How Much Does It Cost to Work with Nano Influencers?

Nano influencers may have fewer than 10,000 followers, but they live up to the saying that dynamite comes in small packages. 

EMarketer reports that nano influencers achieve the highest engagement rate at 6.23%, yet our campaigns frequently surpass this, reaching an impressive 10.7% engagement. This makes nano influencers an attractive option for brands looking to reach a niche target audience, especially as these influencers are typically more budget-friendly, providing an excellent return on investment (ROI) for businesses of all sizes.

But what are nano influencer rates, and how do you budget for influencer marketing while maximising your ROI from a collaboration? Let’s find out!

How Much Should I Budget For Influencer Marketing?

The cost of working with nano influencers varies widely, depending on factors such as their niche, the type of collaboration, and your campaign goals. To determine how much to budget for influencer marketing, you need to establish what system nano influencer rates are based on. These are the most common pricing structures:

Flat Fees

Many nano influencers charge flat fees for specific collaborations, such as sponsored posts, stories, or product reviews. On average, the cost for a single post from a nano influencer can range from £10 to £100. The flat fee might increase for more complex campaigns with multiple posts, stories, or video content.

Flat fees are ideal if you have a set budget for influencer marketing. They’re predictable and make it easy to manage expenses without unexpected costs.

Commission-Based Collaborations

With a commission fee, influencers earn a percentage of sales generated through their affiliate link or discount code. Commissions typically range between 5% and 20% per sale, depending on the product category and the brand's margins. 

These collaborations can be highly cost-effective as they align the influencer’s success with your brand’s financial goals.

Product Exchanges

In this scenario, instead of paying a fee, the influencer receives free products or services in exchange for creating content. This is particularly popular with smaller brands or start-ups with limited marketing budgets.

The product's value should align with the influencer’s effort, so you must consider the time it takes to create content and the perceived value of their endorsement. 

Discounted Long-Term Partnerships

Instead of one-off campaigns, you can establish longer-term partnerships with nano influencers. Long-term partnerships often come with discounted rates compared to one-time posts, as influencers value the stability of a continuing relationship.

What Factors Affect Nano-Influencer Rates?

The cost of working with nano influencers can fluctuate based on several key factors:

Campaign Goals

The complexity and scope of a campaign play a significant role in determining nano influencer rates. A single sponsored post costs less than an entire campaign involving multiple posts, stories, videos, or platform takeovers. Additionally, campaigns with specific performance metrics, such as increased sales or conversions, may require influencers to put in more effort, driving up the price.

Audience Size and Engagement

Although nano influencers have smaller audiences, their high engagement rates make them valuable. Within the nano-influencer range, those with closer to 10,000 followers may charge more than those with around 1,000 to 5,000 followers. Influencers with exceptionally high likes, comments, and shares may also command higher fees, as brands know they can generate buzz and conversation around a product.

Niche Relevance

Influencers operating in highly specialised or competitive niches often charge higher fees. Niche influencers tend to have more dedicated followers who are deeply invested in the influencer's recommendations, which can lead to better results for your brand.

Content Creation

Influencers aren’t necessarily content creators and vice versa. That’s why influencers with advanced photography or videography skills often factor this into their rates, especially if the content will be repurposed for the brand’s website or other marketing channels.

Some nano influencers may also charge additional fees if the campaign requires them to produce high-quality content, such as professional-grade photos or videos. However, the cost may be lower if you provide the marketing material you want them to share. 

How To Budget to Maximise Your ROI

Creating an influencer marketing budget is crucial for maximising your ROI, and these tips can help you get the most out of your spend:

Start with a Test Campaign

If you’re new to nano influencer marketing, start with a small test campaign to gauge the results. Based on the test campaign's performance, you can adjust your budget and influencer selection for future collaborations and scale up as you grow.

Prioritise Engagement Over Follower Count

While it’s tempting to partner with influencers based solely on follower count, engagement is what really matters. An influencer with 2,000 highly engaged followers can often deliver better results than one with 10,000 passive followers. Be sure to review an influencer's engagement metrics, such as comments, likes, and shares, before collaborating.

Combine Product Exchanges with Paid Partnerships

A blend of product exchanges and flat fees can help stretch your budget for influencer marketing. Many nano influencers are happy to receive free products in exchange for posts, especially if the product aligns with their content.

4. Use Shout’s UGC Platform

SHOUT’s user-generated content (UGC) platform makes it easy and affordable for your brand to connect with nano influencers and source user-generated content. We streamline the process of finding, negotiating, and collaborating with nano influencers and offer tools to measure performance and engagement to make sure you maximise your ROI. 

Get The Most Out of Your Influencer Marketing Budget With SHOUT

While the cost of working with nano influencers varies, SHOUT’s cost-effective UGC platform provides a practical and affordable way to engage influencers and generate authentic, high-quality content. 

With monthly and annual subscriptions available, as well as once-off fees for UGC videos, ad content, or social posts, you can find a solution that aligns with your influencer marketing budget.

Let’s get your brand noticed without breaking the bank. Book a demo now!