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
Buttrfly is a blockchain marketplace for brands to scale their influencer marketing. Our platform will use smart contracts to automate contracting, verification, and settlement into a, self-executing process. For those unaware,
smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
This technology will allow Buttrfly to simplify the contracting, verification, and settlement process while providing an easy-to-use solution for brands to scale their influencer marketing initiatives.
The Buttrfly Workflow Process:
Use Case: Nike wants to pay an influencer $500 to post a picture of the Nike Air Force One on his Instagram.
- Nike logs into Buttrfly and creates an “opportunity” outlining the task requirements for an influencer to agree to (terms programed in a smart contract).
- Nike inputs their allocated budget of $500 into our system (budget held in a smart contract).
- An influencer (Jon) logs into the Buttrfly mobile app and the Nike “opportunity” is presented to him (our database intelligently determines the best influencer for the “opportunity”).
- Jon agrees to this “opportunity” (smart contract).
- Jon posts the content and completes his required tasks per the “opportunity” requirements written into the smart contract.
- The post is verified by the Buttrfly system (via an oracle).
- The $500 holding in escrow is released to Jon’s Buttrfly wallet within the app (smart contract).
- The transaction is completed.
We are developing Buttrfly to eliminate the laborious inefficiencies that are rampant in the current influencer marketing industry. Our technology will save brands time and money while providing the ability to successfully scale influencer marketing initiatives. In addition, our platform will help influencers increase their revenues generated from brand engagements.