In the race for influence, are talent agencies losing their grip on influencers?

With rising competition, commissions and opaque contracts, some influencers are taking matters into their own hands — dismantling the power of talent managers in the process.

By
  • Akanksha Nagar,
| January 10, 2025 , 8:42 am
Exploitation and malpractices-related issues are exacerbated for micro and nano influencers who lack bargaining power, say experts. (Image: ali-abdul-rahman via Unsplash)
Exploitation and malpractices-related issues are exacerbated for micro and nano influencers who lack bargaining power, say experts. (Image: ali-abdul-rahman via Unsplash)

In an era where influencers wield significant sway in marketing, a growing number are choosing to take control of their own careers, bypassing talent management agencies. The shift is not driven by a desire to avoid fees or foster direct relationships with brands. Instead, influencers are increasingly disillusioned by transparency issues and troubling practices within the management industry.

“Management no longer represents me. I’m representing myself again,” said one influencer who recently severed ties with their agency. This sentiment is becoming more common as influencers express frustration with management firms that, they say, prioritize high-commission deals over the creators’ best interests.

Critics point to exploitative contracts, delayed payments, and unreasonably high commission rates — sometimes as high as 40% — as key drivers of this backlash. Talent management agencies are facing scrutiny for such practices, with some influencers accusing agencies of withholding payments for months. One high-profile case even saw an influencer publicly accusing a talent firm of financial exploitation, igniting broader discussions about the lack of safeguards and legal protections in the industry.

“Influencers often lack legal support during contract negotiations, which leaves them vulnerable to these types of exploitative agreements,” said Yasin Hamidani, director at Media Care Brand Solutions.

The problem extends beyond unpaid dues. In a rapidly expanding market, several mid-tier influencers have anonymously spoken out about opaque business practices, citing mounting financial stress as a result. Many claim their agencies prioritize their own commissions over long-term success, pushing influencers into deals that might not align with their personal brand.

Rohit Agarwal, founder of AlphaZegus, noted that the issue stems not just from inflated commissions, but also from a lack of additional support — such as editing, scripting, or production — despite agencies securing inbound leads for creators. “The pressure to bring in higher-paying collaborations often comes at the cost of the influencer’s growth and creative freedom,” Agarwal explained.

The rapid growth of influencer marketing post-pandemic has only exacerbated the issue. According to Agarwal, many newcomers with little to no experience in marketing have entered the influencer management space, eager to make quick profits without delivering value. This has led to confusion in the market, with influencers bearing the brunt of competitive price wars.

Currently, commission rates in India range between 10% and 30%, depending on factors like the influencer’s platform, stature, and the scope of services provided. For junior influencers, these rates may seem justified by the access they gain to brands and campaigns. However, more established influencers with direct brand access often find these commission rates to be excessively high, and may leave agencies or negotiate alternative terms, according to Ambika Sharma, founder of Pulp Strategy.

While agencies argue that their cuts are essential for covering operational costs, many influencers feel that they are left with little to show for their work. Sharma acknowledges the complexities of the relationship, emphasizing that talent managers connect influencers with brands, negotiate deals, and manage campaigns. But, she warns, breaches of contract — such as influencers bypassing managers to work directly with brands — can sour relationships and damage credibility.

Content creator Gurpreet Singh Tikku (@mistertikku), who boasts over a million followers, believes in maintaining clear written agreements to avoid disputes. “Nano-influencers and micro-influencers are often taken for granted. They need to stand up for their rights and have transparent, clear-cut terms,” Tikku said.

For influencers who rely on managers to help grow their brands, Tikku argues, those managers should earn their share — but the process must be transparent and fair. “Managers should never compromise on the influencer’s standards to meet their own targets. Short-term gains for the agency could ultimately harm both the influencer and the agency in the long run,” he cautioned.

Preety Singh, co-founder of Boomlet Group, emphasized the importance of aligning brand collaborations with an influencer’s niche and content type. She stressed that when both influencers and managers are on the same page, the partnerships stand to be far more successful and mutually beneficial.

As the influencer economy matures, the future of talent management remains in flux. While some influencers will continue to rely on agencies, others are choosing independence, determined to reclaim control over their careers and ensure they are no longer subjected to the industry’s opaque and often exploitative practices.

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