Should Small Businesses Hire Influencers?

Key takeaways

• Yes, hiring influencers makes sense for small and solo businesses. But if you’re on a budget, it’s wiser to go with smaller influencers that are very targeted to your niche.
• Micro-influencers (1K-100K followers) are more effective for small businesses than celebrities, with costs ranging from £50-300 per post
• Budget at least £300-500 monthly for sustainable influencer campaigns – one-off posts rarely generate meaningful results
• Best suited for visual products targeting social media-active demographics; skip if your audience isn’t on social platforms
• Measuring ROI is challenging – track website traffic spikes, unique discount codes, and brand mentions rather than just follower growth
• If you choose not to go with influencer marketing, you could use employee advocacy, customer testimonials, and local business partnerships
• Only pursue if you can handle increased demand and have time for ongoing relationship management
• Start with 1-2 local micro-influencers, test what works, then scale successful approaches

Introduction: Does influencer marketing work?

Influencer marketing works. We’ve had many examples of that, from basic water bottle brands gaining holy grain status to local cafes doubling revenue or a chocolate bar causing pistachio shortages around the world.

The reality is that influencer marketing isn’t a magic bullet, but it could be a good tool in your kit and can work for organisations with a smaller budget.

Let’s look at the different types of influencer marketing so you can decide if it makes sense for your small business. We’ll look at the type of influencers out there, what costs this may entail and whether there might be better ways to spend your marketing budget.

What influencer marketing actually means for small businesses

When we talk about influencer marketing for small businesses, we’re typically looking at two categories: micro-influencers with 1,000 to 100,000 followers, and nano-influencers with fewer than 10,000 followers. These aren’t household names, but they often deliver better results for small businesses than their celebrity counterparts.

Here’s why smaller influencers work better for small businesses: their audiences are more engaged, more trusting, and more likely to act on recommendations. If a fitness instructor with 5,000 local followers promotes your healthy meal service, you could generate more actual customers than a celebrity influencer or a chef with 500,000 followers across the country.

The costs are also manageable. While a macro-influencer might charge thousands per post, micro-influencers often work for £50-300 per post, or sometimes just for free products. Many are happy to negotiate, especially if you’re a local business they genuinely want to support.

This type of influencer marketing looks less like traditional advertising and more like word-of-mouth recommendations. The influencer might share your product in their daily routine, mention your service while discussing a related topic, or create content that naturally incorporates your brand.

But keep in mind that influencer marketing works best as part of a broader strategy. Don’t forget to have clear and compelling messaging about your product or service, use cases and social proof. Also, as a founder or director, your role as a company spokesperson is very important. As influencers go, no one is better than you to promote your company.

The case FOR hiring influencers

There are many ways in which influencer marketing can work for small businesses. Here are the reasons why you should consider it:

You get access to engaged, targeted audiences.

People trust recommendations from real users. When someone they follow on social media recommends a product, it works better than a traditional advert. This is especially true for micro-influencers who have built genuine relationships with their audiences. Their followers see them as peers rather than celebrities, making their recommendations feel more credible and relatable.

It’s cheaper than traditional advertising.

A single post from a micro-influencer might cost £100-200and reach 5,000-20,000 engaged people in your target demographic. Compare that to Google Ads, local radio commercials, or even print advertising, and you might find influencer marketing offers better value for money, especially when you factor in the quality of the audience.

You get professional content as part of the deal.

Good influencers are skilled content creators. When they feature your product, you often get high-quality photos, videos, and copy that you can repurpose across your own marketing channels. This content creation alone can justify the cost, as hiring a photographer or content creator separately might cost just as much.

Local influencers can help you penetrate regional markets.

If you’re a Manchester-based business, partnering with Manchester lifestyle influencers gives you direct access to your local market. They understand local culture, events, and preferences in ways that broader advertising campaigns might miss.

It can boost your social proof quickly.

When potential customers visit your social media pages and see that real people are talking about and using your products, it builds credibility. This social proof can be particularly valuable for new businesses trying to establish trust in the market.

The case AGAINST(common challenges)

Before you start reaching out to influencers, it’s important to understand the real challenges that many small businesses face with this approach.

Budgets can add up.

Even micro-influencers require payment, free products, or both. What starts as a £200 monthly budget can quickly become £500-800 once you factor in product costs, multiple partnerships, and the need for consistent campaigns rather than one-off posts. If you’re operating on tight margins, this can quickly catch up with you. That would be even more expensive if you go through an influencer marketing agency, so build that into your influencer marketing strategy. 

Measuring return on investment is difficult. Unlike Traditional digital marketing activities like Google Ads where you can track clicks and conversions, influencer marketing results are harder to quantify, particularly if you’re running different activities at the same time. This is a challenge that large and small businesses must grapple with.

Brand alignment risks are real and costly.

Influencers are individuals with their own opinions and behaviours. If they do or say something, it could reflect on your own image and reputation and as a small business you might not have the time and resources to vet everyone before you start working with them.

You need time to manage influencer relationships. 

Some influencers, particularly smaller ones could be very easy to work with, but you still have to find the right people, negotiate partnership, brief them, approve content etc. Don’t underestimate how much work this will take.

The market is saturated and it’s harder to stand out.

Your potential customers are already seeing multiple sponsored posts daily. Influencer content can blend into the noise, especially if it’s not genuinely creative or relevant. Find creative, or very targeted ways to stand out. When assessing a partnership, consider how creative the influencer is and how they plan to break through with your message. 

No guarantee that the audience will act.

