Influence Weekly #322 - Meet The Beauty Brand Execs Betting Big On The Next Wave Influencer Entrepreneurs

Influence Weekly #322
February 2nd, 2024
Executive Summary
  • Meet The Beauty Brand Execs Betting Big On The Next Wave Influencer Entrepreneurs
  • Amazon unveils new creator space in Los Angeles
  • Universal Music Group Pulls Songs From TikTok
  • Iconic streamer Pokimane is leaving Twitch for YouTube
Great Reads

Famous Birthdays Courts $100 Billion Creator Economy With Pro Version Launch
Creator and Celebrity profiling platform Famous Birthdays launched a paid product called Famous Birthdays Pro, offering data and analytics on rising social media creators to assist influencer marketing efforts. Founder Evan Britton said rankings based purely on user demand, not opinions, help legitimize overlooked internet-famous people and spotlight surging fanbases. After noticing unrecognized digital stars commanding millions of followers in 2014, Britton realized the need to accurately reflect internet celebrity. Showcasing online talent alongside mainstream figures boosted their credibility.

While the original mobile site serves everyday consumers, Pro caters to industry professionals with historical data tools, representation details and early identification of rising personalities critical for marketers. Allowing niche searches by category or keyword also simplifies discovering relevant talent at scale. For Britton, Pro represents an important expansion beyond consumer value. But enhancing the user experience remains the priority - more content and quicker access feeds the data and rankings powering both versions.


VidIQ Acquires Creator Now To Empower Emerging YouTubers
Video analytics platform VidIQ acquired Creator Now, an education startup empowering aspiring YouTubers to unlock full-time creative careers. Creator Now provides workshops, feedback from top creators, and an online community for those with little to no following. Founder Zack Honarvar said together they can "skip steps" in building industry-defining growth tools by blending Creator Now's community expertise with VidIQ's established analytics suite. Most competitor products focus on already successful creators, overlooking the 99% still trying to gain traction - an area aligned with VidIQ's expanded goals.

Creator Now's understanding of newcomer problems and personas will help guide VidIQ's development serving real creator needs versus just flashy features. Honarvar envisions more collaboration between business-minded partners and creators to foster independent operations. As trends like AI and mobile video lower barriers, integrating Creator Now's cohort directly into VidIQ also helps combat newcomer isolation. With major branding and UX changes planned leveraging Creator Now's creator-centric design thinking, VidIQ wants to modernize to assist the next generation through more beginner-friendly experiences.
Campaign Insights

FounderSix: Meet The Beauty Brand Execs Betting Big On The Next Wave Influencer Entrepreneurs
FounderSix helps influencers launch brands by providing expertise across operations, branding, digital marketing and product development. Seeing poorly-executed ventures alongside success stories, co-founders Oli Goulden and Pieter Wittgen felt their startup and agency experience perfectly complemented creators' strengths. More influencers seek entrepreneurship, but passion and involvement remain key to standing out. FounderSix emphasizes authenticity - preserving an influencer's voice versus just licensing their name.

Rigorous nurturing of Ravie Beauty with founder Allie Glines fueled its enormous launch response thanks to her highly engaged community. Similarly, Susan Yara leveraged expertise to sell her brand Naturium for $350 million. While category authority helps, Hailey Bieber succeeded by owning an aesthetic. Still, relevance is critical without existing followings. New $12 million funding will scale current brands and expand FounderSix's portfolio. Goulden predicts live shopping with influencer hosts as future's inevitability. With a model facilitating creators to fruitfully monetize followings, FounderSix wants to smooth the path for more to capture that entrepreneurial opportunity.


J.C. Penney, Dallas-based influencer team up for menswear collection
J.C. Penney is continuing to expand its private label offerings through a new collaboration. The retailer has teamed up with Dallas-based fashion influencer LaDarius Campbell to launch a limited-edition 26-piece menswear collection under its Stylus brand. Available in stores and online in expanded sizing, the line embodies Campbell's "'RANGE' philosophy of styling the same pieces in many different ways to give customers fashionable, quality wardrobe staples at a great price," says J.C. Penney's chief merchandising officer.

