Cash Grab or Passion Project: Influencers Entering the Entrepreneur Space

Cover Design by Claire Abbo

Cash Grab or Passion Project: Influencers Entering the Entrepreneur Space

By: Elliot Larky

There is only one thing more powerful than an influencer's endorsement: ownership. Dictating what consumers purchase by endorsing certain products is no longer enough. They need to create and own something to keep their audience engaged, filling the market with influencer-owned brands. Famous internet personalities now claim to have a passion for a product. However, Many just slap their name on a company for a cash grab, not because their content relates to the product or they truly believe in it, but because they want a steady flow of income that their career sometimes doesn’t provide. This method is commonly seen in old stars, those who were popular about five years ago but lost traction. A prime example is the D’Amelio family. They rose to fame through their daughter, Charli, in 2019, quickly slapping their name to any collab they could. Eventually, they created their own snack brand, “Be Happy Snacks,” coining the name from the eldest child’s not-so-hit single’s name, Be Happy. According to Business Wire [1], the brand appears to be successful, with its products featured in all Walmart stores.

While the brand is doing well financially, it is not because of name recognition. They do not care about their audience, as the D’Amelio family is highly inactive on social media; Dixie alone has posted only 11 videos this past year, most of them advertisements for other brands. Most influencers post around 3 times a day; Dixie's inactivity illustrates her laziness and disinterest in her fans. Thus proving that all a brand needs nowadays is the association of an influencer. They do not need to care to build a fan base for the product. Yes, it does help, but it isn’t essential. An influencer brand that worked was Chamberlain Coffee by Emma Chamberlain. While it was created after her peak internet fame, a big part of her social identity was coffee and drinks. So, when she announced she was starting a coffee brand, her followers, both old and new, were excited and eager to purchase rather than shocked and detached. Chamberlain Coffee quickly became a success, according to the CEO of Infinity, Jon Davis, who reportedly generated $72 million in sales in 2023 [2]. This is past Chamberlain’s peak of fame, but because she maintained consistent interest and branding, her company soared beyond its potential, even when she was out of the spotlight.

Influencers currently in the limelight are also following in the footsteps of those before them. Twin sisters Danielle and Bridget Pheloung launched the clothing brand Phe Phe. While one is known for styling tips, the other is known for her influencer status, having previously worked in finance. Together, they have no real brand across the media in common except their bloodline. While fans were excited about the clothing, which sold out in minutes on each twin's social media, it still left them wondering whether there was passion or dollar signs behind their eyes.

A huge brand founded by an influencer is Prime Energy. Logan Paul and KSI, two other influencers whose golden age of engagement was before COVID, founded this company to appeal to Logan’s new fitness lifestyle and KSI’s constant content output. The two share a common audience of young males, who enjoy crazy stunts and fast-motion videos. It was fitting for them to collaborate on creating a drink that provides energy. Originally, the company did a whopping $1.2 billion in sales in 2023, but the following year it declined by 40 percent in the United States, according to writer Arick Wierson from the Robin Report [3]. While the brand was popular, the two didn’t maintain their passion and presence, leading to a decline in sales and revealing their true intentions behind the creation.

Those who are passionate about their project seem to keep a successful business, yet the influencers who attach their name to the creation for a check tend to struggle. It doesn’t take much for an influencer to start a business, but it takes a lot to keep a successful one afloat.