What is influencer marketing? – Complete guide for 2025

Want to grow your business fast? Influencer marketing could be your secret weapon.

In 2025, influencer marketing is a $32.55 billion industry that’s helping brands reach audiences more effectively than traditional advertising ever could.

But most people get it completely wrong.

I know because I’ve been on both sides of the equation. When I started in 2013, I was a law school dropout with zero connections. Today, I’ve generated millions of dollars in revenue through strategic influencer partnerships.

In this guide, I’ll show you exactly what influencer marketing is, how it works, and how to use it to grow your business – even if you’re starting from scratch like I did.

What is influencer marketing?

But here’s what most people get wrong: it’s not just about finding someone with a ton of followers.

It’s about finding the right person whose audience matches your ideal customers.

Sujan Patel defines it perfectly:

Rand Fishkin of Moz puts it even more powerfully:

In other words, influencer marketing means leveraging people with established personal brands to target and engage your ideal customers.

Traditional advertising interrupts people. Influencer marketing provides value through someone people already trust.

The evolution of influencer marketing

Influencer marketing isn’t new, but it’s more accessible than ever.

In the past, only big brands could afford celebrity endorsements. Today, anyone can leverage the power of influencer collaboration.

Social media has democratized influence. Regular people with knowledge and personality can build engaged audiences that trust their opinions.

This shift has created opportunities for both brands and creators that simply didn’t exist before.

Modern consumers can spot fake influencer endorsements a mile away. That’s why successful influencer partnerships today focus on authenticity.

When I partnered with Selena Soo to promote her “Impacting Millions” program, I did it because I genuinely believed in her approach to publicity. My audience could feel that authenticity, which is why the promotion was so successful.

Influencer marketing vs content marketing vs brand ambassadors

Many people confuse influencer marketing with related strategies. Let’s clarify the differences:

Content marketing

Content marketing focuses on creating and distributing valuable content to attract an audience and drive profitable action.

Key Difference: Content marketing is more about content creation, while influencer marketing focuses on content distribution through trusted voices.

I use content marketing on my own blog, where I publish in-depth guides and articles on topics like …. This content builds my authority and drives organic traffic.

Influencer marketing

Influencer marketing leverages existing trust relationships between influencers and their audiences. Rather than building your own audience from scratch, you tap into pre-built, engaged communities.

Key Difference: You’re borrowing someone else’s platform and credibility to reach your target audience faster.

When I partner with influencers like Larry Kim, Melyssa Griffin, Molly Mahoney, and many others to promote my virtual events and digital products, I’m leveraging their established trust with their audiences to expand my reach.

Brand ambassadors

Brand ambassadors are long-term advocates who consistently represent your brand over time. They’re often customers who genuinely love your products and promote them naturally.

Key Difference: Brand ambassadorships are ongoing relationships, while influencer partnerships can be one-time collaborations.

My relationship with Ramit Sethi evolved from first interviewing a few of his successful students (big value add to him) into ongoing promotion of his products as an affiliate. I became a brand ambassador because I genuinely believed in his courses.

How they work together

The most effective marketing strategy combines all three approaches:

• Create valuable content (content marketing)
• Distribute it through trusted voices (influencer marketing)
• Nurture long-term advocates (brand ambassadors)

This integrated approach creates a marketing flywheel that builds momentum over time.

These marketing approaches are often confused, but they serve different functions:

marketing efforts while nurturing brand ambassadors.

What is an influencer?

An influencer is someone who has the ability to affect purchasing decisions because of their authority, knowledge, position, or relationship with their audience.

The effectiveness of an influencer comes down to three key factors:

• Reach: How many people they can connect with
• Relevance: How aligned their content is with your brand
• Resonance: How effectively they engage their audience

The biggest mistake most brands make is focusing exclusively on reach (follower count) while ignoring relevance and resonance.

A beauty influencer with 1 million followers won’t drive results for your B2B software if their audience has no interest in business tools.

Similarly, an influencer with 100,000 followers but only 0.5% engagement rate will likely deliver poor results compared to someone with 10,000 highly engaged followers.

The ideal influencer sits at the intersection of all three factors.

