Influencer marketing is a broad term, covering thought leaders with limited audiences, as well as celebrities with tens of millions of fans and social media influencers of all sizes. Getting endorsed by the right influencers can be very costly, and, with limited budgets, a choice needs to be made.
More importantly, each type of influencer can stir unseen levels of hype, but also instill or hurt the trust in your brand. Teaching founders and marketers about amplifiers, this lesson recognizes the proven effectiveness of influencer marketing, as well as the chaos it can spark. Emblematic case studies of influencer-led turmoil can help explore the domino effect set into motion.
In the wake of notorious crashes in the Web3 world, marketers should look at the fractured relationship between the bruised community, the influencers and brands they had previously endorsed before continuing on the same path.
The right strategy regarding KOLs vs. influencers vs. celebrities marketing is like a math lecture. After all, amplification is about playing the numbers right: achieving an exponentially higher impact, to reach a billion followers in Web3, while optimizing resources. To make this easy to digest, here's an easy to read visual graph. Or, in marketing fashion, here’s an image that speaks more than a hundred words:
KOLs or The Architects of Trust
Among all the influencers out there, KOLs are individuals recognized for their domain expertise and insights. Their influence isn't built on mere popularity. It is anchored in their deep understanding of the subject matter they champion. Consider the likes of Vitalik Buterin, the co-founder of Ethereum, or Andreas M. Antonopoulos, an influential Bitcoin advocate—when they speak, the community listens, debates, and often, follows.
A comment or reply from any of the big KOLs puts any startup on the map: it gets tens of thousands of views in a matter of hours and creates instantaneous awareness about the respective founder or startup.
KOLs’ genuine expertise ensures that their endorsements are perceived as highly credible. When a KOL speaks about a product or technology, it's not just promotion; it’s an informed recommendation. This is where Trust-making begins.
In return, to capture a KOL’s interest, you, the founder, or your brand, must exude confidence. While drawing them to your events or conferences is a traditional strategy, it may prove costly for an early stage entrepreneur. Instead, think of KOLs as cerebral, constantly connected, and responding to intellectual engagement:
✓ Engage with their content and communities thoughtfully.
✓ Craft personalized pitches highlighting mutual benefits.
✓ Use your network or shared connections for warm introductions.
✓ Offer early access to your innovations to pique their interest.
✓ Propose collaborations that add value to both parties, such as guest posts, podcast interviews, or joint webinars. Promote and share their work on your platform.
This not only shows you value their opinion but also gives them an opportunity to explore and potentially endorse your offering.
Social Media Influencers: The Popular Amplifiers
Solana is a high-performance blockchain popular for its fast transaction speeds and low fees. Its ascension was catalyzed by influencer partnerships – a masterclass in leveraging digital charisma to foster growth. In less than two years, Soalana managed to go from zero to millions of followers thanks to its ability to identify and collaborate with influencers who resonated with its target audience, such as Justin Kan, co-founder of Twitch and creator of the NFT DeGods project, cryptocurrency analyst and investor Eric Wall, YouTuber Ivan on Tech, the pseudonymous X/Twitter personality @CryptoCobainall - and a few other tens of different influencer profiles, including big celebrity names.
Solana was neither the first nor the last to use influencer marketing in Web3. However, they are a best-in-class example of successfully generating hype through this strategy. Any digital agency can provide a list of hundreds of social media influencers suitable for any niche business. The lists will change as fast as you'll want to re-read this post. As Influencer marketing becomes widely adopted among the enterprises marketing priorities, the number of social media influencers will grow exponentially.
Unlike KOLs however, social media influencers do not have fine expertise in a particular subject, with few exceptions. Instead, they have garnered a massive following due to their charisma, content style, or niche interests. Depending on how specialized they are, they can become experts in time, and one day claim the coveted KOLs status. But until then, they are more like sports commentators, or media analysts that aggregate news and make highly consumable content. And they request to be paid.
The payment can take different shapes, and usually cash and stablecoins like USDC are preferred in Web3. The savvy approach? We recommend prioritizing influencers who are willing to accept a significant portion, if not all, of their compensation in the startup's tokens. By doing so, influencers demonstrate commitment, aligning their interests with the project's success. This not only offers cost savings but fosters a deeper sense of partnership. By receiving tokens, influencers transition from being mere promotional tools to invested stakeholders, naturally leading to more informed and authentic endorsements.
