Why creator value needs to increase
It's time for a little rant (while I'm on holiday)
Yep, I’m a little late with today’s newsletter, but that’s because I’m technically on a short family holiday and, therefore, shouldn’t really be working.
Just don’t tell anyone that I’ve snuck away to the local cafe bar, ordered myself a pint of Peroni and cranked out these words, eh?
There’s no way I’d miss today’s Substack ramblings, though, because I want to talk about a very important topic: the value of the creator, and why it’s in danger of being eroded.
That last sentence might sound hyperbolic, but I should clarify here: I’m referring to the value brands place on creators when they approach them for sponsored opportunities. Those opportunities could be 60-second integrated ads in YouTube videos, full-length dedicated videos, or product placement in shortform content. Whatever the opportunity is, the role played by the creator in such a partnership is colossal, and often misunderstood.
I’m one of those creators. I’ve published a shed load of sponsored content, and I therefore know what goes into making it as valuable for my audience and my business as possible. The sponsor segment, no matter how long it is, needs scripting, shooting (both a- and b-roll) and crafting into the final edit so that it doesn’t get in the way (too much) of the narrative yet still offers value for both the audience and the brand paying the bill. It’s really hard and I still haven’t mastered it.
In creating content like this I’m also crafting a marketing asset for the brand. Whether they’re happy for that to reside solely within my world or take it and repurpose it for use within a broader marketing campaign, they get a fully packaged advert for their product. The brand doesn’t have to pick up a camera, dive into editing software, or pay for an audience to watch it - they get the full ‘turn-key’ (sorry, I hate that phrase, too) solution.
Sponsored content ranks among the most profitable forms of revenue my business generates but it is still significantly cheaper than a TV campaign or in-house produced content asset. What’s more, I have an audience I’ve built over four years which knows and trusts me. Imagine buying that as well as funding an entire video production yourself.
The problem the creator industry has is that it’s full of creators who have no - or very little - business experience. It’s also full of part-time creators who view their content creation as a fun side hustle. As a result, a lot of these people agree to ghastly sponsored deals with brands.
A two-minute integration for $250? Yeah - let’s go for it, bro!
A dedicated video for your awesome product on the basis that I get to keep the product in question? Oh, you’re so kind - show me the contract!
I’m not blaming or patronising these creators; they are merely pawns in the game of creator chess that’s played by brands who want nothing more than to obtain mass coverage for their products for as little outlay as possible. The problem lies in how often those creators say “yes” to such deals, because the more they do, the lower the perceived value of the creator industry as a whole becomes.
This is hugely problematic, and creator businesses like mine encounter the net effect of it constantly. I expect brands to play a bit of contract tennis when it comes to negotiating a new sponsor spot, but some of the rates they suggest are utterly insulting. It’s not just my business, either - I’m friends with a bunch of creators with similar-sized audiences in the tech space, and we all encounter the same ludicrous lowballs from certain brands.
I should highlight that this doesn’t apply to every brand that gets in touch or to whom we reach out. Great brands know the value we bring to the table and reward it correctly. They understand ROI and the significant aforementioned savings that come when you decide to integrate influencer (yuck) marketing into your overall strategy. They’re the best partnerships and they’re the ones we value the highest.
What’s the answer to this? I’m not sure there is one, other than for people like myself to continually spread this message and call out those low-balling brands. Creator businesses are expensive to run but hold massive potential for the business, its audience, and the brands with which it partners. Put simply, when creators are correctly rewarded for sponsorships, everyone wins.