Campbell will host an in-store styling event and give away a one-on-one "styling masterclass" to promote the collection. As J.C. Penney grows its assortment with such special collections, the retailer aims to turn around its finances after bankruptcy — net sales and revenue dropped 10% in Q2 2023. Its $1 billion turnaround plan includes modernizing in-store tech and supply chain operations.


Mejuri taps Reneé Rapp for new campaign promoting its $60 million hoop earring business
Jewelry brand Mejuri tapped singer-actress Reneé Rapp as the face of its new hoop earrings campaign called “Hoops All Ways.” Hoops are Mejuri’s fastest growing category, generating over $60 million revenue in 2023 and selling 600,000 pairs — with 41% of 2024 customers purchasing hoops so far. Rapp frequently wears hoops herself and her bold yet playful brand alignment made for an ideal partnership.

The campaign showcases Rapp styling hoops four ways, plus two new hoop designs, leveraging her 2 million Instagram followers and 2.6 million TikTok fans. Mejuri has previously worked with notables like Jenna Lyons but Rapp represents its biggest traditional celebrity ambassador splash to date. Beyond social buzz, Mejuri hopes to drive new customer acquisition and sales among Rapp followers less familiar with the jewelry brand. With strong existing traction as its hoop authority, the 9-year-old company wants to solidify its niche while attracting fresh shoppers to continue hoop category momentum. If successful, an extended Rapp collaboration could involve future co-designed products.


Motorola unveils new influencer marketing campaign with CGI advertising
Motorola has launched the "Flip into the Future" influencer marketing campaign, showcasing the Motorola razr 40 Ultra in India. This campaign marks India's first digital marketing campaign by a smartphone brand that combines hyper-realistic CGI advertising and influencer marketing through Instagram's sequence feature.  Developed by Barcode Entertainment, the campaign features three CGI ad reels strategically placed in iconic Indian locations, where the Motorola razr 40 Ultra elegantly unfolds, offering a glimpse into future possibilities.  

Shivam Ranjan, Marketing Head of Motorola APAC, emphasized the brand's commitment to innovation and modern marketing tools. The campaign aims to engage the target audience effectively by blending cutting-edge CGI advertising and influencer marketing.  Ajay Kulkarni, Director Growth at Barcode Entertainment, highlighted the campaign's innovative approach, combining hyper-realistic CGI with influencer marketing to redefine advertising. The collaboration between Motorola and Barcode Entertainment aims to capture the essence of innovation and creativity.


ESPN Unveils All-Women Roster for Social Creator Network Cohort
ESPN has tapped an all-women roster of 10 independent video creators for its 2024 Creator Network collaboration program. The goal is expanding ESPN's online audience by engaging communities beyond its typical demographics. Selected participants like sports commentator Juliana Duran will meet with executives, create branded content, and attend major events from the NBA Finals to NFL Draft over several months. ESPN says last year's inaugural creator class drove 18 million incremental impressions.

Now with sports betting sponsor Adidas newly attached, ESPN wants relatable creators to help translate its authority to young, diverse audiences. Applicants noted building loyal niche followings themselves upon lacking spaces for passionate fandoms. ESPN has aggressively chased Gen Z reach, becoming TikTok's top followed brand with nearly 45 million. The all-female class highlights undiscovered voices while advancing inclusion. As media vie for modern fans, ESPN's ever-evolving social strategy leverages rising stars reflecting today's perspectives. The company connects promising talents with resources to groom both women creators and their increasingly important communities.


Seeing viral pork TikToks? It’s a government-backed group pushing meat on Gen Z
Influencer marketing in the agriculture industry is facing scrutiny as government-backed checkoff programs launch ad campaigns on social media platforms like TikTok and Instagram. These campaigns aim to attract a new generation of consumers to agricultural products like dairy, pork, and beef.  Critics argue that these promotional groups, funded by government-mandated fees on farmers and overseen by the U.S. Department of Agriculture, prioritize industrial agriculture over small farmers and may contradict government nutritional and environmental goals. They view these programs as government-funded lobbying arms.  Advocates defend the checkoff programs, saying they boost sales, fund research, and combat misinformation.

