- According to Forbes, the influential economy is now valued at $250 billion.
- Making money as an influencer has changed a lot in 10 years, with multiple possible income streams.
- Authenticity and commitment are key for creatives to thrive, as is the creation of their companies.
The influencer business has exploded over the past decade and is now worth $250 billion, according to Forbes.
Ten years ago, an estimate by influencer marketing agency Billion Dollar Boy put the industry’s value at just $200 million.
Making money as an influencer has changed a lot since then, both in terms of how much individual creators can make and how.
“It’s gone from creators unlocking ad revenue on platforms like YouTube to a multi-channel industry where brands and influencers collaborate across social media,” said Nirozen Thav, co-founder and CEO of content licensing company Humant Life.
According to a 2014 Izea report, the average cost of a sponsored post on Instagram increased significantly between 2014 and 2019, from $134.04 to $1,642.77.
During the same period, the price of the average sponsored video on YouTube increased from $420 to $6,700.
On Instagram right now, creators can earn hundreds of thousands or even millions a year from partnerships.
On YouTube, creators can earn between $1.61 and $29.30 per 1,000 views, Business Insider’s media team reported, so it remains a lucrative platform to monetize views.
Those with over a million subscribers can easily make six figures, and YouTubers with more than that can sometimes make millions.
Multiple streams of income
What has changed the most in 10 years is how creators can maximize their income, both on and off social media.
Liam Parkinson, co-founder of Inflverse, a financial management platform for creative agencies, made his name as a YouTube content creator.
It amassed 750,000 subscribers in 2013 and has seen first-hand how the industry has moved from relying solely on advertising revenue to sponsorships and brand deals.
Today, Parkinson said the “smartest creators” are “leveraging multiple revenue streams,” including brand partnerships, merchandise and products, paid subscription content and equity deals, among others.
Katya Varbanova, an influencer turned CEO of Viral Marketing Stars, told BI that she started producing content in 2015, mostly on former broadcasting platforms like Periscope and Busker. The latter sponsored Varbanova’s trip to a Snapchat conference in 2016, paying her $1,000.
Back then, content creators were also happier to receive product PR boxes as payment for promotion, Varbanova said. Now, they prefer to be paid for their work.
Varbanova was recently offered $5,000 for a 30-second TikTok video, which the brand could license for three months.
“Brands have become much more willing to pay influencers,” she said.
Jacob Lucas, who shares relationship advice on TikTok and Instagram, started producing content about five years ago and decided to become a full-time creator about a year later.
Lucas told BI that views have never made his career profitable. Instead, he makes money from brand deals, where he charges around £8,000 ($10,379) per video, with wiggle room depending on how much he likes the company or product.
Engagement and authenticity over follower count
Savannah Britt, a PR specialist and CEO at Brittprint Agency, told BI that the number of followers is used to determine whether an influencer can partner with a company.
But now, some of her clients have struggled to secure brand deals — even one with over 10 million followers — because of a push toward engagement.
“Brands are looking for creators who are on trend right now,” Britt said. “Your salary and window of opportunity is determined by how hot you are at the moment.”
Reesa Teesa is a great example, she said, because she basically blew up overnight and doubled her income when she posted a 50-part post about her toxic ex-husband.
“She captured a moment that optimized a lifetime of opportunity,” Britt said.
There’s also a push for authenticity in creator marketing, with audiences growing tired of relentless advertising.
Dominic Smales, founder and former CEO of the world’s first digital talent management agency Gleam Futures, who has just co-founded new creator marketing venture GloMotion Studios, told BI people who turned to the Internet in 2010 because they were bored with the old media.
“They wanted to be entertained by people they related to and were young and fresh and unfiltered and all that kind of stuff,” he said. Brands are making it boring again for these audiences.”
Order of the issues
While the revenue potential is still high, content creators have long struggled to capitalize on a fast-growing economy and get burned by high demand. Some companies hope to change that.
Parkinson hopes to sort out how long it takes creators and their management agencies to get paid with Inflverse.
Brands can take up to three months to pay. Sometimes, they don’t pay at all, and the creator can’t do much about it.
“Imagine working a normal 9-5 and your boss tells you you’re not getting paid for 90 days, and even at that point, it’s not guaranteed,” Parkinson said.
According to Varbanova, the content creators who will benefit the most from the emerging industry are those who take advantage of all the services available to them – especially as some marketers are turning to working with mainstream celebrities.
She said they would also be wise to become part or full owners of their brands and companies, such as MrBeast with Feastables, Logan Paul and KSI with Prime, and Charli D’Amelio with D’Amelio Footwear.
That way, creators “are monetizing their influence instead of just relying on brand deals,” Varbanova said.
“This is the future,” she said. “This was always the future of influencer — build a loyal audience and then launch the brands and products you designed with that audience in mind.”