There is a huge misconception by a lot of companies that working with influencers is like waving a magic wand… with one poof, all their problems will be fixed!

We often have to be the bearer of bad news and explain to brands that working with influencers does not mean an automatic increase in sales or bookings and there are way more things to consider and value when determining influencer marketing ROI.

Here at Sidewalker Daily, we work with brands on their influencer marketing initiatives but we also provide one-on-one coaching for influencers so we really understand their needs as business owners and creators. While there are tons of articles on the internet about influencer marketing ROI, we want to speak directly to the Instagram influencers and creators to give you valuable insight into how brands actually measure success in our industry.

We truly believe knowledge is power, and the more you know about how companies value your work, the better equipped you’ll be to land brand partnerships.

Influencer's Guide to Influencer Marketing ROI

But First, Let’s Define Influencer Marketing ROI

Whenever you hear the term ROI – this is an abbreviation for the phrase, “Return On Investment.” It’s an industry term that brands use to measure if the funds they are investing into marketing initiatives were worth it based on their goals as a company.

Basically, if a brand is paying you for your work as an influencer (either monetary compensation or trade) it’s an investment for them. Instead of spending that budget on other marketing avenues such as Facebook ads, they spent it on you! So that means, they will expect to see a positive ROI from the work that you do. At the end of the day, brands (no matter the size) do not have unlimited budgets so they need to spend their money wisely.

ROI is important to brands because they are running a business and businesses are in the business of making money – so basically, just breaking even isn’t a win. Companies need to show a positive return in order to feel like an influencer initiative, project or campaign was successful.

One of our favorite influencer marketing stats is from a study done in 2015 by influencer marketplace Tomoson. They surveyed 125 marketers and found out the average ROI from their influencer marketing was on average, $6.50 for every $1 invested. That’s 6 times their investment, which is considered huge.

This means that when done correctly, brands can see a big ROI in their influencer marketing initiatives. And when brands see that influencer marketing yields high ROI we should all jump for joy because it not only strengthens the validity of our industry but also means the company will likely create more influencer marketing opportunities in the future…which means more work for all of you!

brand representative measuring ROI

Social Media Influencer Strategy Starts With Setting Measurable Goals And Objectives