Determining how to price your content is one of the most important parts of your business, but if you are an Instagram Influencer, sadly there are limited resources out there about how much you should charge for a paid Instagram post.
Understanding how much you should charge brands when it comes to working together on a sponsored ad placement is critical, and we are here to help!
There are many factors that go into your pricing:
- How much other Instagram Influencers in your niche charge
- Your engagement rate
- The SOW of the Project
- The usage (here’s a guide to pricing usage)
Understand Your Industry
To kick things off, something we have found is that asking your network how much they charge is an incredible way to gauge how much you should be charging brands for sponsored content. That said, there are also a number of data-driven factors that are the key to identifying what your digital community brings to the table.
If you are new to the industry, it’s important to narrow down your core values and target audience. Niche topics range from wellness to style, family to travel. When you have specific industries in mind, you are more prepared to start the conversation regarding your rate across social media platforms.
Engagement and Analytics
Across the board, one of the main things to remember is that it doesn’t matter how large or small your audience is on Instagram when it comes to pricing your rates. The thing that matters is your reach, and the engagement a brand can expect to see from working with you on a sponsored post.
Some key performance indicators (KPI’s) that you should always use to show brands are:
OK, so if I am an Instagram Influencer and want to make money from brand partnerships, how do I discover my engagement rate? Well, Blogist offers a calculation of your engagement rate for free if you connect your profile.
You can always do the math yourself, based on analytics in Instagram’s content insights within a business account. Here is how you would do that!
Engagement Rate Formula
We recommend using engagement from your ten most recent posts.
Engagement Rate = ((Likes + Comments) / Posts / Total Number of Followers / 10) * 100
Something we get asked a lot if you are looking to negotiate brand partnerships, is how do I know if my engagement rate is good or not? Here is a breakdown:
- 10K-100K followers: should be between 2.4 - 3%
- 100K-1M followers: should be around 1.8 - 2%
Define the Scope of Work
The next thing that will dictate how much you charge brands, is the SOW (or the scope of work).
When striking up a conversation with a brand manager, be straightforward and ask if they can define the campaign goal. Asking for the SOW and the client’s budget during the partnership’s early stages saves all parties time. If you are offering a service, your time is valuable.
Identifying Types of Sponsored Instagram Posts and How Much to Charge
Over time we have found that there are many different ways to charge for Instagram posts, some parties suggest charging $10 for every 1,000 followers.
Here is a pricing breakdown of baseline numbers we would charge. The better your engagement, or the more aligned you are with a certain niche, your rates should increase.
Instagram Reels content would be priced similarly to in feed posts
Usage and Exclusivity
If you are an Instagram Influencer and a brand has pitched you to do a brand collaboration, be sure to ask them how they will be using your images and if you are exclusive to working with their brand for a certain period of time.
You should be paid if the brand plans on using your images as ads or if there is exclusivity. Here is a guide to charging for usage and exclusivity if you are working with a brand on a sponsored Instagram partnership.
COVID-19 — Times of Crisis
COVID-19 has brought unexpected challenges to our industry, and we advise you look at the industry of the brand you are interested in working with and see how the pandemic has impacted their advertising budget/goals.
Letting clients know that you are willing to adjust your rates given the resulting economic downturn will show the brand just how much you care about working with them and providing support!
How do I make sure I can get my rates?
You aren’t alone, and we are here to help! To get help negotiating brand deals if you are an Instagram Influencer, we recommend signing up for one of our plans.