for a sponsored post on Instagram
The chart below shows the average cost of a post by platform. As you can see, the average cost for an Instagram Story is $906 and an Instagram Photo is $1,170.
An Instagram Story is an image or video that disappears in 24 hours, whereas an Instagram Photo lives on the influencer’s “wall” and remains there. The Instagram Story gets less “air time” with an Instagram audience so it’s a little cheaper than the longer-lasting feed photo.
Instagram posts are fairly affordable in comparison to other platforms. TikTok and YouTube, as you can see on the chart, are the most expensive, coming in at $3,514 and $4,491.
Average cost of an Instagram post with a post on another platform
A brand might ask an influencer to create multiple pieces of content, like an Instagram Story and a TikTok video, as part of a package. While it makes sense to get more leverage out of an influencer marketing campaign, doubling the content means increasing the price.
The chart below shows the average costs when you pair Instagram with another platform.
Here’s a breakdown of platform combos:
- Facebook and an Instagram photo: $2,208
- Instagram Story and an Instagram photo: $2,646
- Facebook and an Instagram Story and an Instagram photo: $3,054
- Instagram Story and TikTok: $5,453
- Instagram Story and YouTube: $13,025
You’ll notice that most of the platform combinations do include Instagram, be it a story or a photo.
Average cost of a sponsored Instagram post by audience size
The size of an influencer’s audience impacts pay too. To access audience sizes, influencers are broken into groups. The groups are as follows:
Nano-influencer: 1,000-9,999 followers
Micro-influencer: 10,000-49,999 followers
Mid-tier influencer: 50,000-199,999 followers
Macro-influencer: 200,000-499,999 followers
Mega-influencers: 500,000-999,999 followers (or more)
The State of the Influencer Earnings™ 2022 shows payment across all platforms based on an influencer’s audience tier. You’ll notice compensation increased from 2020 to 2021 for all tiers.
In 2021, a nano-influencer charged right around $800. The next tier up, a micro-influencer, charged around $1,500, while mid-tier influencers charged about around $3,000. Macro-influencers charged about $5,000 and mega-influencers topped the chart at almost $7,000 per post.
All of these rates represent record highs since IZEA started tracking payments in 2015.
Compensation for Instagram influencers can be tough to calculate, but these figures should give you an idea of what to expect when you speak with an influencer. Remember, every influencer is different, and most are open to negotiation in a professional setting.
To learn more about the compensation of Instagram influencers, get the State of Influencer Earnings 2022 from IZEA today.