Social Media Finfluencers are social media influencers, social media finfluencer, or micro-influencers who have trusted sources for financial advice on the topics of money, investing, and personal finance. Social Media Influencers (also known as “Finfluencers”) with a focus on personal finance have become big businesses. They have large followings and regularly post new content. And they use this platform to promote their services as advisors in exchange for a fee, usually in the form of equity or cash payments.
Social media influencers can be valuable resources for individuals seeking advice about personal finance. Unfortunately, not all Finfluencers are trustworthy sources of information. Here is how to tell if someone is a genuine finfluencer or simply an Instagram celebrity trying to monetize their fame by pretending to be an expert on financial matters.
Every day, a new social media platform comes and goes. Just when you think you’ve seen it all, another platform comes along to challenge your beliefs. This time around, the social network of choice is the influencer network. But what do these so-called “influencers” bring to the table? And how can they assist your company in reaching its target audience?
Social media influencers are individuals who have gained a substantial following on social media platforms such as Facebook, Instagram, Twitter, and YouTube. In other words, these people have followers—lots of them!
The true power of an influencer lies in their ability to drive sales by endorsing specific products or services through their channels. These micro-influencers typically have anywhere from 5,000 to 200,000 followers on any given social media platform and are proven trustworthy sources for recommendations.
What is a Finfluencer?
A finfluencer is someone who has significant influence over the public when it comes to financial matters. They have generally trusted sources of information, and their advice can have a significant impact on how people manage their finances. Finfluencers come from a variety of backgrounds. They can be professional money managers, authors, professors, financial advisors, or simply people with a lot of experience in this area.
The main thing that all finfluencers have in common is that they have a large audience. Their followers trust them and look to them for advice. In today’s digital world, the word “influencer” has been applied to just about everyone. The Oxford English Dictionary added “influencer” as a word for 2019. It is now commonly used as a catch-all term for people with a large following on social media.
How to Spot Quality Finfluencers
- They Are Authentic
First and foremost, it is important to look at the content that a finfluencer is posting. Do they seem genuine? Are they posting content that they truly believe in? Or is it obvious that they are simply trying to sell you something? If a finfluencer is posting content that is obviously of high quality, there is a good chance that the finfluencer is genuine.
- They Are Transparent
The best finfluencers are transparent. They open up about their successes and their failures. They do not hold back when it comes to sharing the lessons they have learned. Authentic finfluencers are transparent about their credentials and their potential conflicts of interest. If you are researching a finfluencer, you should find out as much as you can.
- They Are Responsible
Finfluencers are generally held to higher standards than other social media users. If a finfluencer claims financial matters, they will likely be held to that claim by their followers. Finfluencers who make false claims or who fail to deliver on what they promise are rarely allowed to stay in the finfluencer business for long.
How to Spot a Fake Finfluencer
- Too Good to Be True
If you find a finfluencer who has a seemingly endless stream of high-quality advice and an enviable track record, you might be looking at a fake finfluencer. While there are a few exceptional finfluencers out there, they are rare. It is very unusual for a finfluencer to post outstanding advice day after day. In most cases, the best finfluencers are very good, but they are not perfect. If you find a finfluencer who is posting advice that is too good to be true, you might have a fake finfluencer on your hands.
- They Aren’t Open About Their Credentials
Some finfluencers are financial advisors or hold other professional credentials in the financial field. They base their advice on their professional qualifications. Other finfluencers have no formal financial qualifications at all. The best finfluencers are open about their credentials. If a finfluencer is not transparent about their credentials, they likely have something to hide.
- They Have a Commercial Orientation
Some finfluencers are content creators who create original financial advice. Other finfluencers simply regurgitate other people’s advice. The best finfluencers are careful to avoid copying other people’s work. If a finfluencer is only regurgitating the work of other people, they are probably a fake finfluencer.
Look at Company They Keep
An important way to assess the quality of a finfluencer is to look at the company they keep. If a finfluencer is constantly associated with people who are seen as trustworthy and reliable, they probably fall into the same category. On the other hand, if a finfluencer is constantly associated with people who are seen as untrustworthy and unreliable, there is a good chance that the finfluencer is a fake.
Check Their Track Records
Some finfluencers have track records that go back for years. Others have been in the business for only a few months. If you are searching for a finfluencer, you may be able to access their track records. You may be able to review their past work. If you can find a finfluencer who has been in business for a long time and has a solid record, they are likely to be a reliable social media finfluencer. On the other hand, if a finfluencer has no track record, they are probably a fake finfluencer.
Pay Attention to the Words They Use
Some finfluencers stick to financial terminology that is understood only by financial professionals. Other finfluencers speak in plain, simple language that is understandable to anyone. If a finfluencer is always using jargon that is only understood by financial professionals, there is a good chance that the finfluencer is fake. A finfluencer who uses jargon inappropriately is probably not trustworthy. On the other hand, if a finfluencer uses plain, simple language, they are likely to be a trustworthy finfluencer.
There are a variety of ways to spot a fake finfluencer. If a finfluencer is too good to be true, they almost certainly are. If a finfluencer is not open about their credentials, they probably have something to hide. And if a finfluencer is always using jargon that is only understood by financial professionals, there is a good chance they are fake.
On the other hand, if a Social Media finfluencer has a track record that goes back for years, they are likely to be a trustworthy finfluencer. If a finfluencer uses plain, simple language and is careful to avoid jargon that is only understood by financial professionals, they are also likely to be a trustworthy Social Media finfluencer.
See Also: A Guide for New Entrepreneurs on Marketing with Social Media