If an influencer gets a high engagement rate on other posts, it doesn’t necessarily mean that they will achieve it for your brand too. There’s always a risk that some messages and promotions will not “land” and it can be frustrating. 

Alternative approaches for small businesses

If influencer marketing feels like too much risk or investment for your current situation, there are other ways  to market your business:

Turn your employees into brand ambassadors. Your team members are already invested in your business success and understand your products better than any external influencer. Encourage them to share behind-the-scenes content, customer interactions, or their genuine experiences with your products. This costs nothing beyond your existing payroll and often feels more authentic because it comes from people who actually work with your brand daily.

Focus on customer testimonials and user-generated content.

Rather than paying influencers, create systems to encourage your existing customers to share their experiences. Offer small incentives like discounts for photos, run contests for customer stories, or simply ask satisfied customers to leave reviews with photos. This is more credible than paid partnerships because it comes from genuine buyers.

Build partnerships with complementary local businesses.

Instead of paying influencers, partner with businesses that serve the same customers but aren’t direct competitors. A wedding photographer might partner with a florist, or a gym might collaborate with a healthy food delivery service. These partnerships can include content sharing, cross-promotion, or joint events that benefit both businesses without the uncertainty of influencer marketing.

Invest in building your own social media presence.

The time and money you might spend on influencer partnerships could go toward creating your own engaging content and building your own following. This takes longer to show results, but you maintain complete control over your message and build an asset that belongs entirely to your business.

Support local causes and events. Micro-sponsoring community events, local sports teams, or charitable causes can generate goodwill and brand awareness in your target market. A £200 sponsorship of a local charity run might reach more of your ideal customers than an influencer post, while also building genuine community connections and long-term customer loyalty.

When it makes sense for a small business to hire influencers (and when it doesn’t)

Here are clear indicators for when it might work and when you should probably focus elsewhere.

Influencer marketing makes sense when:

• Your target customers are active on social media and influenced by recommendations. If you’re selling to demographics that regularly discover products through Instagram, TikTok, or YouTube, influencer partnerships have genuine potential. Beauty products, fitness services, fashion, food, and lifestyle products fit this category.
• You have a marketing budget of at least £300-500 per month. One-off influencer posts rarely move the needle. You need multiple partnerships over several months to build momentum and test what works.
• Your product or service photographs well and fits naturally into social content. Visual products that enhance someone’s lifestyle or solve obvious problems work best. It’s much easier for an influencer to naturally feature artisan coffee or handmade jewellery than accounting software or legal services.
• You’re established enough to handle increased demand. If an influencer campaign succeeds, you need systems to fulfil orders, respond to inquiries, and maintain quality. New businesses should ensure their operations can scale before driving significant new traffic.

Skip influencer marketing when:

• You’re still figuring out your core business model or struggling with basic operations. Fix your fundamentals first. No amount of marketing will save a business unless you’re ready with the products and services you need to win in the market.
• Your target market doesn’t align with social media demographics. If you’re selling B2B services to traditional industries, targeting older demographics who aren’t social media active, or operating in very niche technical fields, your money is likely better spent elsewhere.
• You can’t afford to experiment with budgets. Influencer marketing requires testing different partnerships, content types, and approaches. If losing £500-1000 over a few months would be too much for your business, focus on more predictable marketing channels.
• Your business is purely local and location specific. A local plumber or accountant might find better ROI from Google Ads, local directory listings, or community networking than from influencer partnerships, unless they can find very local micro-influencers.
• You don’t have time to manage relationships and content approval. Influencer marketing needs ongoing communication, content review, and relationship management that busy small business owners sometimes underestimate.

Practical steps if you decide to try influencer marketing

Plan and stick to your budget 

In terms of budget, a rule of thumb is to plan for £200-500 monthly for your first three months. This gives you enough work with 2-4 micro-influencers per month while leaving room to test different approaches. Remember to add any product costs if you’re sending free items to those influencers.

Find the right influencer(s)

Skip the expensive influencer platforms initially. For example, if you’re based in the UK, start by searching relevant hashtags on Instagram and TikTok to find UK-based creators in your niche. Look at who’s engaging with your competitors’ content. Check local Facebook groups, community pages, and LinkedIn for people who regularly share content about topics related to your business.

Negotiate fair partnerships that work for both sides. 

Micro influencers are usually open to negotiation, particularly when they’re dealing with local businesses. Consider hybrid deals like £50 plus free products rather than just cash or just products. Be clear about deliverables: how many posts, stories, or videos, and over what timeframe. Always agree on usage rights so you can repost their content on your own channels.

Set clear expectations with simple contracts.

Even for small partnerships, put agreements in writing. Include posting dates, content marketing requirements, disclosure obligations (they must include #ad or #sponsored), and what happens if either party needs to cancel. This prevents misunderstandings and protects both your business and the influencer.

Measure success beyond follower counts.

If your influencer campaign is based on a social media platform, don’t only track follower count or engagement. Track traffic to your website, or the other digital location that you’re pointing your potential customers to. Use unique links or discount codes for each influencer to measure direct sales. Also, pay attention to customer inquiries: are people mentioning they heard about you on social media? Start looking at sales numbers, but don’t expect an overnight increase.

Start small and focus on what works. 

Start with one social media influencer (or a maximum of 2) for a month or so. Keep your eye on your measurement to understand what’s working: content style, messaging, visuals etc. Once you have that knowledge, double down on what’s working and drop what’s hasn’t delivered.

Need to discuss your influencer marketing plans?