For many, influencer marketing is about spending money to hire celebrities for brand endorsements. For a wise few, it is an investment that gives the best ROI. Research has revealed that influencer marketing generates eleven times more ROI than traditional digital marketing. Then what is it that prevents businesses from taking full benefit of influencer marketing? If it is money, you will have to rework your influencer marketing skills.
If you are trying influencer advertising for the first time, start small. Hire micro-influencers and measure the outcome. If your campaign is a success, start allocating a bigger budget to it. If your campaign is not giving you the desired result, tweak the campaign to improve the results.
20% of the digital marketers spend anywhere in the range of $1000 to $10000 per year on influencer marketing. Around 17% of the marketers spend over half of their marketing budget on influencers.
With influencer campaigns on the rise, the typical budget for influencer marketing ranged from $25,000 to $50,000. But if your current budget is not flexible, you can still try it on a low budget. We will get to it shortly.
How do you pay for influencer marketing?
The payment for influencer marketing is on a results-based pricing model. The various means by which marketers pay influencers are-
- Cost Per Engagement (CPE)- The number of impressions, likes, shares, and comments are counted. A price is decided based on the results.
- Cost Per Acquisition (CPA)- This is calculated when marketers hire influencers for lead generation campaigns. The influencers get a specially-generated link for promotion. The traffic from the link and the sales generated is measured.
- Cost Per Click (CPC)- This is effective when you hire influencers to promote any link. You count the number of actions taken when consumers interact with influencers. The cost is calculated by measuring the clicks and interactions.
Speak with your influencer clearly regarding the terms of payment before you collaborate. The influencers work to get maximum engagement when your pricing model basis is CPA, CPC, or CPE. Always link your payment terms to their performance so that you get the best ROI on your influencer marketing campaign.
How do you run influencer marketing campaigns with a low budget?
It is a myth that you need money for influencer marketing. In fact, the good thing about it is that it is flexible to suit every budget, big or small. Let us see the options to run influencer marketing campaigns on a low budget.
1. Hire micro-influencers
As we mentioned earlier, influencer marketing is not about brand endorsements from celebrities or big influencers. The best engagement is brought by micro-influencers. These are people who have followers ranging from 10k to 50k. Since they micro-manage their social media profile and are keen to increase their followers, they strive hard to engage their audience. Micro-influencers have the highest engagement rates better than macro-influencers and celebrities. Hiring micro-influencers does not cost you much money.
2. Using tiered-influencer campaign
Using tiered influencers is another way of getting maximum engagement at a lesser cost. Here, you collaborate with one macro-influencer or celebrity. They promote your products through hashtags or challenges. The mid-and the micro-influencers strengthen the endorsement by supporting the challenge. The trick is to start the campaign from the top with one celebrity and gradually spread while coming down by collaborating with many regular and micro-influencers. It saves you money while maximizing the engagement rates.
3. Promote user-generated content
User-generated content has the potential to do what big influencers cannot achieve. Take, for instance, a follower who has posted an image or video using your product and tagged you. You re share this post on your newsfeed by tagging the follower. This way, your followers become brand ambassadors and get more sales. Encourage your followers to perform any challenge and tag you. It kicks off a chain reaction, and your campaign goes viral instantly.
4. Barter meaningful products & services
There are no written rules in influencer marketing. Instead of paying to the influencers, you can barter products or services. For instance, if you partner with an influencer to promote your fitness studio, you can offer them a free membership. It saves you money, and they get services in return. You can also send them goodies and invite them to launch events and parties.
5. Exchange complementary promotions
It works well for blogger influencers. Generally, an influential blog writer writes about your products and services on their website blogs. You earn traffic through links. Now, post this blog on your website and give a link to the blog writer’s website. It will earn them traffic to their website. Here profit is exchanged for profit instead of cash.
6. Hire the services of influencer marketing platform
An influencer marketing campaign works when you know to use the resources wisely. If you are a novice in influencer marketing, we suggest you hire the services of an influencer marketing platform. They cost-effectively plan your campaigns, and you save money, time, and effort.
Instead of hiring influencers, partner with them for the long term. It will bring genuineness to your campaign and increase brand awareness.