Eric Siu argues that big creators often don't deliver measurable returns for brands. Brands prefer micro and nano influencers on revenue-share deals because they have higher engagement and clearer ROI, while Instagram's algorithm changes have made expensive influencer placements less reliable.
Did you know the ROI of creators is zero? No. What do you mean by that? Okay, so I was reading a thread. This is interesting. Number 1, people genuinely just don't check things. 2, we do not have the marketing budgets to let people stay in $400 a night rooms and pay them ridiculous amounts they ask for on top of that for a couple pictures. 3, we prefer to pay local photographers who understand our brand slash we have worked with. So just because you have 100,000 followers, that does not mean you have influence over them. Final thing, Instagram algorithms are so picky and it just isn't the way it used to be anymore. The ROI of creators is there when you work with micro or nano influencers. And you do a rev-share deal, we're finding that to be extremely profitable. You drive revenue, you get paid. You don't drive revenue, you get paid zero. I think to this gal's point, the old way it was like, dude, you can stay at the Maldives for free and then we'll also give you like another like $20,000, $50,000 or something like that. That doesn't work anymore because they're just throwing money at the problem before. And it was this perceived value that was just never there. But with the micro influencers, they have more engagement with their audience and they have more affinity with their audience too. And if it performs great, if not, then you get nothing. So that's a good deal.