They argue that targeting young, diverse consumers through social media is essential for the industry's long-term viability.  Criticism also arises concerning health claims in these ads, such as pork's mood-boosting powers. Some watchdogs question the scientific support for these claims.  Senators Cory Booker and Mike Lee are pushing for mandatory audits and conflict of interest restrictions in the next farm bill to address these concerns. However, powerful agricultural interests and allies in Congress may resist these reforms.  Despite the controversy, checkoff programs continue to use social media to promote agricultural products, raising questions about their influence and impact.

 
Interesting People

Iconic streamer Pokimane is leaving Twitch for YouTube
Iconic Twitch streamer Pokimane, among the platform's most-followed and highest paid women, announced she is leaving Twitch after a decade. While she shared gratitude for the memories, it's unclear if she is retiring or moving to another platform. Her massive influence as one of the first women of color gaming stars remains. Twitch wished her continued success wherever the future leads. Pokimane's sudden exit caps a turbulent period for Twitch struggling with moderation, profit woes prompting layoffs, and a confusing payout overhaul frustrating creators.

Some stars make exclusive deals with competitors like Kick offering better revenue splits. But moral concerns may prevent Pokimane joining its lax, gambling-friendly environment. Recent big YouTuber retirements also spark speculation on burnout. For now, Pokimane's next step is a mystery. Yet her shocking departure compounds difficulties for the Amazon-owned Twitch. Losing elite homegrown talent spotlights internal issues amid competition. Whatever's next for Pokimane herself, the platform faces deep identity questions in her symbolic influential absence.


Leading By Faith: How Jaden Rabago Became Gen Z's Role Model
At just 19, Jaden Rabago rapidly rose to fame on social media, amassing over a million TikTok followers. Originally seeking basketball stardom, receiving great engagement from his 2020 pandemic content pivot inspired a new purpose - influencing youth positively. Hitting milestones like 100,000 YouTube subscribers made childhood fanboy dreams reality. Now a Gen Z role model, Rabago hopes to "lead them the right direction" leveraging his platform for good. Connecting spiritually transformed his outlook and content as well, sharing messages of faith to spread more love globally.

Carefully vetting partnerships, he rejects misaligned brands despite major financial incentives to set a values-driven example. Rabago stresses consistency as critical for any aspiring creator finding motivation difficult at times. And believing in your capabilities and vision matters most - "they're literally just like you." Looking beyond social media, he's launching a faith-based clothing line with girlfriend Jalessa. At just 19, Rabago displays sharp wisdom and conviction guiding his ascendance as an icon for today's youth.


The 'influencer accent' is all over TikTok. Here's what it sounds like
A distinct vocal accent has emerged among Gen Z content creators on TikTok, often involving ending sentences as questions and a gravelly vocal fry register. Speech experts trace its "influencer speak" origins to the Valley Girl accent. While some mock the cadence, research shows young women profoundly shape language evolution. Curating an online voice is challenging - creators admit sounding different in real life. Some have professionally modulated their speech.

But therapeutic guidance urges self-examination before changing. University student Rishika Vinnakota consciously adopts a more "professional" voice for brand sponsorships. Daniel Grinspan initially masked his nerdy disposition before embracing eccentricity. Anonymity led Ashley Warren to a manufactured whisper-voice until recent authenticity adjustments. Ultimately, intent matters most. If messaging connects as desired, vocal tweakings may not be needed. Still, the TikTok accent permeates our dialect - especially among youth culture shifting mainstream communication. Love it or hate it, its impact billows across our digital discourse.


