Episode Summary: SPECIAL SERIES: Breaking Down Influencer Deals (🥞Team Pancakes or Team Waffles?) | Bathroom Break #32 🚽

Release Date: December 2, 2024

In this engaging episode of The Marketing Millennials, host Daniel Murray teams up with Jay Schwettelson from the Do This Not That Podcast to delve deep into the intricacies of influencer marketing, specifically focusing on micro influencer deals. Titled “Breaking Down Influencer Deals,” this episode offers invaluable insights for marketers aiming to harness the power of influencers without breaking the bank.

1. Introduction to the Bathroom Break Series

The episode kicks off with a lighthearted introduction to the Bathroom Break series—a collaboration between Daniel Murray and Jay Schwettelson. The hosts humorously suggest that listeners can either gain marketing tips or make a bathroom break, setting a casual and relatable tone for the discussion.

2. Personal Anecdotes and Transition to Main Topic

Before diving into marketing strategies, Jay shares a personal story about undergoing a colonoscopy, emphasizing the importance of health check-ups. This segment humanizes the hosts, fostering a connection with the audience.

Jay Schwettelson [01:08]:

"Everyone should get their colonoscopy when they reach the right age... It's not that bad."

Daniel then steers the conversation toward the episode’s main focus: understanding how micro influencer deals are structured and their effectiveness in modern marketing campaigns.

3. Understanding Micro Influencer Deals

Jay Schwettelson [02:24]:
Jay begins by clarifying that neither he nor Daniel considers themselves prime influencers. However, they frequently receive inquiries for micro influencer collaborations, providing them a platform to dissect these deals.

Key Points Discussed:

• Cost-Effectiveness:
  Micro influencers (typically with 50,000 to 200,000 followers) offer substantial engagement without the hefty price tags associated with macro influencers.

• Deal Structure:
  Deals often involve packages, such as three social posts over a 90-day period. Collaboration is key, with back-and-forth discussions on content strategy to ensure alignment with both parties.

• Pricing:
  Jay mentions that compensation for these deals generally ranges from $5,000 to $25,000 per quarter, depending on the influencer’s reach and engagement.

Jay Schwettelson [02:24]:

"...micro influencers, you don't have to pay a lot of money and you can get some good bang for your buck."

4. Types of Influencer Deals

Daniel Murray [04:21]:
Daniel categorizes influencer deals into three main types, elaborating on the pros and cons of each:

1. Affiliate Deals:

   • Structure: Influencers earn a percentage based on the sales or leads they generate.
   • Pros: Results-based, beneficial for companies focusing on ROI.
   • Cons: Challenging for influencers due to reliance on consistent performance and external attribution metrics.

2. One-off Posts:

   • Structure: Companies pay influencers for a single or a few posts, often tied to product launches.
   • Pros: Quick and straightforward for specific campaigns.
   • Cons: Limited engagement and difficulty in building long-term trust with the audience.

3. Long-term Partnerships:

   • Structure: Multi-month or yearly deals encompassing various touchpoints like newsletters, podcasts, and multiple social media posts.
   • Pros: Fosters sustained engagement and trust, leading to more authentic endorsements.
   • Cons: Requires a larger commitment from both parties.

Daniel Murray [04:21]:

"One off deals... it's hard to build trust with someone else's audience... multiple touch points are essential."

5. Structuring and Negotiating Deals

The hosts discuss the negotiation process, emphasizing the importance of transparency and valuing the influencer’s authenticity.

Key Insights:

• Pricing Strategy:
  Influencers should quote higher rates to allow room for negotiation, acknowledging the lack of industry transparency.

• Engagement Clauses:
  Contracts may include clauses requiring a minimum number of engagements (likes, comments) to secure payment, adding pressure on influencers.

• Creative Freedom:
  Maintaining the influencer’s voice is crucial. Brands should provide guardrails rather than rigid instructions to ensure content remains authentic.

Daniel Murray [07:59]:

"Always give a higher number... there's no transparency in how much people are getting paid for this."

