Consumer Corner: So you want to be an influencer and make millions? Here’s what you need to know

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There have been a lot of stories recently revealing profits being enjoyed by some successful influencers. What may have started as a hobby for many has grown into a multi-million euro empire. 

The success of these social media accounts has allowed them to develop and grow really successful companies in the areas of cosmetics, tan and clothing.

It was reported recently that Lisa McGowan or Lisa’s Lust List had accumulated profits of €1.19m in one of her companies, likely as a result of her very successful clothing business. 

One of the OG influencers, Suzanne Jackson or SoSueMe branched out into fake tan and cosmetics as a result of her social media platform. It was reported that her company had total assets of €8.8m in 2023. It doesn’t end there. 

Pippa O’Connor, Vogue Williams, Lisa Jordan, Aimee Connolly the list can go on, as can the money they are making. 

That’s not even mentioning those in the US on YouTube who are making billions on that platform. There's MrBeast, Unspeakable, Ryans World and reports of them making millions each year.

Haters will be haters but there’s no denying what they have created is impressive. And, for many, it all started with a basic social media account. 

A post here, an ad there and if you hit the right note then you can enjoy some really impressive success. Given that anyone can sign up to Instagram, how can others follow this path to millionaire stardom?

Aoife Horgan is the owner of Versify and works with influencers as well as managing the careers of some of the most successful in the business. She says that there is “a lot” of work that goes on behind the scenes when it comes to building a career as an influencer.

“The first step is to build a following on your chosen platform or platforms, the most popular ones are Instagram, YouTube and TikTok.”

Aoife says that for anyone looking to make a career this way they need to look at creating a strong personal brand and find a niche that is authentic for them and that resonates with the audience they are trying to reach.

“This could be fashion, beauty, gaming, sport, health, whatever it is that you’re interested or qualified in. Content is key and needs to be both visually attractive and real.”

The money is made by getting opportunities to work with brands and Aoife says this may open up once you reach a certain number of followers.

“Usually brands look for someone that aligns with their target audience in terms of demographics. It’s important for influencers to be selective when it comes to the work they agree to, so that they maintain credibility and their audience trusts them.”

Influencers can work with brands in a variety of ways for example on sponsored content, product placement, brand ambassadorships, content creation, sponsored events and affiliate marketing.

“The level of compensation can depend on a variety of factors such as number of followers, engagement levels, niche, the platform they post on and the brand’s requirements and budget. 

"Some influencers will have agents to negotiate these agreements and contracts and some will deal directly. Negotiations include things such as the scope of work, deliverables, deadlines, exclusivity, usage rights, and the fee,” says Aoife.

She says that sometimes there can be a misconception that what brands are paying for is an influencer’s time and what it takes to capture content and post.

“What they are really paying for is access to an engaged audience that’s in line with their brand. This can take years of hard work to build up and maintain. It can be a full-time, always-on job with messages and queries coming in 24/7. You’re also opening yourself up to scrutiny and criticism by putting yourself out there online.”

There are strict guidelines when it comes to declaring any paid activity or products or services that have been given to influencers by a brand free of charge.

Dr Martina Byrne, Chief Executive of the Public Relations Institute of Ireland (PRII) says that being an influencer is a job, a business, a way to make a living but people have to keep proper records for tax purposes.

“It's a serious business, the successful ones will tell you it's intense work building up a reputable and influential persona brand. As such influencers and the brands engaging them are under increased scrutiny. 

"I strongly recommend that anyone who is, or plans to be, generating income in cash or gifts or experiences as an influencer makes themselves aware of Consumer Protection Law and the ASAI Code of Standards for Advertising and Marketing Communications."

The rules basically state that if an influencer receives a benefit from a brand, once-off or ongoing, related social media posts must be clearly labelled.

“In a nutshell, content posted or reposted should be clearly labelled as ‘#Ad’ if there is a commercial relationship between an influencer and the brand or product whose content is reposted. Also, any income generated is treated a taxable income by Revenue."