True influence isn’t about follower counts — it’s about trust and engagement. The most powerful influencers have:

• Authority: Recognized expertise in their field
• Authenticity: Genuine relationships with their followers
• Engagement: Active, responsive communication with their audience
• Trust: A reputation for honesty and integrity

The best influencers are selective about what they promote because they understand their most valuable asset is the trust of their audience.

Understanding different types of influencers

Influencers come in various forms, and understanding the differences is crucial for your strategy.

Influencers are typically categorized by audience size:

Mega-influencers (celebrities)

• Audience Size: 1,000,000+ followers
• Characteristics: Major celebrities, top-tier content creators
• Reach: Massive
• Engagement: Often lower percentage engagement
• Cost: Very expensive
• Examples: Gary Vaynerchuk, Marie Forleo, Tim Ferriss

Mega-influencers offer maximum reach but minimum targeting. They’re best for building broad awareness rather than driving specific conversions.

Mega-influencers bring massive credibility, but they’re often harder to reach and more expensive to work with.

When I wanted to connect with Ramit Sethi (who runs an 8-figure business), I knew direct outreach wouldn’t work. Instead, I connected with someone who had worked with him, who then introduced me to Ramit’s team.

I added massive value by interviewing his successful students. Eventually, I became his #1 affiliate, was invited to lunch with him, and spoke at his events.

Macro-influencers (trusted authorities)

These influencers are established authorities in their niches but more accessible than celebrities.

• Audience Size: 100,000-1,000,000 followers
• Characteristics: Industry experts, thought leaders, professional content creators
• Reach: Substantial
• Engagement: Medium to high
• Cost: Moderate
• Examples: Industry-specific experts with established audiences

Macro-influencers often provide the best balance of reach and engagement. They have substantial audiences but can still maintain authentic connections with their followers.

I’ve found macro-influencers like Pat Flynn and John Lee Dumas to be excellent partners for promoting online courses and virtual summits. Their audiences are large enough to drive significant traffic but focused enough to deliver qualified leads.

Micro-influencers (up-and-comers)

• Audience Size: 10,000-100,000 followers
• Characteristics: Niche experts, specialized content creators
• Reach: Focused
• Engagement: High engagement rates
• Cost: More affordable
• Examples: Niche experts and rising content creators

Don’t underestimate micro-influencers. Research shows they often deliver the highest ROI because of their hyper-engaged audiences.

When I was building my online business, connecting with micro-influencers who were growing alongside me created some of my most powerful long-term partnerships.

These relationships grew as we both expanded our influence, creating mutually beneficial growth.

Nano-influencers

• Audience Size: 1,000-10,000 followers
• Characteristics: Everyday consumers with small but dedicated followings
• Reach: Very targeted
• Engagement: Highest engagement rates
• Cost: Most affordable, often work for product or small fees
• Examples: Everyday consumers with engaged community connections

Nano-influencers might have the smallest reach, but they often have the most authentic connections with their audiences. Their recommendations can carry significant weight within their small communities.

For local businesses or highly specialized products, nano-influencers can deliver exceptional results at a fraction of the cost of larger influencers.

How much money do influencers make?

Influencer compensation varies widely based on factors like follower count, engagement rate, content format, exclusivity requirements, and industry.

Here’s a general breakdown of influencer rates in 2025:

Nano-influencers (1,000-10,000 followers)

• Instagram: $50-$300 per post
• TikTok: $20-$200 per video
• YouTube: $50-$500 per video
• Blog: $50-$250 per post

Many nano-influencers work for free products or experiences, especially when building their portfolio.

Micro-influencers (10,000-100,000 followers)

• Instagram: $200-$1,000 per post
• TikTok: $200-$1,500 per video
• YouTube: $500-$3,000 per video
• Blog: $250-$1,000 per post

Micro-influencers often build long-term partnerships with brands that include multiple deliverables across platforms.

Macro-influencers (100,000-1,000,000 followers)

• Instagram: $1,000-$10,000 per post
• TikTok: $2,000-$15,000 per video
• YouTube: $3,000-$20,000 per video
• Blog: $1,000-$5,000 per post

At this level, influencers typically work with management or agencies and have standardized rate cards.

Mega-influencers (1,000,000+ followers)

• Instagram: $10,000-$250,000+ per post
• TikTok: $25,000-$500,000+ per video
• YouTube: $20,000-$1,000,000+ per video
• Blog: $5,000-$50,000+ per post

Celebrity influencers can command fees in the hundreds of thousands or even millions for major campaigns.

