How Much Should I Charge for an Instagram Post?
Social Media is BIG and one of the biggest social media platforms at the moment is Instagram. People are already making money on Instagram, why can’t you? Instagram There is a common misconception that you can only make money on Instagram if you have millions of followers; that is certainly not the case, there are brands and businesses of all sizes. High engagement accounts with moderate follower numbers can add a lot of value too. To help illustrate this, here’s a fictional example: a new small ice cream shop opens up in Sally’s neighborhood, Sally has lived there all her life and knows a majority of the people in the area and as an added bonus they also follow Sally on Instagram and values her opinion and recommendations.
So now, the burning question that every Instagram account holder wants to know, “how much can I charge for an Instagram account?”
Please note that this list is not all encompassing and should be used as a guideline and not as a rule.
Number of Followers
The concept is simple, the more followers you have, the higher the marketing reach. In the marketing world, it can be translated to the “Cost Per Mille” or “Cost Per Thousand” which is often simply abbreviated to simply “CPM”. CPM is the cost to make 1000 impressions on 1 page; simply put, it is the cost to reach 1000 of your followers.
How to Calculate CPM?
The CPM is ever changing due to the competitive nature of the market but on average is about $5 – $10 per 1000 impressions. You can use that as a starting range or baseline. Once you’ve established where you are within that range, you can factor in the value added (+) or subtracted (-) as a result of the all the various pricing considerations determine your account’s CPM to shift yourself within or above or even below the listed range.
Estimated Price to Charge per Instagram Post = (# of followers) X (Estimated CPM)
“Engagement” in Instagram lingo means the total sum of all the “likes” and “comments” one gets on an individual post or cumulatively for a specific period of time. As you can see from the previous example with the new ice cream shop, engagement can add value as well so don’t forget to factor that into your considerations as well when trying to come up with a numerical value.
Current Market Price for Your Niche or Industry
What are your competitors charging to do a sponsored Instagram post? What’s the current economic conditions in your niche or industry, or the market in general? These need to be taken into consideration as well as it may affect the current market price and your pricing model.
Current Advertising Pricing in your Brand’s Other Mediums
Do you currently have established advertising pricing in your other mediums (i.e. cost to do a sponsored video on your YouTube Channel, ad time on your podcast, or get a print ad in your magazine, etc.)? What is your current reach in those mediums (i.e. How many subscribers do you have on YouTube or the number subscriptions or listeners to your podcast)? Take these into consideration as well, you don’t want to sell yourself short.
Brand Recognition / History
Does your brand already have a lot of brand recognition and/or history? That counts too! Just because you don’t have a large following on Instagram yet followings in other mediums or IRL (a.k.a “in real life”). It is possible that your following may be lower than other accounts, but your brand recognition is really high and there are correlations with engagement as well.
How much time is it going to take you to go back and forth with the brand to establish and mutually agree upon the content specifications, create the content, etc? How much do you charge per hour? Time is money and money does not grow on trees so you should be compensated for the time used to generate the content so factor that in too!
Time to Monetize
You should now have a better idea about how much to charge for an Instagram post. As mentioned earlier, this list is meant to serve as a guideline. Ultimately, it is up to you what you are willing to accept as compensation for services rendered. If you find out later that your CPM estimates were too high or too low, you can always adjust it to market. Adapt and change with the market. Good luck out there and happy monetizing!
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