The Creator CEO Era on How Influencers Are Becoming Full Blown Brands

Influencer marketing has become one of the most powerful social media marketing methods. According to one study, 93% of marketers suggest using influencer marketing as part of their marketing campaigns. Another study indicates that 89% of marketers achieve a better ROI from influencer marketing than from other marketing methods. This proves that influencer marketing has traditionally had a significant impact on brands.

However, in recent years, there has been a rise in influencers leveraging their success to become CEOs. Instead of promoting other companies' brands, they ensure that they directly monetize their audience. Launching their products helps them move higher in the value chain. In this article, we will look at reasons why influencers are launching their brands and guide you on how you can do the same. 

Understand How the Creator-Led Brands Work

As the name suggests, co-creator-led brands often result from content creation processes where influencers invest a lot of time establishing themselves as a trusted voice in a specific niche, such as beauty, wellness, fashion, or fitness. Here are the steps that are often involved in launching creator-led brands.

• Content creation. Before a creator is seen as an authority in a niche, they must regularly post content that positions them as experts or thought leaders. The longer they keep posting on the niche, the more they will attract followers interested in the niche, leading to our next point.
• Audience building. By ensuring authentic engagement, the creator now has a loyal following. The audience trusts the influencer's recommendations. That also means that when the influencer markets their product to the audience, the audience is already prepared to receive it.
• Brand launch. The last step involves the creator launching a product that aligns with their content and the needs of their community. Since their followers have been following them for years, they trust them more than a faceless brand. They feel connected to the content creator and are more likely to support their brand.

Since brands have already established a good rapport with their audience, they don't need to push as hard as other, lesser-known brands. They have followers who are invested in the journey and are always ready to support them. Launching a product as an influencer comes with many benefits, as outlined in our next section.

Benefits of Influencers Launching Their Brands

There are several reasons why influencers create their brands. These include:

Leverage Their Audience’s Trust

Influencers often have an audience that listens to them when they recommend a product or service. This gives them a competitive edge, as they can get feedback on their audience in areas with gaps. They are experts in understanding the language that works for their followers, which leads to a high engagement rate.

Influencers are, therefore, best placed to create unique products their followers feel they helped create. This is particularly true when their followers fully get involved in the process. The ability to co-create products with their followers enables them to enjoy greater trust from their customers since they communicate with one another regularly.

A More Authentic Connection

In today's era, when social media users are overwhelmed with content to watch, they are less responsive to traditional advertising than in the past. They are no longer interested in those polished ads without a soul from large companies. Instead, they are looking for brands that connect with them authentically. This is why influencer-created brands are doing very well, especially in the fashion and beauty industry, as social media users trust the people they follow. Creating authentic content is one of the best practices for influencer marketing on Instagram.

Experience in Marketing Products

When marketing other brands, influencers often need to change their style to suit the brand's voice and, therefore, achieve the advertising goals. This means they gain valuable experience in content creation, self-promotion, and marketing. This valuable experience can enable them to put everything they have learned into practice and ensure that they create and market a brand that aligns with their values and preferences.

Customisation and Personalization

In recent years, social commerce has been one of the emerging trends. According to Shopify, it is expected to reach $80 billion in 2025, meaning it's the next frontier for e-commerce. Since influencers are usually closely related to their communities, they often receive feedback, creating a sense of transparency. The feedback they get from their followers enables them to understand online shopping trends, which in turn helps them improve their personalization and customization.

An Alternative to Being a Brand Ambassador

In many cases, the job of a brand ambassador is temporary. Brands seek new influencers that align with their values and marketing goals. With new creators emerging every day, offering better content and marketing strategies, influencers often risk losing their contracts. 

This is especially true in the era of virtual influencers, who are often cheaper and have a large following. That’s why they usually create their brands where they aren't at risk of their contracts getting terminated. Even when their influence as brand ambassadors wears off, they have already secured their future as creators.

Many influencers also want to do more than just be the face and voice of a brand. They realize that their fame on social media can also help them secure their financial future.

How Influencers Are Launching Their Brands

A common misconception is that being an influencer is enough to launch your brand. However, influencers must have a diverse follower base, a loyal community, and a highly engaged audience. They also need the necessary skills to launch products or services. Here are several ways in which influencers are launching their products or services:

Co-creation with Other Brands

Without experience in areas such as product development, influencers are leveraging the knowledge of businesses in their area of expertise and co-creating with other companies. By doing that, they remove the initial risk of launching a brand. This trend is especially catching up in the jewellery, beauty, and fashion industries.

Complete Product Launches

Some influencers also launch their products and services, sometimes giving big brands a run for their money. An example of such an influencer is Chiara Ferragni, a Milan-based blogger who has experienced enormous success with the Chiara Ferragni Collections. Chiaaras was actually among the first influencers to launch their products successfully, leading to the trend.

