In 2019, startup Perfluence burst into the world of the advertising business. The founder of the company decided to completely change the principle of cooperation between advertisers and bloggers. For 2 years, the Perfluence team has shown great results and has more than 1000 positive reviews. So this startup definitely deserves your attention.
How did it all begin?
Kirill Pyzhov is the founder of the Perfluence platform. In 2017, he worked as Marketing Director at Mamsy. This is the first family-friendly club in Russia with an annual turnover of about 2 billion rubles a year. The online store was growing rapidly, and at some point it became necessary to promote it among bloggers.
To start working with bloggers, Kirill contacted several advertising agencies. They offered to pay 500-600 thousand rubles. for several ad placements on blogs with an active audience. But at the same time, no one guaranteed any results. And it was the result that was needed.
There was only one way out of this situation – to start cooperating with bloggers on your own. The main challenge was to come up with a model of work that would be beneficial to both parties.
At that time, advertisers paid bloggers a fixed amount for a publication. At the same time, bloggers were not responsible for the advertising result, i.e. they received the same amount regardless of the sales. Kirill found this approach ineffective, and so he decided to change the payment model.
It was decided to start working with bloggers using the CPA model. The bottom line was to pay for the result of the ad. The result was understood as a specific target action that subscribers should do. For example, follow the link and use the promo code. Thus, a reward was received on the blogger’s account every time one of the subscribers made a targeted action.
Kirill, together with his SMM manager, began writing to blog authors, offering to advertise for Mamsy on a CPA basis. They wrote preferably to microbloggers with an audience of up to 250 thousand, since they have the maximum engagement. Five out of ten authors agreed to cooperate on such conditions and brought the company 34 thousand rubles in a week.
The response to this result was unequivocally positive. Therefore, it was decided to develop further in this direction. To attract more bloggers, the staff of managers was increased and their training was organized. The company has grown rapidly, and this approach has shown good results.
How did the idea come about?
At a certain point, the Mamsy team began to show the best results in working with bloggers among Russian E-Commerce companies. For a year of cooperation on the CPA model, microbloggers brought the company 25 million rubles.
The team began to be invited to various conferences, where they talked about their approach to working with bloggers. Surprisingly, other companies did not use this method. At the same time, they did not understand how to organize work with bloggers in such a way that it would be profitable.
At that time, Kirill had already solved this problem for Mamsy. He not only came up with a profitable model of cooperation, but also successfully implemented it, showing steep results. He already had a ready-made case for working with bloggers, which other companies needed. Therefore, the idea of creating a separate agency was rather a logical continuation.
First steps that led Perfluence to success
In 2019, Kirill left the post of Marketing Director at Mamsy and launched his own project. He coined the name Perfluence with his future bride. It consists of two words: performance and influence.
The first investors were the founders and main owners of Mamsy. They invested tens of millions of dollars in the agency, which made it possible for a quick start. February 12, 2019 is considered the date of creation of the Perfluence company, since it was on this day that the first employees were hired. The command originally consisted of:
- director (represented by Kirill);
- two heads of the SMM department;
- one employee in the accounting department;
- a large number of managers who were involved in negotiations with bloggers.
At that time, the main task was to sell the case for working with bloggers to other companies. It was difficult to do this, since at that time there was no platform yet, there were not enough reviews on Perfluence. The director had to personally travel to different companies to interest them. As Kirill himself said, sales started after he improved his negotiation and positioning skills. Later, he could sell the service in 22 minutes.
First of all, the agency provided its services to Mamsy. The second big client was Tinkoff Bank. He already had a negative experience of working with bloggers before that. So I even had to prove that cooperation with microbloggers can be beneficial. They started working with a budget of 200 thousand rubles, and now the platform is engaged in advertising all the bank’s products. The third major client of Perfluence was OZON, which had not previously been promoted by bloggers at all and had no feedback on influencers.
For the further growth of Perfluence, it was necessary to create a platform. For this purpose, a developer was hired. He actually single-handedly implemented the site that we can contemplate now. At the moment, 10 developers are engaged in the maintenance of the site.
How has the platform developed over 2 years?
The team grew rapidly. Initially, the agency’s staff consisted of 4 people (excluding managers), but after a year their number increased to 20. 2019 became very productive and successful for the platform. The team worked smoothly and efficiently. As a result, over a year of operation, the platform has become an independent company that does not depend on investments.
2020 has been a tough year for everyone, and startup Perfluence is no exception. The entire advertising market began to cut its employees by 20-50%. At a certain point, advertisers became afraid of the world situation, so they began to cut budgets and close marketing. The first three months were very difficult, but Kirill managed to arrange the work in such a way as not to fire a single employee and at the same time not to reduce salaries. Moreover, the team has grown to 50 people, and the number of managers (scouts) has grown to 700 people. The platform was able to overcome this crisis and end 2020 with an increase of 4.5 times compared to 2019.
Why is the platform successful?
The difference between the Perfluence platform and other companies is that it initially solved a problem that all marketers in any company have. Kirill Pyzhov came up with and implemented a model that allows you to make effective advertising with bloggers. That is, the first reason for the platform’s success is that the creator did not have to come up with “pains” for the client. He ran into a problem and found a solution, which he later suggested to other companies.
The second component of success is that the creator of the platform was able to demonstrate to potential clients the real result that he achieved by applying this model in his work with Mamsy. Seeing evidence of the effectiveness of this approach, many companies are ready to provide large budgets.
The third reason many companies are willing to cooperate with the platform is expertise. The founder of Perfluence is an expert in his field, as are the members of his team. All processes are clearly structured and aimed at beneficial cooperation for three parties.
An important factor is the presence of a blogger base on the platform. The database contains authors who make effective advertising and are ready to cooperate on the CPA model. At the moment, the number of bloggers who advertise for Perfluence clients is 136 thousand.
The founder of the company himself claims that it was only thanks to the trust and feedback from the big business that Perfluence took shape as a company. Since it was the small test budgets that large companies provided at the beginning of the journey that helped the team to prove themselves and made it possible to scale.
The main goal of the platform is growth. Initially, the blogger base consisted of 200 people. At the moment, their number has increased to 136 thousand. By the end of 2021, it is planned to expand the blogger base to 300 thousand.
The second task is going abroad. The founder of the platform believes that the Russian market is too small, so he plans to launch international projects. For example, the company’s employees are already actively promoting Dostavista in Mexico.
Implementation of technical products is another important thing for further development. It is planned to launch products for advanced analytics of author profiles on various social networks, as well as to simplify workflows. There are already 3 similar products on the platform:
- Dashboard – a system for convenient project management.
- PFM Cashback is a tracking system that will help you sell everything through bloggers.
- PFM Booster is a function for exchanging subscribers.
The company plans to improve the employee training system. Educational processes are very important, since it is the expertise of employees that allows you to achieve maximum efficiency in working with bloggers. A special knowledge base has been created for training on the platform.
With such a well-planned approach to work and rapid development, Perfluence has every chance of becoming the world’s # 1 blogger platform. Indeed, according to the reviews of bloggers and advertisers on Perfluence, this team is already making the most effective advertising campaigns with bloggers in Russia.
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