In 2012, Gretta Rose van Riel had $24 in her bank account. But armed with a keen eye for trends, a talent for marketing, and some entrepreneurial hustle, a 22-year-old van Riel built herself a multimillion-dollar business called SkinnyMe Tea, which launched not only a product, but an entire âteatoxâ market.
On that achievement alone, she won Shopifyâs Build-a-Business Competition,beating out tens of thousands of other ecommerce businesses from around the globe.
While that alone is pretty impressive, even more so is the fact that she then went on to repeat the process many times over, and now sits at the helm of a whole suite of multimillion-dollar businesses.
At last count, sheâs co-founded The 5th, a global watch brand with a unique twist on selling; Drop Bottle,an innovative drink bottle that combines function with cool design; and Nichify, the worldâs first network for brands and influencers.
And thatâs just in the past five years.
While you could chalk it all up to an incredible streak of luck, or some secret pact with a red-eyed man you meet at the crossroads, the undeniable truth is that van Riel has developed a formula for succeeding in the world of ecommerce. In short, van Riel is for real.
Thatâs why weâve been so excited to not only speak with her on the Foundr Podcastabout just how she does it, but also to work with her on our latest online course,in which we show you exactly how to build ecommerce businesses from scratch.
To give you a little preview of what you can expect, you can check out our interview with her here:
Or read on, as we break down the backbone of Grettaâs multimillion-dollar formula: influencer marketing.
Influence Marketing WithGretta Rose van Riel
How To Tap Into the Amazing Power of Influencer Marketing For Your Ecommerce Businesses
A recent survey found that 84% of marketersare planning on running at least one influencer marketing campaign in 2017.
While it might seem like the latest buzzword or marketing trend, influencer marketing is actually one of the oldest tacticsin business, with marketers way back in the 18thcentury already recognizing just how powerful it is to find someone with an audience and get them to promote your product.
âBasically an influencer is someone that has an audienceâs attention and can influence their audience on a brandâs behalf to buy the products they recommend,â van Riel says.
As early as 1809, businesses like Gieves and Hawkeswould proudly display endorsements they received from the Royal Family to promote their services.
Sure, influencer marketing has gotten a bit of a facelift, and has certainly evolved in the past couple of centuries, but the core tenet has remained the same.
More than just a trend or simple marketing trick, for van Riel, influencer marketing is the backbone of all her entrepreneurial endeavors. In her view, influencers have something that can take years to build, and only seconds to destroy: the trust of a customer.
By partnering with influencers, brands now have a way to shortcut the process of building trust by borrowing the trust these influencers have built already.
âBrands used to be more of a trusted authority point for a consumer, and now consumers are feeling disillusioned by a lot of brand history. The main importance of influencer marketing is that influencers not only have the audienceâs attention but also have the audienceâs trust,â she says.
âItâs that trust component that makes influencer marketing so important and that makes it so effective as well. Itâs the most effective digital marketing technique there is right now in terms of ROI.â
A report by McKinseybacks this up, finding that word-of-mouth influences 20% to 50% of all buying decisions. Another report by Nielsenfound that 92% of people trust recommendations from individuals, even if they donât know them, over brands.
Source: Boost The News
Instead of bombarding your customers over and over again with ads, influencers allow you to market directly to your customers through someone they already trust. Not only does this help you gain more exposure for your brand and your business in general, but the real win is that the leads you generate through influencers are more qualified and more likely to become lifelong customers.
âStudies have shown that influencer marketing leads to a 37% higher retention rateof customers ⊠because those leads are more qualified, because they already have identifiable feeling towards your brand when youâre signing up,â says van Riel.
âThey can remember why they signed up in the first place, which image resulted in that sign-up and so then they identify that with your brand on a more ongoing basis, because theyâve got that emotional attachment as well to your product.â
Finding the Right Influencers Who Can Explode Your Ecommerce Businesses
For van Riel, the first step in mastering influencer marketing is to know exactly who the right influencers are to work with.
While it may be tempting to assume that all you need to do is get in contact with a high-profile celebrity and just pay them to give you a shout-out, the reality is that to get the returns you want, it takes some work.
Just because someone has a large audience, doesnât necessarily mean that theyâre the right influencer for you to work with. You want someone whose personal brand aligns with your brandâs identity and core values.