Top 5 Influencers Creating Their Brands

We have examples of influencers who leveraged their large following and authenticity to launch products and turn their businesses into multibillion-dollar industries. Here are examples of top influencers who are creating their brands:

MrBeast

Known for his top YouTube videos and philanthropic works, MrBeast has leveraged that fame to venture into the food industry. He launched the Feastables brand, which rhymes with his name. He has several products, such as MrBeast chocolate bars, Milk Crunch, Peanut Butter, and more. 

Selena Gomez

Rare Beauty was founded in 2020 by Selena Gomez. It is a brand that promotes mental health and self-expression. The brand's message shows that beauty goes beyond traditional standards, and this resonates well with its fans. Selena is known for her openness and authenticity on mental health issues, which has enabled her to connect with her audience in a deeper way than just cosmetics.

Kylie Cosmetics

One of the most successful stories of an influencer launching a successful brand was that of Kylie Jenner, whose brand, Kylie Cosmetics, helped make her the youngest self-made billionaire. In 2015, she leveraged her massive social media following to build and market the Lip Kits brand. Since then, the brand has continued growing, thanks to expanded collaborations and product lines. 

One/Size by Patrick Starrr

Patrick Starrr also experienced remarkable success with her One/Size beauty product, which focuses on inclusivity. The beauty brand has gained much applause thanks to its product offerings, which include lip pencils, eye primers, powders, and more. In recent years, the brand has had a high-profile collaboration with the Wicked movie to create One/Size X Wicked makeup.

Rihanna’s Fenty Beauty

Launched in 2017 by Rihanna, Fenty Beauty revolutionized the beauty industry with its foundation range, which consisted of over 40 shades that broke down barriers and emphasized diversity. The brand's popularity was driven by Rihanna’s popularity and her regular interaction with fans. This helped make Fenty Beauty a billion-dollar company, raising the standards for influencer-led brands. The brand was created as a collaboration with the LVMH giant and is, therefore, an authentic influencer-led brand.

Top Industries For Influencer-Led Brands

We have influencers in different niches, industries, and interests. With the continued expansion of the influencer marketing industry, we have a range of influencers, from micro-influencers to mega-influencers. Influencers are also breaking barriers and entering sectors that were previously dominated by large brands.

Some top niches where influencers are experiencing remarkable success include fashion and beauty, technology, jewelry, travel, fitness, streaming services, video games, food, sports, beverages, and more. One reason these niche shows attract regular and engaged viewers is their ability to attract highly engaged audiences.

Steps in Starting an Influencer Brand

If you're considering starting your brand as an influencer, there are a few key tips to remember. These are:

Have a Considerably Large Following

To successfully launch your brand, you need to plan strategically and be willing to take risks. You also need a good brand identity and a deep understanding of your audience and followers. Additionally, you need a considerable following to help fuel the brand's growth.

If you already have a large following, you're ready to go. However, if you're a new micro-influencer, you need to start small and grow your brand alongside your name as an influencer. Some companies are always ready to collaborate with micro-influencers as they have a large following and higher engagement rates. This is true in an era when brands are trying to balance authenticity and promotion in the age of deinfluencing.

Determine Your Target Audience and Niche

You must also understand who you are creating the product for and why. That means you will need to understand your target audience and niche. For an influencer brand to be successful, it should fill a gap in the market. Therefore, start thinking of a problem your audience is facing and how you can help them solve it. Doing so can help set your brand apart from the competition and enable you to build a loyal customer base.

Understanding your target audience will enable you to tailor the product to their needs, expectations, and preferences. It will also be easier for you to share your value proposition.

Who is Your Target Audience?

These people are more likely to buy your products, engage with your content, or even follow your brand. One of the best ways to identify your target audience is through market research, including interviews and surveys. You can also leverage social media analytics tools to analyze the profiles of your current followers. When creating the persona of your target audience, you can consider different factors, such as:

•  Demographics. Consider age, gender, education, location, income, etc.
•  Psychographics. Hobbies, values, interests, lifestyles, and attitudes.
•  Needs. Goals, desires, problems, and challenges.

For instance, if you're a workout influencer aiming to create a fitness app, your target audience could be young adults with busy schedules who are concerned about their fitness and wellness, and are seeking workout motivation.

What is Your Niche?

This refers to the category where your product will focus and how it will differentiate itself from similar products. Determining these details will help you easily stand out from the competition, and gain loyal followers and more credibility. You will also need to decide on your unique value proposition (UVP), which is the value or benefit that the product will provide.

Some tools that can help you determine your niche include keyword research tools, competitor analysis, and customer feedback. You need to ask yourself several questions, such as:

• Is there an opportunity or gap in the market that can be filled?
• What pain points or problems is your product solving?
• What is the purpose or passion behind the product?
• What voice or personality defines the product?

For instance, a travel influencer looking to create a travel guide can focus on the solo female traveller niche, seeking safe and affordable travel. The unique value proposition can provide inspiring stories, practical tips, and recommendations.

Why Determine Your Niche and Target Audience?

