In this article I will break down a profitable strategy that the fastest growing DTC/influencer marketing focused brands have applied to drive sales and build brand awareness with micro influencers.
Start 1st collaboration with PR/product seeding - good engagement? Follow up with discount codes.
By not paying profiles in your first collaboration you will connect with the ones that truly love your product. Also, you eliminate the risk of paying profiles that will not connect with your audience, and show low engagement.
Ideal of Sweden, Stronger, Desenio and the fastest growing DTC brands rely on discount codes.
Honestly, this is the most straightforward way, easiest to measure. Easy to measure, easy to scale.
Some argue utm links and skip codes. I understand this if you focus on brand building or content as the main objective.
If you focus on sales however, it’s crucial to have discount codes in place to know exactly how much each profile generate. Especially with micros, as you’ll work with many to make this channel your main revenue source.
This model only applies to brands that have a discount code structure in place (where each profile gets a 10-25% discount for their followers to use).
In the beginning you will contact work with more new influencers than recurring (obviously hehe). But, over time you should continue to work with best performers (the ones with best ROIS - return on influencer spend), and your recurring collaborations per month should increase.
* ROIS?? Return on influencer spend. Revenue/costs. Cost in this strategy is product costs + shipping (as you won't pay profiles).
Over time it’ll look something like this monthly:
So aside from these overall kpis keep an eye one:
What's a good start, how many influencers should we work with per month?
Aim for minimum 200 collaborations first month. Depending on the quality of your email outreach and product, your collaboration rate (how many you contact that lead into posted collaborations) will vary.
Share with someone you like