In the digital world of marketing, people tend to invest where the eyeballs stare. Marketers are willing to pay a tremendous amount of money in the place where there is a potential for high traffic or views. In the course to gain the attention of the people, marketers promote their products, which may be anything from digital products to physical products through different means.
One of the ways is known as Influencer Marketing.
In the common language, Influencer Marketing is the process of using different people with a huge fan following to promote some products by paying some money. These famous people or owner of such outstanding pages are known as Influencers.
So, How does it help them?
As I already said before, In the digital world, eyeballs or views from people have the potential to gain monetary value. Nowadays, Social Media has become very common, and almost everyone uses it in their day to day life, at least once a day. In social media sites, we follow different people, pages, places, etc. These are mostly the things you are interested in.
Let’s take one example. Suppose you are a guitarist and follow a local celebrity’s Instagram account. You are into music, so you will surely like his posts related to the music industry. He ties up with some company which manufactures guitars. One day he posts about one brand new guitar along with a link to buy it. You like it and buy it. The owner of the Instagram account then gets some commission for that guitar sales. This is how to influencer marketing works.
Some third person uses the followers of any influencer to promote his/her product in exchange with some money. The main thing about this kind of marketing is It does not fail if you have a relevant and winning product. There is no loss. People who follow such pages and accounts are really into the thing. Most Importantly, In the digital world, people tend to follow what they see and experience what others show.
Let me do a simple calculation and Prove theoretically that Influencer marketing REALLY WORKS.
Here I will be talking about Instagram Influencer marketing. It is when a person uses a theme page on Instagram to influence people.
Let’s Imagine a Scenario:
You have an Instagram account with 100K followers, and your page is about shoes and other footwear. People follow your page because they like to see the photos of shoe designs and most of them are passionate about their fashion and footwear. So, If you post a picture of a good designer pair of shoes, many people might want to buy it.
BUT, you are not any seller. This is where comes the role of this influencing page. Now, a second person(the actual marketer) reaches to the page owner and willingly pays $100 for a single post in the Instagram page which is about his newly launched shoes along with a link to buy it.
How do people earn using Influencers?
Let us assume that the shoes are worth $50 each and profits $10 to the marketer for each sale. After the link is posted in the page, out of 100k only 20k people see the posts and out of those 20k people, only 500 buy from the link.
From the above calculations,
Total Profit = 5000*$10 =$ 5000
Out of the $5000 profit, $100 cuts out for the commission of the influencer.
BINGO, A clean $4900 profit by just a post.