Jakarta, CNBC Indonesia – Job as influencer famous like YouTuber Mr. Beast, to domestic social media celebrity, Raffi Ahmad, is the dream of many people.
However, it turns out that the world of content creation is not as beautiful as it looks on your cellphone screen. The industry is becoming increasingly crowded and giving rise to fierce competition to earn profits.
Platforms are not as generous in giving commissions to content creators. Seasoned brands are also more picky to work with influencer.
At least that’s according to reports The Wall Street Journal. One example is Clint Brantley, who has been a full-time content creator for the past three years.
Brantley shares content to TikTok, YouTube, and Twitch. Most of the content is about trends related to the mobile game Fortnite.
Despite having more than 400,000 followers and an average view of his content of more than 100,000, Brantley’s income last year was less than the median annual salary of workers. full-time in the US in 2023 it will be US$ 58,084 or IDR 950 million.
The 29 year old man was not ready to commit to renting an apartment because of his unstable income. Currently, Brantley still lives with his mother in Washington. “I am very vulnerable,” he said, quoted from The Wall Street JournalSaturday (26/10/2024).
The Wall Street Journal writes that earning a decent and reliable income as a content creator is difficult, and will get more difficult.
Platforms are increasingly giving away money for popular posts. On the other hand, brands are more specific in choosing agreements with influencer.
This condition is made worse by the threat of TikTok being blocked in the US in 2025. Many content creators are worried about whether they can still earn income from social media if one of the channels that sources their money is deleted.
Industry Influencer Increasingly crowded
According to a Goldman Sachs report in 2023, hundreds of millions of people around the world will upload entertaining and educational content on social media. About 50 million people collect money from it.
The investment bank estimates the number of creators generating revenue will grow at an annual rate of 10% to 20% by 2028.
This contributed to an increase in the number of wage earners, although the Department of Labor does not track the salaries of earners influencer.
On average, it takes content creators months or even years to collect income from social media platforms, brand collaborations, and affiliate links. However, the more people seek sustenance from this industry, the smaller the ‘cake’ that must be divided.
According to NeoReach, in the last year 48% influencer collected less than US$ 15,000 or Rp. 245 million. Only 14% collected more than US$ 100,000 or Rp. 1.6 billion.
Income inequality influencer This is determined by several factors. For example, whether the influencer works full-time or part-time, the type of content they share, and the length of their career as an influencer.
Several people who became famous during the Covid-19 pandemic and focused on popular topics such as fashion, investment and lifestyle hacks, admitted that it was really helpful because the momentum was right.
However, behind it all, content creators admit that this work is very energy and mentally draining. They must always think about what content their audience will like and take the right momentum.
Influencer spend days planning content, producing it, and going through the editing process to upload it to social media. They also have to always interact with fans to maintain popularity.
“This is a lot of work compared to what most people think,” said Emarketer analyst Jasmine Enberg.
“Creators who can live by being influencer have been doing this work for years. “Most of them don’t get big in a short time,” said the analyst.
What’s more, influencers who work independently do not get the same benefits as office workers. Peacock does not get health insurance, pension money or annual bonuses.
In the midst of inflation and economic uncertainty, influencer facing increasingly difficult pressure to secure their finances.
Income from platforms is getting smaller
In 2020-2023, TikTok has a funding program for creators of up to US$ 1 billion. YouTube through the Shorts feature also allows creators to raise around US$ 100-10,000 per month with a temporary funding program.
Then, Instagram Reels gives rewards to creators in fluctuating amounts. This big bonus is a tactic to get more people to create content on their platform.
However, now platforms are starting to change payment policies for content creators. Conditions for TikToker income are now expanded. Must have at least 10,000 follower with view minimum 100,000 in a month.
Instagram is also testing an ‘invitation-only’ program that gives monetary rewards to creators who share Reels and photos.
YouTube introduced an ad money sharing program last year for Shorts creators with at least 1,000 subscriber and 10 million views in 90 days. They will be given a 45% ad revenue share for the content they share.
As time passes, TikTokers admit that it becomes more difficult to earn money. One of them, Ben-Hyun, said that last March he earned US$ 200-400 per one million views. However, now his income is decreasing even though followerincreased to 2.9 million.