The best influencers to work with, no matter how large or small their audiences, are those who actually care about your product. Remember that the entire point of influencer marketing is that influencers have an authentic relationship and trust with their audiences. You donât want to abuse that trust; you want to strengthen it.
If you have someone doing a casual shout-out thatâs completely out of place from their regular style, or putting up multiple branded posts in a single day, youâve effectively missed the point of influencer marketing.
Macro Influencers
Thisis why van Riel doesnât actually advocate working with macro influencers,or high-profile celebrities who have large audiences that are not necessarily very engaged.
People sometimes talk about how they purchased a post from a macro influencer and sold out of their product as a result, van Riel says. But they probably had a relatively small amount of stock in the first place, and meanwhile, the fee is in the neighborhood of $300,000.
âI havenât heard one brand actually regenerate all of the sales they spent on that one post with a macro influencer like a Kylie Jenner,â she says.
Unless you happen to have a close personal relationship with a macro influencer, and you can ask them to promote your brand in an authentic way, itâll be difficult to get truly qualified leads.
Micro Influencers
With her own influencer marketing efforts, van Riel focuses the bulk of her attention on micro influencers, those who might not necessarily have a huge following or social reach, but have much higher levels of trust and engagement with their audiences.
âYou might be really surprised by the influencers. We find especially the micro influencers, because they have that high level of trust and because their feeds arenât as saturated with branded content, that sometimes they provide some really surprising results,â van Riel says.
âEvery time I see somebody that fits our audience and demographicâhealth-conscious female with over 1,000 followers and out of high school too, which was one of my criteria for her to be over 18âevery time Iâd see them, Iâd screenshot them and Iâd reach out to them on InstagramâŠ. I would just literally put a comment, grab their email, and send them some tea.â
Other Brands
Another untapped source for influencer marketing that not enough people are taking advantage of is other brands in their niche. For van Riel, itâs always been about collaboration over competition. If two brands are the in the same niche, but arenât direct competitors with each other, thereâs no reason they canât collaborate with one another.
âIf youâre doing a body scrub, thatâs really good for your skin. If youâre drinking a detox tea at the same time, that wouldnât be an unusual thing to happen. People often use that product side-by-side, so why not team up to create that content and scale at half the price?â van Riel says.
By teaming up with another brand in your niche, youâre immediately opening yourselves up to each otherâs audiences, who you know are interested in what you both have to offer.
How To Work With The BestInfluencers And Not Lose Them
Now that youâve figured out what influencers you want to work with, itâs time to engage them and draft them into your influencer marketing campaign.
Itâs always best to try and establish a personal relationship with them first. Even sending them a simple message saying that you enjoy their feed and their posts is great start.
Source: Shopify
Something to keep in mind, though, is that influencers, just like anyone else, want to get paid for their time. While you can do this in a variety of ways, from outright giving them money to do a post for you, to giving away a sample of your product, you canât go in expecting something for nothing.
Paying Your Influencers
A recent study by Mediakixfound that the influencer marketing industry on Instagram alone is expected to reach a whopping $1.07 billion this year alone.
âInfluencers do more than just posting something to their feed. A lot of them are incredible content creators. They would have to take that photo on their camera and spend an hour editing it as well, so it must be hugely disappointing if that post was not paid for, because youâve spent hours of your life generating that content,â van Riel says.
Depending on the budget you have for your influencer marketing campaign, thereâs a variety of options you can use to pay an influencer. For one, you can pay them a commission based on the number of conversions they deliver, but that can be difficult to manage.
The most traditional method is to offer a payment-for-post deal, where youâll pay the influencer for a certain number of posts or shoutouts.
âOnce you start working with influencers, you get the idea of how much each payment-for-post might be. Under 20,000 followers might be $50 to $100 a post; 50,000 followers might be $100 to $200 a post; 100,000-plus could be $200 to $500 a post; 500,000 followers would cost $1,000 easily a postâ van Riel says.
âIf the influencer has a very unusual content style that people could automatically identify with them, and they are kind of a leader in their community, then you should be willing to pay more to access that kind of influence.â
Allowing Creative Freedom
Something that van Riel stresses when it comes to working with influencers is that you donât want to treat an influencer as if theyâre just a graphic designer, or an agency that youâve commissioned work from.
