I run an online store selling gourmet coffee beans.
I’ve set aside some budget for marketing and would like to try out influencer marketing for my brand/product.
The thing is there are a multitude of influencer marketing platform options for me to choose from. I have decided to try out 2 platforms for a start, Saral and InfluencerCandy, as they allow me to commit a small amount upfront to test this out and their platforms seem to provide the end to end influencer marketing experience that I am looking for.
I’m just wondering what’s the minimum ROI/ROAS I should be looking out for to determine that this type of marketing works for my business?
I feel like you haven’t grasped ROAS.
What if I told you I could get you 500% roas? Sounds awesome right? I can sell 100,000 units of your product a week. Bet you are frothing at the mouth now.
But your margin is 10% and you go out of business in week 1 saddled with huge losses despite being out the door with sales.
Work out your margin (not markup). Divide 100 by your margin I. E 100/10 =10. Then multiple this number by 100 to get your break even roas.
At a 10% margin you need 1001% ROAS to make. Money