In the influencer world, there’s no minimum wage or standardised pay scale, leading to significant disparity in rates when approaching creators. Factors, like engagement metrics and expertise, impact a creator’s value, but this lack of consistency leaves brands wondering if they’re getting the most bang for their buck, and creators wondering if they’re charging too much or too little.
At Feedstar, we’ve seen everything from a creator with 6,000 followers quoting $7,000 for a reel (with Feedstar handling production) to a creator with 340,000 followers quoting $2,000 for a UGC (User Generated Content) reel. So, what gives? These price differences may seem extreme, but they’re driven by some very specific factors and justified, which we’ll break down here.
1. Follower Count – A Starting Point, Not the Whole Story
Follower count is often the first metric brands look at, but it’s only one piece of the puzzle. A creator with a highly engaged audience of 10,000 followers can offer as much value as someone with 100,000. Follower count may help categorise influencers, but it doesn’t guarantee meaningful engagement.
Focusing solely on follower count has its limitations. The goal is to build a lasting, engaged community on social media, where followers are genuinely eager to interact with content. If follower count is increasing but engagement rate is consistently dropping, it signals a disconnect.
2. Engagement Rate – The Power of Audience Interaction
Engagement rate often tells the real story, with highly interactive audiences showing genuine interest in content. When engagement is strong, it suggests that a creator’s audience may feel enough of a connection with your brand to make a purchase. Instagram’s Adam Mosseri recently highlighted how engagement impacts content quality.
“In general, we want to show the highest quality video we can when someone is watching a Story or Reel”
Emphasising that instagram actively prioritises high-engagement content. This adds a layer of insight for brands: creators with loyal audiences bring higher value as they’re more likely to drive action and foster brand affinity.
3. Niche Authority – Specialised Knowledge Drives Influence
Authority in a particular niche elevates a creator’s influence, as followers trust their expertise. The creator referenced at the beginning charging $7,000 is an astrophysicist, their lack of competition and authoritative voice in the space warrants the inflated fee. In contrast, more saturated niches like beauty and fitness might see more competitive pricing due to greater competition.
4. Impressions and Views – Real Reach vs. Follower Count
While follower count is nice to know, views and impressions reveal the actual reach of a creator’s content. Many brands today prioritise reach and impressions because they signal the visibility and top-of-funnel impact that social media content provides. For awareness-driven campaigns, focusing on these metrics can maximise the number of potential touchpoints with the brand.
5. Targeted Audience – Demographics Matter
Not all audiences are created equal. Influencers with demographics that align with a brand’s target market hold a premium edge. Feedstar leverages advanced AI and influencer marketing platforms to give a complete breakdown of each creator’s audience—ensuring our partners get the best alignment for ROI.
6. Usage Rights – Unlocking Additional Content Value
When brands want to repurpose influencer content across their own platforms, they need usage rights, which comes at an extra cost. Influencers and UGC creators retain intellectual property but grant brands licensed rights for use. These rights outline how, where, and for how long the brand can use the content, allowing them to extend a creator’s reach far beyond their own audience.
7. Partnership Exclusivity – Commanding Premium Rates
For brands looking to lock down exclusive partnerships, exclusivity can drive up rates significantly. But if full exclusivity feels too restrictive, there’s room for compromise. In the alcohol industry, for instance, brands often go category-exclusive rather than industry-exclusive, allowing creators to work within specific spirit types (like dark spirits or vodka). It’s a creative way to get exclusivity without paying for full lockdown.
The Bottom Line
For brands navigating influencer fees, it’s crucial to consider the whole picture: engagement, audience, professionalism, and more. Feedstar takes all these factors into account, finding the best creators to maximise your social spend.
Looking to better understand influencer fees and ensure your budget is well-spent? Contact Feedstar today and let us help you find the right talent at the right price.
