Not Enough PTO & Bursting the Invisible Influencer Bubble

Poll: When it comes to time off in the past 5 years, I feel I have taken...

Do you work in gaming and esports? How much holiday time have you taken in the past 5 years? Burnout was a common topic in 2021 and layoffs throughout 2022/2023, how are people feeling about how much PTO they may have or have not taken over the past 5 years?

Poll results so far:

• Too Much– 31%
• Not Enough – 72%
• The Right Amount – 18%
• Other – 5%

You can vote here.

GUEST: Bursting the Invisible Influencer Bubble

Guest: Scott Bednarski - An esports & gaming OG (seriously, he's been around for 10 years longer than even me!).

Introduction

In the ever-evolving realm of digital influence, where content creators reign supreme, agencies have long played the role of overseers. These intermediaries often facilitate lucrative deals between brands and influencers, acting as the bridge that connects talent with opportunities. But are creators aware of the size of deals they might inadvertently turn down? Is there an unseen influencer bubble lurking beneath the surface, much like the housing bubble in 2008, waiting to burst? And what could a new global metric for measuring influencer value mean for the industry?

The Agency Wardens of the Bubble

Agencies have undoubtedly played a significant role in the influencer marketing ecosystem. They help creators secure brand partnerships, negotiate deals, and manage contracts; there is no doubt of their importance in protecting creators from unfair deals. However, this intermediary role sometimes leads to a need for more transparency.

Creators need to fully comprehend the magnitude of opportunities that slip through their fingers, obscured by agency protocols. I have now personally lost count of the number of times I have reached out to an influencer who was eager to work with my company or team just to have an agency or manager catch wind that magically waves a TWO-TIME multiplier to the agreed upon agreement or a STERN warning do not contact my talent until you go through me. Nowadays, every creator is managed by somebody, even those I would classify as tier 3 level creators.

The Influencer Bubble

Much like the housing bubble in 2008, the influencer industry could be in danger of inflating beyond its actual value. This inflation is driven by various factors, including creators who command high fees without delivering commensurate returns for brands and brands paying without understanding the actual values of these creators and what they bring.

While some influencers demand exorbitant rates, it's important to remember that not all brand valuations are the same. For example, a powerhouse like McDonald's might measure ROI differently than a startup or endemic brand that is not after “brand awareness” that can't be measured. Thus, the rates should reflect the unique objectives of each brand. There have been strong cases of creators being sought after, which contain premiums coupled with the fact that some brands or activations do not suit their content, which increases prices. However, I have not been able to find a single agency that has provided me with a CASE STUDY showing a return on investment that made sense in my 5+ years to explain the “premium pricing.”

Are Agencies Merely Enablers?

Is there a sense of responsibility within the influencer marketing landscape? Just as we hold service providers accountable for delivering subpar, incomplete, or faulty services, why is there a lack of accountability in the influencer space? Do creators receive candid insights about their ROI and campaign performance from agencies upfront? Are agencies proactively ensuring they meet the necessary standards, or are they content with merely facilitating deals and leaving others to manage the aftermath? Do these agencies give full transparency to their creators and inform them of the conversations that are had? - A lot of questions that agencies would believe they do, but questions I've asked first-hand to many creators that would disagree and feel trapped within their Agency.

Non-Endemic Brands and Overcharging

Non-endemic brands entering the influencer and gaming space often find themselves overcharged and misinformed. The need for industry standards for pricing means that these brands may pay more than necessary for influencer partnerships. Agencies and creators need to consider fair pricing models that reflect the authentic value influencers bring. Another point is that the same influencer will be reflected on several other agencies' talent lists, all providing multiple price variations. I have done a test where I received three quotes from three agencies providing different prices for the exact deliverables with no exclusivities that claim to represent said talent.

Agencies sometimes negotiate influencer deals for $5,000, but due to undisclosed fees and intermediary costs, creators often end up with as little as $1,500 or even less. This stark difference in earnings highlights the urgent need for increased transparency and industry standards, particularly in cases where the creator, rather than the agency, is the driving force behind the brand's appeal and success

Diluting Creators Pull and Engagement

In the dynamic world of influencer marketing, some creators find that their brand engagement has taken an unexpected turn. Overusing specific influencers in brand partnerships has led to a dilution of authenticity in the comments sections of their posts. Instead of the genuine praise and interaction that initially fueled their collaborations, these comments are now flooded with repetitive exclamations like "congratulations, get that bag," "another bag," or "how rich are you?" This phenomenon represents another form of the influencer bubble bursting. It underscores the need for brands to evaluate alternative and more genuine avenues for engaging with audiences that resonate with authenticity and creativity, ensuring that the connection between influencers and their communities remains meaningful and impactful.

Unfortunately, my learnings of trying to execute what I preach have only caused issues where agencies and managers have thrown on additional costs that do not fit the ONE SIZE FITS ALL pricing as it requires unique thinking and planning or use of the influencer's input to establish an authentic approach.

What Creators Should Do

In pursuing a fair and transparent influencer ecosystem, creators should actively understand their value. Knowing their worth, being transparent about their rates, and demanding proof of value through case studies and accurate ROI data can help ensure fair compensation.

Creators should have visibility on the actual brand offer and know exactly what the agency/management gets paid in total, what their % cut is and what the creator will eventually receive with waterproof contracts listing this as an action item.

Lastly, creators need access to their brand rep's email inbox and choose whether or when they engage with the brand or agency rep on these matters.

A Personal Perspective

Having been a part of the esports world since its early inception in 1999, I've witnessed the industry's remarkable growth firsthand. From my early days as a local competitive player, I transitioned into representing my country on the international stage in games like Counter-Strike for many years. I've seen the industry evolve through each stage of my esports journey, running organisations, community management, sales and everything in between.

Eventually, I co-founded a startup and now have the privilege of working in global marketing and sales for the platform repeat.gg, collaborating with thousands of influencers, which in turn has led to the acquisition by PlayStation in August 2022. Now, I observe how even giants like PlayStation navigate the influencer marketing struggles where deep pockets mean outlandish quotations and the need to understand that bigger is not always better in the creator space where I now have access to these tier 1 creators, I would dream of working with. This unique perspective highlights the need for a more standardized approach to measuring influencer value that benefits creators and brands.

In conclusion, the influencer marketing landscape is ripe for transformation. The need for greater transparency, fair pricing, and a global standard for measuring influencer value is becoming increasingly evident. Bursting the influencer bubble and implementing a more comprehensive metric system can only benefit creators, brands, and the industry. It's time to ask ourselves: What should the global standard be for measuring the value of a creator? My answer, I can only go by CPM……..unless you give me a case study that proves otherwise.

Thanks for the submission, Scott Bednarski .