This episode provides a practical framework for ecommerce brands to strategically plan their influencer marketing budgets for 2023. It breaks down how to allocate marketing spend based on revenue tiers, focusing on maximizing ROI through seeding strategies and structured influencer contracts rather than just chasing "likes." The hosts introduce a budget calculator to guide allocation across paid media, brand marketing, and influencer initiatives.
Key takeaways
For brands under $5M annual revenue, allocate 40% of revenue to Customer Acquisition Cost (CAC); for brands above $5M, allocate 25% of revenue to CAC.
Allocate 75% of your total marketing budget to paid media (Facebook, Instagram, TikTok, Google Ads) and the remaining 25% split between brand marketing (content, PR, events) and influencer marketing.
Dedicate 12.5% of your total marketing budget (or 2-5% of revenue) to influencer marketing, further splitting this 80% to seeding efforts (cost of goods + shipping for free products) and 20% to contracting top-performing influencers.
Prioritize seeding for new influencer marketing initiatives and onboard successful seeded influencers to affiliate programs before considering macro-partnerships, which are generally more viable for brands with over $20M in revenue.
Utilize free or affordable influencer discovery tools, especially when dedicating a significant budget to seeding, to streamline the identification of suitable influencers.
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
Frequently asked about this episode
What does this episode say about influencer & creator?
For brands under $5M annual revenue, allocate 40% of revenue to Customer Acquisition Cost (CAC); for brands above $5M, allocate 25% of revenue to CAC.
What does this episode say about paid acquisition?
Allocate 75% of your total marketing budget to paid media (Facebook, Instagram, TikTok, Google Ads) and the remaining 25% split between brand marketing (content, PR, events) and influencer marketing.
What does this episode say about finance & fundraising?
Dedicate 12.5% of your total marketing budget (or 2-5% of revenue) to influencer marketing, further splitting this 80% to seeding efforts (cost of goods + shipping for free products) and 20% to contracting top-performing influencers.
What does this episode say about analytics & attribution?
Prioritize seeding for new influencer marketing initiatives and onboard successful seeded influencers to affiliate programs before considering macro-partnerships, which are generally more viable for brands with over $20M in revenue.
What does this episode say about influencer & creator?
Utilize free or affordable influencer discovery tools, especially when dedicating a significant budget to seeding, to streamline the identification of suitable influencers.
