Influencers Turned Entrepreneurs 

How often do you find yourself being persuaded to make a particular purchase after seeing it on social media, or seeing a well-respected public figure with the item in question? Social media has grown to have a significant impact on the purchases that the users of their platforms make, especially with the rise of influencers on each platform. Influencers are individuals who have reached some status of fame on social media and have a significant number of followers. The fact that the public monitors their activity and content gives them power that can either work in favor or negatively impact items that they choose to promote. The realization of this power has provided influencers with unimaginable opportunities.

Consumer Buying Patterns 

Once brands started realizing that influencers had the ability to drastically affect consumers purchasing habits, they seized this opportunity. Influencers started taking part in brand deals. In these arrangements, there is a partnership between the business and the content creator with the goal of promoting a particular item. The content creator receives payment in this deal, or free merchandise with the success of the brand deal. Lately, however, there has been a noticeable shift in the community of influencers and the brands that they promote. Some macro influencers are changing the game and starting their own brands instead.

Influencer Celebrities 

Some well-known influencers who have turned their fame into continuous revenue are Kim Kardashian and Rihanna. Kim owns SKIMS, which is an apparel brand for women. Rihanna has ventured into the cosmetics business and owns her own makeup line, Fenty Beauty. On a smaller scale, less famous influencers have begun to follow this trend. Australian youtuber, Tammy Hembrow started her journey to fame by posting about her pregnancy. Hembrow now owns Tammy Fit and has successfully integrated herself into the world of fitness. Another example is Huda Kattan, who made the transition from beauty blogger to business owner of her cosmetics line, Huda Beauty. It is easy to observe the financial and social reward that these influencers have earned, but what prompted them to pursue entrepreneurship in the first place?

Why Influencing? 

Influencers have been transitioning to become business owners because of the potential of a steadier income if their business is successful. Also, their following gives them an advantage as some consumers are likely to purchase a product strictly because of who it is associated with. Some influencers release products in industries that they have no real expertise in, and their products still sell out due to their fame. This eliminates the possibilities of brand collaboration because they are focused on promoting their own brand. This puts brands in a peculiar position in their market segments, as they must continue to keep up with changing marketing techniques and new entrants to their market.