How Buttrfly will Utilize Blockchain Smart Contracts to Help Brands Scale Influencer Marketing
Influencer marketing is highly effective and the industry is growing rapidly. A survey conducted by Collective Basis discovered that,
70% of millennial consumers are influenced by recommendations of their peers in buying decisions.
Currently, there are numerous, critical inefficiencies within the influencer marketing campaign process. Brands spend a significant, yet arduous proportion of their workflow on contracting, post verification, and payment settlement. This inefficiency is a critical problem that Buttrfly addresses. To reduce the time spent on this process, Buttrfly will maximize the benefits of the blockchain technologies through the use of smart contracts.
Inefficiency #1 — Contracting
The process of contracting is time-consuming and heavy on human resources. For each influencer that a brand engages with, the brand must draft an agreement, negotiate terms, and get the influencer to sign the agreement. If a brand works with under 10 influencers this process can be easily accomplished, but if a brand ramps up and engages with 100+ influencers, than the process is both unscalable and laborious.
Inefficiency #2 — Payment Settlement
The payment settlement process includes sending out a W9 for completion, receiving and processing said W9, receiving an invoice, and tendering payment. Similar to contracting, this process is labor intensive and can not successfully scale.
Inefficiency #3 — Post Verification
Post verification is also plagued with laborious tasks. This process includes both verifying that an influencer posts content, as specified in their contract, and verifying the engagement levels of the post. Currently, brands accomplish this by having a representative review each post and/or the influencer documents the post in a report.
Buttrfly — The solution
Read the rest of the article on the Buttrfly blog by clicking here.