"Too Many People Want to Be Social-Media Influencers"

KEY POINTS

• Building long-term brand equity requires athletes to focus on genuine storytelling and partnerships that align with their personal values, instead of solely relying on transient popularity or viral content.

• Elite athletes can create a sustainable business impact by leveraging their authenticity and brand legacy to connect deeply with niche markets and audiences beyond sports.

• By strategically embracing investments and new digital trends such as virtual influencers and the metaverse, athletes can extend their reach and secure a diversified business portfolio for post-sport success.

👉 Bonus: Below you will find five ChatGPT prompts that you can use to develop your expertise in this area.

The Economist recently published an article with this headline: Too Many People Want to Be Social-Media Influencers. In a way, this is of course also relevant for elite athletes. However, unlike most so-called influencers, they are in a position that, if they play the social media game thoughtfully and persistently, enables them to successfully advance their business activities as authentic personalities beyond sport.

As social media continues to shape and influence the business world, elite athletes stand at a unique intersection where their brand can seamlessly transition from the playing field to the boardroom. Yet, with a glut of creators vying for attention, athletes face mounting competition from an ever-growing crowd of influencers, each aspiring to establish their brand on the same digital stage. While the boom in influencer culture offers new revenue streams, it also brings volatility and challenges in sustaining genuine connection and engagement over the long haul. In this crowded digital arena, athletes who want to expand their influence must think strategically to ensure their brand stands the test of time and continues to drive successful business endeavors.

The Influence Boom—and Bust

The influencer industry has ballooned significantly over the past decade, with Gen Z and millennials aspiring to online fame, often fueled by the lure of lucrative brand endorsements. In the United States alone, some 57% of Gen Z respondents to a Morning Consult survey identified being an influencer as a desirable career choice. However, as the field has grown, the earning potential has skewed heavily, favoring only the biggest names while leaving the vast majority of influencers with modest returns.

Influencers are part of every big campaign nowadays. Walmart has worked with TikTok stars Charli and Dixie D’Amelio. BOSS has collaborated with Khaby Lame, a comedian with more followers than anyone else on TikTok. Louis Vuitton has run campaigns with Emma Chamberlain, a YouTuber. For the past few years influencers have even starred in Super Bowl ads alongside Hollywood royalty and chart-topping pop stars.

While many influencers struggle to rise above the crowd, elite athletes are uniquely positioned to leverage their fame. However, the challenge lies in going beyond transient popularity to create a sustainable brand. As Joe Gagliese, co-founder of Viral Nation, noted in The Economist article, the influencer market is extremely volatile. Virality today can easily be replaced by another sensation tomorrow, making it essential for athletes to build lasting value into their brand strategy.

Strategic Differentiation: Lessons for Athletes

Unlike typical influencers, elite athletes bring an inherent sense of accomplishment and credibility that most online personalities cannot match. By leveraging this credibility, athletes can craft a powerful brand story rooted in values such as resilience, teamwork, and determination—qualities that resonate with both fans and potential business partners. Here’s how athletes can cut through the digital noise:

1. Cultivate Authenticity Over Virality: While influencers often focus on viral moments, athletes should emphasize authenticity, a quality that is rapidly gaining value as consumers grow increasingly wary of inauthentic sponsored content. According to McKinsey, 68% of fashion consumers worldwide expressed frustration with excessive sponsored posts, suggesting that audiences are tuning out forced promotions in favor of genuine stories. Athletes can capitalize on this shift by sharing their unique journey and experiences, thereby fostering a deeper, more meaningful connection with their followers.

2. Target Niche Markets: One of the most striking shifts in influencer marketing is the emphasis on micro and nano-influencers. Brands are allocating more budget to those with fewer followers but higher engagement, as niche markets are proving to be highly effective. For athletes, this could mean targeting communities that align closely with their interests, values, or even personal experiences. For example, an NBA player passionate about environmental issues could focus on partnerships and content related to sustainable living, capturing a distinct and loyal following within this space.

3. Control the Narrative: Athletes often have the advantage of a pre-existing fan base, but they can expand their influence by carefully curating and controlling their brand story. This goes beyond mere sponsorships and advertisements. Shaquille O’Neal, Michael Jordan, or Marcel Hirscher, for instance, exemplify how athletes can diversify and own their narrative. They transformed their fame into business empires by actively choosing endorsements, investments, and partnerships that aligned with their brand image. For modern athletes, this approach might entail using further platforms like YouTube, blogs, or podcasts to discuss topics they’re passionate about, thereby strengthening their identity outside of sports.

