BY COLLEEN PATTERSON
It's finally time for the third and final installment of our series on "What is Influencer Marketing?" We've left your most pressing question for last: how to determine your ROI.
How do I determine influencer ROI?
Think of a social media influencer as a freelance audience builder. Influencers are audience experts. That’s their job: to curate an engaged audience.
When you enlist the help of an influencer, you’ve acted upon the understanding that the people in their network/their followers/friends/family consist of qualified leads.
You’re cutting out the chaff, reaching only an audience (by proxy) which (once informed) will be genuinely interested in your business. It’s a huge shortcut which can result in massive payoffs.
However, there is no set standard for paying out an influencer. Dive deep into Google and you’ll likely turn up empty-ended. Here’s why:
You’re dealing with a freelancer who establishes their own rate. They determine their own worth. Sometimes, they’re taking a big gamble with an astronomical rate because, in their experience, brands rarely question or counter-offer it.
The closest stab at standardization I’ve seen is the 2015 Influencer Marketing For Dummies Cheat Sheet by Kristy Sammis, Cat Lincoln, Stefania Pomponi, Jenny Ng, Edita Gassmann Rodriguez, Judy Zhou. In it, they’ve broken down rates across platform, industry vertical, and estimated rate.
For example, IMFD cites:
Bloggers charge between $175-250 a post per 10K-50K monthly impressions. A blogg post with 500K monthly impressions will charge up to $1K-5K a post.
Instagram influencers generally charge between $75-$250 per image if they fall within the 2,000-10,000 follower range and upwards of $3,000 per image if they boast at least 500K subscribers.
Here’s ultimately how you determine ROI.
- The Goal: What do you want to walk away with?
- The KPI: What you are going to measure?
- The Method: How you gonna get there?
- The Payoff: Do you think it was worth it?
The was it worth it is completely subjective.
People take to social media to post about their consumer experiences. It’s a simple as that. We post pictures of the lovely dinner we’ve just had and tag the restaurant. We tweet at airlines, seeking customer support. We share referral codes and search for coupons on Google.
Conscious or not, we encourage and dissuade our friends towards certain brands and products or services.
Social media is one of the simplest and most direct ways to build a relationship online —and there’s a world out there where people follow not only their friends but public accounts which inspire them.
The good news is, it’s accessible to you. Are you ready to give it a try?