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Marketing Company news South Africa

Product drops don’t pay the bills: The unseen struggles of influencers

In the ever-evolving world of influencer marketing, a harsh reality persists: a crate of toothpaste or a weekend getaway doesn’t pay the bills. Nano influencers (defined as having less than 15,000 followers) find themselves frustrated by the lack of fair compensation. As the creator economy burgeons to $27.14m by the end of the year, and $44.28m by 2029, brands and agencies must confront this issue head-on. It’s not just about morality; it’s also about good business sense. Happy influencers lead to better results.
Emma Odendaal
Emma Odendaal

The payment predicament

Many influencers draw a stark comparison: you wouldn’t pay your doctor or plumber with a product, so why should it be acceptable for influencers? Creators aiming for a career, or a viable side hustle deserve equitable payment for their services. Yet, all too often, they receive products from “exploitative” big-name brands in exchange for their hard work. A box of toothpaste won’t cover school fees or rent.

The "F You Pay Me" app*

Across the pond in the US, the app “F* You Pay Me” emerged “born out of rage.” Created by Lindsey Lee, it serves as a platform for influencers to compare and rate brands and agencies based on their payment practices. One of Lee’s favourite lies encountered during negotiations? “We don’t have a budget.” Translated, it means they have no budget for you - the influencer.

Dentsu Creative South Africa’s approach

At Dentsu Creative South Africa, we’ve taken a stand. We believe in paying creators and influencers a market-related fee for their services. Why? Because it’s good for our client’s business, benefits the creators, and contributes to the broader creator economy. Our approach involves a mutually beneficial partnership, complete with clear terms of agreement. Accountability and repercussions exist for non-delivery or any breach of conditions.

As further investment into the growth of the industry, in February of this year we launched the Dentsu School of Influence, a programme for aspiring creators, equip them with the training and skills needed to succeed, not just as content creators but as business owners, and provide them with the tools demand appropriate compensation.

The Ripple Effect

While not all businesses will immediately have the means to pay influencers, our position has a network effect. As more brands and agencies follow suit, the industry shifts. Creators gain confidence, knowing their value extends beyond mere product exchanges. Fair compensation becomes the norm, and the influencer ecosystem thrives.

In conclusion, let’s recognise that influencers are more than walking billboards. They’re content creators, storytellers, and brand ambassadors. Let’s pay them fairly, ensuring that their passion and dedication translate into sustainable partnerships and growth for all.

About Emma Odendaal

Emma Odendaal is the content strategy director at Dentsu Creative.
Dentsu
Dentsu is the network designed for what's next, helping clients predict and plan for disruptive future opportunities in the sustainable economy. Taking a people-cantered approach to business transformation, dentsu combines Japanese innovation with a diverse, global perspective to drive client growth and to shape society.
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