Ben-Hyun admits that he now only gets US$ 120 for videos that collect 10 million views. It shows, though influencer has a large audience, it is still difficult to monetize it if you only hope for income from the platform.
Danisha Carter also shared similar concerns. He said his TikTok has 1.9 million followers.
According to him, content creators have succeeded in making audiences ‘addicted’ to online platforms and bringing billions of US dollars in revenue to TikTok et al.
However, payment for influencer not worth it. He admitted that he received income from TikTok totaling US$ 12,000. To increase his income, he decided to make merchandise and was able to make US$ 5,000 last year.
“Creators should be paid fairly with a percentage commensurate with the revenue the app generates,” Carter said.
“There must be transparency about how we are paid, and the policies must be consistent,” he advised.
(luc/luc)
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Next Article “Rizz” Gen Z’s New Term Crowded on TikTok, This Is What It Means
Well, well, well! It seems we’re diving into the glamorous but often cutthroat world of influencers! You know, that illustrious realm where one day you’re an internet sensation, and the next, you’re wondering if your mom would mind if you moved back in with her! Ah, the influencer life—a dream for many but a nightmare for most!
Now, while folks like Mr. Beast and Raffi Ahmad may seem to be living life like a TikTok filter with a sunset backdrop, the reality check is that most influencers are barely scraping by! Clint Brantley, bless him, had to break the news that despite 400,000 followers, he’s not exactly swimming in cash. Living with mom in Washington is practically a hallmark of stability these days—who needs rent when you’ve got a good Wi-Fi connection and unlimited access to your mom’s questionable cooking?
So, according to our friends at The Wall Street Journal, the influencer game isn’t just full of glitz and glam! It’s more like a reality show set in a warehouse of IKEA furniture—they’re all competing for the same sad little paycheck! Brands are becoming ultra-picky, and platforms? Oh, they’ve tightened their belts like they’re preparing for Thanksgiving dinner! Who can blame them? They’re trying to stay relevant as they swiftly evolve into yet another trend that will vanish quicker than your last online order!
Let’s talk numbers! According to a Goldman Sachs report, we’re looking at a whopping ’50 million’ content creators out there hoping to earn a decent living. But don’t get too excited! Nearly half of these integers are making less than $15,000 a year. If you’re not already cringing, think of it this way: if you thought waiting tables was hard, try coming up with fresh content daily for an audience that moves on faster than a cat video!
Here’s the kicker: many influencers work relentlessly. We’re talking planning days, editing weeks, all for content that might go viral or… flop like a fish out of water! Just imagine spending hours crafting a masterpiece only for it to get fewer views than your last pet video—soul-crushing!
And wait, there’s more! The platforms that once showered cash on creators are now slashing payouts like some sort of financial butcher! TikTok’s funding program? Great, unless you don’t have those minimum followers! YouTube? It’s a game of chance unless you’re ready to pull together an audience that looks like a small country.
But let’s not forget the mental well-being of these influencers. If you’re paying with your sanity to live the dream, is it really worth it? These folks are putting their all into this chaotic ride with no health insurance, no retirement plan, and certainly no holiday bonuses. It’s almost like playing Monopoly—only you’re always in jail and someone else is owning Boardwalk!
In summary, while the glamour looks good on the surface—the glitzy photos, the red carpets—you’re more likely to find content creators risking it all to navigate a minefield! In a world where earning a steady income feels like trying to catch a greased pig, let’s remember to support those trying to make a career out of this digital circus. Because at the end of the day, we all deserve a bit of support—even if our jobs make more sense with less social media and more moody cat depictions! Cheers to the influencers fighting the good fight! 🥂
Jakarta, CNBC Indonesia – The allure of becoming a prominent influencer, akin to renowned YouTuber Mr. Beast or local social media sensation Raffi Ahmad, is a dream job for countless individuals aspiring to achieve fame and financial success.
However, the reality of the content creation industry is far from the glamorous images portrayed on our screens. It has become overcrowded, leading to intense competition among creators vying for profits and audience attention.
Moreover, the financial landscape for content creators has shifted dramatically. Established brands have become increasingly selective when partnering with influencers, while social media platforms have started offering lower commissions for monetization.
