Should creators hire an Agency?
*this article is from the Creator Intel Newsletter.
Many of you have asked me about the advantages of working with a social media agency or manager. The deal sounds good to creators in theory: the agent pitches you to brands and you sit back and take deals you want. The agent usually gets 20% of all deals you do. So the math is simple: If they bring in enough additional revenue to pay for their 20% cut, it’s worth working with them.
However, the downside is that these managers may not bring in enough deals to make the partnership worth it.
Typically, agents will demand that they get 20% of all partnerships you do – even with existing brand partners with whom they did no work to obtain for you. Not only that, many of them will demand that you sign onto a one-year minimum term, meaning that if you want to stop working with them, you can’t do so unless you pay up a penalty.
I recommend negotiating hard with these agents to allow for a nonexclusive agreement, and a carveout for any brand deals that they do not bring to you.
Many creators I’ve worked with have not had positive experiences working with these agencies. Of course, every agent is different, so take this generalization with a grain of salt. Some of our favorite and best clients are agencies (reach out if you want a connect!). But one pattern remains clear: the most successful creators are the ones who build in-house brand outreach processes and get deals on their own. Our firm also helps our clients with this – so reach out if you are interested in us lending you a hand!
Rates for Paid and Organic Usage
Based on the latest data we have in the firm, plus evaluating other market sources, the following are estimates for what creators are charging for organic and paid usage (paid usage encompassing either whitelisting or paid boosting from a brand’s account):
Paid usage: 25% above base rate per month per piece of content
Organic use: 20% above base rate per month per piece of content
Example:
If your base rate for a single syndicated Tiktok/IG video is $10,000, and the brand seeks three months of paid and organic usage, then these rates would dictate:
$10,000 base rate
$2,500 for paid usage per month × 3 months = $7,500
$2,000 for organic usage per month × 3 months = $6,000
Total: $23,500
To be honest, these rates surprised me a bit (I thought they seemed high), but it’s the latest data we have. Note that these rates do not account for usage for name/image/likeness, or exclusivity. Creators should always charge more for those rights.
Other Notes
Tiktok’s ban has been delayed another 75 days by President Trump. Creators rejoice!
Facebook organic monetization is hitting it’s stride. One client is earning $20,000/month in organic revenue from Facebook alone (note – this is not just reposting Reels to Facebook, but separately uploading the videos to your Facebook page).
A client is working with Shopline on an exclusive partnership helping creators build their digital storefronts. Reach out if you want an intro!
If you have a corporate entity, remember to make your “annual report” filing with the state of jurisdiction of the entity to avoid late fees.
Can We Help?
As a quick reminder, we help with much more than just brand deals. We can draft employment agreements, handle entity formation, file trademarks, draft demand letters, send cease and desists, negotiate startup financings, and facilitate settlements (both in an employment and brand context).
