OffLeash Communications has been leveraging influencer marketing for our brands since the term “Ambassadog” first came on the scene and within the last year, we’ve noticed something… prices are going up. Fast. Established relationships with micro influencers jumped from product trade to hundreds of dollars in a mere 12 months, and for accounts with over 250k followers it seems the sky is the limit for a permanent Instagram post (especially if they are agency represented.) We want to be clear in saying that we absolutely find paid influencer relationships valuable and expect price increases that align closely with potential reach and engagement, but this trend seems to be widespread, sudden and drastic. Raising the question in weekly team meetings, are we taking crazy pills?
Good news: When we started reading and chatting with industry friends we discovered, no we are not taking crazy pills – influencer rates are skyrocketing.
Bad news: Influencer rates are skyrocketing.
According to Forbes, two top-tier lifestyle influencers with 1M followers are charging $15-20k per post and they speculate that most brands would struggle to see a strong ROI at that price point – meaning influencers may be pricing themselves out of the game at these levels. (Read more about what Forbes has to say on this topic.)
As we noted in our recent blog post, we think that the influencer industry will shift from a growth period to one of refinement where quality and transparency rule. In the meantime, this is a critical channel for brands to be leveraging effectively and there are great influencers with appropriate price tags, so don’t let this trend intimidate you! Get some tips on how to find influencers that will help your brand move the needle on your business goals here, or contact us to learn how we can help you set your influencer strategy and manage the execution.