How is Coronavirus affecting content creators’ income? 0 560

Perceived by consumers as closer, more authentic and more trustable than traditional advertising or celebrity endorsement, content creators are attracting more brand investment than ever: in 2022 alone, influencer marketing spend jumped from 3.69 billion to 4.14 billion in the U.S., according to data released by American inbound marketing platform Hubspot. The amount of cash trading hands pushed authorities to set standards for the Influencer marketing industry early on. So much so that, in the USA, influencer marketing is considered regulated since 2009, when the Federal Trade Commission (FTC) published for the first time a set of endorsement guides on sponsored content posted by content creators on behalf of brands – including influencers being required to disclose their relationships with companies in a clear way.

Over to Europe, the rules are not as clear.

Unlike traditional advertising, which is subject to very strict rules, influencer advertising can fall through the cracks of ad disclosure. The commercial nature of influencer posts is not always identifiable, with ads featuring alongside similarly styled, but independent editorial content. Companies using influencers as ambassadors for their products and brands also have greater freedom than in conventional advertising.

Now the European Economic and Social Committee (EESC), a consultative body of the European Union, is trying to reduce the lack of transparency often seen in influencer marketing by proposing that the EU should set specific obligations for both, the administrators of the video-sharing platforms and social media networks on which influencers operate, and for content creators and influencers themselves.

The basic principle of the proposal is that advertisers should leave consumers in no doubt that what they are engaging with is advertising. And they should not mislead consumers or cause serious offence.

“EU already has some mechanisms in place to deal with influencers, which are covered by legislation on both advertisers and sellers/traders. However, we think it would be desirable to have a comprehensive approach given the fast rise of this phenomenon.”, says Bernardo Hernández Bataller, a councilor of the European Economic and Social Committee since 1994. “We would need specific regulation to cover the rights and obligations of the people involved, so that all legal operators and consumers know exactly what is and what is not acceptable.”

Some Member States have gone it alone (France, Spain and the Belgian region of Flanders). But, accord to the recent proposal, a “hard core” of EU rules would be more effective. The EESC argues that it would leave no loopholes allowing different Member States to take a softer line.

The list of suggestions to be adopted by influencers in all 27 member states of the European Union includes it being mandatory for content creators to include a prominent label upfront to highlight that a post is a marketing communication. They would then be liable if they fail to make it sufficiently clear when they are being paid to endorse or promote a product or service.

The proposal highlights that platform administrators and social media networks should also be liable for content published by the content creators and influencers they host, as well as have an obligation to take down illegal content and report illegal activity.

Other issues surrounding influencer marketing featured throughout the report includes the frequent use of child influencers. Concerns regarding content creators as a trade and if their position should be covered by employment laws are also mentioned.

“What about the tax issues raised by influencer advertising? How should we tax influencer income and the profits influencers generate? How should we tax the added value they create?, asks Stefano Palmieri, co-rapporteur.

Even if approved, a new set of rules doesn’t necessary mean that brands and content creators will follow them. In France, in a study of 60 influencers and influencer agencies from January 2023, the French General Directorate of Competition, Consumer Affairs and Fraud Control (DGCCRF) showed that 60% did not respect the regulations on advertising and consumer rights.

And in the UK, compliance with labelling requirements when it comes to Influencer Marketing remains low. In 2021, the Advertising Standards Authority (ASA) published an analysis of more than 24,000 Instagram Stories. Of the 5,700 it considered to be marketing material, nearly two-thirds were not clearly identifiable as such.

Marcio Delgado

Marcio Delgado is a Journalist, speaker and a Content Producer working with brands and publications in the UK and Latin America.

Unless you have managed to totally disconnect from the online world since the beginning of 2020, you will have noticed that, in recent months, everyone seems to be launching one or more info products. These products aim to provide well-crafted explanations, through a variety of domains, delivered in a simple and digestible way.

Wherever you look, someone is advertising a new online course, a podcast series, a free or paid ebook, the updated version of a digital workshop, or several video tutorials.

For a brand, it can be a case of raising awareness or upselling a product.

For freelancers, an info product can become a sizeable income stream as, every time someone signs up for a paid info product, its creator will be the one retaining the majority of the amount charged.

The topics, as you would imagine, are as wide as the web itself.

