The Economics of Social Media and Influencers

Influencers are those who use social media platforms to develop their own personal brands or persuade their followers to do specific actions (including buying products, supporting a brand, or even visiting a particular place). They can share anything and everything with their followers, such as homemade slime, clothing, recipes and preferred products. Even while it may seem like frivolous fun, some influencers are actually modern entrepreneurs because of how much money they are able to make from their relationships with their followers. These influencers who have launched their own companies based on the internet brand they built share many characteristics with conventional business owners when it comes to boosting the economy. 

Most business owners profit from their ventures in a straightforward manner. When earnings exceed the costs of manufacturing and dispensing goods and services, a profit is produced. Most businesses make money when they sell products or services for more than it costs to produce them. The route for influencers is less clear. Influencers may enter into agreements with businesses or advertisers after gaining a following, where they are compensated to promote a particular good or service. Influencers have the option of adding adverts to their profile on social media platforms like YouTube or Instagram, generating additional sources of income. The majority of influencers make money through posting sponsored content, running commercials, and occasionally even developing their own line of goods (and of course, advertising them on their social media channels). To ensure that their work is profitable, influencers need to plan ahead and put in a lot of research and effort.

Entrepreneurship is a key factor in economic progress, and it is now obvious that influencers are also contributing to this growth as their numbers and popularity have increased. Entrepreneurs support economic expansion in a variety of ways. They develop new demands and product categories by satisfying consumer needs, which fosters competition, a necessity for new innovations and better goods, in the market.

Entrepreneurs encourage innovation which can be seen in the numerous businesses that introduce new technology to the globe. Similar to entrepreneurs, influencers have opened up new markets by connecting with followers on social media. As more people become influencers, the demand for professional assistance in content creation may result in job opportunities. Additionally, influencers encourage fans to sign up for new social media platforms so they can access their material and offer business options for marketing, both of which promote economic growth. Influencers, who are also business owners, contribute many of the positive effects that traditional entrepreneurs have on the economy while also providing a few special factors that help the economy grow in a networked society. Influencers have emerged to become Modern Entrepreneurs. 

It used to be considerably more difficult and expensive to contact people before smartphones and social media, especially if your location wasn't on a busy thoroughfare. Before social media, spreading knowledge about your company required payment. Nowadays, there are a lot fewer obstacles to contacting people because every single person and business has their own media brand. This has made it much simpler for smaller brands to establish themselves in the market. Craft beer, food trucks, and local fashion are just a few examples of trends that have emerged as a result of social media sites being effectively used to cultivate an audience.

Social media is closely related to a number of sites that govern dissemination, like Facebook, LinkedIn, YouTube, etc. They serve as the conduit through which information can circulate. Due to the disruption of the conventional advertising paradigm, some of the world's most significant businesses by market capitalization have emerged from these platforms. 

Social Media and Influencing have revolutionised the world entirely. From becoming a career prospect to changing the business world, it has changed the way we buy and sell things. It has become an essential every day in modern society impacting people's lives both as a seller and a consumer. 

Bibliography

EconoTimes. (2022, October 16). How is social media helping the economy?. EconoTimes. https://www.econotimes.com/How-Is-Social-Media-Helping-the-Economy-1643303

Over 2.5 billion people use social media. this is how it has changed the world. World Economic Forum. (n.d.-a). https://www.weforum.org/agenda/2019/10/rise-of-social-media/