Yahoo Finance ‘Punk’ former BrewDog boss launches app paying users for product reviews
The self-styled “punk” founder of BrewDog is launching a new app for social media influencers, a month after stepping down from the controversial beer brand.
James Watt has unveiled plans for a new social media app designed to help make anyone an influencer.
Social Tip said its app will allow people to share opinions and experiences about products to their followers.
Users will be paid for posts, with the app calculating value based on views, likes and engagement.
The entrepreneur started BrewDog in a garage 17 years ago with his business partner Martin Dickie and grew it into the UK’s largest independent craft brewery, spurred on by eye-catching marketing stunts.
BrewDog adopted a counter-cultural persona, referring to early crowdfunding investors as “equity punks” and naming its flagship beer Punk IPA.
Mr Watt is still on the company’s board and retains a 21pc stake after stepping down as chief executive last month.
Mr Watt said: “The most powerful marketing we ever had for BrewDog had nothing to do with us.
“It wasn’t the stunts, and it certainly wasn’t advertising. It was everyday people sharing their love for our products.”
Mr Watt has been dogged by controversy in recent years after he was accused of creating a “toxic” workplace culture.
A BBC documentary in 2022 claimed that staff members “felt uncomfortable” with how he acted towards women in BrewDog bars. It did not make allegations of criminality. BrewDog was accused of using misleading marketing techniques.
Mr Watt has denied the allegations and described the film as a “hatchet job”.
The entrepreneur, a vocal Brexit critic, also came under fire after he was pictured at Nigel Farage’s 60th birthday party this year.
Unveiling plans for Social Tip, Mr Watt said the power of conventional influencer marketing was dwindling. He said: “No one believes that celebrities or the biggest TikTokers and YouTubers just happen to be really into a brand.”
Instead, he said the new app would tap into “authentic brand love” from people you know, returning to “word-of-mouth marketing”.
Influencer marketing under fire
Mr Watt, who has a reported fortune of £260m, is now in a relationship with Georgia Toffolo, a former Made in Chelsea star-turned-social media influencer.
Influencer marketing – where social media personalities are paid to endorse products to their followers – has surged in popularity over the last decade.
However, influencer advertising has come under criticism, amid concerns that influencers were failing to properly disclose when they had been paid or received free products, sparking a crackdown by the advertising watchdog.
Social Tip said it will use verification software to ensure users had purchased the products themselves, adding that the model was designed to reward people who are already fans.
The company has already signed up several brands including Dash water, protein shake maker Huel and PureGym.
The app will be available for download this summer.