For startups or businesses with limited budgets, smaller influencers can be significantly more affordable than their mega counterparts, and they often offer more personalized and organic engagements, making their promotions feel authentic. However, they might lack the rigorous professionalism, resulting in potential inconsistencies in messaging or delivery.
Celebrity Amplifiers
Rapper 50 Cent became an inadvertent first celebrity adopter when he accepted 700 Bitcoins as payment for one of his albums in 2014. Fast forward today, his crypto fortune is immense.
His was but the first move, before an influx of stars crowded to endorse Web3: musicians like Jay-Z, Dolly Parton, Hollywood elites like Reese Witherspoon, and Ashton Kutcher, media sensations like Ellen DeGeneres and Kim Kardashian, political figures like Al Gore and the 45th US president, sports legends like Lionel Messi, LeBron James etc. Going back to the Solana example, Mike Tyson, Shaquille O'Neal, Ben Affleck, Gwyneth Palthrow, Paris Hilton and a few other big names simultaneously endorsed the project and lent it their glitz.
While the core Web3 community was deeply rooted in tech and crypto enthusiasts, the involvement of celebrities offered a mainstream allure to an otherwise niche and technical space. Celebrities help generate buzz and drive adoption by lending their star power and driving attention from their enormous base of fans. It leads to surges in interest and investment. For example, after the endorsements NBA Top Shot, a blockchain-based platform that allows users to buy, sell, and trade officially licensed NBA collectible highlights, saw unprecedented growth. The project has reported over half a billion dollars in sales in its early months, a testament to the power of celebrity-driven marketing, adding layers of authenticity and appeal to the platform.
Celebrities themselves have been diving headfirst into the Web3 universe, not just as endorsers but as active participants. For example, Kings of Leon broke barriers by launching one of their albums, "When You See Yourself" as an NFT collection, raising over $2 million, and generously giving back to the struggling live music community during the pandemic.
Or, take my personal favorite, Anthony Hopkins, authoring an NFT part of my own collection. Explaining what NFTs are and why they're important, and promoting his own “The Eternal Collection”, Anthony Hopkins took to TikTok to promote his lively NFT gallery of artistic interpretations of the many roles he’s played.
THE RULER #18 NFT from the Anthony Hopkins - The Eternal collection
How to Woo a Celebrity
For those founders and marketers interested in convincing celebrities to shill their project, know that the underlying motivation for these celebrities is twofold: the prospect of financial gains combined with the glitz of being associated with the next big thing. Attracting a celebrity isn't solely about flashing dollar signs. It's a careful pursuit of aligning with their personal brand, demonstrating potential career benefits, and showcasing the Web3 resonance with their audience.
The playbook to entice a celebrity for your project covers four elements to consider:
✓ Understand their specific interest: Is it financial, technological fascination, or a mix of both?
✓ Emanate Trust. Celebrities risk reputation damage if associated with a dubious project.
✓ Educate: Most of the celebrities will not be well-versed with the intricacies of Web3; or AI; or any tech for that matter. As a best practice, make sure the celebrity is committed to researching and understanding your project well.
✓ Plan for the Long-run: It shouldn't just be a quick cash grab. How will the association benefit the celebrity in the long run? Ensure that the collaboration offers tangible benefits, be it in the form of equity, tokens, or long-term partnership potential. True endorsement comes with getting the celebrity to become a stakeholder in your project.
And, while lucrative contracts are definitely tempting, there is more to it. Musicians see an avenue to revolutionize content distribution, actors sense a shift in how entertainment is consumed, while athletes and politicians see a chance to draw in masses of voters who want a radical change in the status quo. For them, it isn’t just about a paycheck, but being part of a transformative movement.
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Our strategic counsel? In the pursuit of trust, prioritize KOLs. Their endorsements, though reaching smaller groups, lend essential credibility and legitimacy to cultivate a solid foundation with the early adopters in your industry. In time, these connections will ripple outward. Expand your reach gradually, building methodically. If you have any celebrity friends, ask them for an endorsement. But don’t throw money at this. Data shows that celebrity endorsements help founders raise more funds, but also increase the likelihood of ICOs being perceived as scams.
Above all, ensure that your chosen influencers align with your mission authentically to sidestep potential brand embarrassment. And, critically, focus on educating the educators before appealing to their masses.
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