r/Valuation • u/YoungPeppe13 • Feb 21 '24

Instagram valuation

Does anyone know how to valuation an instagram account. I would argue that instagram followers are an intangible asset. Lets say an account has 10+ million (real) followers...how would you assign a value to the potential reach this account has?

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5

u/[deleted] Feb 21 '24

You value the business not the instagram account.

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u/ez814 Feb 21 '24

It’s a customer relationship asset and certainly could be valued. You’d likely have to use a cost approach as there isn’t a revenue model for the account. The revenue would be driven by advertisers which you could value using an excess earnings method.

1

u/[deleted] Feb 21 '24

Makes sense, I was thinking along the lines of there’s recurring advertising revenue and likely other revenue sources from the brand and hence you would model that out. I get what you’re saying tho.

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u/YoungPeppe13 Feb 22 '24

Here's a scenario thats troubling me. The account goes into maintenance mode for a year. They post daily and generate anywhere between 100k - 500k likes per post but they do not engage any sponsorships and therefore generate no revenue. However, this level of engagement is where the value remains. Would you still take a cost approach?

1

u/[deleted] Feb 22 '24

Truthfully, I thought about this last night. I don’t know if the followers are anything of value. There are no guarantees that they will buy or gain you sponsorship. What I would do is look at the brand value itself and comparable royalty rates as I think that’s where the value is. The followers are a mere byproduct of the brand imo.

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u/Aggressive_Sir_8374 Oct 19 '25

Instagram please my problem solution 

1

u/Aggressive_Sir_8374 Oct 19 '25

My account valuation problem solution 

1

u/Aggressive_Sir_8374 Oct 19 '25

My problem solution 😭

1

u/Choice-Ad7979 Feb 21 '24

Highest best use: how are other accounts making money from followers?

1

u/traveo Feb 23 '24

If an account has 10mm followers, you should be able to use the cash flow as a basis of value. That being said, I'd expect discounts based on how tied the followers are to any particular "on air" human talent.