Influencer Business Risks

Shaan Puri shares his experience and perspective on why building businesses around influencers is challenging and potentially problematic, drawing from his experience in the Twitch space and other ventures.

Key Points:

• Core Problems with Influencer-Based Businesses:

  • Constant groveling to influential people
  • Deals that should work often don't due to influencer behavior
  • Even when deals happen, execution is often poor or half-done

• Business Impact:

  • Critical business outcomes depend on unreliable influencer participation
  • Success requires getting a small number of key influencers (e.g., "100 streamers that matter")
  • Without key influencers, it's very hard to make the business work

• Relationship Management Challenges:

  • Influencers are often too busy or have too many competing offers
  • Even when they agree, they frequently flake on commitments
  • Quality of deliverables is inconsistent and often below expectations

• Success Cases Are Rare:

  • Some wins exist (e.g., "whiskey brand with Conor McGregor" or "Honest Company with Jessica Alba")
  • These successes are exceptions rather than the rule
  • The business model is fundamentally challenging despite occasional wins

• Personal Experience:

  • Quote from colleague: "I'm just tired of sucking dick" - referring to constant relationship management
  • This insight led Shaan to pivot his business within 3 months
  • Realized it was "a terrible style of business to build"

• Key Learning:

  • The fundamental problem isn't about the potential upside
  • The issue is the constant dependence on unreliable partners
  • Business success shouldn't require constant groveling and relationship management