Costs and pricing
Part of Sponsorship rates for UK small businesses: realistic budgets
Sponsorship rates for UK small businesses: realistic budgets
What UK small businesses actually spend on influencer campaigns, with typical micro-influencer fees in pounds, a worked £500 example and VAT rules.
What to take away
- Most UK small businesses can run a credible first campaign for £250 to £1,500 a month, paying per deliverable rather than by retainer.
- Micro-influencers with 5,000 to 25,000 followers usually quote £80 to £350 for one Instagram post or TikTok video.
- Regional and niche accounts sit at the lower end of those ranges, so local targeting costs less than national reach.
- Add roughly 20% if you want usage rights or paid amplification of the creator's footage.
- Set the total budget before you approach anyone, so talks stay about scope rather than discount.
Start with the budget you already have
Pull the number from your marketing plan rather than a rate card. A firm turning over £150,000 might set aside £1,000 a month for all promotion, and print, search and events will absorb most of it. That leaves £300 to £400 for creators.
Budget split for a £150k firm
- £1,000monthly promotion budget
- £300 to £400left for creators
- £150per creator, three creators
Treat the first campaign as a test with a ceiling. Three creators at £150 each is easier to defend to a bookkeeper than an open-ended retainer, and it gives you comparable results from similar briefs.
Payment terms matter as much as the fee. Many micro-influencers invoice on delivery, but some ask for half up front. Plan for that in cash flow instead of reading it as a warning sign.
Typical rates for a small campaign
The table below covers single deliverables. Treat the figures as illustrative starting points for negotiation, not a published tariff.
Creator tier fees per deliverable
Nano
- Followers
- 1,000 to 5,000
- Typical fee
- £40 to £120
- Best fit
- Local launches
Micro
- Followers
- 5,000 to 25,000
- Typical fee
- £80 to £350
- Best fit
- Always-on seeding
Mid-tier
- Followers
- 25,000 to 100,000
- Typical fee
- £350 to £1,200
- Best fit
- Seasonal pushes
Regional specialist
- Followers
- Any size, tight geography
- Typical fee
- £75 to £300
- Best fit
- Trades, hospitality, retail
| Creator tier | Followers | Typical fee per deliverable | Where it fits |
|---|---|---|---|
| Nano | 1,000 to 5,000 | £40 to £120 | Local launches, one-off posts |
| Micro | 5,000 to 25,000 | £80 to £350 | Always-on product seeding |
| Mid-tier | 25,000 to 100,000 | £350 to £1,200 | Seasonal pushes with longer lead times |
| Regional specialist | Any size, tight geography | £75 to £300 | Trades, hospitality, independent retail |
The final row is where most small budgets get the best return. A creator whose audience lives in one city will often charge less than a national account of the same size, and the leads convert better.
Ask for a rate card rather than a single price. Creators who publish tiered pricing, covering a story set, a reel and a bundle, give you something to compare across three or four approaches.
Compare tiers before you commit, because the jump from micro to macro rarely pays for itself on a small budget. Our guide to micro versus macro influencer sponsorship rates UK shows where the returns flatten.
A worked example at £500 a month
Suppose a Leeds coffee roaster has £500 a month to spend. Two local food creators at £175 each deliver one reel and one story set between them. The remaining £150 pays for boosted reach on whichever clip performs best.
Run the same plan for three months and you have nine deliverables plus a clear view of which creator drives redemptions. Give each one a unique discount code so the sales are attributable.
Keep costs down without cutting corners
Product-only deals suit businesses with something worth sending. They rarely scale past two or three creators, because anyone with an engaged audience gets paid offers every week.
Disclosure is not optional. Marketing communications must be obviously identifiable, and a gifted post needs the same label as a paid one, as the ASA advertising codes set out.
If taxable turnover passes £90,000 in any 12-month period you must register for VAT. Creator invoices then include VAT you can usually reclaim, as GOV.UK's VAT registration guidance explains.
Before renewing anyone for a second year, look at the ONS inflation and price indices. A fee agreed in 2024 money may need revisiting.
When a creator quotes above your ceiling, change the scope rather than the fee. Our guide to how to negotiate sponsorship rates covers deliverable swaps, exclusivity and payment timing.
Common questions
What is a realistic first budget for a small business?
Between £250 and £1,500 a month covers most first campaigns, with micro-influencers doing the work. Start at the low end and increase once one creator proves they can shift product. Spread it across three creators rather than one, so a single weak post does not sink the test.
Should I pay per post or per campaign?
Pay per deliverable while you are testing. Campaign retainers suit brands that already know which creators convert, and they usually come with a discount for volume.
Do gifted products count as payment?
They can, but the arrangement still needs a clear label and a written brief. Many creators will accept a gift for a single post and cash for anything involving filming.
Do I need to pay VAT on creator fees?
Only if you are VAT registered. Below the £90,000 threshold you pay the quoted fee, though the creator may be registered and add VAT to their invoice.
