The creator economy is booming, and social media influencers are at the forefront. A recent study by Adobe revealed that almost one in four people can be considered a social media influencer. However, earnings vary significantly. While some influencers rake in millions, a NeoReach report indicates that around 48% of creator-earners make $15,000 or less annually, and only 15% earn $100,000 or more. This begs the question: How Much Do Influencers Make, and what factors contribute to their success? Experts suggest that a mix of luck, consistency, and a relatable personality are key to growing a platform.
With the proliferation of platforms, more voices are connecting brands to specific consumer niches through endorsements, product placements, and advertising. Influencers leverage their followers’ trust into a revenue stream. Let’s examine how much social media stars earn, how they convey brand messages, and why brands benefit from collaborating with them.
More brands are turning to influencers for marketing. The influencer marketing industry is projected to reach $32.55 billion this year, according to Influencer Marketing Hub.
What Are the Different Types of Social Media Influencers?
Social media influencers are categorized into tiers based on their follower count. Here’s a breakdown of these tiers, according to impact.com:
- Nanoinfluencers: Less than 15,000 followers
- Microinfluencers: 15,000 to 75,000 followers
- Mid-tier influencers: 75,000 to 250,000 followers
- Macroinfluencers: 250,000 to 1 million followers
- Megainfluencers and Celebrities: Over 1 million followers
Generally, more followers translate to higher earnings. However, brands are increasingly focusing on nanoinfluencers and microinfluencers because they offer a balance of cost-efficiency and engagement quality. These smaller influencers often have higher engagement rates.
Jules Brim, a social media and marketing expert at Marketing Mixology, notes, “The future is looking even more personalized and community-driven, with microinfluencers and nanoinfluencers (those with smaller but super engaged audiences) getting more love because they have that trust factor big celebs often lack.”
How Much Do Influencers Get Paid Per Post?
As brands increase their investment in social media marketing, they recognize that influencers provide a strong return on investment (ROI).
Claudia Page, Director of Product at Epic Games, explains, “Brands are increasingly doling out dollars to content creators due to their unique ability to produce relevant, authentic stories that resonate with consumers’ evolving media consumption habits. Most everyday brands find it difficult to naturally enter lifestyle conversations because they lack credibility in those spaces.”
The earnings of social media stars are influenced by demographics, engagement rates, platform choice, and follower counts.
Benjamin Oduro, Manager at Hines and Hunt Entertainment, shares, “I’ve seen contracts around $150,000 for two tweets a week for a year, but I’ve also seen clients receive around $1,500 per tweet. Also, social media stars are now obtaining more television jobs, appearance bookings, etc.”
Average Influencer Earnings Per Post
Impact.com, in collaboration with Adweek, conducted a study to identify trends in influencer marketing. The study revealed that Instagram is the leading platform (92%), followed by TikTok (43%), Facebook (41%), Pinterest (20%), YouTube (15%), and Snapchat (4%).
The report provides a breakdown of average earnings per post for each influencer tier across different platforms:
| Average Influencer Pay Per Post |
| :—————————– | :———-: | :——–: | :——-: | :——–: | :——–: |
| | Instagram | TikTok | YouTube | Facebook | Snapchat |
| Nano | $500 – $2,000 | $500 – $2,000 | $1,000 – $2,500 | $500 – $1,500 | $200 – $1,000 |
| Micro | $2,000 – $8,000 | $2,000 – $8,000 | $2,500 – $9,000 | $1,500 – $6,000 | $1,000 – $5,000 |
| Mid-tier | $8,000 – $20,000 | $8,000 – $20,000 | $9,000 – $25,000 | $6,000 – $15,000 | $5,000 – $20,000 |
| Macro | $20,000 – $45,000 | $20,000 – $45,000 | $25,000 – $49,000 | $15,000 – $40,000 | $20,000 – $35,000 |
| Mega/Celebrity | $45,000+ | $45,000+ | $49,000+ | $40,000+ | $35,000+ |
What Factors Impact an Influencer’s Earnings?
The numbers above represent averages, and several factors influence an influencer’s income, including follower count, type of promotion, and audience engagement:
- Follower Count: A larger audience generally leads to higher earnings. For example, Influencer Marketing Hub reports that Selena Gomez, with 422 million Instagram followers, charges approximately $2.5 million per post. However, smaller, niche influencers can also be highly profitable.
- Promotion Type: The degree of involvement in promoting a product affects the rate. A simple sponsored post with a brief mention might command a lower rate than a detailed video demonstration.
- Audience Engagement: High audience engagement is crucial. Brim emphasizes that brands seek influencers who can spark conversations, drive clicks, and persuade their audience to make purchases. An engaged following can be more valuable than a large, inactive one.
Relationships are vital in influencer marketing, whether a brand builds a direct relationship with an influencer or connects with its target audience through a social media star.