Guess This Song In One Note Guy: On TikTok Powered Entrepreneurship
Derrick Castenholz, best known as the "Guess This Song In One Note Guy," built a thriving DJ entertainment business leveraging viral TikTok challenges. With no prior social media expertise, his pandemic pivot to protect his team sparked an influential platform now boasting over 500,000 followers. Derrick's early video experiments gave way to a breakout street interview series. A fellow DJ proposed taking his name-that-tune game to the streets, yielding hugely engaging reactions as participants struggle guessing songs from one note. Relatable topics and genuine responses drive views.

Derrick says an incentive mindset lifts participation too. Live Q&As also build loyal bonds. Key metrics and constructive feedback shaped an approach blending entertainment and community. But he remains fixed on the business, aiming to grow his troupe of full-time DJs. Derrick advises entrepreneurs to divert marketing dollars toward organic digital discovery rather than paid promos. And stay patient locating your 1% through differentiated formats. He firmly believes any brand can harness street interviews if skilled and determined enough. Now a CEO-in-waiting, Derrick transformed uncertainty into opportunity thanks to a few viral videos.



 
Industry News

Runway Influence Takes Flight Under Founder Ernest Sturm
In 2017, serial entrepreneur Ernest Sturm leveraged his luxury events staffing company to launch influencer agency Runway Influence, representing high fashion models evolving into digital creators. Its niche focus on aspirational runway and editorial talent builds authority activating elegance for prestige brands. An early TikTok US launch campaign engaging Instagram influencers to cross-promote presaged its rise. A standout effort booking stars like Rachel Cook for a Wildfox Coachella activation also proved successful. Runway then shifted to elite supermodels like Alessandra Ambrosio, elevating its credibility.

What began as an influencer network expanded into a full-service branding firm under Sturm’s vision, now offering production, design, PR and more. But niche focus and comprehensive services still differentiate Runway. Sturm notes influencers drive sales better than ads by actually vetting and endorsing products passionately. As they become advisors within categories, that authenticity will enable ongoing influencer marketing upticks. So Runway helps brands attach to talent that resonates while ensuring comprehensive strategies convert impressions. Sturm built an ecosystem translating aspirational imagery into influence for prestige brands before many recognized its potential.


TikTok to Open LA Studio for Livestream Sales Videos
TikTok plans to open live streaming studios in Los Angeles and other cities to turbocharge its fledgling ecommerce business, according to a report by The Information. The goal is ramping up influencer-hosted live video shopping streams to drive product sales, much like its wildly successful Chinese counterpart Douyin. Professional studios would elevate production quality over creators' home setups. Multiple studios at each location could support dozens of influencer broadcasts daily, aided by merchandise supplied directly from brands.

This aims to catalyze TikTok Shopping which is estimated to have lost over $500 million in 2022. But Douyin generated $208 billion in China last year through a similar influencer sales model. If TikTok can replicate its scale, the company envisions reaching those heights. The LA hub would leverage the creative talent pool, with potential for national expansion. Possible features include membership fees for studio access and collaborations with agencies for product delivery. It's the latest move cementing TikTok's aggressive investment into becoming a shopping giant.


Universal Music Group Says It Will Pull Songs From TikTok
Universal Music Group (UMG) has announced that it will no longer license its content to TikTok after failing to reach a new deal with the platform. The current agreement between UMG and TikTok is set to expire on January 31.  UMG cited several issues as the reason for the breakdown in negotiations, including artist compensation, artificial intelligence (AI), and online safety. According to UMG, TikTok proposed paying artists and songwriters at a rate significantly lower than what other major social platforms offer. TikTok accounts for only about 1% of UMG's total revenue despite its massive user base and advertising revenue.  

UMG also raised concerns about TikTok's use of AI-generated recordings, which could dilute the royalty pool for human artists. The company accused TikTok of not adequately addressing content infringement issues and failing to combat hate speech, bigotry, bullying, and harassment on the platform.  UMG accused TikTok of attempting to bully them into accepting a deal that undervalued music and shortchanged artists and songwriters. TikTok responded by stating that UMG had put its own greed above the interests of artists and songwriters and that they had chosen to walk away from a platform with over a billion users.


