How to budget for influencer marketing

How to budget for influencer marketing

Working with Influencers is a great way to build your brand, reach new audiences and even grow your sales. With so many different influencers out there here are some tips for deciding who to work with and how much to spend.

Who to work with:

  • Macro influencers​ have accounts with a following of 100,000 or more. They typically have high engagement and are great if you want to create awareness with a diverse audience.
  • Micro-influencers ​have accounts under 100,000 followers. They are way more niche and personal with their content, so they are great if you want to increase your sales, as you piggyback on the trust they’ve built with their community.
  • With influencer marketing, the people you work with become an extension of your brand — so choosing one that shares your values is essential. And they should share your audience too. Research your niche to understand who is popular with your ideal customer.

How much to spend:

  • Shopify suggests you choose an influencer who has about the same amount of followers as you. If you choose someone with more, it will likely cost you more.
  • When it comes to making room in your marketing budget for influencer marketing you can either go with Fixed (when you choose a set amount you want to spend on an Influencer) or Sales-based (when you base your Influencer budget on a sales goal)

Fixed example:

If your quarterly marketing budget is $5,000 you may want to allocate 10% or $500 to influencer marketing. Your influencer marketing budget can be a subcategory in your overall marketing budget. It’s really up to you.

Sales based example:

Determine your revenue Goal = ​$5,000

Find your Average Order Value= ​$250

Find your Conversion rate = ​2.5%

Calculate how many visitors you will need to your online store to generate your revenue goal:

$5,000/$250 = 20 sales

20 sales/0.025 AOV = 800 visitors

That means you will need 800 visitors to your store. At your conversion rate of 2.5%, 20 of those 800 visitors will likely result in sales. And with your AOV of $250, with 20 sales you will meet your revenue goal of $5,000.

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Tutorial • Sep 2, 2020

How to communicate your brand through the screen

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Tutorial • Jul 2, 2020

Adjusting your online presence for direct-to-consumer sales

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Tutorial • Jun 30, 2020

Virtual bar service: how to pivot your bar business online

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Connect with content marketing

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Tutorial • Jun 18, 2020

New revenue streams for pivoting your business

Thumbnail preview about Make your food look irresistible online4m
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Make your food look irresistible online