- That's right,
I sponsored a Kardashian's
Instagram giveaway
just for you guys to be able to see,
if Instagram giveaways really work.
Hey, this Peng Joon here.
And today, I will be showing
you behind the scenes
to what happened after I sponsored
and paid for this
giveaway, that was $11,000,
sponsoring Khloe Kardashian's giveaway.
First of all, if you take a look
at Khloe Kardashian's recent post,
two hours ago you will see
that she made this post,
that, you know, 922,000 likes
from just two hours ago.
And you'll see that it says,
"If you want to win 50K,
of all bags here, you
gotta follow this person,
and you gotta follow
everyone that this account
is following as well."
And I am one of these 75 people.
And if you're new to this,
by at end of this video,
you're gonna be able to discover
if Instagram giveaways actually
work, if it's all a scam.
But you'll see that these
are all of the sponsors
of the two of them who are my friends.
And you'll see that a lot of
them are in markets or niche
that could be appealing
to Kardashian's followers.
And what I'm going to be
doing is I will be showing you
the numbers here today as well,
on what actually happened.
And if you should be
doing Instagram giveaways,
if it's a great strategy
or if it is an absolute waste of money.
Now, I'd like you to notice
what's happening here.
So to first understand if
Instagram giveaways work,
if it's a great strategy
to building a following,
to monetizing, or is it all
just surface level likes
and following, this case
study will show you exactly
if it's worth it, so notice what happened.
Okay, so first of all, in
order to make this happen,
there are three main
parties involved, okay?
Which is represented by
these three boxes over here.
The first person is the influencer.
Now this would be the Kardashian
in this scenario over here,
there's the influencer
who has a huge following.
So now every influencer, big or small,
they all wanna monetize.
But they don't want to deal
with a lot of different people.
So what they normally do,
is they'll hookup with
some sort of agency,
and what this agency will do
is they will organize
these types of giveaways.
And what this agency will do,
is they will look for people
who either want to build up
their social media following,
or perhaps get verified on Instagram,
or wanna increase their credibility.
So what this agency would do
is they would get about 50
to 100 different sponsors
to join this giveaway,
and let's just call this,
people who wanna have Instagram growth.
So these could be people who
wanna get a bigger following,
this could be who are in a market
that is similar to this person.
So you notice that this Instagram growth,
there were a lot of like
somehow plastic surgeons
and people selling makeup
and beauty and cosmetics
and all that kind of stuff, right?
Because they think,
that if somebody follows this influencer,
chances are, if they were
to market this product
to this influencer, there's a good chance
that they could monetize, okay?
We'll find out that's true in a second.
So agency pitches this
to 75 to 100 people.
So for a case study like this is 11,000.
Now this is actually lower than market,
I believe that the market
rate is much higher.
We have mutual friends in common,
and then we did some
deal with the organizer.
But ultimately, if I were
to do some quick math here,
75 people sponsoring
this giveaway at 11,000,
a total of $825,000.
This person; agency
approaches influencer and say,
"Hey, influencer,
how would you like to
get paid," I don't know,
"$400,000 for making a post?"
Now, by the way, this is
not an any ordinary post,
this is literally the pitch.
The pitch is, unlike a
normal post where you have
to pimp out your brand
or the name and say,
and endorse this product and say,
"Hey, this is a great
product buy this product,"
it's nothing like that.
Literally the pitch is,
you're gonna make a post on your feed,
and it's gonna literally say,
"I wanna thank and reward you
guys for being my followers,
and I'm giving away,"
say "$50,000 in prizes,"
which is what Khloe Kardashian did.
We are paid a 50,000, on top
of that, we will pay you,
I don't know, whatever,
$400,000 for making this post.
It is said that Kim Kardashian costs
a million dollars for one Instagram post,
but that's to endorse something,
this literally for giving money away.
So influencer now it's an easy sell, why?
Because they get to make money.
The followers are happy,
because they're literally
giving away money,
that's being paid by this,
that's being paid by these people.
Sometimes I see people saying,
"Is Instagram giveaways a scam?
Do these people really give
out the money?" they do.
And the reason is because these people
are not coming off the money.
It is these people that's
actually forking out the bill.
So the question is, was it worth it?
By the way, if you guys like these kind
of behind the scene videos,
be sure to smash the like button,
let me know in the comments below,
if you'd like to see more of these type
of behind the scene videos,
and make sure you hit
the notification button,
because if you want to be notified
for future videos like this one,
we're gonna be releasing a
lot videos, just like this,
to show you exactly what we're
testing behind the scenes,
so you'd be able to see
these numbers firsthand.
Okay, so back to the numbers,
okay, I'm gonna go into
my laptop right now.
And I am going into Social Blade
to see the numbers of what
has been happening, okay?
No giveaway, giveaway.
I would say that how much is
attributed to this giveaway
is maybe about 120,000 give or take.
So 120,000 followers, which we all know
doesn't mean anything,
it's just a vanity metric,
but I wanna find out if
there is real monetization,
in the 120,000 of pure random
people that's not targeted.
So on top of that, you'll notice
that it drop-offs after, why?
Because people follow me
just to win the prizes,
they're not interested
in who Peng Joon is,
or what it is that Peng Joon does.
And a typical dropout rate
I'm guessing is about 30%.
So this might be the case, you know,
and not forgetting that,
you know, they're usually,
you know, the usual organic likes as well.
So, let's say it's 80,000 followers.
I wanna be able to see if there
is monetization in 80,000 random people.
So the way to think about
is Instagram growth for you
is by looking at these
few different factors.