TikTok tests e-commerce feature that identifies objects in videos as it ramps up online shopping ambitions
TikTok is testing a new feature that could make any video post shoppable, expanding e-commerce capabilities beyond just influencers. The capability uses technology to automatically identify objects in videos, then encourages viewers to “find similar items on TikTok Shop” by linking to product pages. Previously, only approved creators could tag purchasable products in their content. A TikTok spokesperson confirmed the test.

This builds on TikTok Shop, the app's thriving effort to blend social discovery with Amazon-style convenience, targeting $17.5 billion in 2023 US sales. While merchants praise holiday revenue surges, some users criticize counterfeits and excessive influencer promotions. This new video tagging links products without hard sells, potentially improving the experience. However, current recommendations aren't always accurate. Still, enabling shoppable video could further TikTok's aggressive commerce goals by making the entire app a storefront, not just influencers. But quality controls remain vital amid growth pains to prevent damaging TikTok's core entertainment value.


New MENA influencer platform to link creators, brands
German tech company Mitgo Group launched Takefluence, a new platform connecting brands and content creators in the Middle East and North Africa for influencer marketing campaigns. Takefluence aims to host 1-3 million users within two years given MENA's thriving influencer ecosystem. CEO Archie Rudyuk said the distinctive blend of regional creators and brands offers exciting potential that is already spurring signup interest. The platform creates a dynamic matchmaking and management hub.

Influencers access streamlined promotion code distribution, brand deal participation, and quick withdrawals while brands discover talent. With over 150 partnered brands so far including major names like Noon and Namshi, Takefluence courts offline/online companies, malls, event organizers and more. The launch taps booming influencer marketing as Dubai allotted $41 million to support creators. Influencer ad spend is forecast to grow 10% annually amid a sector valued over $1 billion. By focusing beyond mega-stars to engage micro and nano influencers, Takefluence wants to capitalize on greater authentic engagement and regional excitement around the creator economy.


StreamAlive picks up $1.58M to build engagement tools for livestreams
StreamAlive, an audience engagement app for livestreams and events, raised $1.58 million in pre-seed funding. The platform integrates directly into popular video chat and streaming tools via the chat function. Viewers participate in interactive games where responses appear onscreen, with features like polls, Q&As, giveaways and more. It works for remote meetings, classes, conferences, Twitch streams and in-person gatherings. Organizers access tools to track participation, engagement levels, and data like audience comfort levels.

The goal is preventing remote worker disconnect and boosting streamer/educator fan bases. After closing a separate $1.53 million round last January, this infusion will further product development and hiring. StreamAlive emerged to help event hosts struggling to monitor or encourage chat participation. With hybrid work enduring, founders see engagement parity for remote attendees as critical. Analytic and gamification tools also help convert passive observers into active fans. Having facilitated over 365,000 comments for a YouTuber, StreamAlive wants its platform to humanize distance learning and distributed work alike.


Podcastle Raises $13.5 Million Series A To Advance AI-Assisted Content Creation Tools
Podcastle, has secured $13.5 million in a Series A funding round led by Mosaic Ventures, with participation from existing investors including RTP Global, Point Nine Capital, Sierra Ventures, and Andrew Ng’s AI Fund. The company plans to use the funding to develop AI tools that simplify creative workflows and expand its offerings for multimedia storytelling.  Podcastle, originally a browser extension, has grown into a full platform for audio and video creation and distribution. Its user base has grown from 150,000 at the time of its 2021 seed funding to over one million users today.  

With the increasing importance of long-form audio and video content in marketing, communications, education, and media, Podcastle aims to position itself as the go-to collaborative workflow tool for both solo creators and businesses.  Simon Levene, co-founder and partner at Mosaic Ventures, believes in the long-term growth of the creator economy and sees Podcastle as the ideal platform for creators to collaborate and produce high-quality content.  The company has also made strategic hires to drive commercial growth, including Allan Rechtman as Chief Commercial Officer and Damian Sacco as VP of Growth Marketing. Podcastle has been enhancing its platform with AI capabilities, such as voice cloning with Revoice and audio quality improvement with Magic Dust.


