Revenue Models For Influencers

Written by: Rashmi

The word ‘influencer’ is not a new one. In fact, the concept of brands working with an influential figure has been one of the famous marketing strategies for decades. But earlier, the offer was limited to celebrities and highly-famous people.

Now, things have transformed drastically. In 2022, influencers are not necessarily celebrities. Instead, they can be content creators, bloggers, comedians, fashion enthusiasts, and the list goes on.

The transformation has also seeped into the revenue models. The traditional ways of generating revenue have multiplied and influencers are now turning their online presence into full-time jobs.

According to Statista (paywall), the influencer marketing industry was worth $13.8 billion in 2021. This says a lot about the potential that lies in influencer marketing.

The questions arise – how do they do it? What exactly is their revenue model? Let’s find out.

Revenue Models For Influencer Works

Below are some of the common ways that help in generating revenue for influencers via channels like Instagram, Facebook, YouTube, LinkedIn, etc:

Sponsored Posts

Influencers often get offers from brands to promote a product or service via their social media platforms. These are paid posts and help influencers earn a lucrative amount of money. The deliverable by influencers can range from social media posts, videos, or blog posts.

This is a common practice, especially in the beauty and travel industry. However, there is no limitation nowadays since cryptocurrency and even publishing firms are also reaching out to influencers for branding and advertising.

Brand Ambassadorship

Though an old concept, brand ambassadorship still stands as one of the best advertising strategies for brands. When a particular brand extends its collaboration with an influencer, asking them to be the face, it is often classified as brand ambassadorship. For instance, fitness influencers often endorse several brands through their social channels.

Compared to sponsored posts, this type of collaboration lasts for a longer period, sometimes even for a year. The additional fee is also higher, giving a better and more consistent revenue source to the influencers.

Digital Products

From ebooks to video tutorials, influencers can also sell various digital products to their followers through their blogs, websites, or social media pages. They can share their expertise and knowledge on a particular subject by creating such digital products.

And since they have a dedicated community of followers who are eager to learn about the success recipe of their icon, they happily purchase the products and also promote it. The sales can accumulate over time, making it a viable source of income.

Affiliate Marketing

Affiliate marketing is a popular way to generate revenue. In this model, social media influencers can share the link of a product page and get commission from any sale that occurs from that link.

For instance, if a fashion influencer shares a link to a dress while showcasing different ways to styling for a party. If any follower buys the dress using that link, the brand pays the influencer some commission.

Influencers, however, first need to become affiliate partners. There are plenty of affiliate programs associated with large eCommerce sites. That being said, affiliate programs can be implemented by businesses of any size, shape, or form.

Events

This is the era of social media and the influencers are no less than celebrities. Some have millions of followers who are willing to go to cities to attend events where their favourite influencers make appearance. And this is where another stream of revenue comes in.

Influencers can host live or online events and charge the followers for participation. Similarly, brands can invite influencers to their own events or webinars to attract the crowd and get more traction.

Modern marketing is transforming and influencers are certainly among the biggest drivers. Their ability to tap from a small to large audience opens up the opportunities to add more streams to their revenue model. This not only boosts their own growth but also helps companies in effectively reaching their target audience.