The Rise of Influencer Marketing Marks the End of Marketplace Monopolies, Such as Gatorade & L’oréal

The idea of a marketplace monopoly is slowly fading away.

Product image of Kylie CosmeticsPhoto bykyliecosmetics.com

In the past, large corporations monopolized entire markets, making it nearly impossible for small-to-mid-sized companies to thrive... let alone survive.

But today, social media (specifically influencer marketing) has levelled the playing field. And big-time influencers are beginning to break new ground, building foundations of influencer-based products that rival even the biggest and most long-standing companies in their respective markets:

• In 2019, Kylie Jenner sold her cosmetics company, Kylie Cosmetics, for $600 million, just 5 years after creating it, at 23 years old.

• In 2022, UFC fighter and sports icon, Conor McGregor, sold the majority stake in his whiskey brand, Proper No. Twelve Irish Whiskey, for $500 million just 4 years after its inception.

• And, most recently, social media influencers Logan Paul & Olajide Olatunji (most known as KSI) teamed up to create the viral hydration company, PRIME Hydration, in 2022. The brand has taken social media by storm and was recently acquired by Coca-Cola, at a reported $10 billion valuation.

Although these are just a few examples, the internet is flooded with small-to-mid-sized companies, whose value is based solely on the recognition of affiliated creators. It's become common practice for influencers of a certain size to start their own brand, company, or product.

Advertising has always been closely linked to celebrity -- with major brands such as Nike collaborating with Michael Jordan to create the biggest shoe brand in history, Air Jordan, which earned over $5 billion in revenue, in 2022 alone.

But today, instead of using athletes or actors to endorse their products, any individual with enough social influence can create their own product and rival even the biggest companies. This has been a revelation for entrepreneurs, and many have ditched their brick-and-mortar businesses altogether to begin creating online influence of their own.

Owner and CEO of acquisition.com, Alex Hormozi, recently pivoted focus from his $100 million per year investment firm to pursue social media fame, after seeing Kylie Jenner, someone he deemed to have less knowledge and know-how in the business space, surpass him in his area of expertise.

In a clip on Alex's YouTube channel titled "This is How Kylie Jenner Saved My Life", he shared,

"I saw her on the cover of Forbes and I was like, 'She's younger than I am and she's a billionaire and I feel I know more about business'... it was such a paradigm shift for me. I was like, 'How is this possible?'"

Despite owning and operating a multi-million-dollar business, Alex dropped everything to focus on building his social media presence, seeing it as his path to becoming a billionaire. In the past 2 years, Alex has amassed millions of followers and has since become one of the most influential figures in the entrepreneurial space.

Alex's story is just one of innumerable examples of how the online business landscape is ever-changing. And, how influencer marketing is creating new markets every day -- causing big businesses to pivot and slowly breaking down the idea of a marketplace monopoly.

Hey, I'm Hudson! I write about social media, marketing, and modern entrepreneurship. Hit follow for more stories like this one.