top of page

Social commerce and classic influencer marketing vs. performance-based influencer marketing

Option 156.png

A new trend

The digitalization of retail and social media has opened new doors for marketing. A paradigm shift has taken place, especially in the area of influencer marketing. This article will shed light on the difference between classic influencer marketing and the performance-based approach, while also taking into account the influence of social commerce.

New trend

Classic vs. performance-based influencer marketing: A comparison

Comparison

​1. definition

Classic influencer marketing: The focus here is on brand awareness and reach. Companies pay influencers a fixed fee to promote their products or services, regardless of how many sales are actually generated.

Performance-based influencer marketing: This approach focuses on sales and conversions. Instead of a fixed fee, influencers receive a commission for every sale or other type of conversion they generate.

2. Measurability

Classic influencer marketing: It can be difficult to accurately measure ROI as the focus is more on reach and brand awareness.

Performance-based influencer marketing:Measurability is more direct and accurate because success is measured based on concrete sales and conversions.

3. Risk

Classic influencer marketing: Businesses are at higher risk because they pay upfront with no guarantee of sales or conversions.

Performance-based influencer marketing: There is less risk because payments are based on actual sales or conversions.

 

4. Costs

 

Classic influencer marketing:The costs are set in advance and are based on a fixed budget for posts or campaigns.

Performance-based influencer marketing: The cost is variable and is based on a sales commission that only accrues when a sale or other conversion occurs.

5. Selection of influencescern

Classic influencer marketing: Since this model is already established, there is a much larger selection of influencers who are willing to get involved in it. The selection is many times larger – around a factor of 10 – compared to the performance-based model.

Performance-based influencer marketing: Many successful influencers are still hesitant to commit to a performance-based model because it is not yet the standard in the industry. One reason for this reluctance is the lack of transparency in measuring performance. Without a clear understanding of how their posts drive conversions, they may feel disadvantaged or treated unfairly.

Requirements for performance-based influencer marketing

Requirements

However, to be successful in performance-based influencer marketing, you must ensure excellence in e-commerce. Otherwise, the performance-based model is of course no fun for anyone.

In particular, connecting to marketplaces can offer advantages:

  1. Increased visibility: Large marketplaces have an already established customer base.

  2. Trustworthiness: Many customers trust large marketplaces and are therefore more willing to make purchases.

  3. User friendliness:Most major marketplaces offer an intuitive interface and streamlined purchasing processes.

  4. Efficient logistics:Fast delivery times and simple returns processes that increase customer satisfaction.

  5. Seamless sales process: Many consumers in Germany and Europe already have an account on large marketplaces, which makes the purchasing process much easier.

The right strategy counts

While both approaches have their own advantages and disadvantages, the performance-based model gains importance due to its ROI focus and traceability. However, brands should ensure they choose the right strategy for their specific goals and audience.

And if you're looking for a way to convert influencers to a performance-based model like we do, contact us!

We help you optimize your influencer marketing strategy and get the best of both worlds.

The right strategy
⬛ Background.png

Arrange a free consultation

Arrange an initial telephone call in which we will discuss your needs and requirements in the e-commerce marketplace. We would be happy to prepare a free brand analysis for your brands.

bottom of page