Is the product/company relevant to your followers?
IF THE ANSWER IS NO >> For example, if your Instagram is about soccer and your followers follow you for soccer photos, golf products are not gonna interest them. So, why does the company want to promote their products on your Instagram if your followers are not relevant?
Maybe they only want to strengthen their brand.
They don't really care if your followers are gonna turn into customers. They just want to create brand recognition.
So, how much should you charge in this case?
I can't say for sure because I don't know what product it is. There are many factors, to be honest.
But one thing you can do is see other social network competitors like Facebook Ads. How much are they charging for your keyword.
After finding out, price a bit higher than that.
For example, if Facebook Ads is charging $x per 1,000 Timeline impressions. Then, charge a bit higher.
Why charge higher?
Because your followers are engaged to your Instagram, so they are likely to believe in what you post more than posts from unknown advertisers on Facebook.
But in another example, if the product you are about to promote is about soccer, then your followers are likely to get interested.
And of course, some of them might turn into the company's customers.
IF THE ANSWER IS YES >> Then this is clear enough. They wish to turn your followers from viewers into customers, and from customers to loyal customers.
First, the question is how many Likes do you think this photo will get? Use your sense + Avg. Likes your photos get.
The higher engagement, the more you can charge.
Second, ask yourself if your followers are likely to buy this product. Normally, I would say 1-2% of your visitors might contact the company for more product information if it is a pretty interesting product. But if the offer is real good, the percentage would be higher. This helps you determine the value of your ad space.
For example, let's say the offer is pretty interesting and 2% of your visitors contact the company.
This means 6.7k x 2% = 134 people.
The next question is "How are your visitors going to contact the company?"
If everything is done online, say, your visitors click on the website, see info, and purchase. Then, I would assume conversion rate to be around 1-2% as well.
Let's say 2% (just an example)
134 interested visitors x 2% = around 2-3 sales
But if everything is done by personal selling, say your customers talk to the sales rep. The conversion rate might be higher.
Now let's assume that everything is done online and the company is likely to make 3 sales out of your ad service.
The next question you need to ask yourself is how much is the product and how much gross profit does the company get?
The gross profit info and be found on the internet, I think.
Ex. The gross profit is $20 and they make 3 sales >> They make $60 out of your ads.
But should you only charge less than $60?
Not necessary.
The company might be willing to pay more than that if the customers you referred are likely to come back and buy again.
They might be paying for Life-long value instead of Initial-sales value.
Just use your experiences to estimate, or just ask other people on forums about how the product is performing in order to find out the life-long value of each customer.
If the life-long value is great, maybe you can charge more than $60 (example number).
If it's likely to be one-time sales, then you can't charge more than $60.
Hope this helps :)
I was asked to advertise for a company on Instagram. He wants pictures posted during peak times. He asked me how much I'd charge for it. I have 6.7k followers but dont know how much to charge.
Thanks
