In recent years, social media influencers have captured the attention of brands and audiences alike. Their ability to sway consumer behavior and foster brand loyalty has led to lucrative opportunities for some creators.

While big-name influencers like Mr. Beast can rake in millions, the reality for most influencers is far different. In this post, we'll dive into the financial landscape of social media influencers, examining how much they earn and the factors influencing their income.

The Reality of Influencer Earnings

Despite the allure of influencer marketing, the majority of influencers don't make significant sums of money. According to a report by NeoReach, only 15.1% of 2,000 creators surveyed made over $100,000 annually, while a staggering 69.3% earned less than $50,000 a year. Even more striking, 48% of influencers made less than $15,000 annually, which is well below the median pay for US workers, which was $58,084 in 2023.

This data highlights that influencer earnings are often far from the glamorous image portrayed in the media. Many creators struggle to make ends meet, with only a small percentage achieving substantial financial success.

Influencing as a Side Hustle

For many influencers, content creation is more of a side hustle than a full-time career. The low earnings for most creators mean that income stability is likely coming from other sources. However, as a supplementary income, influencing can be fun and financially rewarding. Curiously, despite the financial challenges, around 45% of creators in the survey reported pursuing content creation as a full-time endeavor.

The Role of Brand Deals

Brand deals are a crucial source of income for influencers, with 67% of influencers stating that they make most of their money through these partnerships. However, the average brand deal doesn't pay as much as one might expect. While headlines often feature influencers securing $10,000, $40,000, or even $100,000 brand deals, the reality is that most deals are only a few hundred dollars.

Data from Influence.co shows that only 3% of their US-based influencers are charging over $1,000 per post, as you can see in the rate map below.

Earnings Across Platforms

Influencer earnings can vary significantly depending on a few factors, including the quality of content, the platform used and the difficulty of the assignment. Let's take a closer look at average earnings across different social media platforms.

Instagram Earnings

Instagram remains one of the most popular platforms for influencers, offering various monetization opportunities. According to Statista, here's a breakdown of average earnings per post on Instagram where the job from nano to mid-tier payments is significant:

• Nano-influencers: $195 per post
• Mid-tier influencers: $1,221 per post
• Macro-influencers: $1,804 per post

TikTok Earnings

TikTok's explosive growth has opened up new earning potential for influencers. According to Statista, average earnings per TikTok video are as follows:

• Nano-influencers: $181 per video
• Macro-influencers: $531 per video
• Mega-influencers: Between $1,631 and $4,370 per video

Expected earnings also vary significant based on influencer niche. As you can see, lifestyle influencers earn significantly less than fitness influencers, who in turn earn significantly less than tech influencers.

The Carusele Approach to Influencer Partnerships

At Carusele, we take a unique approach to influencer collaborations. While we typically don't work with nano-influencers, we focus on mid-tier, micro, and macro-influencers, with some celebrities, as well. Rather than paying per post, we often compensate influencers per assignment, which may include multiple posts or a single video. This approach ensures that influencers are fairly compensated for their work and creativity.

Our median payment for influencers over the past 18 months per assignment has been $2,000, with a range of $200 to $35,000 per assignment. This model allows us to tailor partnerships to meet the needs of both the brand and the influencer.

Challenges and Opportunities for Influencers

While the potential for earnings is significant, influencers face several challenges. One key challenge is the limited number of brand deals available. According to NeoReach, 82% of creators surveyed reported doing fewer than 30 brand deals a year, with 44.5% doing fewer than 10. This limited volume of brand partnerships can make it difficult for influencers to sustain a steady income.

Moreover, changes in platform monetization strategies have impacted influencer earnings. Creator funds from TikTok, YouTube, Instagram, and Snapchat have ended, reducing the pay-per-view rates for creators. TikTok, for instance, spent $1 billion between 2022 and 2023 on creator funds, but the rewards and incentives now pay less per view.

Despite these challenges, the influencer industry continues to grow. According to eMarketer, U.S. social-media creators are expected to earn $13.7 billion, with 59% of that revenue coming from brand sponsorships. This growth underscores the ongoing demand for influencer marketing and the potential for creators to earn substantial income.

Conclusion

The earnings of social media influencers vary widely based on factors such as platform, follower count, engagement rate, and niche. While some influencers make millions, most do not, and average influencer compensation is far less than the earnings of the average U.S. worker. Despite these challenges, influencer marketing remains a viable side hustle and, for some, a full-time career. As the industry evolves, influencers will need to adapt to new monetization opportunities and navigate the complexities of brand partnerships.

At Carusele, we're committed to fostering fair and rewarding partnerships between brands and influencers. By understanding the realities of influencer earnings, we aim to create mutually beneficial collaborations that drive success for both parties. As the influencer landscape continues to evolve, we'll remain at the forefront of innovation and opportunity in this dynamic industry.

Influencers: To join the Carusele Network (free and without obligation), create your profile at https://creators.carusele.com/connect/

Brands: To discuss your influencer marketing program with Carusele, contact us today.