Photo tour: Amazon Music unveils new creator space in Los Angeles
Amazon Music has opened a new 28,600 square foot creator space called Studio126 in Los Angeles for artists to record, collaborate, and engage fans. Drawing design inspiration from iconic LA features, the beach-themed café welcomes visitors before leading into four green rooms for relaxing, seven sunset-vibed podcast studios, a Hollywood-glam screening venue, and a merch workshop channeling coastal vibes. Control booths facilitate podcast and audio content creation as creators meet with partners in the chic, relaxed boardroom.

The goal is facilitating immersive fan experiences from music to merchandise leveraging customized facilities. Amazon Music has additional global creator spaces as they heavily invest in the artist ecosystem. As emerging creator-fan connection channels like livestreaming gain traction, custom spaces allow centralized experimentation and output. The tailored LA complex embodies Amazon Music’s continued involvement in digital cultural production - offering resources for artists to grow and engage modern audiences. More artist-led projects are slated to launch from the studio soon.
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TikTok Struggles to Protect U.S. Data From Its China Parent  - WSJ
TikTok is struggling to fulfill promises to protect U.S. user data from its China-based parent company ByteDance, despite spending $1.5 billion on “Project Texas” - a walled-off unit for American data. While TikTok publicly pledged no data sharing absent aggregated forms, its porous system sees managers still directly instructing data hand-offs to colleagues globally, including private user information.

ByteDance engineers frequently update TikTok's algorithm too rapidly for proper oversight as well. And delayed independent laptop rollouts raised data security doubts. TikTok justifies rare non-aggregated sharing to train its algorithm. But Project Texas employees feel rules now allow more common data access through unmonitored messaging systems. Some even say various instructions promote conflicting stances on sharing. TikTok plans new communications platforms to close gaps. However, experts remain skeptical of TikTok’s ability to prevent surreptitious Chinese data access. The revelations spotlight obstacles in erecting firewalls across global tech giants amid distrust of ties to adversarial governments. Protecting platforms at worldwide scale tests even extensive resources and technical prowess.


TikTok tests feature that could make all videos shoppable - Ad Age
TikTok is testing a new feature that could make any video post shoppable, expanding e-commerce capabilities beyond just influencers. The capability uses technology to automatically identify objects in videos, then encourages viewers to “find similar items on TikTok Shop” by linking to product pages. Previously, only approved creators could tag purchasable products in their content. A TikTok spokesperson confirmed the test.

This builds on TikTok Shop, the app's thriving effort to blend social discovery with Amazon-style convenience, targeting $17.5 billion in 2023 US sales. While merchants praise holiday revenue surges, some users criticize counterfeits and excessive influencer promotions. This new video tagging links products without hard sells, potentially improving the experience. However, current recommendations aren't always accurate. Still, enabling shoppable video could further TikTok's aggressive commerce goals by making the entire app a storefront, not just influencers. But quality controls remain vital amid growth pains to prevent damaging TikTok's core entertainment value.


TikTok Shop Is Cutting Back on Free Shipping As It Trims Costs - Insider
TikTok Shop is tightening its belt, raising the minimum spending requirement for free shipping from $20 to $25 for repeat buyers as of January 22, while first-time buyers still enjoy a $5 threshold. The change comes as TikTok is scaling back subsidies and planning to increase seller fees in July.  Free shipping won't be universally applied, as TikTok sets varying thresholds for different users. Additionally, the company now states that it won't cover shipping costs exceeding the "fair market price," a shift from its earlier commitment to cover costs up to $11.  

Sellers seeking shipping subsidies must meet specific criteria, including maintaining an average shipping time of six days in the last 30 days, handling at least 100 completed orders, and registering their store for a minimum of 30 days. TikTok's shipping deadlines have posed challenges for some sellers, especially when products unexpectedly go viral.  TikTok acknowledges that its free shipping subsidies might not be permanent, promising ample notice if the program changes. However, the company did not comment on these recent adjustments.

 
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