Setting Your Budget Should Be Your Top Priority
First and foremost, determine your budget. When you know you’re in a position where good results are a must but you don’t want to break the bank, you should organize your budget ahead of time.
An influencer marketing strategy involves numerous inputs, all of which must be compensated monetarily. Aside from influencers, you’ll need to decide on a production budget and a team to work with. If there are ways to eliminate some elements without affecting the performance of your campaign, you must do so ahead of time. This allows you to establish the groundwork for the rest of the campaign.
Prioritizing your budget over everything else gives you the ability to keep track of everything. When you’re halfway through your campaign, there won’t be any unexpected twists or turns.
Use Micro & Nano-Influencers From Your Customer Base
Don’t worry too much about working with celebrities or huge industry names. There’s a lot to be said about micro-influencers, who are less well-known names with a loyal, albeit smaller, following.
Influencer fees are based mainly on following counts or brand experience. While this is not always a reasonable approach, it may benefit a company on a tight budget. Consider contacting nano-influencers (with less than 5,000 followers) for projects and campaigns. They have the potential to offer genuine materials and high engagement rates at a much lower cost.
In addition, nano and micro-influencers are typically highly recognized within a specific niche area, allowing them to direct the attention and loyalty of a large audience. This opens direct access to a market far more likely to convert than a top tier influencer collaboration.
According to experts, micro-influencers may be more effective than major names because they receive far more engagement from their followers than celebrities, who rarely communicate with the thousands or even millions of people who follow them.
Once you identify the right influencer for your brand—and your budget —it will be easier to attract customers to your brand.
Choose Your Own Compensation Model
Influencer-paid collaborations are priced differently by each influencer. By knowing what each model looks like, you can work with influencers to determine what best suits your campaign goals and how to track your progress.
Here’s an overview of the most common payment methods:
- Cost per acquisition: You only pay when the influencer converts your traffic into sales or subscriptions.
- Cost per click: You pay the influencer for each click on any affiliated link. It might be on social media or on a blog. This is excellent for increasing visitors to your website.
- Cost per engagement: You pay the influencer based on the number of shares, comments, likes, and comments they receive.
As an alternative, an upfront payment plan, in which a fixed compensation amount is determined for each blog post, video, social media post, or other piece of material supplied, may be a better option. This way, if your influencer campaign proves to be extremely productive, you won’t have to increase your budget allocation.
Implement a Gifting Programme
You can sometimes gain publicity without having to pay anything. A lot of micro-influencers are willing to promote your product or service in exchange for receiving it for free or calling it an “exchange deal”. Offering some of your products for free can be a cost-effective approach to getting good coverage, especially if influencers are satisfied with your business.
For brands trying to gain influencer endorsement for a specific product, gifting can be a fantastic solution that, in many situations, can avoid the need for money. For example, a fitness brand launching a new shoe line may give a sample of the merchandise to a few handpicked creators in order to boost social media marketing and promotion.
The products exchanged here serve as a price. However, because gifting is not a formal transaction, it does not guarantee a response (much less a positive one). It will be up to the influencers to decide whether or not to endorse the product.
Understand Different Content Types For Your Influencer Campaign
The brand aesthetic is critical when choosing the right influencer to promote your product. Each influencer has a certain style of content that works well with their audience.
When you start working with paid influencers, it’s important to understand what kind of content they may be proposing and how it fits your goals.
There’s a lot more to learn about influencer content types. You must start exploring different types of Influencer Marketing Campaigns to start experimenting and gain better results.
Estimate & Track Your Return On Investment
Before you begin, you must calculate your return on investment. Though there is no guarantee that a campaign involving an influencer will be successful, it is preferable to go in blind.
- The influencer’s average number of views on a piece of content: Scroll through their material to see how many people have viewed it. Take note of this number.
- The influencer’s click-through rate: Find out what percentage of people click through from a social media post to a website. If you are unsure, be conservative and start at 1%.
- Your conversion rate: It’s the percentage of people who land on the website and then purchase something.
- Your average order value: What do visitors spend on average when they visit your website?
- Let’s say the influencer has on average 5,000 viewers per post.
- This example influencer has a 10% click-through rate. That means that an estimated 500 people will go to your site.
- Your conversion rate is 5% – that means 25 sales out of the 500 people.
- Your average order value is $100.
- Estimated Revenue: $2,500.
- To determine the true ROI, deduct the cost of the influencer marketing campaign from the projected income.
- Remember, that this is an estimate, and it could perform better or worse than you predict.
Influencer Marketing Doesn’t Have To Be A Huge Expense To Get Results
If you start to think outside the box, then the possibilities are endless. While collaborating with a celebrity is the most common way to build traction for your brand, it is not your only choice. In fact, it is only a small aspect of influencer marketing.
Sure, influencers need to be compensated for their time, and bigger names will demand more in order to participate in your marketing campaign, but viewing a large budget as the only way to a successful influencer campaign limits this powerful type of marketing.
Once you’ve identified the right influencers to collaborate with, you can expect entirely new conversations and engagement for your business to profit upon. Make sure you do your homework before committing to an influencer, and then sit back and watch the opportunities roll in as they promote your company.