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How to budget for influencer marketing

How to budget for influencer marketing

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Try Shopify free for 14 days, no credit card required.
Start Shopify free trial

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.

Build an online store for your business with your new skills.

Shopify has everything you need to start selling, all in one place.

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<h1>Build an online store for your business with your new skills.</h1><p>Shopify has everything you need to start selling, all in one place.</p>

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Understanding the sales funnel

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Thumbnail preview about Core principles of advertising
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Core principles of advertising

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Thumbnail preview about 5 proven ways to get your first sale
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5 proven ways to get your first sale

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Thumbnail preview about Common early marketing mistakes
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Common early marketing mistakes

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Thumbnail preview about Introduction to online marketing
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Introduction to online marketing

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Thumbnail preview about Lifestyle photography for your online store
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Lifestyle photography for your online store

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Thumbnail preview about Add and edit pages
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Add and edit pages

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Thumbnail preview about How to create print-on-demand product photos
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How to create print-on-demand product photos

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Thumbnail preview about Product photography for dropshipping
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Product photography for dropshipping

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Thumbnail preview about Creating a logo with Hatchful
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Creating a logo with Hatchful

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Thumbnail preview about Designing your business’ logo
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Designing your business’ logo

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Thumbnail preview about Selecting a website domain for your business
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Selecting a website domain for your business

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Thumbnail preview about How to choose your business’ name
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How to choose your business’ name

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Thumbnail preview about Market fit: who is your customer?
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Market fit: who is your customer?

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Thumbnail preview about How to find loyal customers
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How to find loyal customers

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Thumbnail preview about Validating your product and the market
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Validating your product and the market

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Thumbnail preview about Email marketing strategies for high volume sales periods
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Email marketing strategies for high volume sales periods

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Thumbnail preview about Marketing tools for holiday selling
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Marketing tools for holiday selling

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Thumbnail preview about Optimizing store design for the holiday season
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Optimizing store design for the holiday season

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Thumbnail preview about Selling globally to maximize holiday sales
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Selling globally to maximize holiday sales

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Thumbnail preview about Selling gift cards to grow holiday sales
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Selling gift cards to grow holiday sales

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How to communicate your brand through the screen

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Adjusting your online presence for direct-to-consumer sales

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Thumbnail preview about Virtual bar service: how to pivot your bar business online
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Virtual bar service: how to pivot your bar business online

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Thumbnail preview about Connect with content marketing
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Connect with content marketing

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Thumbnail preview about New revenue streams for pivoting your business
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New revenue streams for pivoting your business

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

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