According to Business Insider, social media influencers are setting waves amongst their vast audiences. Brands are set to spend up to $15 billion on influencer marketing by 2022 based on Mediakix data. Partnering with social media influencers on a Brand level has never become more norm and those that keep an open eye may grow exponentially. Chris Henien eyes social media influencers as the HNW 2.0 of wealth management.
The market is rapidly expanding as influencer types have evolved from pet centric to food-based to comedy niches. Each of these niche types offer distinct benefits and trade-offs for brands. In addition to celebrities with massive followings such as Kim Kardashian West and Kylie Jenner, brands are increasingly diversifying their budgets to cater to micro, nano and kid-influencers. Subsequently, income opportunities for influencers are rising.
Thanks to the deadly pandemic, 2020 has made waves in the influencer marketing industry. As people spend more time on social media, they are likely to spend time watching their favorite influencers and engage more with the products they promote.
According to Henien, the influencer economy is expanding rapidly; many can generate as much as seven-figure incomes. At some point, influencers tend to think about the next chapters of their evolving business and search online or within their network for trusted advisers. Many may need wealth advisers earlier in their careers.
Influencers are serious about monetizing their brand as well as protecting and growing their wealth. Henien suggests those seeking an adviser should have the necessary tools in place such as adequate technology such as Financial Technology and most definitely experience within serving the social media industry. Important points to take into consideration are understanding the unique financial challenges of influencers and how they differ from one profession to the next.
A few key areas of experience that would be helpful are wealth advisers provide ways to monetize royalties, residuals, and other intellectual property. Opportunities to borrow against a contract, future ticket sales or tour revenues. M&A or spin-offs within their niche can play a great role in realizing new assets including income streams to complement their overall portfolio. There are many services wealth advisers should be adequate in providing to the rapidly growing influencer space.
In addition, delivering the experience and resources they need to help create and implement a comprehensive, multigenerational wealth management plan would be solely based on their needs, values, and aspirations.
As it is apparent, Influencers’ earnings can be unpredictable therefore wealth advisers who handle their money need to be apply flexibility and plan on an almost month-to-month basis. Generally traditional wealth advisers allocate investments where they are not going to be able to access it for some time. This type of strategy would not necessarily be applicable for social media influencers. This means steering clients into more stable, liquid assets so they can be ready to take advantage of opportunities on the rise.
With Advsr.ch building out a financial technology ecosystem there are opportunities in pursuing the next HNW & UHNW 2.0 markets for the future. Chris Henien is positioning advsr.ch to become the forefront of financial technology solutions that can help support, service and satisfy this wave of clientele. Baby boomers, who are wealth management’s current target audience and are the wealthiest generation in history. This will soon change once their generation starts passing on its wealth to millennials, through an ‘inheritance boom’ and with social media influencers creating first generation wealth. Henien is convinced that the race is on to win that generation’s loyalty, and so the industry will have to make like Kim Kardashian and embrace changes in how it markets itself.