You’ve exhausted your budget on Google and Facebook ads. But even though you’re getting traction, it either remains minimal or doesn’t generate substantial sales for your Shopify store. You’re not alone. But with the increase in social media ads and the decrease in users’ attention spans, it’s essential to look beyond traditional marketing strategies.
The solution: influencer marketing.
67% of marketers plan to increase their influencer marketing budget. 60% of marketers claim that influencer-generated content performs better than brand-generated content.
While these figures might interest you in experimenting with influencer marketing, a big question remains:
Do you need a big budget to work with influencers? The short answer is no. You can work with influencers, no matter your budget—big, small, or nada. Let’s see how.
3 Factors to Consider While Setting an Influencer Budget
While it’s true you don’t need excessive budgets to make influencer marketing work for you, there are some factors you need to consider to ensure you’re budgeting right and don’t end up underestimating or overestimating your costs to justify your ROI in the long haul. Let’s look at three such factors:
1. Influencer fees
How much (and how) you pay your influencers depends on the collaboration you seek. Based on your business size, you can work with influencers who have a follower and engagement bracket ranging from small to medium with varied rates:
Mega influencers: 1M+ followers; charge over $10,000+ per post
Macro influencers: 500,000-1M followers; charge over $5000-$10,000 per post
Mid-tier influencers: 50,000-500,000 followers; charge over $500-$5000 per post
Micro-influencers: 10,000-50,000 followers; charge over $100-500 per post
Nano influencers: 1000-10,000 followers; charge over $10-$100 per post
Beyond followers, rates may also vary with the platform you want to collaborate on and the cash app database scope of your campaign. For example, there can be a significant difference in rates if you work with an influencer on an Instagram campaign where you provide a detailed brief with a script, and they have to shoot the content while you take care of the editing and distribution vs a YouTube campaign where they’re doing everything on their own.
Thus, it’s important to hash out the details of your campaign before you start seeking an influencer. While it may seem like there’s only one way to compensate an influencer, you can explore other methods:
Monetary
The most straightforward way of collaborating is through monetary compensation. You set out a budget and negotiate a one-off or recurring rate in alignment with your budget and campaign specifics.
Performance-based
You forecast the expected traction based on the influencer’s current metrics and the results of previous partnerships to set a base rate and terms for additional compensation based on the campaign’s results. This requires clearly specifying the metrics and how they will be compensated and calculated beforehand. However, it poses some uncertainty for the influencer.