Jay Schwettelson [09:17]:

"The point of a brief is not to tell the creator what to say. It's to give them guardrails... set a good brief upfront."

6. Effectiveness of Micro Influencers vs. Macro Influencers

Jay Schwettelson [07:59]:
Jay advocates for the effectiveness of micro influencers, highlighting their ability to provide quasi endorsements and access to trust-based audiences. Unlike platforms like Facebook, where user trust is diluted, micro influencers have cultivated strong, loyal followings.

Key Advantages:

• Cost-Effectiveness:
  Lower fees compared to macro influencers, allowing brands to diversify their influencer portfolio.

• Authenticity and Trust:
  Micro influencers often have higher engagement rates and more personal connections with their audience, leading to more credible endorsements.

• Long-term Relationships:
  Sustained partnerships encourage influencers to organically advocate for the brand beyond scheduled posts.

Jay Schwettelson [09:17]:

"...get access to all these little audiences that have already built-in trust... have built-in trust from them who really trust this person to give good advice."

7. Best Practices for Brands Engaging with Micro Influencers

Daniel Murray [09:17]:
Daniel emphasizes the importance of authenticity and long-term commitment when collaborating with micro influencers.

Recommendations:

• Choose the Right Influencer:
  Select influencers whose audience aligns with the brand’s target market and who genuinely resonate with the product or service.

• Respect Their Authentic Voice:
  Avoid dictating the exact wording or style of posts. Allow influencers to create content that feels natural to their audience.

• Set Clear Guardrails:
  Provide concise briefs that outline the campaign’s objectives and key messages without restricting creative freedom.

• Foster Long-term Partnerships:
  Building ongoing relationships with influencers can lead to more genuine and effective endorsements compared to one-off deals.

Daniel Murray [09:17]:

"Stick with you for a long period of time because they will do things that are organically for you."

8. The Future of Influencer Marketing

The conversation touches upon the evolving landscape of influencer marketing, predicting a surge in B2B influencer partnerships akin to B2C models seen with brands like Nike.

Insights:

• B2B Influencer Growth:
  As businesses recognize the value of trust-based endorsements, influencer deals within the B2B sector are expected to rise, mirroring successful B2C strategies.

• Evolving Strategies:
  Brands will likely adopt more sophisticated and long-term approaches to influencer collaborations, integrating them seamlessly into broader marketing campaigns.

Daniel Murray [09:17]:

"...there will be a wave where like how Nike had Jordan... companies will have year-long B2B influencers."

9. Conclusion and Final Thoughts

As the episode wraps up, the hosts reiterate the importance of testing micro influencer strategies and highlight the vast potential they hold for brands across various sectors. They encourage listeners to experiment with micro influencers to unlock cost-effective and authentic marketing opportunities.

Jay Schwettelson [07:59]:

"If you've never tested a micro influencer, I think you're missing out on one of the most cost-effective channels that exists."

Daniel signs off by promoting both The Marketing Millennials and the Bathroom Break series, inviting listeners to engage and share their marketing challenges and successes.

Notable Quotes

• Jay Schwettelson [02:24]:
  "Micro influencers, you don't have to pay a lot of money and you can get some good bang for your buck."

• Daniel Murray [04:21]:
  "One off deals... it's hard to build trust with someone else's audience... multiple touch points are essential."

• Jay Schwettelson [09:17]:
  "The point of a brief is not to tell the creator what to say. It's to give them guardrails... set a good brief upfront."

Key Takeaways

• Micro influencers offer a cost-effective and authentic alternative to their macro counterparts, making them ideal for brands seeking genuine engagement.

• Structuring deals thoughtfully, with clear briefs and respect for the influencer’s voice, is crucial for successful collaborations.

• Building long-term relationships with influencers can lead to sustained trust and more impactful endorsements.

• Experimentation and adaptation are essential as influencer marketing continues to evolve, particularly within the B2B landscape.

Whether you're a seasoned marketer or just venturing into influencer partnerships, this episode provides comprehensive guidance on navigating the dynamic world of micro influencer deals.

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