So you want to start an influencer marketing agency? It takes a lot more than you think, though that shouldn’t discourage you from pursuing it. Influencer marketing is a multifaceted field that demands a diverse set of skills to effectively navigate its complexities. But that also means a great diversity of people will thrive in the industry.
The industry has historically attracted a wide range of people with expertise in areas like digital marketing, social media management, content creation, data analytics, entrepreneurship, and technology—and that’s just the start. You don’t need all these skills yourself, especially in an agency setting. These different backgrounds can be spread across your team. Of course, when you’re just starting out, you might not have the luxury of a team.
Given these requirements, individuals from various professional backgrounds are well-suited for influencer marketing. Digital marketing experts, with their deep understanding of online strategies and audience engagement, bring a strategic perspective that’s crucial for campaign success.
Social media enthusiasts, passionate about platforms like Instagram, YouTube, and TikTok, know what works and what doesn’t for these channels. Similarly, public relations professionals excel in building and maintaining relationships, which is kind of a critical component when working with influencers. Entrepreneurs and business strategists bring a knack for identifying market opportunities and executing growth plans, which is invaluable for scaling an agency.
Content creators and even social media influencers themselves can make excellent marketers—they’ve got firsthand experience and unique insights into what resonates with audiences. Tech-savvy individuals who can harness digital tools and analytics to streamline operations and measure success also thrive in this field.
Creative professionals, such as graphic designers and writers, contribute by developing engaging content that stands out. Sales and marketing veterans, with their skills in client acquisition and campaign management, have the know-how to build a robust client base.
Because there are so many avenues into the industry, there isn’t any one kind of person who can be successful at starting an influencer marketing agency. If there is one type, it’s the kind of person who reads the rest of this guide and thinks, “Yup. I definitely want to do this.”
Have a read through the rest of this guide to truly understand what you’re taking on as an agency startup. The best place to start? The beginning.
Core Functions of an Influencer Marketing Agency
Influencer marketing agencies offer a wide range of services that are essential for successful campaigns. It’s a good idea to understand them and how they relate to your own skills and strengths.
Identifying what you can excel at and where you’ll need help ensures a well-rounded offering. That help can be in the form of employees or outside contractors, but understand this: There are several core components to any influencer marketing campaign, and the more of these components you can bring in-house the better the experience will be for your clients. It also happens to be more profitable that way.
Here’s a closer look at their key responsibilities:
Market Research and Analysis
Before launching any campaign, an agency conducts thorough market research to understand the client's industry, competition, and target audience.
For instance, Viral Nation demonstrated this process effectively during their campaign for the VR launch of "Resident Evil 4" on Meta Quest 2. They analyzed the market trends and audience preferences to onboard 73 creators and publishers across multiple platforms, crafting a strategy that resonated with gaming enthusiasts.
Influencer Vetting and Selection
Identifying the right influencers is crucial. Agencies use various tools and databases to find influencers whose audience matches the client's target demographic. They evaluate influencers based on their reach, engagement rates, content quality, and authenticity.
This process ensures that the influencers chosen will effectively communicate the brand's message. In some cases, marketing agencies double as talent agencies and have their own pool of influencers to choose from. This just means the vetting process has already been completed.
Creative Campaign Development
Agencies work closely with influencers to develop creative concepts for campaigns. A great example is NeoReach's campaign for TikTok's launch in the US. NeoReach partnered with influencers from Snapchat, Instagram, and YouTube to create content that showcased TikTok's features, incorporating authentic storytelling to engage audiences and effectively promote the app.
Contract Negotiation and Management
Negotiating contracts is a critical aspect of influencer marketing. Agencies like The Influencer Marketing Factory streamline this process, handling all legal and financial details, as seen in their campaign with Dunkin’. They managed all aspects, including content ownership and payment terms, ensuring smooth collaboration between the brand and the influencers selected.
Campaign Execution
Once the strategy is in place and contracts are signed, the agency oversees the execution of the campaign. This includes coordinating with influencers on content creation, setting timelines, and ensuring that all deliverables are met.
For example, Ubiquitous demonstrated flawless execution in their collaboration with Litter Robot. They coordinated with 130 influencers across various platforms to create content that naturally integrated the product, maintaining close coordination to optimize performance and ensure all deliverables were met, resulting in 68.1 million views.
Agencies also monitor the campaign in real-time to address any issues that arise.
Analytics and Reporting
Measuring the success of an influencer marketing campaign is essential. Agencies like Moburst excel in this area. Their data-driven approach provided detailed insights into influencer campaigns, enabling clients to understand key metrics like engagement rates and conversions. This allowed Moburst to offer transparent and measurable results, further refining future strategies.
