Why Social Media Influencers Make Bank

The Big Divide Between Influencers and Companies

Several studies have been conducted to see how social media influencers compare to regular brands in terms of engagements on posts. NewsWhip's study done in June 2017 revealed that the metrics between the two were very different. "JetBlue averaged 2,363 engagements in June on its owned posts, while influencer posts garnered an average of 241,226 engagements"(eMarketer). This divide is the norm throughout all of social media. 

So how do these influencers make money? And why? 

Companies and brands approach influencers with either requests for a post, a series of posts, or a campaign to promote their product/brand. "Fellow fitness influencer Lyzabeth Lopez, creator of the Hourglass Workout, charges between $3,000 and $5,000 per post, and between $20,000 and $100,000 per campaign" (Forbes). Just to give you a ballpark estimate on how much. YouTube campaigns can run up as high as $300,000 for a campaign!! 

So why can they charge such lucrative prices? It is all about the number of followers they have, the quality of the relationship they have with their followers, and the influencer's brand/personality. 

People like to deal with other consumers vs interacting with faceless brands. 

Influencer marketing can be a promising avenue to approach since it can put your business or product in front of eyes who would have otherwise not seen it. I think for startups, once they have their customer acquisition processes in place, influencer marketing can be an promising marketing investment. It can quickly raise awareness and drive traffic to your business.

The risk lies in not having complete control of the message that is put out by the influencers. This is to ensure their message remains authentic for the best reception with their audience, which will be your audience too! Maintaining the relationship between you and the influencer is crucial as well. The balance between the safety of your brand and their authenticity.