Startup cost
$500–$5k
TRUiC Business Ideas
How to Start a Social Media Influencer Business
Decision Snapshot
Social Media Influencer
Idea Score
69
Profit margin
27%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Flexible
Part 1 - How to start a Social Media Influencer business - Background
As traditional media declines and social media emerges, marketers are increasingly incorporating social media influencer marketing into their strategies. Thumos reports that this is both a smart and popular advertising strategy, with 94 percent of marketers saying it’s effective and an increasing number of companies planning on using it through 2020.
Marketers pay social media influencers because they’re the gateways to their followers. When stars on Facebook, Instagram and other platforms post about a company’s service or product, followers see and engage with whatever is being promoted.
Our guide is in 3 parts:
- Part 1 - How to start a Social Media Influencer business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a social media influencer business?
The startup costs for a social media influencer business are minimal, and it may even be possible to start a business for free by using library resources and a friend’s camera. Influencers need little more than a computer, internet connection, and camera or smartphone to get started.
Many influencers use software, some of which costs money. There are plenty of free software options that influencers who don’t have any capital can use at first, though. HootSuite and Buffer are two fo the most popular tools used for managing profiles and scheduling posts. They both have free and paid plans.
What are the ongoing expenses for a social media influencer business?
The ongoing expenses for a social media influencer business are minimal. The main ongoing expenses are the cost of internet access and any paid software that’s used.
Who is the target market?
Social media influencers try to appeal to as wide an audience within their niche as possible. Marketers who hire social media influencers may sometimes ask about the demographics of an influencer’s followers, but the sheer number of followers is usually more important.
How does a social media influencer business make money?
Social media influencer businesses usually charge marketers for posting about a company’s services or products. Marketers might purchase a one-off post or set up a more lengthy campaign that involves several posts.
In some cases, influencers may receive a commission for every pre-defined engagement that a post leads to. Such a commission usually replaces a posting fee.
How much can you charge customers?
How much social media influencers charge depends on how many followers they have. Influence.co compiled data on Instagram influencers that bears this out. Influencers with:
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Fewer than 1,000 followers charge $82.60 per post on average
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Between 1,000 and 9,999 followers charge $107.50 per post on average
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Between 10,000 and 99,999 followers charge $240.20 per post on average
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More than 100,000 followers charge $763.30 per post on average
Rates for other platforms vary, but the correlation between followers and fees remains true.
How much profit can a social media influencer business make?
According to Davies, social media influencers’ earnings range from very little (“pocket change”) to seven-figure annual revenues. Whether an influencer is able to make a living depends on how many followers they have and what niche they’re in. Some industries (e.g. fitness) pay better than others (e.g. tea).
In addition to monetary revenue, the most successful influencers also get experiences they otherwise wouldn’t be able to do. Often, experiences are offered so that influencers can post about them.
How can you make your business more profitable?
Social media influencers can add another revenue stream by including affiliate links that pay a commission if anyone buys something through them. This is an easy way to monetize non-sponsored posts.
Day-to-Day and Growth
What happens during a typical day at a social media influencer business?
The most time-consuming aspect of running a social media influencer business is creating original content. After coming up with an idea, actually producing content might require creating a meme, staging a photo, or making a video. Influencers might occasionally post a quick update that doesn’t require much planning, but more intentional posts are needed on a regular basis to keep a loyal following.
When not creating original content, influencers spend their time curating and reposting others’ content, interacting with followers and finding marketers to work with.
What are some skills and experiences that will help you build a successful social media influencer business?
Because business owners are paid to post advertisements, they should be well acquainted with the nuances of social media marketing in general and influencer marketing more specifically. There are several books, such as The Road to Recognition and Influencer, that cover these topics. Additionally, a number of organizations offer influencer marketing conferences.
What is the growth potential for a social media influencer business?
One of the metrics closely followed in this type of marketing is the number of followers a social media influencer has. The most successful have millions of followers. For example, Zach King, and Huda Kattan have over 20 million Instagram followers. The smallest influencers have at least 5,000 followers.
What are some insider tips for jump starting a social media influencer business?
Growing a social media influencer business takes time, and business owners shouldn’t look for shortcuts that jump-start the process. Specifically, buying or otherwise acquiring fake followers can backfire. Artificially inflated follower numbers may look good initially, but they lead to low engagement rates and potential penalties.
How and when to build a team
Most social media influencers run their businesses themselves, but some hire an assistant if the workload, demands, and revenue allow for it. An assistant can help create posts, interact with followers, and otherwise manage the profiles used.
Part 2 - Is a Social Media Influencer business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Social Media Influencer business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Social Media Influencer Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Social Media Influencer business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.