Being an influencer has very quickly become one of the most appealing career paths for many young people. We are constantly bombarded with images of how lavish a life those who dedicate themselves to social media get to live. The freedom to work wherever they want. The ability to produce content that appeals to them. And the adoration of their millions of followers.
But have you ever wondered exactly how influencers make their money? Because it isn’t always as simple as you might think. There are a huge number of methods that an influencer can use to earn a living. And a savvy influencer will utilize as many different methods as possible.
Followers As Currency
The main factor in how much money an influencer can earn is directly tied into the number of followers they have. In our social media driven age, followers have become equivalent to currency when it comes to negotiation and securing deals with potential partners. Someone with a substantial amount of followers is going to be worth a lot of money to different businesses.
TikTok and Instagram followers are arguably the most valuable at the moment. Since these are the two platforms that garner the most attention from the younger generations. X, formerly Twitter, has become quite controversial in recent years. And, as such, the value attributed to having a large number of followers on X has steadily declined.
Followers and views can directly lead to financial gain on sites like YouTube. People can monetize their videos by allowing YouTube to place ads on them. Then, for every person that watches an ad on their video, they will earn a small amount of money. The amount per view isn’t substantial. But with a large enough audience a YouTuber could make a lot of money.
Brand Deals
This is the method through which influencers often make a significant amount of their money. As we said before, an influencer with a high follower count is extremely valuable to different businesses. If every one of their posts is viewed by millions of people, that is huge advertising potential for the right company.
More often than not businesses will approach influencers who they believe are best suited to their brand. They will then pay them to feature their products in their content. This could be through direct advertising, as we often see in YouTube videos. Or it could be more subtle like a fashion influencer using a specific brand of makeup in all their videos.
Brand deals have the potential to be extremely lucrative. Especially if an influencer can secure a deal with a huge brand. Up and coming influencers often secure brand deals with smaller companies. This almost symbiotic relationship has potential to be hugely beneficial to both parties. As the influencer’s popularity grows the brand receives increased exposure. So it is in the best interest of the brand to do everything they can to help the influencer succeed.
It isn’t uncommon for successful influencers to have deals with multiple brands. But this does tend to become quite tricky. Most companies will ask that an influencer not work with other companies that they are in direct competition with. But it isn’t uncommon for brands to enter bidding wars to secure a partnership with popular influencers.
Subscription Packages
A large number of influencers have started creating subscription packages on sites like Patreon or Fansly. These sites allow content creators to offer up tiered subscription deals with different rewards for each tier. Usually they offer behind the scenes videos, sneak previews of upcoming content, direct messaging with fans, and sometimes even the chance for fans to be in upcoming videos.
This system has been extremely popular in recent years as it allows influencers to earn a living without having to force advertisements on their fans. And the general public has responded well to this approach. People are becoming increasingly frustrated with how prevalent advertisements have become in our modern society.
Twitch streamers also make a significant amount of their money from subscriptions. ‘Subs,’ as they are called on Twitch, grant viewers specific perks related to the streamers they subscribe to. Often in the form of special emotes, access to exclusive streams, or access to a private Discord server.
Twitch also has a donation system. Allowing viewers to donate money directly to a streamer. This has become one of the primary methods by which steamers make a living. They will often incentivise viewers to donate by running competitions, giveaways, or hosting special gaming events for top donors.
