Influencers use social media to gain followers. They have the power to affect people. They may convince their followers to buy something or visit somewhere. It might seem like they do it just for fun. However, some influencers make lots of money.

Are Influencers Entrepreneurs?

Entrepreneurs have an idea for a new product. They start a business to make it. Some influencers start their own businesses. They are definitely entrepreneurs. But are influencers fulfilling a need? Many say yes. Companies are starting to use influencers to sell products. This is because companies can reach specific groups through an influencer. Followers are more likely to buy what the influencer suggests.

Getting Started

Entrepreneurs and influencers start businesses in different ways. Traditional businesses usually have startup costs. These are costs to buy materials and equipment or rent an office. Starting a business can be expensive. Influencers usually have fewer startup costs. Many influencers only need social media accounts and a smartphone. Most of them do not need to spend money on office space. Many of them work from home.

Building a Brand

Entrepreneurs and influencers both want to build a brand. Yet, they do it in different ways. Entrepreneurs build their brands slowly over time. The product or service comes first. The brand comes later. For influencers, it is the opposite. Their brand is their personality. They have to get followers before they can make money. Influencers develop a message to reach followers. They make money from this relationship. They may get their followers to buy a product, for example. The company that makes the product pays them.

Making Money

Influencers have different ways to make money. They can try to convince their followers to buy a product. Companies will pay them to do this. They make even more money by putting ads on their pages. Some influencers create their own products. Of course, they advertise these new products on their social media channels, too.

Driving the Economy

Entrepreneurs help make a country richer. They help the economy grow. An economy is growing when jobs are being created and people are buying goods and services. Entrepreneurs create new markets. They make people realize they want something they did not know they wanted. Then, similar companies start. This type of competition can help the economy grow even more. For example, Uber is a ride-sharing company. It was started because people needed more taxis.

Soon, more ride-sharing companies sprang up and began competing with Uber. As new companies grow, they hire more people. Many startups have invented new technology.

Influencers make the economy grow in similar ways. They created a new way to make money on social media. They also create new jobs, because they need help making new content. As more people become influencers, the competition between them gets stronger. As entrepreneurs, influencers continue to make the economy stronger.

Influencers: The Modern Entrepreneur

Some social media influencers use their platform to earn money by partnering with companies to advertise services or products, like lipsticks, to their followers. Similar to traditional entrepreneurs, they jump-start new businesses, taking responsibility for the risks, responsibilities, and rewards. Unlike traditional entrepreneurs, connecting to followers is more important than selling the product or service.

branding
Noun

marketing or sales process that creates a unique reputation for a product.

economy
Noun

system of production, distribution, and consumption of goods and services.

Noun

person who starts and manages a business.

influencer
Noun

someone who has the power to affect or change people and their behavior (often through social media)

innovation
Noun

something new.

market
Noun

central place for the sale of goods.

profit
Noun

money earned after production costs and taxes are subtracted.

venture capital
Noun

funds provided for a new business by individuals or organizations other than those who own the business.