Are the influencers you follow making your life better—offering value or entertainment?
Or is their real goal to quickly subtract money from your bank account and put it into theirs?
In Contentr’s latest video, I’m looking at a new report by the Ontario Securities Commission: Social Media and Retail Investing: The Rise of Finfluencers.
Turns out that 35% of Canadian retail investors have made financial decisions based on advice from social media influencers—also known as “finfluencers.”
The scary part is what sets that 35% apart.
They’re much more likely to have been scammed on social media before—and far less likely to work with a financial advisor!?!
There’s a world of difference between following finfluencers who increase your financial and investor literacy, and ones that try to get you to make financial decisions that aren’t in your best interests.
According to the report, “While some finfluencers may offer quality advice or guidance, others may have ulterior motives, questionable credentials, or be subject to various incentives, affecting the quality of advice offered.”
The report outlines six persuasion techniques used by finfluencers. I break them down in the video.
Watch the Full Breakdown
I take a look at:
- The 6 core persuasion techniques used by finfluencers
- Why these tactics are so effective
- What smart users and ethical marketers should watch for
Timestamps:
02:22 – Persuasion Technique #1: Authority
02:41 – Technique #2: Scarcity
03:02 – Technique #3: Social Proof
03:20 – Technique #4: Reciprocity
03:42 – Technique #5: Liking
04:00 – Technique #6: Commitment & Consistency
04:29 – Two Psychological Characteristics: Concreteness & Emotionality
05:42 – The Impact on Retail Investors
06:05 – Key Predictors of Who’s Most Likely to Be Influenced
07:14 – Takeaways for Users of Social Media
10:00 – Ways Content Creators Can Use Persuasion Responsibly
11:33 – The Problem with Scarcity Tactics
Why This Matters for Social Media Users and Content Creators
Most persuasion techniques aren’t inherently shady—it really depends on if your favourite influencer is trying to build your trust or take advantage of it. It can be hard to tell, which is why knowing these techniques is helpful for social media users.
Whether you’re in finance, B2B marketing, or building a personal brand, you’re probably using some of these same techniques. That’s okay.
But the difference between influence and manipulation lies in your intent—and in your transparency.
This isn’t a call to scare people away from social media. It’s a call to be thoughtful.
As users, we should ask: What’s this person trying to get me to do? And what do they gain if I do it?
As creators: Am I using trust-building techniques in service of something valuable—or just to drive clicks and conversions?
Full Transcript
The most important thing to remember out of all the persuasive tactics is: where is the content creator coming from? Are they more involved in their own self-interest and getting money out of your pocket, or are they approaching it from building trust and building a reputation with you—and not asking for money out of your pocket right away?
Hi, I’m Gregory Bisch. I’m a content strategist at Contentr Media Communications, and I make content about the ever-evolving digital media landscape in Canada. In this video, I’m talking about this fascinating report from the Ontario Securities Commission, called Social Media and Retail Investing: The Rise of Finfluencers.
And this is incredibly relevant right now. Just in April, the Alberta Securities Commission found that Jayconomics, a finfluencer, broke securities laws by failing to properly disclose that he received payments from four companies in exchange for promoting their stocks. Yikes.
In this episode, we’re taking a look at the report and unpacking what persuasion techniques the OSC says that finfluencers use, how these tactics are impacting investors, and what we can take away as users and content creators from this report—that kind of applies to all of social media.
First, how finfluencers persuade. Finfluencers generally fall into one of three categories: unregistered individuals, unregistered individuals hired by financial firms, and registered investment advice professionals. The last one is the only one that I would follow.
The report doesn’t say all finfluencers are bad, but urges caution. While some finfluencers may offer quality advice or guidance, others may have ulterior motives, questionable credentials, or be subject to various incentives affecting the quality of advice offered.
Here are the 6 key persuasion techniques the OSC highlights in the report, and I provide some of the examples from the report here.
The first technique is authority. We’re more likely to trust someone who appears to be an expert. The example is: a finfluencer may make claims about their own financial successes to create a perception of authority.
The second technique is scarcity. This is the “limited time offer” that really drives you—that creates a sense of urgency that you have to buy now. A finfluencer might emphasize the limited time frame or availability of an investment opportunity, creating that sense of urgency.
