Top 5 Ways An Influencer Marketing Agency Can Make Money

The Influencer Marketing industry has captivated marketers with their enormous ROI from the techniques involved. You will be surprised to know that more than 90% of marketers believe in the effectiveness of this approach (Source: Oberlo). If you are aspiring to have your influencer marketing agency then this can turn into a lucrative career for you. How? Let’s read further.

Influencer Marketing agency: Best ways to make Money

Pricing

Each business has its pricing model and the rates of influencer marketing agencies are not fixed. The cost usually reflects the value of the services offered and this may be different from company to company. There are three main types of pricing models through which an agency makes money. These are hourly-rate, fixed-rate, and value-driven.

·       Hourly rate: As an agency, this can be great if you have no idea how long a project can take to complete. Here you can earn money on the number of hours you spend on a project for the client. You can have a standard hourly rate or you can set the rate according to the experience of your employees. Experience leads to efficiency hence you deserve to earn more money if you are talented in your field.

·       Fixed rate: As an influencer marketing agency, you can have a fixed rate for your services. Here, your client pays an amount before you start the service and the rest is paid when you complete it. Having such an approach is good for projects that are similar but you will run into an issue if you get involved with a complicated project that takes more time to complete than the standard hourly rate.

·       Value-driven: This is for those agencies who have years of experience in the industry. Here you will get money after the completion of the project and for this, you need clients who can trust your company. You can only receive projects when you have built a reputation in the market and have proof of delivering results beyond expectations.

Paid Media

As an influencer marketing agency, you can charge your clients based on the advertisements you do on their behalf. Since paid promotion is dependent on investments, you can demand money based on the ROI generated. Moreover, you can add this cost when the final cost of the marketing campaigns is calculated. Alternatively, you can also take a percentage of the generated ROI. Did you know that for every dollar spent on Influencer Marketing, you can earn 18 dollars in return (Source: Oberlo)? That’s amazing, isn’t it?

Collaboration with Influencers

Agencies can earn a lot from partnerships. This helps them generate revenue and leads. One of the best partnerships involves influencers. A collaboration usually is beneficial for both parties. As an influencer marketing agency, you will get paid for the promotional work with the influencers while the influencers will earn their share of the profit from the marketing campaigns. But make sure to hire only relevant influencers as they will be present in the ads and sponsored posts. This helps you gain potential leads that contribute to building reputation and success.

 

Services

What are the services that you can offer? Do you offer only brand awareness campaigns or focus on lead generation as well? Can you offer multiple services that can enhance the growth of a business? These are the questions to ask yourself when you calculate the pricing for your agency. You need to keep in mind that each business is different and hence the strategy. In the end, it all depends on the number of services taken by the clients.

 

Referrals

 

Agencies can earn a lot of money through referrals as well. Tell your clients to give positive feedback on your website or recommend others about your services. This will help you gain potential new customers, which means more leads and hence more sources to earn revenue!

 

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