<p>Despite extensive research on live selling, how brands choose between self-hosted, influencer-hosted, and hybrid models remains unclear. We develop an analytical model to identify the optimal live selling strategy for maximizing brand profits, considering effort costs. Our findings highlight three key factors: the brand’s effort cost parameter, the fixed upfront fee, and the extra potential market size generated by the influencer. Notably, the influencer-hosted model is never the optimal choice. The hybrid model is preferred when a low-social-influence influencer charges a minimal or zero fixed upfront fee or when a high-social-influence influencer charges a moderate fee. Otherwise, the self-hosted model is optimal. We also identify a threshold for the brand’s effort cost: the hybrid model is best when costs remain below this threshold, while the self-hosted model is preferable otherwise. Furthermore, we find that when effort costs and other parameters are within a reasonable range, the hybrid model maximizes both brand and total market profits. This study provides brands with fresh insights into the selection of live selling models and offers several managerial implications.</p>

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Optimal live selling strategies for brands: the role of effort costs

  • Qian Jia,
  • Li Lin

摘要

Despite extensive research on live selling, how brands choose between self-hosted, influencer-hosted, and hybrid models remains unclear. We develop an analytical model to identify the optimal live selling strategy for maximizing brand profits, considering effort costs. Our findings highlight three key factors: the brand’s effort cost parameter, the fixed upfront fee, and the extra potential market size generated by the influencer. Notably, the influencer-hosted model is never the optimal choice. The hybrid model is preferred when a low-social-influence influencer charges a minimal or zero fixed upfront fee or when a high-social-influence influencer charges a moderate fee. Otherwise, the self-hosted model is optimal. We also identify a threshold for the brand’s effort cost: the hybrid model is best when costs remain below this threshold, while the self-hosted model is preferable otherwise. Furthermore, we find that when effort costs and other parameters are within a reasonable range, the hybrid model maximizes both brand and total market profits. This study provides brands with fresh insights into the selection of live selling models and offers several managerial implications.