Is Influencer marketing interesting for my webshop?

Is Influencer marketing interesting for my webshop?

The term influencer will undoubtedly sound familiar to you. From YouTube stars to famous footballers such as Christiano Ronaldo, who have a huge reach due to the number of followers they have. The question is, Is Influencer marketing interesting for my webshop? To answer this question, let’s go back to basics, what exactly is influencer marketing?

What is influencer marketing?

This form of promotion has been known for decades as word of mouth, in which an acquaintance shares his positive experiences of a product or service with you. The positive experience of a friend is of greater value than a general advertisement. This is also the reason why this form of marketing is so powerful. In influencer marketing you use people with a large number of fans, followers or network to promote your product or service. This allows you to reach a large number of people, who often look up to the influencer. The influencer literally influences the buying behavior of the follower.

What are the costs for influencer marketing?

It sounds like an interesting form of promotion, but what are the costs for influencer marketing? There are basically two variants, a one-time fixed amount or based on commission per sale. There are influencers who charge a fixed rate for placing one Instagram post, especially the influencers with the highest number of followers. The advantage of these influencers is that you often have a large reach, which ensures more brand awareness. The disadvantage, however, is that this variant often requires large expenses. These are costs that you have to make in advance, without generated sales or guarantees that the cost will pay off.

The second variant of influencer marketing is the most interesting, namely: CPS (Cost Per Sale). In other words, you pay a commission per generated sale. The commission is agreed in advance and can be a fixed amount or percentage of the total order amount realized via the influencer. The biggest advantage of this is that this is a “no cure no pay” model, is the influencer not generating sales? Then you do not owe any commission. Does the influencer, on the other hand, generate a lot of extra sales? Then the turnover has also been realized and it is therefore no problem to pay out the commission earned. That way you run little risk and you create a win-win situation for both parties.

When can I start with influencer marketing for my webshop?

Influencer marketing may sound very interesting, but when is it wise to start with this? Influencer marketing is actually accessible to everyone, because a large part of the influencers work with the CPS principle. This means that you can start with influencer marketing with both a starting and a successful webshop.

You can decide yourself with how many and with which influencers you want to collaborate when using influencer marketing. You can choose to start with a few influencers as a starting webshop to prevent the number of sales being larger than you can currently handle. You can increase activities by attracting more influencers If your webshop is already successful and capable of handling increased sales. Finally, it is recommended to start with small influencers. Think of 2,500 to a maximum of 10,000 followers. This enables you to focus on your brand awareness and promotion.

Influencer marketing sounds like a lot of work..

Partnering with multiple influencers sounds attractive, but may result in a lot of (extra) work. Especially keeping track of the number of sales achieved, earned commissions and payments of the commission can be an administrative hassle. There nowadays are useful tools that take the management, tracking and payment of influencers completely off your hands.

Sir Filiate offers an affiliate management system to create, monitor and pay your own affiliate network! The platform can be connected to your webshop or SaaS platform via an open API or developed integrations. Click Here to choose your plan and start working with influencers.

Create your own influencer network

It is important to create your own influencer network when using influencer marketing. Influencers to  approach can have less than 5,000 or more than 10,000 followers. As a starting webshop, try to get in touch with smaller influencers in particular. It is key for the influencer to have as much in common with your product or service as possible, in order for the promotion to be effective. Some believe that smaller influencers have a better connection with their followers, because they are more engaged. In addition, agreements regarding commissions are easier to make with smaller influencers. Finally, they are often more excited to do a promotion than a major influencer.

All the pros and cons at a glance

Advantages

  • Realize increased turnover
  • Increase your brand awareness
  • Only pay for realized turnover (no cure no pay)
  • No search for promotion websites
  • Feedback from influencers about your product or service
  • Tools available for influencer management
  • Create independence from other marketing strategies

Cons

  • No guarantee for turnover
  • Limited influence on how influencers promote your product or service
  • Less margin per sale

Checklist: this is how you start with influencer marketing:

  • Find out what commission you can offer
  • Make a list of influencers you want to work with
  • Select a software tool to manage your influencer network
  • Prepare promotional material
  • What agreements are you willing to make with influencers?
  • Start and manage your own influencer network!

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