Influencers can be one of the best assets businesses utilize today. They just need to know: where to find them, which ones to use, how to negotiate how much to pay them, and how to measure the success of each campaign.
Lets first talk about which businesses can benefit from influencer marketing and the different levels to it.
Brick and mortar businesses: If you are a brick and mortar service based business you'll benefit greatly from using local influencers to come directly to your business and share it on their Instagram story, feed posts, and blog.
It's almost always true that service based businesses should be utilizing local influencers. I would also recommend using micro influencers for this task.
Micro-influencer: This is any influencer who has between 1,000 and 100,000 followers. Pretty big window. But here's what you have to know: If you want to tap into a local market it's best to stay with influencers who have under 50K followers.
Why? You might be saying "I want the biggest audience I can reach"... well, yes but has you go up in followers the Instagram algorithm will begin showing your profile to people across the country and all around the world. Essentially, your circle starts to expand and you lose that local market.
If you're a brick and mortar product based business you can send your product to anyone in the world. This is true for online product based businesses. You don't have the worry about using local influencers unless it's important to you.
Pro-tip: You don't know what use global influencers if your products don't ship around the world. This usually isn't the case for larger clothing brands, but be careful where you're marketing and make sure you can ship there.
Keep in mind as you go up in followers, you also go up in price. Influencers know their worth and as you get into the 10's of thousands you might have them asking for you to pay them in addition for the free service or product. I'm a huge believer in paying influencers for their work because this is their job.
How much should you be paying these influencers, if anything?
For people who have between 1K - 5K: I would try to get away with inviting them for a free visit, or extending a free product. That way they're getting paid in goods and services. I wouldn't advise paying influencers with 3K or less, unless they have between 200-300 likes per most and mass amounts of comments.
Pro-tip: Follower count DOES NOT mean engagement or ROI. Always look at how many likes and comments per post the influencer has and evaluate that. Also, look at the difference between selfies and past brand posts. It's also likely the influencer keeps records of how well past promotions have done on stories and their feed post engagement. I would recommend ALWAYS asking for past promos if you're shelling out cash.
For influencers between 5K - 50K it's not uncommon to be paying between $100 - $1000 for a collaboration. Keep in mind many of these influencers have multiple platforms. See if they're willing to cross promote. Meaning they will do 5 story posts on Instagram + a feed post on Insta + a TikTok + a blog post.
That example is a lot but you never know how much they're willing to do. You also don't have to take every partnership. There are influencers just looking to collaborate with brands and establish themselves in this world so if you think someone is over charging just let them know "At this time, we're moving in a different direction and look forward the possibility of working with them in the future."
For influencers between 50K - 100K you could be getting into the $2000 - $5,000 range for a brand campaign. Another good way to expand on the content is to see if the influencer is willing to work on a campaign for a number of months that way you can spread the content out over a length of time when you're paying higher prices.
For influencers over 100K moving towards 1M followers are called Macro-Influencers. It's pretty standard that the price per campaigns starts at $10,000 and just go up from there. Celebrities like Kim Kardashian have been paid millions of dollars for a single campaign.
Macro-Influencer: An influencer who has 100,000+ followers.
It's super popular for clothing companies and makeup brands to utilize these macro-influencers because you can spend PR packages and if the influencers like them they'll end up on their instagram and BAM you have orders flooding in.
Working with these influencers can be pricey but extremely lucrative if you're in one of these industries. That's how Princess Polly, Romwe, Nasty Gal, and Asos have gotten so popular. They work with not only Instagram influencers, but YouTubers as well. Youtube PR box openings have gotten so popular in recent years that getting these big names on your PR list can only help your business grow, and often for just a few articles of clothing gifted per influencer.
The system still stands, reaching out and negotiating with these Influencers now may happen through a manager when you get up into macro-influencer territory but it's basically the same. Make sure to nail out the deliverables before anything is finalized. That way if the influencer flakes, or doesn't product all the content they won't get paid. This protects the brand and holds everyone accountable.
How do we keep track of our success rate?
It's all about the data. After the campaigns are over we give it about 7 days from the feed post date to analyze. The easiest way to track where sales come from is the coupon code method. This way you can see which influencers are outperforming. By tracking the engagement received from the deliverables, measured against the number of sales we can calculate our conversion / success rate with each influencer campaign.
This will tell us who's followers are actually willing to purchase recommended products from the influencer and which people to work with again!
Social media marketing is a science and we hope to shed a little light on why influencer marketing has gotten so popular.
If you have questions leave them down below and we'll be sure to answer them!
Until next time.