Content creators, brands, and social media platforms are shifting the way consumers engage with media and how they consume goods and services.1 In the creator economy, brands collaborate with popular creators to nurture positive perception and drive purchasing decisions.
Increasingly, brands are looking to work with creators from diverse backgrounds.2 Diverse consumer groups spend more when engaging with content they feel is inclusive, and consumers across all communities spend more on brands that prioritize inclusivity and engage creators equitably.3 According to Deloitte research,4 brands may be harming the effectiveness of their creator collaborations—especially among diverse creator groups. In tandem surveys,5 we found that diverse creators have a more difficult time managing many aspects of brand collaborations than creators who do not identify as belonging to a diverse group. This includes negotiating their contracts with brands and getting paid on those contracts (see figure).
The surveys also found that diverse creators find it more difficult to maintain their creative freedom and to secure approvals when they pitch and craft content for brands. When creators find their brand collaborations to be untenable in these ways, it may create friction for both creators and brands.
Influencers say that creative freedom is one of the most important factors that determines whether they maintain relationships with brand sponsors, and brands that dismiss or downplay creator expertise may miss out on the full value that the creator can bring.6 In addition, diverse creators report being less likely to find it easy to achieve quantitative brand targets, which may include revenue generation goals, lead generation goals, and so on. As brands often leverage creators to target new demographics, they should be thoughtful about setting reasonable targets and providing support along the way when working in less-mature market segments.
Brands that continue to use creators to reach new demographics without taking the creator’s lead – and trusting their expertise regarding their audiences – could risk running less-effective campaigns. To avoid this, brands should develop a practice of listening to and collaborating with their creators to ensure successful collaborations.
First, brands should improve their content development and approval processes. Building content collaborations is different from hiring talent for commercials or endorsements. Brands typically cannot insist on tight control over creator content and expect it to resonate with the creator’s following. Creators often excel at building trust over time, and they are commonly understood as the experts on their audiences. These creators may also have a deeper understanding of the cultural expectations and interests of their audiences and can help brands to develop content that is both relevant and appropriate. Brands should think of creators as trusted advisors who can provide direction and insight.
Next, brands may ensure timely, predictable payments by implementing net-payment-term models as standard practice. This saves creators time and energy and builds trust and goodwill between brands and creators. Fixed-payment models also help reduce the chance of unconscious bias and may streamline payment processes for all creators. Brands might also provide clear instruction to their creators about how payments are calculated and when payments will be made.
Finally, as brands consider building collaborations to enter new markets, they should develop a strong understanding and appreciation for the cultural interests of a given audience. Building such a map takes time and effort, learning what is important to communities, and what kinds of content may resonate. Creators often already possess this kind of deep awareness of the nuances of particular communities; brands can and should trust creators to lead the way in developing appropriate content while deepening their own cultural awareness.