The creator economy is experiencing a significant surge, with creators now
considered pivotal in marketing strategies. They are increasingly advocating for fairer
payment terms, including deposits and late fees. According to Digiday research, both
agency clients and brands upped their investments in influencer marketing last year
compared to 2022. The influencer/creator economy currently stands at $250 billion and
is anticipated to nearly double to $480 billion by 2027, according to estimates from
Goldman Sachs. Despite its remarkable growth, the creator economy and influencer marketing still
operate in a somewhat unregulated space. This leads to challenges, particularly
concerning performance metrics and payment standards. __16__, with influencer
marketing becoming a more entrenched component of marketing budgets, creators and
influencers are urging brands, agencies, and influencer marketing platforms to
reconsider payment terms.
Digiday recently interviewed five creators about their experiences negotiating
payment terms in this __17__ industry. Steven Sharpe, a full-time lifestyle and
wellness content creator with over 24,000 followers across TikTok and Instagram and
founder of Nobius Creative Studios, emphasized the importance of creators setting
boundaries in this dynamic environment.
Payment terms typically range from 30 to 90 days after the completion of the
creator or influencer's work, with invoices sent to the brand, its agency partners, or an
influencer marketing platform. However, late payments are not uncommon, leaving
creators waiting for weeks or even months for their compensation. Jazmin Griffith, a
social analyst and full-time creator with over 300,000 TikTok and Instagram followers,
shared her frustration with waiting over six months for payment after securing a
campaign.
To __18__ these delays, Griffith now prefers working directly with brands or
mainstream influencer marketing agencies. She has also begun requesting upfront
deposits, particularly for higher-priced campaigns. Similarly, Jayde Powell, a freelance
content marketer and creator, faced payment challenges, prompting her to negotiate
shorter payment terms with brands. Powell also introduced late payment fees to
__19__ prompt payments. Joy Ofodu, a full-time creator and voice actor with over
290,000 followers across TikTok and Instagram, advocates for brands to initiate the
payment process immediately after content is published. However, late payments
persist as a significant issue for creators, with 56% reporting facing such delays,
according to Tipalti.
This friction between creators and brands underscores the pressing need for
standardized payment terms within the industry. Victoria Bachan, president of Whalar
Talent, stresses the urgency of addressing this issue. Nonetheless, Bachan acknowledges challenges on both sides, with newcomers grappling to navigate the
industry and brands managing multiple influencer campaigns.
To support creators, Whalar is exploring options such as __20__ payments for
late invoices. Despite the hurdles, resources are available to creators, such as the
Creators Guild of America (CGA) and the Freelance Isn't Free Act, advocating for fair
pay and safeguarding freelancers from late payments. Advocating for payment standardization is an arduous but essential endeavor,
particularly as the influencer marketing industry continues its expansion. As noted by
Ofodu, adapting to evolving economic trends is crucial for both creators and brands.
Ultimately, equitable and timely payment practices are indispensable for fostering a
sustainable creator economy.