Dispute 1: Profit sharing. On the one hand, Internet celebrities endorse products in order to get priority to use the products for free, and on the other hand, to make profits by using the channels. After Internet celebrities become product spokespersons, their fans start to buy products from them. In theory, the channels of Internet celebrities themselves and the channels they recommend open up sales channels for products, but unsatisfactory products can also bring fatal blows to Internet celebrities. Fans’ siege, cancellations and negative publicity can quickly push a channel into the abyss. The price at which fans buy products directly determines the profit. The network effect of the video brings traffic, promotes conversion, and generates profits. How to set a reasonable wholesale price and balance the interests with the broadcaster is a headache for merchants.
Dispute 2: Internet celebrities endorse other brands. For merchants, cooperation with Internet celebrities is a long process. The number of channel subscriptions and the interactivity of fans are also the criteria for merchants to identify Internet celebrities. For current cross-border platforms, it is difficult for small and medium-sized sellers to afford the high signing fees. There is only a verbal agreement with Internet celebrities, and there is no written material to constrain them. Some online celebrity channels are updated very frequently. These online celebrities usually get free hair from many companies, and new videos are released every once in a while, as shown in Figure 8-27. For merchants, video promotion is a strategy to attract popularity, and the purpose of merchants is to expand the audience range of products through in-depth cooperation. However, this kind of scattered and shallow cooperation makes it difficult for merchants to maintain their basic interests in the long run; on the other hand, consumers will suffer from not being able to choose products because online celebrities endorse multiple brands.
YouTube in the era of online celebrities has brought many opportunities for merchants. Finding online celebrities to promote products or activities is a hot potato for many merchants. Whether the product itself has added value and whether the quality of the product itself is strong enough, online celebrities will also screen the products when cooperating with merchants. The promotion of products will naturally expand the scope of the audience, and sales channels such as trial and in-depth online celebrity endorsements will be opened up, and the development cycle of new products will be accelerated. This will eventually be a healthy brand promotion channel and a necessary path for an Internet brand to take root and sprout.