While itâs more than okay to give them something like a mood board, or examples of what youâd like the post to look like, what you donât want to be doing is giving them exact details and specifications of what you want the post to end up looking like.
Source: Web Design Report
âItâs an influencerâs job now to stay as authentic and real and organic with their audience as possible. That is their role. Itâs a brandâs job to allow that influencer to propagate their creative decision. You should not be saying, post these exact words. Itâs really unfair to the influencer and itâs not going to have good results via brands. An influencer knows their audience,â van Riel says.
No one knows their audience better than the influencers themselves, so by trying to force them to fit your brand instead of the other way around, youâre risking that sense of authenticity that influencer has with their audience.
You must always remember that when it comes to influencer marketing, youâre not paying for the content, youâre paying for the relationship.
Your Influencer Marketing Campaign Success Blueprint
Alright, here comes the good part. This is what youâve been waiting for, right? The exact tactics that Gretta Rose van Riel uses, over and over again, for all of her businesses.
Here are the three main tactics you need to know to create an influencer marketing campaign that kills:
The Thunderclap
The thunderclap strategyis one of the most effective ways to use your influencers, especially if youâre planning a big product launch.
Basically, a thunderclap is when you get as many influencers as you can to promote your product within the same time frame. This was done with great success when van Riel was launching The 5th, her designer watch company.
Before the official launch, van Riel sent out 30 timepieces to influencers.
âWe were able to send out 10 timepieces to influencers with over 100,000 followers and 20 timepieces to influencers with under 50,000 followers. And those influencers with under 50K were able to generate awesome branded content that we started using to generate demand about the product. That resulted in our amazing first day sales,â van Riel says.
Each influencer was given instructions on when to post, and to include a strong call-to-action asking their audience to sign up to The 5thâs waiting list.
âWe were able to garner about 8,000 really, really qualified leads,â she says. Their first run of 1,000 sold out, meaning they had a super-high conversion rate of one out of eight, compared to a more common rate of one to 20, or even one to 40.
The Trendsetter
The next influencer marketing tactic you can start using is The Trendsetter, which helps you generate interest and demand through your influencers. This is a great tactic to start building more sustained exposure for your brand.
The first step is to pinpoint what clusters and communities your target audience is following. You want to be able to engage with that community as a whole, so youâll want to create a shortlist of all the influencers within that cluster.
This is because similar audiences often follow the same people. By focusing on certain key influencers, you can distribute your message across the entire community through just a few people.
Once youâve created a shortlist of those influencers, itâs time to do a little homework and figure out who the macro influencers and leaders are within that group, and then another list of micro influencers.
âYouâd want to engage maybe 10 to 20 micro influencers to each one macro influencer. Youâll want to get the macro influencer to do their post first, and then that inspires the content of the micro influencers. It obviously makes sense that rather than just having one post by somebody with just 5,000 to 10,000, you could have 20 to 50 posts of micro influencers with the same reach, but with entirely different ways of accessing that audience and customers,â van Riel says.
Use your macro influencers to influence your micro influencers and help you set the stage. Itâll make it a lot easier for you when you do eventually reach out to the micro influencers.
By engaging with your influencers in this order, you can ensure that the ball gets rolling and everyone in your target audience is talking about you.
The Social Proof
Whether itâs having customers give reviews of your product, do unboxings, or simply share photos, you want to be able to leverage as much user-generated content as possible.
Humans are social creatures and we rely on other people to help us determine if something is goodor not. People like to see other people interacting with your product, and know that theyâve had a positive experience. This is where social proofcomes in.
One of the best forms of social proof is user-generated content. You want to be able to show your audience the positive experiences that real customers have had with your brand.
âA great way to get users and your customers to create the images you want is by using those micro influencers for constant content generation. Your customer will use that as inspiration to then create content based off that.â
Use your micro influencers to help you get the ball rolling so that your customers will be more likely, and feel less intimidated, to post branded content. You can even take this further by incentivizing your customers to produce user-generated content for you through giveaways or competitions.
