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2021 Prediction
We’re about to see a rush of influencer equity deals.
Some thoughts
We’re about to see a rush of influencer equity deals.
Some thoughts
1/ The Distribution Problem
Distribution a massive challenge for start-ups.
AdWords, Facebook, IG ads are not the growth hacks they used to be.
Big brands figured it out, & have driven prices up.
Distribution a massive challenge for start-ups.
AdWords, Facebook, IG ads are not the growth hacks they used to be.
Big brands figured it out, & have driven prices up.
2/ Enter Influencer Marketing
Suddenly, startups could avoid the Facebook & Google tax by partnering directly with creators.
The problem: prices aren’t cheap.
Suddenly, startups could avoid the Facebook & Google tax by partnering directly with creators.
The problem: prices aren’t cheap.
3/ The Equity Disconnect
Startups aren’t cash rich, but they have valuable equity.
Yet, there hasn’t been a ton of influencer equity deals to day....why?
The disconnect btwn how founders vs influencers value equity.
....1% of a company sounds very different to either side
Startups aren’t cash rich, but they have valuable equity.
Yet, there hasn’t been a ton of influencer equity deals to day....why?
The disconnect btwn how founders vs influencers value equity.
....1% of a company sounds very different to either side
4/ A Shift in Mindset
Over the past 6 mo, I’ve seen a change w/ founders & influencer’s thinking.
• Founders: See the value of distribution, especially at launch
• Creators: View themselves as entrepreneurs & are playing the long game
Over the past 6 mo, I’ve seen a change w/ founders & influencer’s thinking.
• Founders: See the value of distribution, especially at launch
• Creators: View themselves as entrepreneurs & are playing the long game
5/ The Tough Part
What do these agreements look like?
This is the question I’ve been getting the most.
What do these agreements look like?
This is the question I’ve been getting the most.
6/ Broad Thoughts
• Fundamentally different than past endorser equity deals
• Likeness is less important, than distribution
• Partnerships need to integrate creators beyond a media buy
• Deals should blend cash & equity to properly incentivize frequent promo
• Fundamentally different than past endorser equity deals
• Likeness is less important, than distribution
• Partnerships need to integrate creators beyond a media buy
• Deals should blend cash & equity to properly incentivize frequent promo