Capitalizing on Trust and Building Brand Equity—a Legacy

Elite athletes often enter the influencer space with a trust advantage. Unlike traditional influencers who must build credibility from scratch, athletes bring existing trust from their achievements and real-world experience. However, trust alone isn’t enough. Athletes must focus on nurturing this equity through the principles of consistency, value-driven content, and transparent collaborations. As Anita Balchandani from McKinsey puts it, influencers first rose to prominence by appearing as “people consumers could trust”. Today, staying influential demands a delicate balance between getting paid and remaining authentic—a balancing act that, when done correctly, can enhance brand loyalty and long-term value.

With the influencer market’s volatility, a focus on short-lived fame could detract from an athlete’s legacy. This emphasis on legacy is crucial, as the power of an athlete’s influence often extends well beyond their active career years. Building a brand that transcends immediate trends is key to establishing a lasting impact. Take Michael Jordan’s “Air Jordan” brand with Nike, which continues to thrive decades after his retirement. Today’s athletes can similarly build brands that endure by emphasizing values and crafting narratives that stand the test of time, making an impact on future generations of fans and entrepreneurs.

Leveraging Partnerships and Investments: Going Beyond Endorsements

High-profile endorsements with brands like Nike or Gatorade can be highly lucrative, but athletes should consider more sophisticated partnerships that enable equity participation or revenue sharing. Serena Williams or former NBA star Magic Johnson, for example, used their celebrity to establish business partnerships that provided significant returns on their investments. For athletes today, the opportunity to engage in profit-sharing deals with emerging companies or to invest in startups that align with their personal values offers the potential for sustainable, long-term growth.

Strategic investments in sectors that hold personal significance can also enrich an athlete’s brand and underscore authenticity. In the case of athletes with an interest in technology or wellness, investing in fitness apps, athleisure lines, or sports tech startups can reinforce their expertise and authority in that niche. Of course, athletes can also take the path of being founders and entrepreneurs. If there is interest, a willingness to develop into that role over the years and the conditions to build your own company are in place, athletes can shape their legacy far beyond their sport with their own company.

Embracing Digital Trends: AI, Virtual Influencers, and the Metaverse

The advent of artificial intelligence and virtual influencers has started to disrupt the traditional influencer model. Digital entities like Aitana López—a virtual fitness and gaming influencer—are commanding large audiences, and some brands are experimenting with AI-generated personalities for promotion. While this development may feel like a threat, it also offers innovative possibilities for athletes who want to extend their reach without overextending their personal time.

For example, athletes can explore the potential of virtual representations or avatars in the metaverse, which could help them reach audiences through immersive platforms without constant personal engagement. An athlete’s avatar could, for instance, make appearances at virtual events or engage in brand endorsements, allowing athletes to expand their presence in digital spaces in a highly scalable way.

5 PROMPTS THAT ATHLETES CAN USE TO DEVELOP AND BUILD EXPERTISE

• What strategies can I use to leverage my athletic brand for sustainable business opportunities beyond sports, and how do I differentiate myself in a crowded influencer market?

• Can you provide a step-by-step guide to creating an authentic brand narrative that resonates with niche audiences and aligns with my personal values?

• What are some successful examples of athletes who have built diversified investment portfolios across industries like tech, real estate, and startups, and what lessons can I take from their strategies?

• How can I incorporate digital trends, such as virtual influencers or the metaverse, into my brand strategy to extend my influence while minimizing personal time commitment?

• What are the best practices for forming long-term, value-driven partnerships with brands, and how can I ensure these partnerships enhance my credibility and support my post-sport legacy?

👉 Check ChampionsChat GPT for your prompts.

Bottom Line: Setting the Stage for Sustainable Success

In a world where the number of influencers is soaring and consumer skepticism is rising, athletes have both the opportunity and responsibility to rise above the fray. By leveraging authenticity, targeting niche audiences, and thoughtfully investing in meaningful partnerships or building their own company, athletes can shape their influence into a legacy that spans well beyond their sporting years. With strategic planning and a focus on sustainable business practices, elite athletes can translate their prowess on the field into lasting success in the business world.

Athletes who embrace these principles and stay true to their values have the chance to build empires that not only enhance their financial standing but also make a positive impact on the communities they care about. As influencer culture continues to evolve, the athletes who adapt strategically will be the ones who leave a mark, not just on their fans, but on the business world at large.

In general, athletes seeking stability beyond sports should look to develop a diversified business portfolio that combines passive and active income streams. Investing in industries that align with personal interests and values—whether through real estate, private equity, or technology startups—allows for more stable long-term gains. Former NBA player Shaquille O’Neal, for instance, has diversified his investments across sectors like real estate, fast food, and media, creating a multi-million-dollar portfolio that provides security well into his post-sporting life.

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I really appreciate you reading my note today.

Have a peaceful weekend,

Irg

Irg’s work is provided for informational purposes only and should not be construed as legal, business, investment, or tax advice. You should always do your own research and consult advisors on these subjects. This work may feature assets and entities in which the author has invested.

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