The next technique is social proof. When we’re unsure of what to do, we tend to watch what other people are doing. So the example is: a finfluencer might share a post about their recent successful stock picks, showcasing positive comments and testimonials from followers who profited.
Reciprocity: if someone gives us something, it’s in human nature to feel like we owe them something back. For example, a finfluencer might offer exclusive insights or a free educational webinar on investment strategies—to ask for investments in the future.
The next technique is liking…
We’re more influenced by the people we like and can relate to. For example, a finfluencer may be attractive and/or may share positive personal stories or interests on their social media platforms to be likable.
And finally, we’ve got commitment and consistency. Once we commit to something as human beings—even in a small way—we’re more likely to agree to bigger and bigger asks. For example, a finfluencer may encourage followers to make a small commitment, such as sharing their financial goals. Then they would later ask them for a larger request, such as funding an investment.
In the report, the OSC also identifies two psychological characteristics that boost persuasiveness. The first is concreteness—specific, detailed content feels more credible to the audience. The second is emotional tone—some emotional tones, if they strike the right balance, can create this “emotional contagion” that transfers emotions from one individual to another.
All of this might sound really, really familiar because, to be honest with you, they’re all quite common and they’re all over social media—and a lot of media in general. And not all of them are inherently bad. Persuasion isn’t inherently bad in and of itself.
For example, a good way of using it is providing people with concrete examples when you’re talking about your area of expertise and sharing authentically—sharing real information that can benefit them in their daily lives—and you’re doing that to boost your credibility and your trust. Now that’s a form of persuasiveness that I feel is completely legitimate.
Always double check—and I think this is the reporter in me because I do this intuitively—always double check and triple check the credibility of the person who’s talking. Never take their word for it that they have a certain level of expertise or a certain level of experience. Always check with independent sources.
Second is scarcity. Scarcity is one of my least favorite persuasive techniques that you’ll see online. It’s when you’re given, like, 15 minutes to make this decision—and it’s kind of designed for you to make a decision in a hurry that you might not otherwise make if you had some time to think about it. So I tend to stay away from any offerings that really offer a really limited time—unless it’s from a business that I wanted to buy from previously, and it’s a product that I wanted to buy previously. Like, if 24 hours before, this was something I would have wanted, and it’s on sale for a limited time—then I’ll buy.
Reciprocity: a lot of content creators are putting content online to help inform you, to help build their brand. And I really think that’s okay. But always keep in mind—no matter what they’re putting out online—that’s their decision. You don’t owe them anything. So don’t feel like you do owe them something. That is human nature—reciprocity—but really, you do not owe them a thing. So don’t feel like you do.
And I think the most important thing to remember out of all the persuasive tactics is: where is the content creator coming from? Are they more involved in their own self-interest and getting money out of your pocket? Or are they approaching it from building trust and building a reputation with you—and not asking for money out of your pocket right away?
Okay, so next, let’s look at it from a businessperson, a content creator, or a marketer point of view. How can you use some of these persuasive tactics in a responsible way? And you can absolutely use some of them in a responsible way.
If you have genuine authority in a certain area of expertise, it’s completely okay to create content and talk about the authority that you have in your industry. For example, if you’re a plumber and you want to demonstrate your expertise by teaching people simple plumbing tips that they can do at home—that’s completely valid.
Then there’s being likable. Now, as you build your brand, as you’re creating content, you want to be likable. You want to create valuable content that people are drawn to—but also so they get to know who you are and begin to trust you and relate to you. And I think that’s an incredibly valid way to build your brand and your reputation.
And then there’s sharing proof and testimonials. As long as your testimonials and your proof is legit—from fairly independent sources, like not your mother—then I think that’s incredibly valuable information to share. And that’s a legitimate way to persuade someone that you are good at what you do.
Scarcity is something that I would generally very much steer away from. I think as a brand-building exercise, I don’t think it does great things for brand trust and for your reputation—that you’re pressuring people into buying something quickly that they might not otherwise buy. So, in general, for me, I stay away from those tactics completely.
And there you have it. The OSC’s report really is a phenomenal piece of thought leadership, and I just scraped the surface here. So if you found this interesting, I suggest you have a look at the full report.
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