To understand the people you are creating the product for and why, you can:

• Create a top-notch product suited to your audience’s needs, expectations, and preferences.
• Develop a product that offers a unique value proposition and competitive advantage to your target market.
• Market the product on the platform where your audience is.
• Tailor your marketing message or story to your audience’s needs.

For instance, a beauty blogger aiming to create a makeup product can help you understand the type of product you need to make that suits your skin type, style, and tone. You can then create a product matching your niche's innovation, creativity, and expertise. You can use social media platforms where your audience is most active, such as beauty blogs, podcasts, etc.

Authentic Connection with the Audience

As noted earlier, influencer marketing works because it brings authenticity to audiences. That means if you want your brand to succeed, you should have an authentic connection with your audience. Authentic engagement on social media means staying true to your mission and values.

Engaging authentically with your target audience will help you build trust and a loyal following. This also helps to make your brand look believable. Remaining authentic in influencer marketing will help you to:

Increase Credibility and Trust

When consumers trust your brand, they believe it will deliver what it promises. This means they are likely to purchase from the brand and refer their family and friends to it. If you are an authentic influencer, you are also expected to build trust with your audience, as you will show them that you are true to your mission and values. Your followers will start to see you as credible, encouraging you to engage with the brand online and buy products the influencer recommends.

Increase Engagement and Conversion

Authentic influencers engage with followers by liking and responding to their comments. Engaging in meaningful interactions with their audience makes it easier for them to take action, such as visiting the brand's social media profile or website after coming across a sponsored post. When you respond to your followers, you will make them feel connected to your brand. This, in turn, will lead to a sense of community and loyalty.

Better Long-term Relationships

Enhancing community and loyalty can be great ways of creating long-term relationships online with influencers and followers. When a brand associates with an authentic influencer, it also appears genuine. Customers also start to trust what the brand says and are likely to create a relationship with the brand. Therefore, you should engage with your followers online to build excellent long-term relationships.

Product Development

You will need to set a timeline or budget for developing the product. Depending on the product's kind and features, this can be time-consuming and costly. Ensure that you stick to that budget as much as possible.

When creating a product development budget, consider production costs, distribution, customer service, and marketing factors. Ensure that you have the necessary resources and time for each stage. You should also plan for any unexpected delays and contingencies.

Test and Validate the Product

Before you launch the product, ensure that you have tested it and found it valid. You can do that by sending it to a small group of customers or followers. Doing so will provide insights and feedback on the product's quality, value, usability, and appeal.

Use surveys, reviews, testimonials, and beta testing to gather and analyze feedback. The feedback can then help you refine and improve the product and fix any gaps and issues you had previously overlooked.

Product Launch Strategies and Channels

After creating your influencer product, you are ready to launch and market it. This requires an ongoing effort that requires regular planning, execution, and evaluation, and is not a one-time event. Here are a few channels you can use:

Your Current Audience

We noted earlier that when creating an influencer product, you need to have your audience already. This will be your first brand advocates, and are the first people to announce your new product. 

Whether these people follow you on social media, blogs, or podcasts, inform them about your new product by sharing product teasers, peeks, and launches that help create anticipation and hype, and encourage pre-orders. Leverage your influencer marketing relationship to cross-promote the product and reach new audiences. For instance, you can make a guest post, live Q&A, giveaway, and joint videos with other influencers.

Email Lists and Landing Pages

The goal of a landing page is to showcase a product with its benefits. You can also use it to sell the product directly, invite visitors to sign up for your email list, and even take pre-orders.  You can then use the email list to provide customers with content that positions you as an expert and convince them to buy your products.

Launch on a Marketplace or Crowdfunding Platform

There are crowdfunding platforms, such as Patreon, Indiegogo, and Kickstarter, that enable influencers to raise funds for their projects. On the other hand, marketplaces such as Etsy, Gumroad, and Shopify allow users to sell their products directly to customers. Therefore, choose one of these platforms depending on your type of product, goals, and budget.

Leverage Paid Ads and Other Influencers

The fact that you are an influencer doesn't mean you cannot work with other influencers. Remember that the more you share words about your brand, the easier it will be to reach a larger target audience. Therefore, you can collaborate with other influencers in your niche to spread the word about your product launch. You can also leverage paid ads on platforms such as Facebook, Google, Instagram, TikTok, and YouTube. The good thing about this strategy is that it helps you target ads based on your keyword, audience demographics, interests, location, and more.

Leverage SEO Strategies

SEO is another tool for optimizing your online presence. It can help your brand be discovered by a wider audience, increasing your chances of attracting new followers and potential customers.

Use Analytics

Analytics tools are great for helping you understand your audience’s demographics, preferences, and behaviors. They can provide data-driven insights to guide your brand's strategy and enable you to make more informed decisions.

Final Thoughts

One influencer marketing trend involves influencers creating their own products. This helps them diversify their income stream and plan for the future, when they may not receive brand endorsement deals. If you're an influencer looking to build your brand, our detailed guide will help you do just that.