FAQ
Invest, save, handle money: so-called influencers on Instagram, TikTok or YouTube want to show how it works. They serve a growing market.
What do followers expect from an influencer?
On the one hand, Internet celebrities satisfy the desire of many followers to make money and even get rich. On the other hand, the fear of poverty and shortages in later life makes many young people realize: “I have to do something.”
Since the stock market boom of 2020, your interest in stocks and retirement planning has increased significantly. In numbers: According to Deutsche AG, there were 905,000 young shareholders between the ages of 14 and 29 in Germany in 2017. Four years later, in 2021, 1.49 million people under the age of 30 have invested in the stock market.
Who are the influencers?
Influencers are mostly young people who have met a young target group – they speak the same language, so to speak, use the same medium. Since the stock market boom, however, many influential people haven’t just been active. They often get involved by starting their own blog or video channel while studying or working.
Some are now so established in the market that they employ staff and have viable business models.
What knowledge did the influencer bring to the table?
There are business administration graduates or former employees of the financial sector who have passed on their expertise and become self-employed. Many influencers are women, and they explicitly target female followers. Furthermore, they are often lateral entrants with familiar topics.
What can influencers do?
Information levels vary widely. Many influencers impart solid basic knowledge about TikTok or Instagram in workshops and lectures. Topics like: how to open a securities account, what are ETFs, what is a savings plan, why preparation is important – the basics are well conveyed through videos, podcasts, and text.
What are the pitfalls?
Not all influential people are famous. There are vendors that you pay big bucks every month for supposed tips and strategies to become a millionaire in a few weeks. In some cases, these are veritable pyramid schemes: Anyone who introduces new customers to these suppliers stands to profit. Some offers are clearly fraudulent.
Still others explicitly recommend stocks or other asset classes. However, investment strategies are too personal and complex to fit into short scrolls or headlines—that is, the little text below the images. They require detailed knowledge that many influencers don’t even have.
How do you spot a serious quote?
People should question how financial influencers make money. For example, it is positive if the provider is transparent about all course fees for solid, thoughtful workshops.
One warning sign is advertising partnerships — especially with financial partners. This damages credibility when the influencer then recommends the partner’s product and jeopardizes their independence. So-called affiliate links are also difficult – ie links to product suppliers. The influencer earns when the investor buys something through this link. With a lot of reach, you can make a lot of money.
Also, you should always ask yourself: who gave the cue? What can an influential person know? Why does he or she recommend this? It always makes sense to check the information yourself and check its authenticity. You can also follow multiple influencers for a more complete picture. Especially in bad times – when the warehouses are losing money – it’s best not to believe the so-called “hot tips” – don’t let them drive you nuts.