These insights come from a recent report by The Wall Street Journal, highlighting the struggles faced by several content creators. For instance, Clint Brantley, who has dedicated himself to content creation for the past three years, illustrates this precarious situation.
Brantley produces content for TikTok, YouTube, and Twitch, primarily focusing on trending topics within the popular mobile game Fortnite. Despite boasting over 400,000 followers and achieving an average of over 100,000 views per post, his earnings last year fell short of the median annual salary for full-time employees in the United States, which stood at US$ 58,084 (approximately IDR 950 million) in 2023.
At 29 years old, Brantley finds himself hesitant to commit to renting his own apartment due to the volatility of his income stream. Currently residing with his mother in Washington, he candidly admitted, “I am very vulnerable,” as reported by The Wall Street Journal on Saturday (26/10/2024).
The ongoing trend confirms that sustaining a reasonable and reliable income as a content creator is increasingly challenging, with expectations set to continuously rise.
As platforms adopt policies that result in lower payouts for popular content, brands are becoming more sophisticated and selective in their collaborations with influencer talent. This challenging scenario is further complicated by the looming prospect of TikTok facing a potential ban in the United States by 2025, leaving creators uncertain about their future earnings if such a popular platform is shut down.
Industry Influencer Increasingly Crowded
A report from Goldman Sachs in 2023 projects that hundreds of millions of individuals worldwide will create entertaining and educational content on social media, with approximately 50 million actively generating revenue from it.
According to the investment bank’s estimates, the pool of creators earning income is expected to grow at a rate of 10% to 20% annually by 2028. While this growth contributes to an increase in the number of wage earners, the Department of Labor has yet to track salaries specifically for influencer roles.
It is noteworthy that content creators typically invest months—or even years—before they see substantial financial returns from their social media efforts, brand collaborations, and affiliate marketing bonuses. As more individuals enter this competitive field, the metaphorical ‘cake’ of available income grows smaller each year.
Data from NeoReach reveals that in the past year, 48% of influencers reported earning less than US$ 15,000 (around IDR 245 million). In stark contrast, only 14% managed to secure over US$ 100,000 (approximately IDR 1.6 billion).
The disparity in income among influencers can be attributed to several factors, including whether they pursue content creation as a full-time or part-time endeavor, the nature of their content, and their experience in the industry. Many individuals gained popularity during the Covid-19 pandemic by focusing on trending topics like fashion, investment, and lifestyle hacks, capitalizing on the moment’s cultural relevance.
However, amidst the glamour lies the truth; content creation is often a mentally and physically draining job. Influencers must constantly strategize to determine what content will resonate with their audience while seizing optimal moments for engagement.
The comprehensive workload involves spending days on content planning, production, and editing before finally sharing it on social media. Additionally, maintaining audience engagement through interactive communication is crucial for preserving their popularity.
Analyst Jasmine Enberg from Emarketer noted, “This is a lot of work compared to what most people think.” She elaborates that many successful creators have been in the game for years, emphasizing that rapid fame is uncommon.
Furthermore, independent influencers typically miss out on employee benefits like health insurance, retirement plans, and annual bonuses. In light of increasing inflation and economic uncertainty, many influencers now face intense pressure to secure their financial futures.
Income from Platforms is Getting Smaller
Between 2020 and 2023, TikTok allocated a whopping US$ 1 billion to support its creators. In contrast, YouTube’s Shorts feature has allowed creators to potentially earn between US$ 100 and US$ 10,000 monthly through its temporary funding initiative.
Instagram’s Reels has also offered fluctuating monetary rewards to stimulate content creation on its platform. However, these funding programs and incentives are beginning to fade, as platforms tighten their payout policies for content creators.
For instance, TikTok has raised the bar for income eligibility, now requiring creators to have at least 10,000 followers and a minimum of 100,000 views within a month.
In a similar vein, Instagram is currently experimenting with an ‘invitation-only’ program that rewards creators who successfully share Reels and photographs.
YouTube has introduced an advertising revenue-sharing program for Shorts creators, albeit with stringent conditions: creators must have at least 1,000 subscribers and achieve 10 million views within 90 days to receive a 45% share of ad revenue.
