Social Influencers

If you’ve become a successful social media influencers, bloggers, or online entrepreneurs, incredible job! We know that getting to that level takes consistent hard work. In addition to having a unique business model, financial planning for social media influencers has its challenges.

Why social media influencers need financial planning

Very few people set out to establish a career as a social media influencer. Some do, but very often it comes as a surprise. You start a channel or page with hopes but little expectation.

Until…

BOOM one day something you post goes viral, and the rest is history.

That’s exactly why financial planning for social media influencers is so critical: the business can be very unstable.

Making your living from advertising revenues, brand deals, or selling branded products is great…but highly dependent upon your popularity. This can vary with consumer preferences which are as impossible to predict as the weather.

Lastly, the barriers to entry are low for this type of business; a competitor could start a channel easily (as start up costs are low to be an internet personality) and you could lose your audience to their following.

The good news is that it doesn’t have to be a topsy-turvy path. Once you’ve established yourself as a social media influencer, there are many financial moves you could make to create higher financial security.

Your concerns

• You need financial planning to help turn your high income into long term financial security
• You need to start diversifying your income away from your very specialized source of income, to help save for a “rainy day”
• You’ve likely got a very high-profit margin business, so you probably need some help finding strategies to pay less taxes
• You may also need help smoothing out your cash flow and establishing solid reserves for times when cash flow slows

How we can help

• We can help you turn your strong income today into a financially secure tomorrow.
• We also will be there to help you make the sound decisions and evaluate your options as your career progresses.
• We can help you find strategies to save on taxes
• We can help you analyze your cash flow and find opportunities to save more to increase your reserves

What does a financial plan for a social media influencer entail?

A financial plan for a social media influencer will likely address the typical financial issues that somebody who earns a living as a blogger or social influencer is likely to face.

• Taxes – Tax planning for social media influencers is important because often these businesses are high margin. Your business expenses may be low, creating the potential for high profit margins – which means (you guessed it!) higher taxes. There are numerous ways to potentially reduce your tax liability if you are a social media influencer, such as establishing retirement vehicles that give you a chance to defer taxes, harvesting tax losses against gains in your portfolio, charitable giving, or being strategic about how you allocate business expenses.

• Cash flow planning – A financial plan can help a social media influencer to ensure there isn’t a dip in your standard of living if and when your views drop. A financial plan can help you understand your monthly expenses, both business and personal. We’ll try to help you envision what those expenses are likely to be in the short and long term. With this understanding, we’ll create a plan to help you live in the style of life to which you are accustomed with minimal disruption given the instabilities that may occur in your revenue stream.

• Retirement planning – It may seem an idea from a galaxy far, far away to be thinking about retirement, especially if you are more than 10 years away. However, retirement strategies for social media influencers are still important at every stage of the game when you are earning money. We can help you find ways to make sure your social media success translates into financial security when you need it most, no matter how far away that may be.

• Managing risk – with the potential for a high reward comes high risk. There are many risks to being a social media influencer aside from income instability. There is a need to protect your assets from the legal risks that come with being a high profile entrepreneur. Additionally it’s important to have proper cybersecurity. Your business is all based online. A hacker can take over you social media account and many of the platforms are known for not having responsive customer service.

It may seem as if you have all the time in the world to figure out your finances, but when you are a social media influencer, you’re only as good as your following and there are never any guarantees.

We are financial advisors for social media influencers and we can help you set up a financial plan that will accommodate your needs as a social media influencer, blogger or internet entrepreneur. Contact us to set up a time to speak.

Check out our quick guides:

Financial Planning for Business Owners in Utah

Retirement Planning for High Net Worth Investors

7 things social media influencers need to know about their money!

Should you hire an influencer marketing agency?

The opinions expressed herein are those of the firm and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Any opinions, projections, or forward-looking statements expressed herein are solely those of author, may differ from the views or opinions expressed by other areas of the firm, and are only for general informational purposes as of the date indicated.