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Should You Pay Influencers to Post About Your Products?

Should You Pay Influencers to Post About Your Products?

This video discusses whether businesses should pay influencers up front to create posts around their products and brands. The speaker argues that paying for performance, not for posts, and focusing on micro-influencers with a social media following of less than 100,000 can be more effective for generating sales.

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Affiliate Marketing on Social Media

Should You Pay Influencers to Post About Your Products? | ShoutOut02:38

ShoutOutMarch 22, 2021

Should You Pay Influencers to Post About Your Products?

Topics

Influencer marketing
Micro influencers
Pay for performance

Video summary

This video discusses whether businesses should pay influencers up front to create posts around their products and brands. The speaker argues that this strategy used to work well, but people started losing trust in influencers who were being paid for posts. Instead, businesses should focus on micro influencers with a social media following of less than 100,000 and offer them a commission on every sale generated. The main tip is to pay for performance, not for posts, and start your own affiliate program. This strategy has been more successful because of the authenticity and genuineness of micro influencers.

Video transcript

hi everyone
welcome to affiliate marketing in a
minute the video series designed to help
you get more customers
make more sales and ultimately make more
money from your online store
today's video is all about answering the
question should i be paying for posts
should you be paying influencers money
up front to create
posts around your products and brands
well my clear answer is a resounding
no this strategy used to work really
well
five or six years ago influencers were
making great returns for companies that
use them and they were generating lots
of sales
but that is simply not the case anymore
i was recently speaking to a client of
ours who is the marketing director for a
really large
online hair care business now they used
to use influencers a lot
they used to find them really effective
at generating sales
what they noticed over time over that
last five year period
is that the audiences out there people
just started to lose trust and faith in
those people
they began to understand that they were
being paid for posts
and people really lost their trust in
them as a result the sales they were
able to generate from those posts
started to rapidly decline
so this business decided to change focus
and they started focusing on
micro influences so micro influencers
are people who have a social media
following of less than a hundred
thousand
and what they found is that people still
have very high levels of
trust in micro influences they still
perceive to be really genuine
particularly in the beauty industry the
other thing they tried
was changing the way people were
remunerated rather than give them a set
amount up front to make a post
they offered them a commission on every
sale that they generated
and what they found is that this
strategy was way more successful
it was more successful because of the
authenticity and the genuineness of the
people who they're working with these
micro influencers
and also because these imp micro
influencers realize that the more they
did the more content they created the
more stuff they put out there
the more money they got in return so it
really had a beneficial impact for the
business
so today's top tip is pay for
performance
not for posts start your own affiliate
program
and sign up people who have a small but
highly engaged social media audience
to speak about your products on your
behalf online
and watch it massively grow your
ecommerce business
you

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Should You Pay Influencers for Posts?

In this video, the speaker emphasizes that paying influencers for posts is no longer an effective strategy to generate sales. The reason for this is that people have lost trust in influencers who are paid for posts. As a result, the sales generated from those posts rapidly decline. Instead of paying influencers for posts, businesses should focus on micro-influencers, who have a social media following of less than 100 thousand. These micro-influencers are perceived to be more genuine and authentic. One strategy to compensate these micro-influencers is to offer them a commission on every sale generated instead of a set amount upfront.

The Benefits of Micro-Influencer Marketing

The speaker talked about the benefits of using micro-influencers for marketing. These individuals have a smaller following but tend to be highly engaged with their audience. Thus, they can provide a more authentic and genuine endorsement of the brand or product. Micro-influencers also tend to be less expensive to work with and easier to reach than larger influencers. In the beauty industry, micro-influencers, in particular, can have a significant impact on generating sales.

Pay for Performance, Not for Posts

The key takeaway from this video is that businesses should focus on paying for performance, not for posts. Companies can start their own affiliate program and sign up micro-influencers who have a small but highly engaged social media following to speak about their products online. By offering a commission on every sale generated, businesses can create a win-win situation where both the micro-influencers and the business benefit. This strategy can help massively grow an eCommerce business.

The Impact on Affiliate Marketing Industry

The shift towards micro-influencers and paying for performance can have a significant impact on the affiliate marketing industry. Traditional affiliate marketing programs that offer a fixed commission rate may become less effective. Instead, businesses may need to adapt and offer a variable commission rate based on performance. Additionally, the focus on micro-influencers means that businesses need to be more selective in choosing who they work with. Instead of solely looking at the size of an influencer's following, they need to focus on finding individuals who have a genuine connection with their audience.