From detailed steps on how to rank on Google; running a Facebook ad campaign for the first time; creating a Youtube Channel; learning to do your own PR; launching your own fashion label; becoming an Influencer; or, building a marketing funnel – to name just a few – chances are you will find info products out there for almost every need.

As someone working with influencers on a regular basis, I have never seen so many creators turning their hands to developing content that helps others – and charging for it.

However, before spending time and resources creating an online product, what are the tangible results that should be expected in a very competitive digital world?

Recently I set out to learn golden tips from the experts in helping brands diversify their digital portfolio, and from those ones who had already launched their own info products, and here is what you should watch out for if you want your info products to be successful.

Test it with a small group

“To avoid wasting time or money, sell your info product to a group of testers before you create any of it. This serves three purposes: it ensures you have a product that people are willing to pay for, it allows you to modify or add content as you are getting real-time feedback and, finally, it creates motivation to complete it!”

Joanne Mosellen – Online business coach

Aim to establish trust

“There are a number of ways you can create an online course, but I find using software like Thinkific is easiest – just upload your content and it will help you format your content into a learning dashboard. However, as there are a lot of really terrible courses and ebooks on the web at moment, to be successful you need to establish trust by including real testimonials on your sales page, offering a money-back guarantee, and even giving away a sample chapter or lesson of your course so individuals can get a sneak peek.”

Meg Marrs – Founder of online dog training course K9 of Mine

Be authentic and provide value

“I just launched a YouTube channel called “Millennial Tips for Small Businesses” because I felt powerless as my company Cropsticks Inc. took an 85% loss due to the pandemic.  We provide commodity products for the foodservice and hospitality industry. So, on my new YouTube channel, I share any business resources I have found with other small business owners.  Just 2 weeks in and 700 views down, I feel more powerful than ever because Cropsticks feels seen.  Our story was covered in a local magazine, a national retailer reached out after seeing the video, and I even secured a partnership with TikTok. Most importantly, I feel like I’m truly helping my community. It’s worth putting yourself out there but, as you do it, be authentic and provide value to your audience.  Ask yourself, is this information I am glad to have learned?

Mylen Yamamoto – Creator and Founder of chopsticks.co

Finding your niche is key for an info product’s success

“You need to focus on the relevant market and provide a product that is legitimately helpful to people looking to succeed in it. Always invest time and efforts in continued product creation and dedication to quality. And for those doubting, don’t get down on yourself or your knowledge. Something you consider basic can be exactly the piece of knowledge another person is dying to have.”

Rob Level – CEO at Smart Rapper – Online Education for Rappers and Recording Artists

Hire a good content writer to get traffic

“We launched a suite of digital workshops for new remote workers and haven’t paid for any ads to bring traffic to the site. Instead, we have invested time and money into writing content that is so helpful and original that it has driven enough organic traffic to keep us more than busy. For example, we hired a writer to create 51 unique icebreaker questions to kick off a meeting and it performed extremely well”.

Michael Alexis – CEO at teambuilding.com

Distance education and online learning during the COVID-19 pandemic are increasing demand for information products.

Carefully plan your sales page

“The barrier to entering the info product market is practically non-existent, as anyone can use free resources to produce, distribute, and earn money from an info product that can be sold over and over again, with little to no further investment, once it is created. However, as enticing as all of that sounds, consider the way you plan to drive traffic to the info product sales page. I see people spending a lot of time and energy creating a course or other digital products; however, without being able to drive customers to the sales page, they can’t make any money”.

Ian Kelly – VP Operations at NuLeafNaturals

Spreading knowledge leads to endless opportunities

“Your first info product should be about a topic that you can have hours’ worth of conversations with a stranger about, the subjects that makes your blood pumping with excitement. Take time to study how the content of other info Products similar to yours are creatively presented in a practical way.

Info products are a great way to spread knowledge that you feel strongly about and to establish yourself as a subject matter expert. You never know where your brand might end up and who might see your brand. It could lead to endless opportunities, as long as you put the time in and get better over time.”

Erin Rodriguez – Founder of dripacademy.org

Marcio Delgado

Marcio Delgado is a Journalist, speaker and a Content Producer working with brands and publications in the UK and Latin America.