Business of Creators 💬

Stay ahead of the curve in the creator economy...

We are back to regular programming folks! After a mammoth last few weeks focused on sporting and televised events - there has been quite a bit of politics in the industry we need to catch up on…

Industry news & events

🇰🇷YouTube is set to host its third annual "YouTube Device Partner Summit" in Seoul, South Korea on April 23rd and 24th, focusing on unveiling the latest advancements to enhance viewer engagement across different platforms.

💸Following successful tests with MrBeast, who earned over $250,000 from his first upload, X has introduced "Creator Targeting", allowing brands to sponsor chosen creator content in the app.

📸SXSW (South by Southwest) hits Austin, TX on 8-12 March. Renowned as one of the most influential events with a jam-packed A list line up that brings together creators across all worlds. 

🎨The 2024 "Pinterest Palette" summarizes the year's dominant color trends from the Pinterest Predicts report, providing some cool design insights that can shape your creative strategies.

🇮🇹Milan Fashion Week hits the runway from 20-26 Feb.

🙋The Ad Age Gen Z Summit hits March 6 in New York, described as a one-day conference where you can learn to connect with and understand Gen Z audiences - through workshops and insights from industry leaders and young influencers.

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The defiant creators taking control over pay delays

The struggle for fair pay is widespread. In 2023, Tipalti’s report reported that 56% of the creators interviewed faced late payments, and 74% reportedly stopped collaborations due to feeling undervalued. It’s no wonder creators are taking matters into their own hands.

Take Jazmin Griffith, a social analyst and creator with over 300,000 TikTok and Instagram followers, who faced over six months of delays in payment after landing a campaign via an influencer marketing platform. Creators often face payment terms ranging from 30 to 90 days after completing their work. In reality, it can sometimes take months. As Steven Sharpe, a lifestyle and wellness content creator, puts it - the unregulated nature of the industry is forcing creators to set boundaries. Jazmin Griffith now asks for upfront deposits.

Freelance content marketer Jayde Powell, who has over 10,000 followers on TikTok and Instagram, experienced delayed mortgage payments due to inconsistent payment schedules. Powell now negotiates for shorter payment terms and introduced late payment fees to incentivize brands to pay on time. Joy Ofodu, a full-time creator with over 290,000 followers on TikTok and Instagram, takes one step further by requesting immediate payment after content publication. With an industry deemed as the “fastest growing small business” of our age, the time for standardization should be of utmost priority. 

Victoria Bachan, the president of Whalar's talent management division, is considering paying extra for late invoices to help support creative talent. This gives hope that efforts from various initiatives, such as the Creators Guild of America and the Freelance Isn't Free Act, could lead to improved standards in the industry. And more importantly, it shows that creators are not alone in fighting the good fight! We slate you 🫡

Platform round-up

Leverage the latest updates and features across digital platforms to help you get ahead of the game…

😏Whilst TikTok is feeling sorry for itself after UMG pulled it’s tracks from the platform, YouTube has cunningly announced new music remix options for Shorts.

🏗️Instagram is currently testing carousels within reels.

🧠TikTok’s latest 34 page marketing strategy guide highlights “the solutions to help you build impact-driving video content with ease". 

5️⃣Instagram is reportedly restricting the number of hashtags users can add to their posts, allowing a maximum of five tags in a single update. I don’t know about you, but I am pleased to see less visual clutter that amounts to little engagement.

Understanding VAT as a content creator

As the noise surrounding the creator economy’s growth heightens, which is set to double at its 250bn value by 2027, tax administrations are starting to show interest in this space, especially in the EU where over 50 million people identify as content creators. VAT/tax responsibilities are about to become a whole lot more complex. Here’s the 411: 

👉VAT Challenge: Tax authorities are figuring out how to tax money made by content creators online, especially in the European Union.

👉EU VAT Law: There are special rules for taxing online transactions; creators of certain types of automated digital services might not have to pay taxes on them.

👉DAC7 Initiative: There are new rules making sure online platforms report their income to tax authorities to prevent them from hiding money.

👉Content Creation as Personal Service: Some types of content creation may be considered a personal service and might be subject to these new rules.

👉Platform Business Model: Platforms may not have to report income if they act as middlemen between creators and users.

👉Complexity and Challenges: Figuring out who is responsible for paying taxes in the creator economy is tricky, and recent court cases show that tax authorities and platforms don't always agree.

👉DAC7 Application: Even though new rules have been in place since 2023, it's still unclear how they apply to the creator economy, depending on the type of content and how payments are handled. Clarity on these tax issues is becoming more and more important as the creator economy grows.