Goldman Sachs estimates that there are more than 50 million influencers worldwide, a number that is growing 15% annually. One of every 100 social media users is an influencer.
In five years, there will be over 100 million influencers out there . . . influencing. Estimates suggest that Tik Tok uploads will exceed 50MM per day as a result.
Think about that. How can one influencer’s content possibly stand out in such a sea of comparable fluff stuff. Goldman Sachs has the answer.
It can’t.
Most influencers earn less than $15,000 per year. Not a great return, even for part time work. As a full time occupation that works out to an hourly wage of less than $7.20. By way of comparison, the average US fast food worker earns $19.51/hr. Only 3% of influencers earn more than $100,000. Most put in long hours for very little return.
Nor is the earnings potential for influencers likely to improve. Brands that formerly contracted with outside influencers are bringing those influencers in house. Or replacing them with internal candidates.
Supply far exceeds demand.
What is one to do? I asked my Finance influencer for help. His suggestion? That I post a Tik Tok video in which I wear luxury brand clothing while standing on the Amalfi Coast at sunset, gazing confidently (yet somewhat indifferently) at the super model holding my left hand, with a bottle of Dom Perignon grasped loosely in my right.
That should stand out.
OK, maybe not.
At least I’d get a trip to Italy.
Peter has spent the past twenty-plus years as an acting/consulting CFO for a number of small businesses in a wide range of industries. Peter’s prior experience is that of a serial entrepreneur, managing various start-up and turnaround projects. He is a co-founder of Keurig.