• Affiliate commissions (typically 5-50% of sales)
• Revenue sharing arrangements
• Licensing fees for content reuse
• Long-term retainer contracts

When I partner with influencers, I often use a hybrid model: a base payment plus performance incentives. This aligns our interests and can be more affordable upfront while potentially more lucrative for high-performing influencers.

Types of influencer marketing

Influencer marketing can be categorized in multiple ways. Understanding these different approaches will help you choose the right strategy for your specific goals and resources.

Based on collaboration type

coming soon

1. Sponsored content

This is the most straightforward approach, where brands pay influencers to create content featuring their products or services. The content appears on the influencer’s channels with proper disclosure (like #ad or #sponsored).

Sponsored content works best for:

• Product launches
• Brand awareness campaigns
• Reaching new audiences quickly

Real example: When fashion brand Fashion Nova partners with Instagram influencers to showcase their newest clothing lines, they’re using sponsored content to reach fashion-conscious audiences.

For example, when I promote tools like ConvertKit or ThriveCart to my audience, I clearly disclose my affiliate relationships while sharing how these tools have genuinely helped my business.

2. Affiliate marketing

Influencers earn a commission on sales generated through their unique tracking links or discount codes. This performance-based model aligns incentives between brands and influencers.

Affiliate marketing works best for:

• Products with clear value propositions
• Easily trackable online purchases
• Ongoing promotional relationships

Real example: I’ve generated substantial revenue as an affiliate for programs I believe in, like Ramit Sethi’s, Stu McLaren’s and Ryan Levesque’s courses. Because I genuinely used and benefited from their training, my audience trusts my recommendations.

3. Product seeding / gifting

Brands send free products to influencers in exchange for content, without direct payment. This works well with micro and nano-influencers who are eager to build relationships with brands.

Product seeding works best for:

• Products with high visual appeal
• Lower budgets
• Building relationships with new influencers

Real example: Beauty brands often send PR packages to makeup artists and beauty influencers without any contractual obligations. The most authentic content often comes from genuinely impressed influencers.

4. Brand ambassadorships

Long-term partnerships where influencers consistently represent a brand over time, creating deeper integration into their content and stronger association with their personal brand.

Brand ambassadorships work best for:

• Building consistent brand awareness
• Developing deeper brand associations
• Creating ongoing content libraries

Real example: Athletic wear brand Gymshark built its empire largely through long-term ambassador relationships with fitness influencers who consistently showcased their products in workout content.

5. Co-creation

Brands and influencers collaborate to create products or content together, leveraging both parties’ expertise and audiences. This creates unique value that neither could achieve alone.

Co-creation works best for:

• Building credibility in new markets
• Creating innovative products
• Generating buzz and excitement

Real Example: When makeup brand Morphe collaborates with beauty influencers to create signature makeup palettes, both parties benefit from the combined expertise and audience.

Based on platform and format

Your platform choice should align with your audience demographics, content type, and business goals.

1. Social media platforms

• Instagram: Ideal for lifestyle products, fashion, beauty, travel, food, and fitness. Combines visual appeal with various content formats (Feed posts, Stories, Reels, and Lives).
• TikTok: Perfect for youth-focused brands, entertainment, trending products, and creative expression through short-form video.
• YouTube: Excels at detailed, long-form content for tech products, complex services, and educational content through reviews, tutorials, and demonstrations.
• LinkedIn: Best for B2B services, professional tools, and enterprise solutions targeting decision-makers through thought leadership content.
• Facebook: Works well for reaching older demographics and local businesses through groups, Lives, and community-building content.
• Pinterest: Ideal for home décor, fashion, DIY, and recipe content with strong visual appeal and purchase intent.

2. Content formats

• Reviews and demonstrations: Showcasing your product in action, highlighting features and benefits.
• Unboxing videos: Capturing the excitement of opening and discovering your product for the first time.
• How-to tutorials: Teaching audiences how to use your product to achieve specific results.
• Day-in-the-life content: Naturally incorporating your product into influencers’ daily routines.
• Challenges and trending formats: Creating content using trending formats while featuring your product.

3. Virtual events and summits

Virtual events and summits have become powerful influencer marketing channels, especially for knowledge-based businesses and service providers.

