Influencers strike back at pay

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The Future. Brands today heavily depend on influencer marketing to advertise their products, leaving creators with the advantage when it comes to negotiations. Due to the standardization of payment terms by influencers, companies will likely have to start changing their approach to collaborating with creators.

Cashing out 
More and more influencers are beginning to add stricter clauses in their contracts to ensure they get paid in a reasonable amount of time. Some of these new negotiation approaches look like asking for more deposits up front, advocating for net 10-15 payments rather than net 30/60/90, and charging late fees… generally 10% of the amount owed.

  • In 2023, agencies and brands reported that they were investing more money in influencer marketing than in the previous year.
  • Goldman Sachs estimates that the creator economy, which is currently worth $250 billion, will jump to being worth $480 billion by 2027.
  • According to global finance automation platform Tipalti, 56% of creators have faced late payments.

Generally, payment terms for sponsored content happen 30 to 90 days after the influencer’s work is completed and they send an invoice.

Freelancin’ ain’t free
It’s hard for marketers to predict exactly how the creator economy will continue to blossom. Performance indicators and pay standards continue to evolve as the industry does. The future of marketing budgets may end up being more driven by the terms and conditions set by creators rather than brands leading the process.

Evan Brown


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