Sponsored content has become a reliable way for creators with large followings to monetize their work. But relying solely on traditional pay-per-post models like user-generated content (UGC) can be an unstable path, leading to both creative fatigue, burnout, and disappointment with earnings.
However, by following a commission-based model, influencers can earn passive income based on their engagement with brands and their audience.
Entrepreneur Lesley Gao is currently looking to better cement this model through her startup, Pear. Her goal is to simplify interactions with brands and encourage a model focused on building and nurturing community relationships.
Keep reading to learn more about why Lesley Gao believes commission-based earnings can greatly fuel your influencer career.
Meet Lesley Gao
As a Chinese native with an American education, Lesley Gao has used her cross-cultural knowledge to advance the tech sector worldwide. Her big breakthrough came during the mid-2010s Chinese tech boom, when she played a crucial role in helping national micro-mobility companies Mobike and Bird optimize their supply chain operations.
But Gao’s unique perspective also helped her pinpoint both regions’ differences in marketing strategies.
“While living in China,” Gao recalls, “I saw the phenomenon of microcommerce through the multifunctional super app WeChat.” She witnessed how regular folk “would create chat groups to exchange valuable information within their community, and at the same time would earn money by recommending products.”
Inspired by this model’s success, she sought to address the lack of a comparable system in the U.S.
The Limitations of UGC
Gao soon discovered the limitations of leading marketing tactics for both brands and influencers. She notes that much of the current system is based on pay-per-post partnerships like user-generated content, where creators with large followings make sponsored posts promoting a brand’s products.
While this benefits businesses that wish to expand their visibility at a low cost, it ultimately limits creators, both financially and creatively. “While they may get their money up front,” Gao says, “there’s only a finite number of partnership deals that creators can make on a monthly basis — soon enough, they’re bound to reach a cap on their potential earnings.”
Furthermore, the market has become oversaturated with this strategy, making it difficult for creators to secure lucrative deals. This leads them to partner with lower-quality brands that don’t resonate with their audience, leading to a loss of trust from their followers.
Why shift to commission-based earnings
While UGC isn’t always ideal, Gao firmly believes in the power of influencer marketing, as 63% of consumers are still more likely to buy a product if it’s recommended by an internet personality they trust. That’s why she recommends that influencers work under commission models, earning a percentage of sales generated by their promotion or endorsement.
This approach comes with several benefits. First, influencers can earn from multiple purchases over time, generating much more passive income if the quality of their content is high. Additionally, they can strike multiple deals with a single brand to endorse different products, reducing the risk of wearing out their followers.
Influencers can also seek out deals with brands that resonate with their specific audience, knowing they have a loyal following that trusts their recommendations. As Gao says, “Because of the trust they were able to form with their community, people in those groups are more likely to buy the product they advertise instead of searching for other options online.”
Gao emphasizes that this arrangement works for aspiring influencers who lack the clout to attract larger sponsorship deals and any other individuals who might be tempted to pursue unstable models like multi-level marketing.
Ushering in a new era of influencer marketing
Lesley Gao created Pear to streamline communication between influencers and brands. Similar to WeChat, creators can manage all aspects of their partnerships with companies — from initial contact to keeping track of their commissions. Likewise, brands can easily reach out to influencers to expand their audience. Gao says the app’s goal is to “help individuals achieve financial freedom and to help smaller businesses effectively acquire customers and boost their sales.”
Thanks to Lesley Gao and the work she’s doing to simplify commission-based marketing, influencers and creators can find a way to create stronger bonds with their audience, boost their engagement, and unlock new revenue streams.
