Can Instagram Influencers Help You Raise Capital?
By Adam Gower Ph.D.
Influencer marketing is on the path to being a $5 to $10 billion dollar industry in 2020. While influencers can be found on every social media platform, Instagram is the most common place you’ll find them.
What’s all the hype about? And, can influencer marketing work to help you raise capital for a real estate project?
Who Are Instagram Influencers?
Influencers are people who can influence buying decisions from their followers. They’re usually people who have a relatively large number of followers and who command authority of some sort in their industry as a voice on a particular topic.
Essentially, they’re compensated in exchange for posting about you, your offering, or your business.
You’re probably familiar with the names of big-time influencers like the Kardashians, or any number of celebrities that make sponsored posts on behalf of companies. These heavyweights represent a limited view of the market overall because influencers are present in every industry, demographic, and group, even in real estate investment and development.
While not every influencer is as widely known or followed as others, they can still be effective at spreading knowledge of your company or a specific project. (????).
Types of Influencers
1) Nano Influencers
These are influencers who have around 1,000 – 5,000 followers. Although they’re much smaller, nano influencers tend to have a lot of trust from their smaller group of followers.
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2) Micro Influencers
As the next step up from nano influencers, micro influencers tend to range from around 5,000 to 50,000 followers. These are significantly larger spheres of influence that still tend to maintain a better engagement rate with their followers.
3) Big-Time Influencers
Anything above 50,000 followers puts an influencer in the big league. These influencers have a lot of reach, but all that reach can come at a high cost. Plus, there will likely be the added hassle of having to work through an agent or manager instead of communicating directly with the influencer.
These are rough numbers that can change, but it’s a good starting point to give you an idea of how to group influencers and where to begin.
Are Influencers Useful in Real Estate Investment Sectors?
The benefit of working with Instagram influencers is that your message is spread through word of mouth, which is known to be the most effective method even today. As unlikely as it may sound, there are influencers in every industry you can think of with every different type of audience.
While the largest and most famous influencers will probably always be in industries like beauty, cosmetics, or fashion, there are plenty of highly effective influencers in real estate and related industries as well. There are influencers on Instagram right now who can connect with your target audience and help your message find prospective investors who never knew about you before, or those who weren’t convinced about your message initially.
Just having the right people spreading the word about your development projects can be great for you. Investors come in all shapes and sizes, and you never know where they’re looking or who they’re following. By marketing through influencers in relevant industries, especially influencers with vastly different followings, you have the potential to grow your ROI on your social media marketing budget by diversifying away from traditional online advertising.
Influencers probably won’t drive millions of dollars in your direction straightaway. However, they can help introduce new prospects to your offerings and expand your reach to a base of people who already trust their opinions.
How to Find Relevant Instagram Influencers
Today, it’s a lot easier to find Instagram influencers than it was even a few years back. You can find them directly by searching relevant hashtags and looking for people who fit the bill, working with an influencer agency, or scrolling through an influencer marketplace.
No matter what your budget is, you’ll likely find influencers who will work with you. Even nano and micro influencers can have a great impact on the success of your marketing campaign.
We don’t hear much about super-famous real estate investment influencers, but that doesn’t mean they don’t exist. Find them, pick the right influencers for your target audience, and see how they can spread the message about your new development in front of the eyes who will care about it.
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