One decisive fact is: Most founders do not have the money to invest incredible amounts into influencer marketing. Startups must be astute to achieve their business goals without spending their whole budget. Hence, entrepreneurs are on the lookout for cost-effective marketing methods. Influencer marketing might be one option decision-makers should consider. According to a poll by Tomason, firms generate $6.50 for each dollar spent on influencer marketing.
This article will clarify six distinct tactics on how founders can achieve their revenue goals on a low budget. Then, you will be capable of realizing influencer campaigns that move your business strategically forward. Better use of your marketing resources could lead to an increase in sales.
So let’s get started and make it happen!
Why should companies collaborate with micro-influencers? Well, 92% of individuals trust people over brands. (source: Nielsen) So a campaign focused on getting people to promote your products might not be the worst idea.
Furthermore, micro-influencers offer companies:
- A tighter bond between followers and influencers
- A higher engagement rate
- Less risk if a campaign completely fails
- Budget-friendly prices compared to mega-influencers. (more than 1,000,000 followers)
- The opportunity of reaching a niche audience
- The willingness to cooperate with small and new brands
If this is not a win-win situation, I do not know what one is.
One factor to note is that a forged bond between micro-influencers and followers creates a loyal and trustworthy relationship. Followers depend on influencers’ advice and admire their content. Influencers need followers to make a living. In addition, followers feel more closely connected to micro-influencers. They have followed them early, leading to a higher engagement rate.
Additionally, you have another crucial advantage. You can spread the monetary risk on many shoulders. Let’s say you are working with a mega influencer with millions of followers. Your fate lies solely on his shoulders. If the campaign flops, you lose tens of thousands of dollars.
This situation will not happen with a micro-influencer campaign. As long as you work with micro-influencers, you lose a couple of hundred of dollars. That might also be aggravating, but it is not a complete bummer.
Do you intend to target and address a niche community? Then micro-influencers might be a good fit for you. These influencers share an affinity for niche topics, such as vacations to the Bahamas or tips for aspiring entrepreneurs.
Micro-influencers are especially a good choice for startups. This influencer type is more willing to work with small brands and is open to various compensation agreements.
2. Offer products or services free of charge
We all know it: Founders do not have much money left for marketing. The firm needs to pay for the founder’s and employees’ salaries. In addition, you need to pay additional fees such as rental costs.
Therefore, early startup decision-makers ask themselves:
How do I get influencers to work with my company?
Well, free products and services are one possibility. However, keep in mind that most influencers expect monetary compensation. Therefore, I recommend startups using free products to decrease the pricing. Let’s assume that the influencer demands $700. If you offer a product worth $400, you only have to pay $300 in cash.
That is beneficial since your product costs were only a fraction of its price.
3. Propose Influencers to Become Affiliates
Another option is to persuade influencers to become an affiliate. You can pay them a high percentage of the revenue when a sale occurs. You should keep in mind, though, that most influencers are not open to this kind of collaboration. In my experience, working with influencers requires at least a small to medium monetary compensation.
Therefore, use the affiliate proposal as another chance to optimize the pricing.
4. Collaborate on a Product’s Manufacturing and the Subsequent Promotion
Is your startup low on funds? It might make sense to involve influencers more strongly in manufacturing and marketing. You can give these people a size of your revenue pie in return for constant promotion.
However, it is crucial to note that such a collaboration is only beneficial if the influencers have an enormous audience. You should not work with an influencer with less than 500,000 followers and an engagement rate of 3 percent.
You must ensure that the influencer has a loyal audience behind his back. Otherwise, you will not bring in enough profits.
5. Negotiation is Crucial for a Startup’s Success
Negotiation techniques are one unnoticed factor that can dramatically affect your costs. If you are a novice, this is one crucial area to improve your return on investment. You can increase your negotiation room by pitching to dozens of influencers.
Some influencers are not particularly interested in money. They want to express themselves creatively.
You realize: Influencers view your campaign proposal with different expectations, interests, and desires. The more you pitch to influencers, the better your chances of finding influencers interested in collaborating with you for a sensible price.
6. Why Insights Are a Startup’s Best Friend
Social media reach fluctuates. Some influencers experience an enormous number of views, comments, and likes in one month. The following month, it is deathly silent.
If you work with several influencers, you know that insights can deviate from each other. Sometimes you get more reach than promised. Other times, you get less than you want.
However, you should not hang your head. You can conclude which collaborations are beneficial if you carefully analyze influencers’ insights.
Thus, you increase the chances of realizing a successful influencer campaign.
Influencer Marketing: Worth It or Too Costly?
Influencer marketing offers a whole bunch of benefits for firms. However, startups must keep an eye on their finances. The mentioned tips allow startups to optimize their cost structure. You can start with these tips in mind and continuously increase your budget along with your revenue.
Sure, you’ve got to invest some time and free samples. Nevertheless, you will still be thankful for the revenue increases you realize once you’ve done dozens of campaigns.
Niklas Hartmann is the managing director of ReachOn, an influencer expert, and a book author. He has realized more than 120 influencer campaigns, including influencers with 1.2 million followers.