What’s the deal?

Last week, we cracked open a recent survey from the American Influencer Council, and it’s got some valuable insights on the current state of brand partnerships. The survey pooled responses from 567 influencers, both full-time (40.2%) and part-time (54%), from across the U.S. (39.5%) and around the globe (60.5%). Below, we've distilled the key report findings and a few practical takeaways.

Partnership duration

Longer term partnerships are a rare gem; only 12.5% of creators enjoy deals lasting around six months, and even fewer, 11.9%, have the luxury of year-long collaborations.

While this might seem obvious, it underscores a fundamental truth: influencers, like most individuals, crave stability. Given the scarcity of enduring partnerships that offer such stability, brands have a golden opportunity to stand out and allure top talent by extending deals beyond the conventional six-month timeframe or typical campaign lifespan.

Furthermore, longer-term partnerships are significantly more effective in generating value for both brands and influencers. They ensure consistency and authenticity and foster deeper engagement, ultimately enhancing the overall impact of collaborative efforts.

Payment terms

32% of creators cited instant payment as the most common payment term they receive from brands. However, approximately 29% said they experience a typical wait of 30 days post-deal completion to receive payment, while 10% report waiting 60 to 90 days.

These findings, coupled with anecdotal evidence indicating a rise in net 90 and even 120-day terms, highlight an opportunity for brands to embrace more creator-friendly payment terms.Consistent cash flow is paramount for many creators, making faster payments highly desirable yet not the norm. To attract top talent, brands should prioritize offering quicker and more flexible payment options, such as milestone payments tied to deliverables.

Matchmaker, Matchmaker

55% of creators identified social media marketplaces as a critical channel for securing brand deals, underscoring their importance in the creator economy. Influencer-marketing platforms, such as Aspire and Hashtag Paid, also play a crucial role, coming in as the second most used option to land brand deals.

Establishing a strong presence and active engagement on marketplaces and influencer platforms is becoming increasingly important alongside direct outreach efforts. These platforms serve as vital hubs where creators actively seek collaborations, presenting a prime opportunity for brands to connect with a diverse pool of influencers. However, brands should be mindful of potential drawbacks, including heightened competition and limited control over selection and negotiation terms, while also considering the need to vet creators for quality. 

Creator deal flow

Financial viability remains a challenge for many creators. About 28% need between five and nine partnerships monthly to maintain a livable income, whereas 16% require more than ten. Interestingly, nearly half of the respondents (46%) stated that just two to four monthly brand deals are sufficient for a sustainable income. 

These findings underscore a considerable variation in financial requirements among creators, highlighting the importance of brands tailoring influencer partnerships flexibly. Understanding the specific financial needs of partnered creators can foster more sustainable and mutually beneficial relationships. Consistently providing reliable deals can enhance brands’ ability to attract and retain top talent, particularly for the many creators prioritizing fewer yet stable partnerships to sustain their livelihoods.

Free Creator Economy Resource List

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Must-reads

Brands vs influencers: Who holds more power? [Link]

Why are creators leaving YouTube? [Link]

How TikTok changed us [Link]

The untapped power of niche communities: Havas Red’s fresh approach to influencer marketing [Link]

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