This episode provides a clear, actionable framework for ecommerce brands to strategically plan their influencer marketing budgets for 2023. It breaks down how to allocate funds based on revenue tiers, outlines the split between paid media, brand marketing, and influencer marketing, and offers a specific 80/20 rule for seeding versus contracted influencers to maximize ROI.
Key takeaways
For brands under $5M annual revenue, allocate 40% of revenue towards Customer Acquisition Cost (CAC); for brands over $5M, allocate 25%.
Within your total marketing budget, roughly 75% should go to paid media (e.g., Facebook, Instagram, TikTok, Google Ads), and the remaining 25% should be split between brand marketing (12.5%) and influencer marketing (12.5%).
An influencer marketing budget for brands can be set at 5% of total revenue. For a $10M brand, this translates to $500,000 annually.
Allocate 80% of your influencer marketing budget to seeding (sending free products to influencers) and 20% to contracting best-performing influencers who have proven efficacy via seeding or affiliate programs.
Prioritize free or cheaper influencer discovery tools in the first year. Only consider macro partnerships or significant paid tools once your influencer marketing budget exceeds a comfortable threshold (e.g., $1M for a $20M+ revenue brand).
In this episode, we’ll be breaking down everything you need to know about the Influencer marketing budget calculator to help you effectively budget for the forthcoming year: [01:12]: Four quarter accounting principles [02:05]: Target breakdowns sheet [03:35]: Differences and the splits in the budget [06:18]: Influencer marketing budget and options [08:46]: Influence marketing budget recap Influencer Marketing Budget Calculator
Cody Wittick: Twitter
Taylor Lagace: Twitter
What does this episode say about influencer & creator?
For brands under $5M annual revenue, allocate 40% of revenue towards Customer Acquisition Cost (CAC); for brands over $5M, allocate 25%.
What does this episode say about paid acquisition?
Within your total marketing budget, roughly 75% should go to paid media (e.g., Facebook, Instagram, TikTok, Google Ads), and the remaining 25% should be split between brand marketing (12.5%) and influencer marketing (12.5%).
What does this episode say about finance & fundraising?
An influencer marketing budget for brands can be set at 5% of total revenue. For a $10M brand, this translates to $500,000 annually.
What does this episode say about influencer & creator?
Allocate 80% of your influencer marketing budget to seeding (sending free products to influencers) and 20% to contracting best-performing influencers who have proven efficacy via seeding or affiliate programs.
What does this episode say about influencer & creator?
Prioritize free or cheaper influencer discovery tools in the first year. Only consider macro partnerships or significant paid tools once your influencer marketing budget exceeds a comfortable threshold (e.g., $1M for a $20M+ revenue brand).
