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Influencers are Underpriced – How to Calculate Your Instagram Influence

Social media is today’s word of mouth. People spend a lot of time on their phones, share more content, and obsess over likes and followers.

It’s an interesting development that’s picked up over the years, but it’s still a numbers game. The real money is in the impressions (which you’re probably not measuring).

The Impression Game for Instagram Influences

Impressions are a marketing term used when analyzing brand awareness and advertising. It’s when you scroll through your feed and pause on a photo. When you stop and look at a photo, caption, or ad, it’s called an impression.

Brand awareness is a method of marketing that generates interest and awareness for new products, services, and companies. It’s a psychological play where the focus isn’t on generating new leads or revenue. Instead, the business aims to be thought of when you experience different situations.

For example, when I say Apple, you likely think of a Macbook or iPhone.

This is why companies create silly advertisements or sponsor events like baseball tournaments; it’s a means of promoting the brand.

The issue is most people don’t know this. As a result, they underprice their value and ability to influence others in their network.

How to Calculate Your Influence on Instagram

Anyone with an Instagram Account and at least 1 follower has influence. However, a regular Instagram profile won’t give you the metrics and analytics you need to score high-value brand deals. To start tracking your analytics, you’ll need to convert your profile into a Business Profile from the settings menu.

Here’s the equation I use to calculate the value of someone’s influence on Instagram:

Influence Value ($) = [Base Value x Modifiers] x [Number of Impressions / 1000]

Influence Value. The dollar value of your Instagram influence. This is also the price you should charge businesses for mentioning their brands.

Base Value. The bare minimum your influence is worth. This number correlates with how good of an Instagram user you are. I typically stick with a range of $20-50 depending on if the user acknowledges comments, writes meaningful comments, and engages with others.

Modifiers. Modifiers increase your Base Value. Modifiers would include content production value, product placements, a portfolio of companies you’ve worked with, having analytics about your audience, ability to provide metrics, etc.

Number of Impressions. The number of impressions you earn on your posts. There’s a way to calculate this, but you’ll need a Business Profile. You can convert your existing profile into a Business Profile from the setting page on your profile.

Quick Tip: You can’t start tracking impressions until you turn on the business profile setting on your Instagram Account. If you want to be an influencer, convert your profile to a Business Profile ASAP.

Calculation Example: Colin’s Instagram Profile

Colin has 686 followers and gets about 38 likes on his posts. He isn’t the best Instagram user and often leaves messages a few hours/days before replying to them. Because of this, we’ll give Colin the lowest Base Value from our $20-50 range: $20.

Found: Base Value = $20

Colin has the business profile enabled on his account, so he gets some extra features on his Instagram Profile.

how to navigate the instagram influencer business profile

 

Clicking into his profile stats, Colin gets a lot of data about his profile. He scrolls down to find how many impressions he gets on his content.

 

how to navigate the instagram influencer business dashboard

where to find how many instagram impressions you have

Found: Number of Impressions = 4,031

Colin takes selfies and doesn’t edit his photos; therefore earning a mediocre production score. He hasn’t worked as an influencer before and overall, doesn’t deserve any modifiers.

Found: There are no modifiers to apply

Influence Value ($) = [Base Value x Modifiers] x [Number of Impressions / 1000]

Influence Value ($) = [$20] x [4031 / 1000]

Influence Value ($) = $80.62

Colin is a mediocre user of Instagram yet ONE POST is estimated to be worth $80.62 in value to a brand.

 

Ways Colin can Increase His Influence Value on Instagram

If Colin had better insights of his audience (+15%) and edited his photos (+10%), he could have more impressions on this content. This would result in an increased Base Value and Number of Impressions. For example:

Influence Value ($) = [Base Value x Modifiers] x [Number of Impressions / 1000]

Influence Value ($) = [$20 x (1 + 15% + 10%)] x [4031 / 1000]

Influence Value ($) = [$25] x [7000 / 1000]

Influence Value ($) = $175.00

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