Nano influencers with less than 10,000 followers are being sought out by brands for cost-effective marketing campaigns. While an influencer with a smaller audience might get paid less per post, they have the ability to garner numerous paid posts from companies with lower advertising budgets.
Money-making Instagram accounts or YouTube channels are typically thought to have hundreds of thousands or even millions of followers, however, the emerging category of influencers who are earning a substantial paycheck includes accounts that have as little as one thousand people who subscribe.
Here’s a breakdown of the types of influencers, their number of followers, and how much they might earn per post.
Nano influencers (1000 – 10,000 followers): $10-$100 per post
Micro influencers (10,000 – 50,000 followers): $100-$500 per post
Mid-tier influencers (50,000 – 500,000 followers) $500-$5,000 per post
Macro influencers (500,000 – 1,000,000 followers) $5,000-$10,000 per post
Mega influencers (1,000,000+ followers) $10,000+ per post
Brands are now looking to nano influencers, despite having smaller audiences since they typically have a more engaged and dedicated following. Mega-influencers usually are not accessible by smaller budgets so that’s where nano influencers can step in to earn smaller, but possibly more frequent sums of money, which can add up to a significant monthly income.
Ironically, mega and macro influencers can have lower engagement rates despite their larger followings and heftier price tags. A company may think it’s getting its product in front of more people by hiring a mega influencer to post but only a fraction of the audience will see it since engagement rates decline as follower count increases.
While nano influencers have the lowest number of followers, they are becoming key players in the marketing arena. The shift towards nano influencers has occurred for reasons more than just low cost and accessibility—they are a proven catalyst for sales increases and brand loyalty.
Even larger brands like IKEA, Starbucks, and DoorDash work with nano influencers on a regular basis for four key purposes.
The first and most obvious reason a nano influencer is paid to post is to fit the needs of a lower budget.
Second and more important, nano influencers tend to have a niche audience with their smaller following—this is useful for companies looking to conduct specific product promotions to a precise demographic.
Third, the smaller niche audience can result in higher engagement, meaning their followers are more likely to comment on posts and interact with the posted content. Nano influencers have an average engagement rate of four percent, whereas macro influencers have an average of 1.3% for engagement.
Last, nano influencers are perceived as more genuine and trustworthy than larger influencers who have more funds for paid social media campaigns which can also lead to suspicions about purchased followers.
While macro influencers may appear to be more polished with expensive photography and videography, accounts with a small fan base often have a more relatable approach which results in trust on the customer’s behalf, more likely leading to a call to action or purchase.
Generally speaking, 70 percent of consumers put more clout in recommendations from family or friends versus online reviews where authenticity may be questioned. When a nano influencer shares his passion about a product or experience, followers feel it is an honest endorsement, as opposed to a paid advertisement.
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