Essential Knowledge for Success in Influencer Marketing
Knowing what’s involved in the day-to-day for an agency is really at the start. Now that you understand what’s expected of you, it’s clear that you need to bring some knowledge and expertise to the table. These aren’t necessarily things you already need to know, so much as these are areas where you need to be continually learning.
Of course, you should bring some basic understanding with you.
Staying Updated on Social Media Trends
For one thing, staying up-to-date with the latest social media trends and platform updates is crucial. Different platforms cater to different demographics and content types. For example, Instagram is known for visual content and Stories, while TikTok is popular for short-form videos.
Facebook is for people to post videos from the driver's seats of their cars, wanting to talk to the manager. Understanding these nuances helps in selecting the right platform for each campaign.
Understanding Target Audiences
Beyond the different content types on the channels, they also tend to cater to different audiences. Knowing the target audience is fundamental to creating effective influencer campaigns. TikTok skews young, while Instagram is more popular with Millennials and Gen Xers.
But more than just understanding the age of audiences, you’ll also need to know their preferences, behavior, and pain points. Agencies often use tools like Google Analytics, social media listening tools, and market research reports to gather this information.
Influencer Tiers and Their Impact
The best agencies also understand that influencers come in various tiers, from micro-influencers (with smaller, highly engaged audiences) to mega-influencers (with millions of followers). Each type has its advantages and challenges.
Micro-influencers, for example, often have higher engagement rates and more authentic connections with their followers, while mega-influencers offer broader reach. Knowing how to leverage these dynamics is key to a successful campaign. If you’re approaching influencer marketing thinking it’s just about amplifying a message, you’re not going to get very far.
Balancing Content Creation and Influencer Authenticity
Many agencies also offer their own in-house creative studios to fill out the execution of campaigns. While high-quality content is the backbone of any influencer marketing campaign, it’s not necessary to go this far into creative. Yes, you should have an understanding of what makes good content, but you’re using influencers for a reason.
Agencies must understand the principles of effective content creation, including storytelling, visual aesthetics, and brand alignment, but the best use of that knowledge is knowing what you need to get out of the content your influencer will create.
Managing Legal and Ethical Considerations
One thing people who get into Influencer marketing are often surprised to learn is just how much operational administrivia is required. Producing content involves several legal and ethical considerations, including disclosure regulations and copyright laws. U.S. agencies must ensure that influencers comply with FTC guidelines, while those in the EU are subject to GDPR regulations, for sponsored content.
All legal aspects of contracts must be properly managed. This helps protect the agency, the brand, and the influencer from potential legal issues. It’s not as fun as adding stickers to Instagram Reels, but it’s incredibly important.
Measuring and Analyzing Campaign Performance
Finally, on the less exciting side of things, having the knowledge to measure and analyze campaign performance is crucial for demonstrating value to clients. Agencies use various analytics tools to track KPIs and calculate ROI. This data not only proves the effectiveness of campaigns but also provides insights for future improvements.
It’s not enough to show your clients a bunch of numbers and tell them whether they’re good or bad. You need to tell them what they mean. “Analytics” means you’ll be doing some analysis, and “insights” means you’ve got more than just a superficial understanding of that analysis.
Steps to Start an Influencer Marketing Agency
Now that we have covered the essentials, let’s outline the steps to start an influencer marketing agency. This isn’t meant to be a complete roadmap, but it’s a starting point to let you know the order in which things should be accomplished.
1. Develop a Business Plan
A solid business plan is the foundation of any successful business. It should include your agency's mission, target market, services offered, pricing structure, and financial projections. A well-thought-out business plan will guide your agency's growth and help attract potential investors or partners. The numbers you put here should be realistic projections, especially if you’re needing investors to get things going. You’re helping no one by inflating your expectations.
2. Build a Network of Influencers
Even if you’re not a full-service talent agency, building genuine relationships with influencers is essential.
Betty Andrews, Founder of The Cosmic Co, advises that reaching out goes beyond a single email. Personalize your communication by introducing yourself, explaining why you’re reaching out, and highlighting what you admire about their work. Ask about their preferred way of collaborating and provide clear details about your project to show you value their expertise.
Additionally, consider asking for their media pack and rate card to ensure they're a good fit for your budget and audience. By involving influencers early on, such as in brainstorming sessions, you respect their creativity and knowledge, helping you build an authentic and diverse influencer network.
3. Create a Portfolio
Having a portfolio of successful campaigns is crucial for attracting clients. An excellent example is The Goat Agency, which has a dedicated "Our Work" page showcasing their past campaigns. They allow clients to filter their work by industries such as automotive, beauty, fashion and retail, food and beverage, and more, making it easy to see the agency's versatility and expertise.