The Power of Influencer Marketing
Through the power of influencer marketing, Gretta Rose van Riel has managed to establish herself as a serial entrepreneur and founder to be reckoned with. And with the right combination of ingenuity, hustle, and tactics, thereâs nothing stopping you from achieving the same with your own businesses.
Influencer marketing isnât just a trend thatâs going to come and go. Itâs literally existed for centuries, and itâs still going gangbusters to this very day. Just ask Gretta!
You can learn more of Grettaâs insights on how to not only use influencer marketing, but actually build an ecommerce business from scratch, including how to design a product, the best ecommerce platforms to use, and how to make your first million. Explore foundr+ to find out how.
FAQs
Is Gretta Van Riel for real? âș
In short, van Riel is for real. That's why we've been so excited to not only speak with her on the Foundr Podcast about just how she does it, but also to work with her on our latest online course, in which we show you exactly how to build ecommerce businesses from scratch.
What is Gretta Van Riel net worth? âșHer net worth is reportedly five million dollars.
Who is Gretta Rose? âșAustralian entrepreneur Gretta Rose van Riel started her first globally successful start-up SkinnyMe Tea (SMT) at the age of 22 with just $24 in the bank. In search of the perfect detox tea for herself, van Riel started creating blends at home and soon found a loyal customer base among her office co-workers.
What companies does Gretta van Riel own? âșGretta van Riel is a serial entrepreneurship and social media influencer who has built companies like SkinnyMeTea, The 5th Watches, Drop Bottle, Hey Influencer, and many, many more. The Australian is one of the biggest names in influencer marketing, with 16 million fans spread across her social channels!
Who started skinny tea? âșHey everyone! In today's episode, I share the mic with Gretta van Riel, a serial entrepreneur from Australia who built SkinnyMe Tea, The 5th, The Drop Bottle, and Hey Influencers from scratch.
Who is the founder of Foundr? âșNathan Chan, CEO, Foundr
Success doesn't happen overnight. This is something Foundr CEO Nathan Chan knows all too well. Before he started his business, Nathan was in a common predicament: he hated his job and he had no idea what career path to take.
She once grew an Instagram account from 0-48,500 followers in a day. Gretta founded her first startup, SkinnyMe Tea (SMT), at the age of 22 with $24 in the bank. SMT went on to be a global success going on to win the Shopify Build-A-Business competition in 2013.
Who is Gretta Van Riel? âșGretta van Riel has founded four multi-million dollar ecommerce businesses in the past six years including SkinnyMe Tea, the 5th and Dropbottle. Alongside her ecommerce businesses, she's also the founder and CEO of Hey!, an influencer marketing platform that connects brands with influencers.
What is in Skinny Tea? âșOolong Tea, Yerba Mate, Lotus Leaf, Lime Leaf Extract, Ginger Root, Rhubarb Root & Jiao Gulan.
Who is Foundr? âșFoundr is a global media and education company for entrepreneurs. We educate and inspire today's founders to become tomorrow's business icons. And we're doing it by democratizing access to entrepreneurial education and bringing it to the masses.
When was Foundr started? âș
Fortunately the entrepreneurial kingpin Richard Branson, agreed and his interview kicked Foundr off with a running start. That was 2013.
How did Foundr magazine start? âșNathan started Foundr as a self-funded venture in March 2013 as a digital magazine, while working a full-time job in IT. His initial intention was to operate this as a side project that would cover the operating costs and then replace his income. It took him about a year to get there.
Does Skinny Tea detox make you poop? âșSkinnyFit's ingredients may have a mild diuretic and laxative effect which could cause you to âlose weightâ on the bathroom scale, but this is just urine and feces and should not be confused with fat loss.
Does slimming tea actually work? âșThere is very little evidence that slimming tea is effective. In fact, class action lawsuits have been filed against companies who sold their teas as weight loss supplements. At least two lawsuits involved companies whose advertising made false claims about the effectiveness of their tea in aiding weight loss.
How long does it take for skinny tea to work? âșIt starts working from 8-12 hours after you consume it so make sure on the days you take it you are near a bathroom.
Does Teami skinny tea make you poop? âșBasically, this is just a tea that will make you poop. It won't make you miraculously lose weight or get skinny. Along with excessive trips to the bathroom, I also had stomach cramping and bloating while using this tea. My stomach just didn't feel right and it was very unsettled.