One of the most difficult things regarding selling in any businesss or deal is determining your price. Since the social media marketplace doesn’t have regulated pricing, not many people have an idea of their influencer worth. This is also means if you overprice your deals, nobody will click your deal.
TrendADeal has tried to make your life easier by giving you a basic guideline on how you should your deals, so that you don’t undercharge / overcharge.
1. What the follower count of the social media account you will be using to advertise?
You should post your follower count everywhere — if you want to draw buyers. The average cpm (Cost Per Impression – which is the cost of traditional advertising or internet marketing or email advertising campaigns) for instagram is 5$ per 1000, in 2020 — which is about R83. Impression differs according to popularity, and how your audience interacts with your content. For e.g, do your followers repost or engage with your content. So we will try stay basic and let you know that impression is usually about 0.89 * follower count.
So if you have 10k followers, your impression calculation will be 0.89*10 = 8900. So at this rate, to find the charge will by your impressions/1000 * the CPM. The whole formula in step 1 is as follows:
| — ((Followers * 0.89)/1000) * CPM — |
In the case of 10k followers it would look like: (10 000 * 0.89)/1000 * 83 = R738,7 per post.
42k followers would be: ((42 000*0.89)/1000)* 83) = R3102.54
Many users end here, which shouldn’t be the case because you can only charge that amount if all scenarios perfect. What scenarios you may ask. Well, how many people on average like your posts. Whats your comment average. Many instagram user’s have a follow me I will follow you mandate, so what is your real influence ratio, meaning people who follow you for your content. How many of your followers are bots. Whats your engagement ratio. If you don’t ask these questions, you have a high chance of under-delivering your order. This is why we partnered with an external analytics company that can assess profiles, so that trust can be built. This leads us to step 2.
2. Use your reach rate to your advantage
With somebody with real followers, your reach rate could be 40% of your following. That means the people who like, comment and generally engage your content. So we would prefer you charge 40 – 60% of your price in step 1 to start off with. So lets rewrite the equation with the reach rate included.
| — (((Followers * 0.89)/1000) * CPM ) * 0.6— |
However this is just a sum of generalized averages, and it becomes more inaccurate as it goes along. The only way to attain proper analytics is to analyse your account over a certain period, have your analytics indexed per you last 100 posts if you’re a frequent poster. This leads us to step 3
2. Request for your profile to be analysed by InMoolah
The sad reality is that most brands will only click your advert if you’re verified. Make a request to have all your ratios calculated so people can know you are worth your influence. Send a request to Inmoolah so you can check their analytics