If you're just starting, consider offering your services at a discounted rate or even for free to build case studies and testimonials. Leveraging relationships with influencers can also be a great way to participate in campaigns and build a diverse portfolio like The Goat Agency’s. In short, highlight your ability to deliver results and showcase the creative strategies you’ve implemented.
4. Invest in Tools and Technology
Investing in the right tools and technology can streamline your operations and enhance your services. This includes influencer marketing platforms, analytics tools, project management software, and content creation tools.
For instance, Modash is an influencer marketing platform that offers a comprehensive suite for discovering, analyzing, and monitoring influencers across Instagram, YouTube, and TikTok. It even includes a fake follower detection algorithm, ensuring you work with genuine influencers.
Brands like Google, Victoria’s Secret, and Airbnb have used Modash, proving its effectiveness.
If your strength lies in creativity, consider starting with a content creation tool like Canva before investing in more complex or expensive platforms. This will help you maximize your strengths and gradually expand your capabilities as you grow.
There are many all-in-one platforms that handle all these aspects, though they might be beyond your budget in the early going. You’ll want to familiarize yourself with as many free tools as you can and invest some in the ones that will help you the most. If your strength is creative, but you’re kind of disorganized, a project management tool might be the smart place to put your money first.
5. Develop a Strong Online Presence
For most businesses, the online presence has to represent you as an expert in your field. Your agency will be offering marketing expertise, so your online presence is crucial to demonstrating expertise and credibility. Create a professional website that showcases your services, portfolio, and team.
Maintain active social media profiles and share valuable content related to influencer marketing. A regularly updated blog will help establish your agency as a thought leader in the industry (and show you understand the basics).
6. Build a Team
As your agency grows, you’ll need a team of skilled professionals to handle various aspects of the business. This can include account managers, content creators, data analysts, and legal advisors. Hiring the right talent will ensure that your agency delivers high-quality services and meets client expectations.
7. Focus on Client Acquisition
In the early stages, when you’re still small and have little overhead, one or two clients might be enough to sustain you. But if you’ve grown to the point where you’re hiring people, that means you need to make client acquisition efforts an everyday activity. Use a combination of inbound and outbound marketing strategies to attract potential clients. This can include content marketing, social media marketing, SEO, and networking.
A great example is how The Influencer Marketing Factory utilizes LinkedIn to attract potential clients. Instead of directly marketing their services, they create super insightful content that draws clicks. For instance, they regularly share monthly marketing round-ups packed with the latest headlines and trends in the creator economy, such as TikTok updates, Instagram features, and YouTube news.
By establishing themselves as a valuable source of industry insights, they engage potential clients organically, making them more likely to reach out when they need influencer marketing services.
Conclusion
Starting an influencer marketing agency requires a deep understanding of social media dynamics, audience insights, and effective content creation. By leveraging the power of influencers, brands can reach their target audience in a more authentic and engaging way. As an agency, your role is to connect brands with the right influencers, develop creative campaigns, and measure their success.
By following the steps outlined in this guide, you can build a successful influencer marketing agency that delivers value to clients and helps them achieve their marketing goals. Stay updated with industry trends, invest in the right tools, and focus on building strong relationships with influencers and clients. With dedication and strategic planning, your agency can thrive in the ever-evolving world of influencer marketing.
Frequently Asked Questions
What skills are essential for starting an influencer marketing agency?
Skills in digital marketing, social media management, content creation, data analytics, and relationship building are crucial. However, you don't need to master all of them yourself; you can build a team with diverse expertise.
How do I find and recruit influencers for my agency's campaigns?
You can start by using influencer marketing platforms like Modash to discover and vet influencers based on factors like engagement rates, audience demographics, and content quality. Networking and building relationships on social media can also help.
How do I create a portfolio if I'm just starting out?
Offer your services at a discounted rate or even for free initially to build case studies and testimonials. This will help showcase your work and demonstrate your ability to deliver results to future clients.
What tools and technologies are necessary for running an influencer marketing agency?
Essential tools include influencer marketing platforms (e.g., Modash), content creation tools (e.g., Canva), project management software, and analytics tools to track campaign performance.
How can I attract clients to my influencer marketing agency?
Use a combination of inbound and outbound marketing strategies like content marketing, social media marketing, SEO, and networking. For example, creating insightful content on LinkedIn can establish your agency as an industry expert.
Is it necessary to have a team when starting an influencer marketing agency?
Not initially. You can start solo, but as you grow, you’ll need a team with diverse skills like content creation, data analytics, account management, and legal expertise to handle the increased workload.
