Why Small Businesses Are Embracing This Low-Cost Influencer Marketing Strategy

""You're not going to turn to a huge celebrity when you need a recommendation for an electrician or an aesthetician," Collabstr co-founder Kyle Dulay said in the study. "You're going to trust the recommendation on Nextdoor, the shout out in Yelp, the mention on Reddit." That's why "smaller, service-based businesses"-think: nail salons and cleaning companies-are finding success by partnering with the influencer-next-door rather than the ones starring in Super Bowl ads, according to the platform, which surveyed 10,500 content creators throughout September and October of this year."

"About 82 percent of hyperlocal influencers are women and more than half live in suburban areas, per the study. Because three-fourths of these content creators haven't done brand partnerships before, their rates are more accessible to small businesses-about $100 to $250 per post. Nearly half of the small businesses that partner with these influencers ask them to post "reviews, recommendations, and online ratings," per Collabstr. Another 40 percent pay them to answer other users' questions with a direct referral to their business."

A survey of 10,500 content creators in September and October found that hyperlocal influencers—everyday people who review local businesses on Nextdoor, Yelp, Reddit, and community forums—offer effective marketing for small, service-based businesses like nail salons and cleaning companies. About 11 percent of creators earned money through paid Reddit or NextDoor partnerships this year, up from 8 percent last year. Approximately 82 percent of hyperlocal influencers are women and more than half live in suburban areas. Three-quarters have not done brand partnerships, keeping rates accessible at roughly $100 to $250 per post. Nearly half of partnering small businesses request reviews and ratings; 40 percent pay for direct referral responses. Businesses and creators must follow FTC deceptive-advertising rules and platform terms, including prohibitions on conditioning compensation on consumer reviews.

Read at Inc