Influence as a digital asset is about recognizing its power to shape decisions, behaviors, and outcomes in ways that can help people create wealth or improve their financial positions. Influence in the digital world has many dimensions, and it can be monetized, invested in, or used strategically to generate wealth.
Analyzing influence value and categorizing it as a digital asset allows us to build rational models for monetization strategies and advise clients on using influence for near-term and long-term gain.
For example, what effect will be going on OnlyFans as an influencer have on the ability of them to grow beyond their OnlyFans audience? For some, it is the right choice. For others, not so much. Another example may be in analyzing podcasters and the brands they endorse, the number of endorsements per episode, and the audience rate of diminishing returns.
Here are some elements for understanding it:
1. Audience Reach & Engagement
- Reach: The number of people who are exposed to the influence, whether it’s through a social media platform, website, content, or online community.
- Key metrics: Page views, impressions, follower count, unique visitors, subscribers.
- Wealth-building potential: A broad and active audience creates opportunities for monetization (ads, affiliate marketing, product sales, etc.).
- Engagement: How actively people interact with the content, whether it’s liking, sharing, commenting, or engaging in conversations.
- Key metrics: Likes, shares, comments, click-through rates, time spent on content.
- Wealth-building potential: High engagement often indicates an active and loyal audience, increasing the chances of successful product launches, partnerships, or investments.
2. Trust & Authority
- Trust: The level of confidence people place in the influencer (whether it’s a person, brand, or platform).
- Key metrics: Testimonials, reviews, brand sentiment, reputation score.
- Wealth-building potential: Trust translates to higher conversion rates for products, services, or investments, and can open doors to high-value partnerships.
- Authority: The expertise or perceived authority of the content creator or influencer.
- Key metrics: Thought leadership, mentions by reputable sources, backlinks (for websites).
- Wealth-building potential: Authority attracts opportunities for monetization, sponsorships, paid collaborations, or high-ticket offers.
3. Monetization Potential
- Revenue Streams: The ability of the influencer to generate income.
- Key metrics: Direct revenue (ads, subscriptions, product sales), passive income (affiliate links, royalties), investments.
- Wealth-building potential: A diverse range of monetization strategies increases the asset’s wealth-generating ability. The more sustainable and scalable the revenue streams, the more valuable the asset.
4. Influencer & Brand Partnerships
- Collaborations: The ability of the influencer to attract partnerships with brands, other influencers, or creators.
- Key metrics: Partnership revenue, brand sponsorships, influencer deals, co-branded content.
- Wealth-building potential: High-value partnerships amplify wealth-building opportunities. These can lead to joint ventures, cross-promotion, or licensing deals.
5. Conversion Rates & ROI (Return on Investment)
- Conversion Rate: The percentage of engaged users who take a desired action (e.g., purchasing a product, signing up for a service).
- Key metrics: Conversion rates, customer acquisition cost (CAC), lifetime value (LTV).
- Wealth-building potential: Higher conversion rates directly correlate to more profitable digital assets. A high ROI indicates that the influence exerted by the asset is being effectively monetized.
6. Virality & Network Effects
- Virality: The rate at which content spreads across digital platforms and networks.
- Key metrics: Share rate, viral loops, referral traffic.
- Wealth-building potential: Content or platforms that go viral can rapidly expand the reach of a digital asset, potentially resulting in exponential growth, higher income, and investment opportunities.
- Network Effects: The increasing value of a digital asset as more people use or engage with it.
- Key metrics: User growth, network size, active user base.
- Wealth-building potential: The more people use a platform or engage with content, the greater its influence, which can lead to more opportunities for monetization and investment.
7. Scarcity & Exclusivity
- Scarcity: The ability of the digital asset to offer limited-edition content or services, making it more valuable.
- Key metrics: Membership rates, scarcity-driven pricing, exclusive offers.
- Wealth-building potential: Scarcity can make a digital asset more appealing, driving demand and enabling premium pricing or creating a sense of exclusivity that can increase its value.
8. Tokenization & Digital Ownership
- Digital Assets: Influence can also be measured by how it’s tied to tokens, NFTs, or other forms of digital ownership.
- Key metrics: NFT sales, token price fluctuations, ownership transfer.
- Wealth-building potential: The rise of Web3 and decentralized finance (DeFi) has created new opportunities for influencers and content creators to sell or monetize their influence through digital assets (NFTs, tokens) that can appreciate.
9. Impact & Change Created
- Impact: The ability of the digital asset to create lasting change in the industry, culture, or the lives of its followers.
- Key metrics: Social change, cultural shifts, audience transformation.
- Wealth-building potential: Influence that generates tangible impact can lead to long-term brand loyalty, sustained engagement, and a solid foundation for long-term wealth-building.
10. Long-Term Sustainability
- Sustainability: The ability of the digital asset to remain relevant and continue to generate wealth over time.
- Key metrics: Audience retention, content longevity, adaptability to trends, ongoing innovation.
- Wealth-building potential: A sustainable digital asset maintains its value over time, ensuring consistent income and the opportunity to compound wealth through reinvestment or new revenue models.
Example Use Cases of Influence as a Digital Asset:
- Social Media Influencers: A well-followed influencer with high engagement rates, trust, and authority in a niche can leverage their digital presence for brand deals, affiliate marketing, and selling their products or services.
- Content Creators: YouTubers, bloggers, and podcasters can monetize their influence through ads, subscriptions, merchandise, and digital products (eBooks, courses).
- Online Communities & Platforms: Platforms like Reddit or Discord, where communities form around a specific niche or interest, can generate income from ads, premium memberships, and sponsored content.
- NFT Creators: Artists and creators can use NFTs to sell limited editions of their work and create a loyal community around their digital assets.
Conclusion: Measuring the influence of a digital asset as a wealth-building tool requires a multifaceted approach. The more engaged, trusted, and scalable the asset, the greater its potential to create financial opportunities. Whether through direct monetization, brand partnerships, or the use of digital tokens and assets, influence can be transformed into sustainable wealth.
Like any digital asset, influence value goes up, down, and hopefully up again. At FAIM, we look to build wealth growth for our clients through continually raising the value of personal digital assets, from influence to name, image, and likeness offerings.