TikTok may be best known for lip-syncing and dancing videos, but the platform is also minting the hottest job in finance.
“Finfluencers” are social media influencers that use platforms like TikTok and Instagram to make financial advice digestible for younger audiences, per Bloomberg.
‘Finfluencers’ are beneficiaries of a wider trend
During the pandemic, interest in finance and investing has skyrocketed. Since this time last year:
- Finance app downloads are up 20%
- Hours spent on finance apps are up 90%
- Hours spent on trading and investing apps are up 135%
Millennials and Gen Zers make up a meaningful portion of these new users, and finance companies want their business.
Some ‘finfluencers’ are making $500k+ per year…
… which is more lucrative than many traditional banking jobs. Compensation can vary depending on the client and nature of the work.
For example, Austin Hankwitz, a 25-year-old “finfluencer,” is paid differently across 3 of his clients:
- Performance: BlockFi pays Austin $25 per person that he pushes to its crypto-trading platform.
- Flat fee + Performance: Fundrise pays Austin a flat fee to post 2 videos per month, and a monthly bonus depending on how many people he pushes to its real estate investment platform.
- Flat fee + Equity: Public.com pays Austin a monthly fee and company equity to use its stock charts in his videos.
The future of ‘finfluencing’ will depend on the platforms…
… which are already wary of financial advice and get-rich-quick schemes getting out of hand.
TikTok recently changed its rules to make sure all sponsored posts are labelled as such, causing some “finfluencers” to move their videos to Instagram and YouTube.
Regardless of where you watch your favorite “finfluencer,” be safe out there (not investment advice).