How Do Social Media Influencers Make Money?
Since influencers help businesses grow, brands are willing to pay for their support. Here are some specific avenues for generating income:
Sponsored Promotions
Brands pay influencers to create and share content featuring their products or services. This includes product placements, brand stories, event coverage, and product reviews. Compensation ranges from small payouts and free merchandise to substantial paychecks for high-level influencers.
Brim explains, “Companies pay influencers to promote their products because, let’s be honest, people trust their favorite influencers more than traditional ads. Whether it’s a skincare guru raving about the best moisturizer ever or a fitness influencer pushing protein shakes, these posts can rake in serious cash. The bigger and more engaged the audience, the bigger the paycheck.”
Sponsored promotions help brands boost brand awareness by partnering with social media stars. Instagram is a popular platform for sponsored content, featuring photos and videos that build brand authority.
Social Media Management
Influencers with a deep understanding of social media are often hired to manage a brand’s social media accounts. Celebrities, emerging brands, and trending businesses leverage influencers’ expertise to manage their social presence and market their products. An influencer’s success is measured by visitor counts and customer engagement.
YouTube Channel Ads
Influencers with a strong YouTube community can generate revenue through paid ads that viewers watch when visiting their channel. They can also earn through sponsored content brand videos.
Affiliate Links
Affiliate marketing links provide a passive income stream. Followers can purchase products, visit specific pages, or sign up on featured sites through these links. Brands use these links to track traffic sources and conversions.
Influencers earn a percentage of the revenue generated by affiliate links. The most effective affiliate links are for products that resonate with the influencer’s audience and match their overall brand.
Brim notes, “It’s a win-win – followers get a discount, brands make sales, and influencers collect a cut of the action. Some influencers make thousands a month just from affiliate links alone. It’s worth mentioning that influencers and celebrities must declare the affiliate links so it’s clear to their audience they are getting a kickback from their purchases.”
Brand Ambassadorship
Brand ambassadors sign exclusive contracts to represent a brand, becoming its spokesperson. These contracts typically cover a specific period during which the influencer promotes the brand across various platforms using online and offline methods. Influencers are usually paid a lump sum upfront.
Brim predicts, “Expect to see more long-term partnerships instead of one-off ad posts. Brands want ongoing relationships where influencers become true ambassadors.”
Brand ambassadors increase online awareness, strengthen a company’s reputation, and boost revenue.
Merchandising
Influencers can also sell their own merchandise online, leveraging their fame and expertise to generate revenue. This merchandise is often related to their area of influence.
Jennifer Glen, an influencer marketing expert and United States general manager of influencer marketing platform Squad.App, explains, “Many influencers grow their businesses by launching products or companies, moving beyond the walls and boundaries of online. This allows them to attach their name and image to tangible, real-world products that consumers can interact with, buy, and see in their local store.”
For example, artists can sell prints, and interior designers can sell ebooks. Influencers can also create products branded with their name, such as T-shirts.
Subscriptions, Tipping, and Donations
Some influencers offer exclusive content for a monthly subscription fee. Followers can also provide one-time tips or donations, which are often acknowledged with shoutouts or signed merchandise.
Why Should Brands Collaborate with Social Media Influencers?
Influencer marketing offers significant benefits for brands, particularly small businesses. The advantages depend on marketing goals, budget, and the effectiveness of the influencer partnership.
Glen states, “Brand partnerships with influencers have evolved significantly even just in the last two or three years. Working with influencers used to be a ‘nice-to-have,’ but it is now an essential part of a brand’s marketing mix.”
Influencer marketing offers numerous benefits:
- Increased Reach and Brand Awareness: Accessing an influencer’s existing audience can rapidly expand a brand’s exposure.
- Targeted Audience: Partnering with influencers whose followers align with the brand’s customer persona ensures efficient marketing to the target demographic.
- High Engagement Rates: Followers tend to trust influencers. An influencer’s endorsement increases trust in the product, leading to higher engagement and sales.
- Improved SEO: Influencers with large followings possess SEO clout. Posts and shared links from influencers carry weight with search engines, boosting organic rankings.
- Increased Website Traffic: Influencer endorsements drive traffic to the brand’s website as followers explore recommended products.
- Positive ROI: Influencer marketing can yield a higher ROI than traditional advertising, especially when partnering with cost-effective influencers like nanoinfluencers.
In conclusion, understanding “how much do influencers make” requires considering various factors, from follower count and engagement rates to the types of content they create and the platforms they use. For brands, leveraging influencer marketing can be a powerful strategy to reach new audiences, build trust, and drive conversions. The key is to find the right influencer whose values align with the brand and whose audience matches the target demographic. By establishing authentic and mutually beneficial partnerships, brands and influencers can both thrive in the ever-evolving digital landscape.
