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Spending on influencer marketing early on

Discussion in 'Instagram' started by Trep01, Mar 17, 2017.

  1. Trep01

    Trep01 Newbie

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    My account has 590 followers organically grown (no bots just follow/follow back within niche) and so far have a 30% follow back ratio and 10-20% engagement.

    I have a product to sell that I will launch this month as the fees for the fulfilment centre eat away at my budget.

    I've contacted a few influencers who get good engagement and 11k likes a post, with occasional posts reaching up to 50k likes

    Having done the math with my current engagement id gain upward of 3300 (30% follow back) and 330 possible conversions (Max 10% engagement) per post.

    my budget for 6 posts is $2.5K and another 1.5k on other influencers I'm working with which is $4k in total and will be it for the year more or less for me budget wise. I'm thinking its best to do it now rather than later as I'm launching a product and while waiting on more growth I'd have less sales and more warehouse fees


    What do you think?
     
  2. 2xdswu

    2xdswu Jr. VIP Jr. VIP

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    You won't get 330 possible conversions.

    You should divide 100% by 10% and 10% again. Those customer are your potential amount that you can least expect for return.

    In other word if you gain 3,300 engagement towards your accounts.

    That's 3,300 x 0.10 = 330 and x 10% = 33 Conversions - This is the least amount of conversions minimum per post.

    Influencers marketing is absolutely solid for whatever ecommerce is as long as revelant and make sure they're not fan pages but real egoistic people who post about their daily lifes and recommend products in their field.
     
  3. Trep01

    Trep01 Newbie

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    At those numbers for $400 a post at a minimum $20 profit margin with minimum 10% conversion I'd be +$260


    Would you say this is a worthwhile risk? The influencer has 175k followers and around 11k like a post
     
  4. 2xdswu

    2xdswu Jr. VIP Jr. VIP

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    It really depends, you could get their stats from them on their previous post on ads for products and compare the stats if their account is a business account.

    If they're not full with fakes they should not mind giving you the screenshots on a certain ad post.

    And if 400$ a post and the post sticks forever, mate you've yourself a great deal.
     
  5. Naroha

    Naroha Junior Member

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    400$/post for a 175k account? isnt that pretty high?
     
  6. Trep01

    Trep01 Newbie

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    Looks like the average likes is actually closer to 8/9k ranging from 5 to 20k with rare posts up to 50k the only other sponsor they have is gymshark


    It's a big chunk of change but the alternative perhaps could be more costly by not doing it, either way it's a risk...

    I'm investing in authentic and organic growth going this route with good content and networking over bots
     
  7. 2xdswu

    2xdswu Jr. VIP Jr. VIP

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    Why not hire someone who can do growth on your account with really good targeting, it'd a better option and much more sustainable with your budget.

    Basically winning your competiton's buyers and already warm-ed up followers instead of a vast based of un-targeted.
     
  8. Trep01

    Trep01 Newbie

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    I'm doing this full time alongside the business stuff. Instagram for now is true only marketing channel and my method is:

    Post incredible content photos and videos with blog descriptions and follow the followers of big accounts in our niche and follow who our followers are following


    The influencer stuff I'm doing to build brand recognition through recognition from the influencers fans.


    Anything else I could be doing?
     
  9. froger

    froger Jr. VIP Jr. VIP

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    I think you should run some tests to know for sure what you're dabbling with.
     
  10. Trep01

    Trep01 Newbie

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    Results so far seem to be you get what you pay for
     
  11. froger

    froger Jr. VIP Jr. VIP

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    such is life
     
  12. speedypro

    speedypro Junior Member

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    Ive seen so many start-up brands get burn with influencer marketing as you know, many of them use black-hat techniques. Engagement groups, power likes.

    I hate to say this but only deal with influencers who have business profiles. Seriously. You need to see actual reach numbers. Bottom line. I've seen 90K influencers with an average reach of only 7-8K users. This is common. I've seen non-influencers, the guys with 7-10K followers having 15K reach per post because the content is f..cking good. Also, here is another example, if you are selling luxury goods. Just an example, say you want to sell $200 hand bags. With Business profiles, you can see if 80% of those followers are 12 year old boys from Lithuania. You dont want those demographics. IG business profiles shows you this stuff. That is why it is 100% mandatory in the year 2017. I deal with influencers and I expect 30% reach based on their follower numbers. So a single post from a 175k follower, I expect to see 50K reach per post. No ifs and buts about it. Dont get conned. Otherwise, the $400 you spend is better used with Facebook and IG ad targeting. You can run 80 custom FB ads with $400. 80 ads. The ones that don't perform CTR wise, cancel and move on. This is how the big boys do it. They run hundreds of micro ads and see what sticks. You can target by geo location, age, niche. It is that granular and verifiable measureable.
     
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  13. arlamelk

    arlamelk Junior Member

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    Just like speedypro said. You need to be sure that your influencer's audience is your target customer. Think who would follow a car profile? Guys. Who would follow a handbag one? Chicks. Try to get into mind of a regular follower, what would you be looking for from someone who you follow on Instagram?
     
  14. johncena69

    johncena69 Regular Member

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    Don't waste your time with influencer marketing. Your influencer probably aren't even influencers.

    You won't make a return. Remember what I said when you waste your money.

    You be lucky to have even 10 converted
     
  15. Trep01

    Trep01 Newbie

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    Thanks for the response, what is a good ratio for these insights? I've posted a pic of my best performing posts recent posts have 607 followers
     

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  16. Trep01

    Trep01 Newbie

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    The followers are targeted. I'm in the fitness niche so i need ambassadors to drive sales.

    The domain is a popular 1 word fitness description that's currently popular but it a trend. Paid 10k for the domain so the name itself already has recognition. The name precedes the marketing which is why I need to do this right from the start with branding and quality content, right influencers etc
     
  17. johncena69

    johncena69 Regular Member

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    I can't help you but my advice is to test. I'm pretty certain that your conversion will be low and you won't see a return.

    Influencer marketing is over-hyped and you don't have the money to pay real influencers. These accounts with 100k and 1mill aren't even influencers. They not going to influence anyone. The majority of them at least.

    But good luck. Just my advice.
     
  18. colorme

    colorme Supreme Member

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    @speedypro said it. You must have a way to check stats. On Instagram, must be business profile. There are influencers, and then there are influencers. There are some with great IG accounts, but shitty websites. Some with great IG fake accounts and shitty websites.
    Then there are those with regular IG accounts and great websites. The ones with great websites (Google Analytics verified) will usually do way better than the "great IG accounts" in the long term. Remember, now a days, even 100M accounts can fake traffic to your site, ie engagement.

    I know of big influencers that get flown, dined around and given thousands in free merchandise, on top of being paid. I then see these influencer's IG accounts loosing thousands of followers one day, and gaining thousands the next. On top of that, they'll get thousands of likes on a post within a few hours and then a trickle after that. You pretty much know those are fakes. But, what do they care, they hit the big times, and the "big" brands don't give a shit, 'cause all they want is to be associated with these influencers.

    But, don't let this refrain you from using influencers. What you need to do is study them and make sure they are good for your niche.