First of all, it is to look
at the amount you're paying
versus the expected followers.
If it's a totally random audience,
if you watch all my other
videos, I'm all about ROI,
monetization, 80,000
likes followers, comments,
all these means nothing,
it's just a vanity metric.
So I wanna understand the math behind it.
If I have 80,000 people
who genuinely follow me,
I know that approximately
5% of people that follow me
will view my Instagram story.
Now this is a hot audience, by the way.
So it's somebody that genuinely follow me
because they were
interested in my content.
So I know that if this
was a normal following,
which is not, okay, we'll
come to that in a second.
I know that that would be
4,000 story views, make sense?
And I know that out of 4,000
people that view my story
if I were to do a swipe up campaign,
meaning every time I do a story and I say,
"Hey guys, I just released this thing,
and if you would like to
check out product name,
all you need to do is swipe up."
So every time I have a call to action,
and I do a swipe up
campaign, which is a lot,
once you have 10,000 followers,
I know that 10% will swipe up.
10% of people swiping up
is equal to 400 clicks.
That means 400 people visiting
my website, my funnel,
my sales process, my free plus shipping,
my webinar, my whatever.
Now, in most cases, if you
were to pay for a click
on Facebook, cost per click
will cost me about $1.
And usually if I send people
to some sort of sales process
or webinar, I know that
my earnings per click
is about three, now
depends on the funnel type,
depends on the whether it's a
webinar, or it's high ticket.
This number would vary, but give or take.
I know that's about $3.
So, if I were to add these two numbers up,
this means that the amount
it would have saved me,
plus the amount it would have made me
is approximately $4, every
time I do a swipe up campaign.
That gives me 400 clicks,
so 400 multiplied by four
would be $1,600, every time
I do a swipe up campaign
for a normal audience.
Another way to think about this could be,
if 400 people visited your website,
and if you had a decent
conversion of saying 5%
for a $50 product, that's
another way to calculate,
5% and a $50 product,
if you have 400 clicks,
that will be 20 sales.
20 sales multiplied by 50,
it will be about a thousand dollars.
So it's kind of similar, right?
So this is assuming a 5%
conversion of $50 product.
If you're taking into
account cost per click,
a dollar click, yeah, it's
about 1,400 clicks here.
So if this is for a
normal 80,000 followers,
the question now would be,
if all you did was one swipe
up campaign once a week,
how much would that be?
However, that's a big, however, okay?
And a big however, it's a very big but,
just like Kardashian's butt.
Not a very tasteful joke, I guess.
But the goal here is to see if there's ROI
on these 80,000 followers because,
this is not a normal follower, right?
These are people who just wanted to join
for the sake of joining.
So what I do, my train of thought is,
and time will tell by the way,
is I wanna dilute this five times,
I wanna be able to say, you know what,
to be conservative 'cause these people,
after watching this for a
day, three days, five days,
10 days, the people whose not interested,
they're gonna unfollow,
and that's why the unfollow
is gonna be like 30%, 40%.
I'm assuming that if
they continue staying,
they're going to be five
times less interested
than a normal audience
that would normally follow.
Would you say that's a
pretty fair assumption?
Okay, and if it is a fair assumption,
that means that this number over here,
is diluted five times.
So how I think about this
then, is do I want to pay 11K
in order to build an asset that gives me,
so five times less this amount
that would be 1006
divided by five would be,
to build an asset that allows me
to give a $320 additional
amount every time I swipe up.
And if I only did a swipe
up campaign once a week,
so four times a month,
do I want to pay $11,000
that gives me an additional 1,280 a month.
So based on these assumptions,
we have to make these
predictions based on assumptions.
The ROI would be there after 10 months.
So from a mathematical standpoint,
the answer would be a yes.
Now the thing is, I wanna
challenge my own numbers,
and I wanna see where the
flaw is in this thinking.
Why don't you let me know?
Do you think I'm being over optimistic?
Am I being very conservative?
Where is there a flaw in these numbers?
Now time will tell because I'm
literally doing it right now.
And I'm tryna segregate
the before and after
with the same exact campaign.
And by the way, if you like
this kind of case studies,
and if you wanna see the test,
and the result of this test
in terms of the exact ad,
the exact monetization,
and what it is that
happened before and after,
be sure to subscribe,
because we're gonna be revealing it to you
once we hit a 100,000 subs, okay?
The moment we do that,
I'm going to be revealing
to you exactly the numbers
if indeed, this theory holds up.
Let me know in the comments below,
if you think this theory holds
up, as you probably know,
in every single video,
we've been giving $100
in our giveaway just to
random people who comment.
So make sure you leave a comment below
to let me know your thoughts as well.
So this is literally how
Instagram giveaways work.
Let me know if you are
somebody that's thinking
about doing Instagram giveaways.
I wanna add one last thing,
Instagram giveaways are not for everyone.
Do this only if you
are in a market that is
catered to the masses, so
if you are selling something
like beauty, exercise,
lifestyle, money, investments,
things that is for the mass audience,
where it's okay for you
to have a large amount
of random people suddenly following you,
then it will be good.
But if not in most cases,
I will not depend on Instagram giveaways
as a way to generate Instagram growth.
Other than those reasons,
or the intangible reasons
like social media proof, getting
you the gigs if necessary,
or even getting you Instagram verified,
because that is one of the many factors
that Instagram looks at.
I hope you enjoyed this video as always
let me know in the chat
below your biggest takeaway,
be sure to smash the like button,
and hit subscribe for
future videos like this one,
This Peng Joon, I
enjoyed doing this video,
hope you did as well, and
I'll see you in the next one.
