Millions of social-media users are trying to use their accounts to make money without relying on the platforms, and companies like LTK are helping them do just that.
- Influencers can make their accounts profitable by sharing advertising revenue with social-media platforms, but the real money is in brand partnerships.
- Large social-media platforms have struggled to help influencers develop brand relationships, so startups have merged to fill that role.
- Dallas-based startup LTK connects influencers to business partners, helping content creators build their brands.
- Influencers hoping to team up with LTK have to apply to join. Basic support from LTK will include technology to keep track of clicks and sales from content. LTK can also help influencers negotiate deals with marketers.
- Last year, LTK tech helped sell nearly $3.6 billion in fashion, beauty, and home-décor products.
Why it’s news
Working with influencers is an increasingly popular way for companies to advertise their products. Brands collaborating with LTK have spent nearly $1.9 billion on influencers since 2011. Influencers who LTK accepts are perceived as strongly connected to audiences marketers may not have a connection with, Bloomberg reports.
Platforms like LTK aren’t just profitable for the marketing companies, content creators can also see significant income. Nearly 200 of LTK’s influencers made around $1 million.
Meta and Instagram attempted programs to help influencers connect with advertisers, but both programs were unsuccessful. TikTok may be launching an e-commerce program, but its plans are delayed for now.
Unlike large social-media companies, LTK does not have to decide between the needs of its content creators and the demands of its advertising business.
LTK tries to help influencers across various platforms, despite the difficulties of working with the changing algorithms on Instagram and TikTok. The company presents itself as a more reliable way for influencers to make an income since it has no obligation to one social-media platform.