If you’re anything like me, you might find “influencers” annoying.
Maybe it’s just jealousy, because they’re taking in the cash. Take Jenn Im, for example. Nine years ago she started making YouTube videos showing how she turns thrift store bargains into stylish ensembles. By 2013, she was supporting herself with these videos. Today she has 2.4 million subscribers, corporate sponsorship deals, and her own clothing line. And she also has lots of money.
As the filthy lucre rolled into her coffers, Jenn had no idea what to do. Her money lay fallow in a low interest bank account. To her credit, she finally realized that some professional help would be a good thing.
Today’s influencers, with their millions of followers, can earn seven-figure incomes through their digital dallies. The industry is serious business, with influencer advertising expected to be valued at $5-10 billion by next year. And these influencers are getting serious about their money. But some influencers may be concerned that financial advisors may not understand their businesses, or even be aware that they exist.
These influencers often don’t have much experience with the financial sector either, and they need to find wealth managers who understand their business, their role in the digital world, and their unique perspective.
Advisors must understand not only the business, but how they tick. Predominantly young and inexperienced, they have considerable confidence based on the sea of unfounded affirmation they receive from millions of savers. Their income can be irregular, as it varies with the vagaries of social media users. Advisors need patience and flexibility to serve these clients.
These clients can’t lock funds away for 10-20 years, and they often have a psychological need to create a large reserve so they’ll never go back to their pre-money lives. They need a new type of approach that is consistent with their evolving needs.
For more on working with influencers, please visit:
Influencers Seek Wall Street’s Help to Manage Newfound Wealth | Wealth Management