Skip to main content

Understanding the "Estimated Fee" Metric

Estimated Fee vs. Actual Cost: Understanding the Logic

Written by Abed Tabbara
Updated over a week ago

The Estimated Fee is a calculation of Earned Media Value (EMV). It represents the theoretical market value of the exposure a creator provides, not a prediction of their specific invoice. Use it as a benchmark to evaluate if a creator’s quote is cost-efficient.


What is the Estimated Fee?

The Estimated Fee displayed in our platform answers a specific question:

"How much would it cost to achieve this same level of reach and engagement through traditional paid social advertising?"

It serves as a Fair Market Price indicator. It is designed to help you understand the value of the media you are buying, rather than predicting exactly what a creator will ask to be paid.

How is it Calculated?

The fee is not a random guess; it is derived from a data-driven formula that combines Performance with Market Rates.

The Formula

Estimated Fee = Performance (Impressions/Engagement) X Market CPM

  1. Performance: We analyze the influencer's actual metrics (Average Impressions, Reach, and Engagement) over the last 3 months.

  2. Market CPM : We apply a cost-per-thousand rate derived from two signals:

    • Historical Pricing: Aggregated data on what similar influencers have charged for similar posts.

    • Paid Benchmarks: The current cost of running ads on platforms like Instagram, TikTok, or YouTube.

Does "Influencer Size" Affect the Price?

A common misconception is that "Size" (Follower Count) is a direct multiplier in the price formula. It is not.

  • Size is for Benchmarking: We use follower count to group influencers into segments (e.g., Micro, Macro, Mega). This ensures we are comparing an influencer's performance against their direct peers.

  • Size fills Data Gaps: If an influencer has no recent data, we use the average Engagement Rate of other creators of the same size to estimate their potential performance.

  • Performance is King: A smaller influencer with massive engagement may have a higher Estimated Fee than a large influencer with low engagement. The fee follows the impact, not just the follower count.

Did this answer your question?