The influencer budget calculator provides you with suggested fees for influencers' sponsored posts based on their historical performance. It helps move away from paying influencers purely on the size of their audience, to a model that rewards influencers' impact, and how they’ve previously performed for your brand and in sponsored content.
You can find the calculator in the table format of any of your projects that have the 'campaign management workflow' activated (read more about how to do that here).
It's also available directly on individual influencers’ profiles. From the ‘Collaborations’ tab on their profile page, you can enter the same information without the influencer needing to be part of a campaign.
How to set up the calculator
First, you'll need to set up a couple of things. The admin on your account will be able to enter the Budget Calculator Settings under “Manage Account Settings” in the top right menu. You’ll need to enter your brand(s) keywords, as well as any partner hashtags used for sponsored campaigns. This is how we'll identify past sponsored content for your brand. There's no need to enter in the usual sponsored keywords like #sp #ad as we have these all covered already. The partner keywords are just any brand-specific hashtags you may have influencers use as well.
You’ll also see our suggested CPME costs here, which is the foundation on how the calculator and the suggested costs work.
The CPME cost takes the familiar CPM format (the amount a brand would pay to reach 1,000 people) but makes this more impact focused, by making it the cost to generate 1,000 engagements. The aim behind using CPME in our calculator vs traditional CPMs is to reward impact (engagements) from influencers rather than just their size.
We’ve set suggested CPMEs already in your account based on recent average CPMs and target engagement rates for your influencers, but these can be customized based on your experience and influencer feedback.
In our default example, we're taking a CPM of $6 for Instagram, and a target engagement rate that we'd like influencers publishing content on that platform to achieve of 4%. This equates to a CPME of $150 (6/0.04). So this is the amount we are suggesting to pay to generate 1,000 engagements on a piece of content.
Your CSM can explain this in more detail and also help customize the settings for your brand.
Using the calculator and understanding suggested costs
The calculator suggests costs based on the past performance of an influencer’s content, looking at their engagement rates.
After you've defined your deliverables in the campaign workflow set up, and switched to the 'Table view' (read about that here), you'll start to see suggested costs appear for the influencers in your campaign.
Under the ‘Benchmark’ tab for each influencer, you can see which historical data the suggested cost has been based on, and the Suggested Fee is what we would recommend for this post type.
The first suggestion “Brand sponsored ER” will be the most representative, as this looks at whether the influencer has previously done any sponsored content for your brand. If they haven’t done any sponsored for you, we will then search for previous organic brand mentions ("Brand Organic ER").
Let’s say this is a completely new influencer for you - we’ll then look at their previous sponsored content across brands, and if they haven’t done any, then their engagement rate across all organic mentions.
Note we need a minimum of three posts in the past 12 months for sponsored content to calculate a cost, and 10 for organic.
The Suggested Fee then is then calculated from three metrics:
- The historical engagement rate selected
- the influencer's audience size
- the CPME (cost to generate 1,000 engagements) we set up at the start
‘Agreed fee’ is the amount you agree to with the influencer, and in ‘Other Cost’ you can add for example, travel costs, product gifting, or any additional costs.
The ‘Final Cost” is then the total of these. Click Save to confirm this influencer’s participation! You’ll see that costs that have been confirmed are highlighted in blue.
Work your way through the campaign list confirming fees. In some cases we may not have any relevant data to base a cost on (for example if the influencer doesn’t talk about any of the keywords or hasn’t published any posts recently on that channel). In this case, we’ll default to a N/A value.
The calculator is also available on-demand on individual influencers' profiles under the Collaborations tab.
Note we will also log all past paid collaborations saved for the influencer under ‘Historical Data’ on an influencer's profile (subject to your account’s privacy sharing settings).
Notes on the Suggested Fees
The CPME should be a live metric and be updated regularly. The calculator will provide the best results if the CPME is adjusted on a regular basis to take into account influencer feedback as you start to use it. As an example, if you start with an initial CPME of $150, as suggested above for Instagram, but consistently find influencers asking higher prices, that means you are likely under market value and should increase the CPME so that future suggested prices are higher across the board.
It is important to keep in mind that there are many external factors that can come into play when agreeing on a fee with an influencer. For example, when working with influencers you know, suggesting a higher price than for someone you’ve never worked with could make sense. The quality of the content is also critical: in theory, higher engagement rates are signs of quality, but two influencers with the same engagement rate may have content quality differences, or even content alignment differences with your brand values.
The goal of the calculator is to provide you with the best support tool, at scale and in data-driven way, to support your negotiation efforts.