As time passes, many TikTok creators are voicing their frustrations over dwindling earnings. One such creator, Ben-Hyun, explained that his earnings for one million views have dipped from US$ 200-400 last March to only US$ 120 for videos that now reach 10 million views.
Another influencer, Danisha Carter, who has amassed a following of 1.9 million on TikTok, echoes these sentiments. He suggests that creators have played a pivotal role in making audiences ‘addicted’ to social media platforms, subsequently generating billions of dollars in revenue for them.
Nevertheless, he underscores that the compensation received by influencers remains disproportionately low relative to the revenues generated by these apps. He recounted earning US$ 12,000 from TikTok, leading him to supplement his income by selling merchandise, which earned him an additional US$ 5,000 last year.
“Creators should be paid fairly, reflecting the revenue that the app generates,” Carter asserted. He emphasized that there must be transparency regarding payment structures and consistent policies to support creators adequately.
(luc/luc)
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Video: Sip Profits from the Coffee Business, When Middle Class Wallets Shrink
Y share Reels and post photos. Meanwhile, YouTube introduced an ad revenue sharing program last year for creators who meet specific criteria: they must have at least 1,000 subscribers and 10 million views within a 90-day period to be eligible for a 45% share of the ad revenue generated from their content.
As time progresses, many content creators, like TikToker Ben-Hyun, have expressed frustration over decreasing earnings. Once earning between $200-$400 per million views, Ben-Hyun’s income has plummeted; despite his follower count climbing to 2.9 million, he now makes around $120 for videos that reach 10 million views. This stark contrast illustrates the challenges influencers face in converting their audience into revenue, even with significant viewership.
Similarly, Danisha Carter, with 1.9 million TikTok followers, echoed these concerns. He pointed out that while creators have drawn massive audiences for social media platforms—contributing revenue in the billions—compensations have not aligned with these profits. Carter reported earning a total of $12,000 from TikTok, prompting him to diversify his income through merchandise sales, resulting in an additional $5,000 last year.
Carter articulated a common sentiment among creators: “Creators should be paid fairly with a percentage commensurate with the revenue the app generates. There must be transparency about how we are paid, and the policies must be consistent.”
while the influencer industry may appear glamorous from the outside, it is increasingly becoming a super-competitive and financially unstable field. As social media platforms adjust their monetization policies and brands become choosier in their partnerships, many influencers are aware that financial security is harder to come by than ever before. The adjustment in income dynamics, coupled with a rising number of hopeful creators, makes for a challenging landscape where sustaining a profitable career in content creation requires unwavering dedication, strategic planning, and sometimes, a bit of luck.
N monetizing their content, especially as platform policies evolve and become more restrictive.
Danisha Carter, another TikTok influencer with 1.9 million followers, shares a similar sentiment. He notes that while creators have significantly contributed to the platforms’ growth by creating engaging content that keeps audiences captivated, the financial return on that investment is far from equitable. Carter disclosed earning a total of $12,000 from TikTok last year, prompting him to diversify his income streams by launching merchandise, which earned him an additional $5,000.
Carter emphasizes the need for fair compensation that reflects the revenue generated by these platforms, stating, “Creators should be paid fairly, with a percentage commensurate with the revenue the app generates.” He advocates for greater transparency regarding payment structures and consistent policies to ensure that influencers are supported rather than exploited.
Moreover, this shift in platform payment strategies comes at a time when the influencer industry is becoming increasingly crowded. A recent Goldman Sachs report predicts that the number of active content creators generating revenue could grow by 10% to 20% annually through 2028. However, with an ever-growing pool of creators, the competition for revenue becomes fiercer, further diluting the financial rewards available to both new and established influencers.
As the landscape of digital content creation continues to evolve amid rising costs of living and economic uncertainty, influencers are increasingly pressed to innovate and adapt their strategies to secure their financial futures. Many influencers are learning that relying solely on ad revenue from platforms is no longer a viable strategy and are compelled to explore alternative income avenues, such as merchandise, sponsored posts, or personal branding initiatives.
Ultimately, while influencer culture draws many aspiring creators to the digital realm in pursuit of fame and financial gain, the reality is a challenging and often unstable road fraught with financial pressures and the constant necessity for fresh, engaging content.