How it works: Brands organize online events featuring multiple influencers who each present on their area of expertise. This format:

• Builds credibility through association
• Leverages multiple influencers’ audiences simultaneously
• Creates valuable content assets
• Generates leads through event registration

Real Example: When I hosted the Branding Summit, I featured influencers like John Lee Dumas and Selena Soo. The summit added 3,000 subscribers to my email list and generated $20,000 in profit in just a few weeks.

Benefits of influencer marketing

When done right, influencer marketing delivers powerful results that traditional advertising simply can’t match. Here are the key benefits:

1. Expanded reach

You can get your course, summit, or product in front of more people without having to build each individual connection yourself.

When I hosted my first virtual summit, The Branding Summit, I featured influencers like John Lee Dumas and Selena Soo.

Their participation helped me reach thousands of people I never could have reached on my own.

Within a few weeks, I added 3,000+ email subscribers and generated $20,000 in profit – all starting from scratch.

2. Higher ROI

Not only are influencer partnerships less expensive than traditional advertising, study after study shows they deliver better results.

On average, businesses generate $6.50 for every $1 invested in influencer marketing.

When I became Ramit Sethi’s top affiliate, I generated $40,000 in just a few weeks – with zero ad spend.

My only investment was the time spent building the relationship and creating valuable content.

3. Rapid audience growth

Influencer partnerships help you quickly build a highly engaged, targeted email list of people who actually want to hear from you.

For my “AI for Creators” summit, I partnered with experts like Iman Oubou and Rory Flynn despite having zero authority in AI.

The result? Over 15,000 subscribers in less than a month – all highly engaged creators interested in AI implementation.

4. The “Oprah Effect”

You become a trusted expert by virtue of the fact the influencer has introduced you to their audience.

When Ramit Sethi featured me on his website, his audience immediately saw me as credible. I didn’t have to convince them.

This same principle works at every level. One of my students saw her consultation requests triple overnight after being featured by a respected coach in her niche.

5. Speed of results

You don’t have to wait years to see returns. In some cases, results can happen in just a few weeks or even days.

My workshop with Regina Anaejionu went from initial contact to completion in under six weeks.

That single workshop brought in 1,000+ new subscribers and multiple course sales – something that would take months with traditional marketing.

6. Scalable growth potential

Once you have one influencer promoting your course or summit, you can leverage that success to find more partners.

I use what I call the “ladder strategy” – starting with micro-influencers, then using those wins to approach bigger names.

Each successful partnership makes the next one easier to secure, creating a powerful snowball effect.

7. Long-lasting relationships

Unlike advertising that disappears when someone clicks away, influencer relationships continue to deliver value for years.

My connection with Selena Soo has evolved from being her case study to becoming her top affiliate, speaking at her events, and regular cross-promotion.

These ongoing partnerships continue to drive traffic, leads, and sales with no additional acquisition costs.

8. Enhanced content creation

Influencers are professional content creators who know exactly what resonates with their audience.

For my virtual summits, each expert interview becomes multiple content pieces – blog posts, social media clips, and email sequences.

With today’s AI tools, I can transform a 60-minute summit interview into dozens of valuable content assets that continue driving traffic for months.

9. Market insights

Working with influencers gives you valuable feedback from people who deeply understand your target audience.

During my summit pre-calls with experts, I always ask what their audience is struggling with most. This intelligence helps me refine my offerings.

One casual conversation with a summit speaker led to completely restructuring my course outline, resulting in a 40% increase in completion rates.

10. Authentic promotion

The best influencers don’t just promote products – they incorporate them into genuine stories that resonate.

When a summit speaker shares their summit participation with their audience, it doesn’t feel like an ad – it’s a natural extension of their expertise.

This authentic context drives significantly higher conversion rates than traditional promotional methods.

Why relationship-based influencer marketing works

The most effective influencer marketing isn’t transactional — it’s relational.

Building genuine connections with influencers creates a foundation for authentic promotion that resonates with audiences.

Here’s why relationship-based influencer marketing outperforms transaction-based approaches:

Authentic enthusiasm

When influencers genuinely like you and your brand, their promotion feels natural and enthusiastic. This authenticity significantly increases audience response.

