The Creator Economy; Earning Potential By Social Channel
Entering the creator economy offers earning potential based on influencer reach, engagement rate, social media platform, content type, and production effort. Influencer tiers range from nano to mega based on following size and reach.
August 23, 2023
The Creator Economy; Earning Potential
So you've decided to be an influencer. Or you've at least realized that you have a channel following that might have potential. Either way you are sitting on some money, and in this economy - why not leverage your follower base into some extra cash? The question is, how much cash can you really earn? There are a few main factors that determine the fee's a creator can charge that range from influencer reach, engagement rate, which social media channel you post on, the type of content, and generally how much effort will go into "production". Without further ado, let's get into each...
Influencer Reach: The industry typically breaks out influencer tiers by their reach, as follows;
- Nano-influencers: 1,000–10,000 followers
- Micro-influencers: 10,000–50,000 followers
- Mid-tier influencers: 50,000–500,000 followers
- Macro-influencers: 500,000–1,000,000 followers
- Mega-influencers: 1,000,000+ followers
As you might have guessed, the higher the following, the higher the rates the influencer can charge. Don't let the high numbers intimidate you though, certain channels like YouTube, Instagram, and Facebook still pay a pretty good rate at the lower tiers (find average rates by channel below).
Engagement Rate: What % of your followers will interact with your content?
Engagement rates are really a reflection of 1) Relevance (is this post helpful or useful for the audience) 2) Authenticity (does it feel organic and on-brand or is it commercial and the tone feels less inspiring to take action) 3) Frequency (are you constantly posting sponsored content or is your frequency well timed and feel genuinely interesting to your follower base?). People don't like to be sold anything, so do your homework on the partners you work with and make sure it's a product/service that you really believe in and trust personally, because it's ultimately a reflection of you. Pro Tip; smaller influencers tend to have higher engagement rates because they own a niche and command a more loyal base. Brands playing small ball can often outscore home run hitters through thoughtful and efficient partner selection.
Type of Content: Aligning branded content with marketing objectives;
The type of content a creator is producing will have a huge impact on the pricing and the more effort that goes into production, you guessed it, the higher the fee will be based on their reach tier. Time, money, energy, resources, and opportunity cost all factor into consideration when determining a rate structure - so consider all the moving parts that go into the content before negotiating your fees. Last but not least, always align on the marketing objective first and foremost which can help you agree on the type of content to produce. Pro Tip; Can't go wrong with paying for performance and agreeing to % of revenue from sales driven by creator platform through a unique discount code. This helps eliminate any concerns about follower quality and wasted media spend.
- Shoutouts; A Shoutout happens when brands pay creators to promote products or services on your social media. Depending on the channel, this could be a video, image, GIF, etc and call their audience to a particular action like visit a site or purchase a product with their promo code.
- Giveaways; Product Giveaways can be a great tactic because they get audiences excited about the offering and generate a lot of buzz, costing a brand only a few free items in exchange for the new awareness. Influencers can make it fun by turning the giveaway into a contest or a giveaway for best submissions (apply where relevant), this is a great strategy when new products are hitting the market.
- Affiliate Marketing; Affiliate Marketing is a reliable content monetization strategy that allows a creator to promote a product/service and receive a commission of the sales they generate. This strategy can often be best for blog writers or those who can generate trusted product/service reviews in the verticals they represent. Some brands really dig this strategy because they only pay for performance and don't waste any marketing dollars on traffic that doesn't yield results.
- Sponsored Content; When it comes to Sponsored Content, you can provide the creators with your own content to post on their channels or you can provide them with a creative brief on how to speak about your brand. While it may cost the influencer more to create the content themselves, remember that the best part of working with these influencers is the trust they've built with their audience and that authenticity will ultimately drive engagement/performance.
- Brand Ambassador; Who says it has to be a one and done deal? Brand Ambassadors are longer term partnerships that look to discover a partner who is passionate about your brand/mission, will consistently post videos, images, blogs, etc over an agreed upon period of time. This tier is usually reserved for larger influencers, but can be quite lucrative if you land one of these retainer offers!
Earning Potential By Channel
Looking at each channel, we'll break down the tier by the influencer reach tiers for consistency. Depending on the other factors, the fee's can be on the higher or lower side of these averages and remember - these are just estimates based on recent industry data and only meant to guide your research.
- Nano-influencers: $20 - $200 per video
- Micro-influencers: $200 - $1,000 per video
- Mid-tier influencers: $1,000 - $10,000 per video
- Macro-influencers: $10,000 - $20,000 per video
- Mega-influencers: $20,000+
- Nano-influencers: $10 - $100 per post
- Micro-influencers: $100 - $500 per post
- Mid-tier influencers: $500 - $5,000 per post
- Macro-influencers: $5,000 - $10,000 per post
- Mega-influencers: $10,000+
- Nano-influencers: $5 - $25 per post
- Micro-influencers: $25 - $125 per post
- Mid-tier influencers: $125 - $1,250 per post
- Macro-influencers: $1,250 - $2,500 per post
- Mega-influencers: $2,500+
- Nano-influencers: $25 - $250 per post
- Micro-influencers: $250 - $1,250 per post
- Mid-tier influencers: $1,250 - $12,500 per post
- Macro-influencers: $12,500 - $25,000 per post
- Mega-influencers: $25,000+ per post
- Nano-influencers: $2 - $20 per post
- Micro-influencers: $20 - $100 per post
- Mid-tier influencers: $100 - $1,000 per post
- Macro-influencers: $1,000 - $2,000 per post
- Mega-influencers: $2,000+
These numbers are all fluid based on market dynamics, past performance, target audience and influencer follower overlap, and more. But now that you have an idea how much you can earn, hopefully you feel educated to have conversations with brand partners and know what the content is worth! Risefluence aims to be your partner in the creator economy and help you understand and unlock what your creative is worth in the influencer marketplace.
*Disclaimer: This article is intended for informational purposes only and should not be considered official financial or legal advice. Readers are advised to consult with qualified professionals for personalized guidance regarding financial or legal matters.