In today’s business world, influencer marketing is the ultimate buzzword. Once thought of as a tool for the fashion & beauty industry, Influencer Marketing has been adopted by Finance, B2B, Saas, nonprofits and even in politics! (Mike Bloomberg famously engaged influencers like @KaleSalad and @Tank.Sinatra for his short-lived presidential run in 2020).
But entrepreneurs have been weary of creator & influencer marketing, expressing concerns about efficacy & ROI. Creator & influencer marketing has long been seen as a brand marketing strategy, only available for companies with large budgets.
Why it’s beneficial for startups
If influencer marketing is not a part of your early-stage marketing plan, it’s time to reconsider. Influencer marketing is not just for those with deep pockets. As a startup, the earlier you adopt creator& influencer marketing as a part of your strategy, the more growth you will see. While it will rarely beat paid acquisition as the number one driver of new customer acquisition, there are other important elements that will contribute to growth such as lifecycle marketing, SEO, cultivating organic reach via SEO and doing later-stage brand marketing.
Consider this
The use of influencer marketing is an inexpensive way to reach a large demographic and expand the recognition of your brand. Think about this number – $5.20. The Influencer Marketing Hub reported that for every $1 being spent on influencer marketing, businesses were making $5.20. That is a huge ROI, making all of these marketing efforts worth the time being put into each campaign.
3 Companies That Cracked the Code to Successful Influencer Marketing
Although influencer marketing is fairly a new practice, some companies have seen a huge growth in sales and brand exposure. Here, we are three companies that implemented influencer marketing from the beginning.
Vital Proteins
Known for its collagen supplements, Vital Proteins has made its mark in the beauty and nutrition world for its collagen peptides. Launched in 2014, Vital Proteins grew 240% year over year until 2019, when it was acquired by Nestle Health.
Kurt Seidensticker, the founder of this remarkable ingestible beauty brand, sidestepped a traditional sales team and instead.
“Our company is based on influencer marketing … networking and developing real, solid relationships,” Seidensticker told BevNet in 2019. He went on to share that a pivotal part of his strategy was investing 15-20% of its revenue in influencer marketing & networking since day one.
Daily Harvest
**Daily Harvest is a former LMS Client**
Daily Harvest is a smoothie delivery company that launched in 2015. As a DTC first business, Daily Harvest’s CEO Rachel Drori decided to focus on influencers & social media from day one. In the first two years, Daily Harvest focused mostly on micro-influencers who created compelling & validating “how to” content. Additionally, the micro-influencers offered a promo code to their followers with a discount. The program was so successful it caught the eye of celebrity investors Gwyneth Paltrow, Bobby Flay, & Serena Williams, who jumped on board. In 2020, Daily Harvest earned $250 million dollars in sales. And in 2021 Daily Harvest achieved “unicorn status” with a $1.1 billion dollar valuation.
Kettle & Fire
Kettle & Fire combines marrow bones with organic vegetables and filtered water in steel kettle to create a delicious and nutrient filled bone broth drink. In 2018 Jack Meredith, the VP of Marketing shared with podcast host Cara Hogan of The Empowered Marketer that Kettle & Fire built a “powerful influencer and affiliate program” early on, that remained the company’s “bread and butter” in marketing for years. Kettle & Fire is one of the most popular bone broth brands in the country, with national distribution and a strong DTC channel.
So… is creator & influencer marketing worth it for startups?
Yes, creator &influencer marketing is definitely worth it. In fact, it could make all the difference between building a product and creating a brand! A great influencer program doesn’t happen overnight so patience is the name of the game.
Need a little help with your creator & influencer marketing strategy? Shoot us a note and we will demystify it all for you!