I’ve experienced this difference firsthand. Influencers who I’ve built relationships with over time create more engaging, authentic content about my courses than those who simply fulfill contractual obligations.

Long-term value

Relationship-based partnerships often extend beyond single campaigns, creating ongoing value for both parties.

By maintaining relationships with influencers between campaigns, I’ve created a network of partners who are ready to support new launches when the time comes.

Access to their network

Strong relationships often lead to introductions to other influencers in their circle.

When I built a genuine connection with Selena Soo, she introduced me to several other influencers in her network, exponentially expanding my reach.

Inside knowledge and feedback

Influencers with whom you have strong relationships are more likely to provide honest feedback about your products and campaigns.

I’ve improved my course offerings significantly based on candid feedback from influencer partners who genuinely want to see me succeed.

Content multiplier effect

When you build real relationships with influencers, every piece of content you create together generates multiple assets for both parties.

For my virtual summits, I provide speakers with professionally designed quote cards, video clips, and promotional graphics they can use on their own platforms.

This approach helps them look good to their audience while simultaneously promoting our collaboration.

With today’s powerful AI tools like ChatGPT, Claude, and OpusClip, turning a single interview into dozens of valuable content pieces has never been easier.

The collaborative value exchange

At its core, influencer marketing is about creating value for all parties involved: the brand, the influencer, and the audience. Understanding this three-way exchange is crucial for developing successful partnerships.

Value to the influencer

Beyond monetary compensation, influencers seek partnerships that:

• Provide valuable content for their audience
• Align with their personal brand and values
• Help them grow their own platform
• Offer creative opportunities and new experiences

Value to the audience

Audiences engage with influencer marketing when it:

• Introduces them to genuinely helpful products
• Provides entertaining or educational content
• Offers exclusive deals or insights
• Feels authentic and transparent

Value to your brand

Effective influencer partnerships provide your brand with:

• Access to engaged, relevant audiences
• Authentic content and testimonials
• Enhanced brand perception through association
• Direct sales and lead generation

Creating win-win-win partnerships

The most successful influencer relationships are those where all three parties benefit.

Here’s how to create these ideal partnerships:

• Select influencers whose audience genuinely needs your product.
• Give influencers creative freedom to showcase your product authentically.
• Provide real value to the audience through education, entertainment, or exclusive offers.
• Structure compensation to align everyone’s incentives.
• Build long-term relationships rather than one-off transactions.

When I partner with experts for my virtual summits, I focus on making them look good. I provide them with professionally designed graphics, well-researched questions, and multiple opportunities to showcase their expertise.

This approach ensures the audience gets valuable content, the influencer builds their authority, and my summit attracts more engaged participants.

The Influencer OS approach to influencer marketing

After years of building successful influencer partnerships, I’ve developed a systematic approach I call Influencer OS.

Here’s an overview of the five steps:

Step 1: Find & choose the right influencers

Not all influencers will be a good fit for your brand, regardless of their audience size. You need to identify influencers whose values, content style, and audience demographics align with your ideal customers.

Step 2: Build real relationships first

This is where most people go wrong. They immediately ask for promotion without building a genuine connection first.

I always focus on adding value to influencers before asking for anything in return. This might mean sharing their content, providing testimonials, or helping them solve a problem.

Step 3: Make the ask the right way

When you’ve built a relationship, you can make your request in a way that focuses on mutual benefit. This isn’t about begging for exposure; it’s about proposing a win-win collaboration.

Step 4: Follow up & secure the partnership

Most partnerships don’t happen after the first contact. Consistent, thoughtful follow-up shows you’re serious and professional without being pushy.

Step 5: Nurture & scale influencer partnerships

The most successful influencer relationships continue long after the initial campaign. I maintain regular contact with my partners and look for ways to provide ongoing value.

I’ll be covering each of these steps in depth in future guides. For now, remember that success with influencer marketing comes from viewing it as relationship-building, not just a transaction.

Challenges of influencer marketing

While influencer marketing offers tremendous benefits, it’s important to understand the potential challenges:

Finding authentic partners

Not all influencers with large followings have genuine influence. Some have purchased followers or engagement, making their promotional value questionable.

Solution: Focus on engagement rates rather than follower counts, and look for consistent, authentic interaction with their audience.

