Influencer vs UGC Creator: Why Most Small Businesses Get It Wrong

The Expensive Mistake Too Many Startups Make

I’ve seen it happen far too many times. A small business owner excited to grow their brand drops £500 on a micro-influencer, only to get a couple of poor posts and a handful of likes.

No sales! No lasting engagement!

Just a lighter wallet and that sinking feeling of, “Did I just waste my money?”

The truth is,  most small businesses don’t need influencers. At least, not in their infancy. What they actually need are UGC (User-Generated Content) creators, but because nobody is explaining the difference, I keep seeing people making the same costly mistakes.

So how do we go about fixing this?

1. What’s the Difference Between An Influencer & UGC Creator?

At first glance, influencers and UGC creators seem similar. Both make content. Both post online. But their roles and their value to your business are completely different.

Influencers = Borrowed Attention

• They’re the celebrities of niche audiences. Followers trust them, not necessarily you.
• You pay for access to their reach. But once the campaign ends? That audience disappears.
• Best for: Big brand awareness pushes (think: fashion launches, viral challenges).

UGC Creators = Owned Content

• They’re the “real people” who make authentic, scroll-stopping content—without needing a huge following.
• You own the content. Use it in ads, product pages, emails—wherever you need social proof.
• Best for: Building trust, scaling ads, and filling your feed with high-converting content.

The key difference?

• Influencers rent you their audience.
• UGC creators give you content that earns your own audience.

2. Why Most Small Businesses Should Start With UGC

Look, I get it. Influencers feel glamorous. But unless you’re sitting on a big old pile of money, UGC is probably the smarter move for your business. Reasons include:

Cost-Effective

• Influencer: £500 for one post (and hope it converts).
• UGC Creator: £100 for 5-10 raw, reusable clips (test what works, then do more of it – rinse and repeat).

Better for Conversions

• 85% of consumers find UGC more influential than influencer content. Why? It feels real.

You Own the Content

• That influencer’s post can be gone in 48 hours. With UGC you can repurpose it for months in ads, emails, socials and landing pages.

Exception: If you’re launching a lifestyle brand (think: fitness, beauty) and need quick hype, a micro-influencer might make sense. But for 90% of small ecommerce stores? UGC wins.

3. How to Find (and Work With) UGC Creators

Where to find them UGC Creators:

• TikTok/UGC Marketplaces: #UGCcreator hashtags, Fiverr, Upwork, Billo.
• Your Customers: Offer free products in exchange for honest videos.
• Linkedin: The platform is full of professionals. Look for their previous work and see what projects they have worked on

What to ask for:

• Raw, unedited clips (so you can tweak them for ads).
• Permission to use across all platforms (no “Instagram-only” deals).

Pro Tip: Start small. Order 3-5 UGC clips, test them in ads, then scale what works.

4. When Influencers Actually Make Sense

I’m not saying never use influencers. But do it strategically:

• You have a bigger budget (and can afford the risk).
• You’re targeting a very niche community (e.g., vegan skincare).
• You’re running a short-term “hype” campaign (limited-edition drop, collab).

Final Takeaway: Stop Copying Big Brands

Big companies use influencers because they can—they’ve got money to burn. You? You need smart marketing.

Start here:

1. Try UGC first. Even 5-10 clips can fuel your ads for months.
2. Repurpose everywhere. Product pages, emails, TikTok ads—squeeze every drop of value.
3. Only consider influencers once you’ve nailed UGC. (And even then, negotiate content rights.)

Need Help Deciding?

If you’re still torn, drop me a message. I’ll review your brand and give you a no-BS recommendation on how to spend your budget wisely.