Influencer and creator friends… we have a problem.

Now you know me. I am NOT one to send out alarmist emails.

On the contrary. I’m usually the one downplaying the hook-bait content of creator gurus who are convinced the sky is falling on a regular basis.

But even chicken little was correct at some point, right before all hell broke loose.

And that is where we find ourselves at the time of this email.

You’ve probably been too busy creating content to notice the industry news so let me give you the two big things that have happened in the last few weeks:

1. Influential was acquired by Publicis Group

2. Deutsch NY (which is owned by Interpublic Group) appointed Ashely Rudder (formerly of Whalar) as their Chief Creator Officer.

Now this news makes me excited because it shows how far we have come as an industry. I mean Publicis Group and IPG? These are the companies advertising dreams are made of.

But underneath these accomplishments there is a whisper. 

A voice coming from someone in a corner office wearing a suit that says “The creator economy could approach half-a-trillion dollars by 2027? Playtime is over kids. Time for the adults to step in.”

And you can see this all over the industry. Companies that once just connected influencers with brands now also have: a talent agency, a platform, a physical location, and all sorts of other things.

Why? Is it because these are all amazing things? Yes, but also because they raised a LOT of money right before / during COVID and investors are looking for their return.

As you all know, my husband Alexander knows more than almost anyone about the financial status of this industry, and he is constantly telling me that the funny money has dried up.

This makes sense because:

• Creator economy companies are laying people off like crazy / having hiring freezes

• Platforms and brands are 180+ days late with payments leading to the rise of creator/influencer lawyers like Tyler Chou.

• We’re all being distracted by beautiful things like the Cannes Lions' Creator Track and the White House Creator Economy Conference and totally forgetting that those events are for Elite Creators and the average creator is broke.

Ok maybe broke is an exaggeration but the numbers don’t lie:

• 26% make $1,000 or less.

• 26% make between $1,000 and $10K.

• 27% make between $10K and $50K.

• 11% make between $50K and $100K.

• 7% make between $100K and $500K.

• 3% make $500K or more.

That means 52% of creators make less than $10K.

Want to hear something wild? That’s about how much it COSTS to run a $100K+ business.