If you are selling a product/service through an Influencer, then it is called Influencer Marketing. An influencer is a person who inspires you and lets them follow your style. It involves a particular brand collaborating with an online influencer to market its products or services. It is one of the fastest-growing areas in the advertising world.
Some brands use influencers to improve their brand recognition. Influencers can be anywhere and anyone. They specifically need not be celebrities. Within their industry, they will be well-experienced and influential people. They would have developed a reputation for being the experts in their field.
Example: An Influencer would have numerous followers in their social media handle and once they post information about products they use or like, their followers will buy them.
The beauty products like skin care, hair care, etc or boutique brands like women clothing, exclusively kids products might approach the influencers for marketing their existing products or new products. Then, a sample is sent to them. They use the product and market the products through their Instagram posts. People would be impressed and are likely to purchase from that particular brand. This is cost-effective marketing.
If you have to be an influencer, you have to be knowledgeable in the field. Data from 2020 suggests that micro and nano influencers have the highest engagement rates in the influencer marketing industry. Affiliate marketing and Influencer marketing are kinds of the same.