The social media influencer business model is often attractive to wannabe entrepreneurs. The huge potential of fame, fortune, and lifestyle can elevate these types of entrepreneurs from your usual more private entrepreneurial types.
So, if you are considering turbo-charging your business by becoming a social media influencer you should take a close look at the downsides of this marketing model. In this article, we do just that…
Content Creation Pressure and Burnout
As a social media influencer, you will be under constant pressure to create content. Of course, content can take many forms including video, pictures, writing and other creative elements to enhance your personal exposure and brand.
You will also need the time to upload all this content you have created onto platforms like YouTube, Instagram, TikTok, FaceBook etc. This constant need to feed the social media platforms can often lead to burnout.
There is a real pressure to remain relevant in order to prevent repetitive content. This can lead to eventual mental exhaustion that can lead to influencers taking extended breaks or exiting content creation altogether.
Unpredictable and Inconsistent Income
The biggest draw to the social media business model is the potential for high earnings. These earnings can take the form of ad revenue generated from posting engaging content, brand sponsorship deals, affiliate marketing and partnerships.
While these revenue streams offer huge earning potential they are often on a deal-by-deal contract basis and therefore earnings can be inconsistent.
In addition, getting your visibility to the point where you can attract sponsorship deals and ad revenue can take a significant amount of time. When it does arrive revenue can be inconsistent and unpredictable making it hard for the social media influencer to make plans for the future.
Platform Vulnerability
One of the downsides of promoting yourself and brand on social media is you are one hundred percent reliant on the platforms for your exposure and therefore your brand.
This business model faces major risks in this area because all social media platforms are run by complex algorithms that decide the content that is most relevant to be promoted to audiences.
Algorithms are constantly being changed by platforms which can cause once-popular influencers to fall dramatically out of the limelight sometimes overnight.
Building your entire business on one social media platform is particularly risky. For example, influencers who built their entire careers on Myspace saw their businesses collapse when the platform became obsolete.
Even if you do manage to navigate the algorithm there is always the danger that your social media account is suspended or shadow-banned due to shifting attitudes or content creation guidelines.
Read our article on the downsides of a YouTube channel here:
Authenticity Issues
The followers of social media influencers expect authenticity. If a social media influencer creates a fake persona to become popular and that façade drops, that influencer could face the implosion of their entire business model.
Maintaining authenticity while promoting commercial products is a fine balancing act. Followers expect genuine and authentic recommendations.
If followers perceive that an influencer is “selling out”, this can lead to followers unsubscribing which can in turn lead to the decline of the influencer’s brand.
Influencers may also face conflicts of interest and even legal issues when promoting certain brands or products, such as, gambling or cryptocurrency.
Read our article here on how influencers who promoted crypto products fared after the crypto crash in 2021:
Toxicity and Public Scrutiny
As public figures social media influencers are frequently subjected to intense scrutiny and criticism.
The rise of trolling, cyberbullying and cancel culture is also a significant risk to social media influencers.
Negative comments is another plague that can impact the mental health on influencer’s mental health and well-being.
Furthermore, as an influencer your personal life will come under public scrutiny too, leading to a loss of privacy. There is constant pressure to maintain a positive public image and any mistakes in your personal life can lead to catastrophic outcomes for your brand.
Legal and Copyright Challenges
Social media influencers are subject to huge risk from legal issues. This could be copyright issues due to the content that they post, to promoting products that break advertising regulations.
Posting music or videos that are copyrighted can lead to demonetisation or content takedown which can have a huge impact on an influencer’s revenue streams. Furthermore, if the content violations persist your platform could be demonetised completely or banned.
In addition, the Federal Trade Commission (FTC) and other regulatory bodies worldwide have implemented strict guidelines that require influencers to disclose the sponsored content clearly. Failure to comply can lead to fines, legal action and impact to the influencer’s reputation.
Saturation
The social media influencer model is seen by many as an ‘easy way’ to make money online. Therefore there is intense competition. There are millions of influencers across numerous platforms all vying for attention but there are only so many sponsorship deals out there.
Influencers are finding it increasingly difficult to stand out from the crowd. There is an insatiable requirement for not only creativity but also for high-quality production values and marketing efforts.
This can make it incredibly difficult for new influencers to gain traction without a unique angle or niche. Even if you do find a new niche, don’t be surprised if several thousand copycat channels appear within months aiming to emulate your success.
Final thoughts
While the social media influencer business model offers the potential benefits of financial success, fame and a huge following. The downsides are significant and risky.
The business model can lead to an unstable career path. Pressures to create innovative content regularly can lead to exhaustion and burnout. Public scrutiny and legal issues can be overwhelming and the added pressure of platform dependency and algorithm issues can even lead to the demonetisation of your business.
Aspiring entrepreneurs looking to go down the influencer path must consider all these elements carefully in order to come out on top. Success in this field requires strategic thinking not just creative thinking.
Good luck!
***Disclaimer: This article is not financial advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
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