Measuring ROI

It can be challenging to directly attribute sales or conversions to specific influencer campaigns, especially when influence happens across multiple touchpoints.

Solution: Implement tracking links, custom discount codes, and attribution models that account for influencer impact throughout the customer journey.

Managing relationships at scale

As your influencer program grows, maintaining personal relationships with dozens or hundreds of partners becomes increasingly complex.

Solution: Create systems for regular communication, and consider using relationship management tools designed for influencer marketing.

Navigating disclosure requirements

In many countries, influencers must disclose their relationship with brands. Failure to do so can result in penalties.

Solution: Stay informed about FTC guidelines and similar regulations in other countries, and ensure all your influencer partners understand disclosure requirements.

Maintaining brand consistency

When multiple influencers represent your brand, maintaining consistent messaging while allowing for authentic content can be difficult.

Solution: Develop clear brand guidelines for influencer partners while giving them creative freedom to incorporate your message naturally.

Budget allocation

Determining how much to invest in influencer marketing and how to allocate that budget across different tiers of influencers requires careful planning.

Solution: Start with smaller test campaigns to determine which types of influencers drive the best results for your specific goals.

Content rights and usage

Without clear agreements, you may find yourself unable to repurpose valuable content created by influencers.

Solution: Establish content rights in your contracts, specifying how and where you can reuse influencer-created content.

Future of influencer marketing

As we look ahead to 2025 and beyond, several key trends are shaping the future of influencer marketing:

Rise of nano and micro-influencers

Brands are increasingly recognizing the value of smaller, more targeted influencer partnerships.

The authenticity and high engagement rates of nano and micro-influencers often deliver better ROI than mega-influencers.

Long-term partnerships over one-off campaigns

The most effective influencer relationships are evolving from one-time promotions to ongoing partnerships. These deeper relationships create more authentic content and stronger audience connections.

I’ve maintained partnerships with some influencers for years, and these long-term relationships consistently outperform short-term collaborations.

Values-based alignment

Consumers increasingly support brands whose values align with their own. This means influencer partnerships now need to reflect shared values and authentic alignment beyond just product promotion.

Integration of AI tools

AI is transforming influencer marketing by:

• Helping identify the most effective influencers
• Predicting campaign performance
• Optimizing content strategies
• Measuring multi-touch attribution

Creator economy maturation

As the creator economy matures, influencers are becoming more sophisticated business partners. They understand their value and expect more collaborative relationships with brands.

This means more transparent negotiations, clearer metrics, and more innovative partnership structures beyond basic paid promotions.

Cross-platform storytelling

Rather than focusing on a single platform, effective influencer campaigns now span multiple channels to create cohesive storytelling experiences.

My most successful campaigns involve influencers sharing content across Instagram, YouTube, email newsletters, and podcasts to reach audience members wherever they prefer to consume content.

Ethical influencer marketing considerations

​​​​Don’t forget to follow the FTC Rules.

The FTC governs how advertising operates in the states, and they have rules about how to approach influencer marketing.

These rules stick mostly to transparency, and it’s your responsibility to follow them.

Back in the day, influencers didn’t have to disclose they were getting paid to talk about a product, but the FTC ruled that this deceives customers, which is why you see the “paid by” Instagram branding or #ad.

Veteran influencers will be familiar with this already, but keep these rules in mind when working with micro influencers.

Make sure that every influencer you use on Instagram, YouTube, TikTok, or X (Twitter) includes #ad or #sponsored in their ads for every post, and for other mediums you can look at the established precedent.

This is usually only on social media platforms — email lists are still fair game!

FAQs

Here are some answers to a few common questions I see people ask about influencer marketing.

Conclusion

Influencer marketing isn’t just another marketing tactic. It’s relationship-building at scale.

When I dropped out of law school in 2013, I had no connections. By focusing on adding value to influencers first, I built relationships that transformed my business and life.

I’ve seen firsthand how powerful these partnerships can be. From growing my email list by thousands in days to generating six-figure course launches, strategic influencer relationships have been the backbone of my business growth.

The most important principle to remember? As Zig Ziglar said:

“You can have everything in life you want, if you will just help enough other people get what they want.”

Start building those relationships today, and watch your business grow.

Want to learn my exact step-by-step process for connecting with influencers? Check out my Influencer OS system where I share all my proven templates and strategies.