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That's Younity.
That's Younity.
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The Illusion of Social Media Influencers

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Social media has become the go-to place for peer-to-peer advice and recommendations on everything from contractors to products and services. While a lot of the information received is helpful and comes from everyday people, there are also social media influencers promoting products, services, and experiences that can blur the line between genuine recommendations and paid advertising.

What is a Social Media Influencer? 

A social media influencer is an individual that has established a large and loyal audience, called followers, on social media platforms. These individuals can influence the opinions and decisions of these followers through carefully curated content, such as posts, videos, and stories. Ultimately, social media influencers gain the trust of their followers and shape their opinions and purchasing decisions. 

While it might seem like these influencers are living their normal life, in reality, they are getting paid to promote products, services, and/or lifestyles online to their followers. Brands endorse social media influencers by providing free items and all-expenses-paid trips to make it seem like the influencer is footing the bill, when in reality, they’re not. 

Brands also pay social media influences in various ways. They can receive a flat fee per post, or receive a percentage of sales when consumers use their unique code or link to make a purchase. If you want to know if the influencer is receiving brand endorsements, look for a paid sponsorship disclosure on the post or ad.

Effects of Social Media Influencers

A successful social media influencer gains the trust of their followers and creates an image that everyone is buying their product, or living their lifestyle. To avoid the fear of missing out (FOMO) you may feel pressured to keep up with online trends and buy on impulse. 

If the social media influencer you trust can afford to live that lifestyle, or buy these products, it must be affordable, right? What you see is strategically crafted content to encourage you to spend money you may not have just to keep up with the latest trends.

To make the purchase even more appealing, social media influencers may endorse buy now pay later (BNPL) plans. This tactic creates the illusion that the item is more affordable, increasing your impulse to buy. In the end, you end up paying more for the product than you would have if you paid full price due to high interest tacked on to these plans.

How to Avoid Impulse Spending on Social Media

  • Unfollow or unsubscribe to people or pages on social media. 
    • Keep your social media feed limited to friends, family, and places you frequent. This removes the temptation to spend on things you don’t need.
  • Remove all saved credit card information on social media sites and webpages. 
    • Having the card on file makes it that much easier to place your order without a second thought. If you have to physically get up and get your credit card to make a purchase, it gives you time to think and may prevent you from making the purchase altogether.
  • Know the difference between a want and a need. 
    • If you see a product that you want, but don’t need at the moment, wait 24-48 hours before you buy. This gives you time to rationalize the purchase. Diamond’s Wyomissing Branch Manager, Renee Huie said, “the best purchases are made with purpose, not pressure.”
  • Look up the product on the company’s website directly. 
    • This allows you to determine whether the social media influencer was giving an honest recommendation or simply trying to make a sale. Also, reading actual customer reviews on the website can help validate your decision to buy or not.

Remember that temporary satisfaction is just that, temporary. The pause before a purchase can be more valuable than the purchase itself. A social media influencer’s only job is to make you buy into what they’re endorsing by making it look as appealing as possible so you drop your guard and spend on impulse, not with purpose.

If you’ve been pulled into the continuous cycle of impulse spending and find yourself in debt, contact a member of our lending team, or schedule an appointment for a free financial review. They’ll provide ways to help make your situation comfortable and provide tips for better money management.

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