Why is it so difficult to get paid on time as an Influencer or to get paid at all? How can I have booked so many jobs in a month and still get paid so late? Why can’t all my money be paid directly to me, one click away? We asked ourselves the same questions while looking for answers. After speaking with countless Influencers and analysing over 756 Creative Agencies around Europe and the US, we found that the average payment times exceed 190 days.
The Root Cause?
The existing system was never designed with Creatives in mind, and it doesn’t adequately acknowledge or recognise their needs and more, undermines their potential. The industry’s current remuneration structure presents two primary obstacles. Firstly, the number of intermediaries paired with the clients’ solvability check and, secondly, the different ways in which every participant collaborates.
After agreeing on a project collaboration with a brand, Influencers are, on average, paid within 190 days. Agencies often receive payment before the Influencers and can take an additional one to two months to transfer the funds. This delay occurs because agencies need to finance their own operations. Eliminating agencies would trim this timeline by approximately 60 days but would not solve the problem. Verity Park, founder of TBH talent, voiced this issue in a frustrated post on TikTok. “We chase via email; we chase in every way you could possibly chase to ensure that they (their roster) are paid on time… and the average number of days it takes brands to pay us in over the last quarter is… 101 days” Verity went on to explain the stress that this causes to her talent “some Creators might be living month to month. They may have taken a risk. Taken a leap. They may have one really good month and one not so good month and with these payment terms it’s so hard for them to predict their income and manage their lives.” One of the Agencies’ added values is handling invoicing, collections, and payment follow-ups; tasks that many Creatives find unappealing. However, in the race to increase their client base, agencies sometimes fail to adequately verify a client’s ability to meet their financial commitments to respect delays. If a payment default occurs, agencies often don’t pursue it legally to avoid losing more money in legal battles, as long as it’s not the agency making the default. The same challenges apply to Creatives not represented by agencies, as they must handle their accounting themselves. Creatives and agencies are facing issues when it comes to getting paid.
Out of the 182 agents & agencies replying to our study, over 71% believe that their internal systems of booking, payments and management are the source of the miscommunications, late payments and a lack of transparency generating strained relationships between agencies, Creatives and brands.
The old system never created the needed inter-connection between the operations of Creatives, brands and agencies.
Removing the agencies would also affect the Creative’s revenue as they have a know-how; with the right agency and the right agent, Creatives at an early stage of their journey can often find significant career and financial growth. Hanan Besovic of @ideservecoutore explained to WePresent & 1Granary “My manager knows how to monetise my work, I don’t, “I care about the content, she cares about how to make money from it. She thinks about it as business, while I think about it as…‘yay!’
Many Creatives suffer from loneliness and need to be heard and supported. An agency or an agent represents precisely that: a companion, a shoulder to cry on, someone else who believes in you and fights when you must stand strong. Additionally, many brands use agencies as guides, a third party they can trust to manage the relationships, network, and job execution on their behalf. Brands are there to stay and need a structure that meets their needs as much as Creatives do. The creative industry is at its genesis in the digital space, with the COVID-19 pandemic propelling its number of participants. With the old system of management and payment of Creatives copied from the Modelling agencies systems in the ’90s, innovative solutions need to meet the needs of its main actors.
According to LinkTree*, over 80% of Influencers are experiencing a high level of anxiety, with financial anxiety leading the source.
From the brand’s perspective, the Marketing Manager and the Finance Manager frequently work in separate buildings, leading to communication gaps. Often, Marketing agrees to fees and payment terms, but when Finance takes over, payments are delayed due to other financial commitments. This leaves Creatives feeling powerless, unrecognised, and perpetually anxious.
Nobody should have to experience constant delays of payment; nobody should have to fear not being able to pay their rent when they’ve booked multiple jobs that month; nobody should have to feel this anxiety related to the structure of the creative industry.
So, How Can I Get Paid as a Content Creator?
To offer more stability, reliability and, finally the professionalisation of this industry, we must have control over its key components, payments and finances. On CREATIVESAPP getting paid on time, will allow each Creative to find security and freedom in their daily life, to plan and strategize, to invest in their craft and to have clarity over their career.
We advocate for a model where Creatives and agencies are paid directly and separately, minimising intermediaries and accelerating the payment timeline. Through our ‘get paid on time, every time’ policy, we introduce fintech solutions that ensure timely payments, adding another layer of financial stability. On CA, after the execution of a job, Creatives and agencies are automatically paid per terms of the agreement with the brand; sometimes, they can also request EarlyPay to provide financial assistance in time of need.
We focus on providing innovative digital solutions for the needs of Creatives, brands, and agencies. From project management to automated contracts, to smart calendar, to chat and more. CA represents the home of Creatives. By integrating the three actors and solving important emotional and operational pain points, we aim to simplify the ways Creatives, brands, and agencies connect, collaborate, and exchange value.
*”How to Influence for a career” WePresent 2023
*LinkTree Creators Report
