Australian entrepreneur, mentor and influencer Matt Purcell believes the shift to paid subscription models for Australian influencers will be a big trend for 2023 but says many will struggle to nurture audiences this way.
More influencers are jumping to Patreon, a membership platform for businesses, including Rebecca Rudd who announced last year that she was offering exclusive content, group chats, discount codes and beauty tips for $7.49 a month.
Purcell: “Influencers need to be very strategic and realistic about the amount of additional and quality content that will be needed to justify followers paying.
“I predict that we’ll see many influencers may come together and build some collaborations to share their audience/viewership to help carry the load, but not all will succeed.”
Purcell says that for influencers to build a close personal relationship with their paid subscribers, they will need to share even more personal content exclusive to the paid model and beyond that paid subscriptions can be costly and very time consuming, causing issues for influencers and content creators in 2023.
“In 2023, influencers aiming to nurture audiences with premium content may struggle, as they often rely on mass outreach," he says.
“However, when an influencer is able to build a loyal audience who is willing to pay for exclusive content, early access, or other perks, a whole new level of potential and communication will open to them, however, audience numbers will decline.
“To state this simply, when you have a paid subscription model, you're not just relying on the whims of the algorithm or the fickleness of the masses.
"Rather, you work to build a direct relationship with your audience, which can create a powerful bond that can drive real, sustainable growth – a paid subscription model needs to allow subscribers to feel closer to the influencer.
"This can be done by providing exclusive premium content offerings, sharing more personal details and materials, and engaging directly with paid subscribers.
“Further to this, if we are realistic, implementing and maintaining a paid subscription model can be costly and very time-consuming. If you are considering paid subscription models, it is important to weigh the investment against the potential returns to ensure that it makes sense for your business – influencing is a business.”
However, the entrepreneur and influencer says that the shift to paid subscription models for Australian influencers will be the big trend for 2023. He identifies an increase in competition and control as well as further engagement and revenue generation. Purcell identifies both pros and cons for this circumstance.
Increased competition:
Pro: “As the influencer market continues to expand, competition among influencers is increasing – content creators are fighting to keep eyes on their platforms. Paid subscription models can help influencers differentiate themselves and provide them a platform to offer unique, exclusive content, which when done well can help them stand out from the crowd.
Con: “Implementation and maintenance: Implementing and maintaining a paid subscription model can be costly and time-consuming and may not be worth the investment for some influencers.
Audience Engagement:
Pro: “Paid subscription models can help influencers foster deeper engagement with their audience. By sharing exclusive content, early access to products, or other perks via a paid subscription, it can encourage fans to stay connected.
Con: “Not all audiences will be willing to pay for exclusive content or perks, and paid subscription models may result in a decrease in overall reach and engagement.
Revenue generation:
Pro: “Paid subscriptions can provide a more stable and reliable revenue stream for influencers compared to traditional advertising or sponsored content.
Con: “Flipping this on its head, paid subscriptions may not generate as much revenue as traditional advertising or sponsored content, especially for influencers with a smaller following.
Influencers need to weigh up the value of reach, brand partnership opportunities and profiling against managing and maintaining a paid subscription platform.
Increased Control:
Pro:“Paid subscription models ensure influencers have more control over the content they produce and the way it's delivered to their audience, which can be massively beneficial to driving brand awareness and stability.
Con:“Paid subscription models may lead to an increase in competition among influencers, as more people may adopt this model to monetise their content. This may decrease audience engagement, and if users don’t find the premium content to be engaging or valuable, it may even drive a wedge between the influencer and their followers.
“While paid subscription models may become a trend for Australian influencers in 2023, it's important to weigh the potential benefits against the potential drawbacks and to consider whether this model is the right approach for your audience and business.”
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