Are Social Media Influencers Worth the Cost?

So you’ve come to a crossroads…after years of hard work, a wonderful idea, an amazing business plan, and securing the financial backing you need, you are ready to market your product or service. Whether you are a startup or a well-established business, finding the best way to promote your product or service can be daunting. In this digital marketing world, you may wonder if hiring an influencer is the best strategic move to boost your sales…let’s explore the pros and cons.

If you’re like our team, you probably spend more time than you would like scrolling through reels, TikToks, and videos of captivating people doing inspiring things. Perhaps it’s a mom baking homemade goodies from scratch for her children using the most unique and aesthetically pleasing pots, pans, and cutlery you’ve ever seen. Or maybe it’s a charismatic middle-aged man who explores unique outdoor experiences with the most high-tech biking, hiking, or workout equipment. These influencers find a niche, gain a following, and post content that keeps their viewers coming back for more.

PROS

The benefits of having an influencer highlight your business or product are numerous. 

Reach a Broader Audience 

If you pick the right person for your business or service, they’ll help you reach your target audience. Influencers often have thousands of dedicated followers, many of which trust their recommendations. We explore why building trust with your audience is important HERE.

Target Niche Market

Research shows that in some cases, influencers can reach a specific audience or niche market more effectively than a traditional advertising campaign. They can also increase your brand awareness.

Content Creation & Cost Effective 

Another significant benefit is that influencers can create the content for you. If it goes viral, it can significantly amplify your reach. In some cases, hiring an influencer can also help you meet your bottom line. For instance, a micro-influencer (we'll explain that in just a moment) may offer a more cost-effective alternative to traditional advertising, while still being highly effective. Influencer campaigns can also be tracked with metrics, providing you with engagement rates, reach and impressions, and conversion rates.

It sounds like a win-win for some business owners, so what could possibly be the downfalls of hiring an influencer?

CONS

Creative Control 

First, you could lose creative control if you hand over content decisions to an influencer. Without specific contract stipulations, you can't necessarily decide how your product or service will be portrayed. We’ve also heard stories of influencers not making good on their deliverables.    

Brand Misalignment 

Equally important is the potential for the influencer's image to shift and the possibility that their morals or values may not perfectly align with your brand. This misalignment can not only result in an ineffective campaign but also, in some cases, pose a risk to your brand's reputation.

High Cost

It's essential to consider the financial aspect of influencer marketing. While some influencers may offer cost-effective solutions, it's important to note that top-tier influencers can be significantly more expensive and may not always justify the rate of return on your investment. There are several tiers of influencers. Facebook describes nano or micro-influencers as having fewer than 100,000 followers. They can charge anywhere from $100 - $200 for a reel, while mid-tier and top influencers can charge $1,500 - $5,000 or more.

Instagram influencers with fewer than 100,000 followers can charge around $200 per post, while those with 100,000–300,000 followers can bill around $600, and those with more than one million followers can earn more than $2,000 per post. TikTok lists similar costs for its influencers, while YouTube influencers are a little more costly, with mid-tier influencers charging closer to $1,000 per video. If you want to go after a Celebrity influencer, then be prepared to dish out top dollars. 

Opendorse, a company specializing in executing and monetizing digital and social media campaigns for athletes, says a tweet from someone like LeBron James, who has 23.2 million followers, has the highest value of any U.S. athlete. The company said that each tweet from James had a media value of $139,474.

If you decide to pursue an influencer to help market your business, contact them via their social media platform. Many influencers can be contacted directly, with their email addresses usually appearing in their bio or website. Remember to send them a personalized message explaining why you like their work and think they would be a good fit for your brand. Be very clear and specific about your goals and expectations. Effective brands set content requirements and deadlines and get final approval of all content before posting. Make sure to include revisions in your contract; most brands include up to three.

Hiring an influencer can be a powerful way to market your product or service, offering authentic engagement and access to targeted audiences. However, it's essential to carefully select influencers who align with your brand and to manage potential risks effectively. Balancing cost, control, and authenticity is key to a successful influencer marketing strategy.

If you need assistance, ReBirth Marketing and Consulting is here to show you how to navigate hiring an influencer that's right for you.

Written by: Valerie Wilson