Council Post: Build Your Relationship With Creative Influencers Based On Equity

Co-Founder of Sway House and host of “BFFs” with Dave Portnoy on Barstool with 30 million followers on social media.

Welcome to Hollywood! Those famous words are what most aspiring social media stars, actors, filmmakers, producers and directors want to hear. In a world where celebrities are glorified, it is no surprise that people flock to Hollywood to fight for a chance at fame and fortune. However, can you really get rich this way? The answer is probably not.

California has a law called the Talent Agency Act, which prohibits anyone other than certified talent agents to procure employment for the agency’s clients. The law also caps the percentage of the client’s income an agent can make. While this was done to help talent avoid getting taken advantage of, it created an inability for agents to be incentivized to work with up-and-coming talent with smaller contracts. Agents are typically on a modest base salary and receive bonuses, leaving many agents to work toward bigger bonuses to keep up with the cost of living.

Further, because the agency structure isn’t set up to earn equity in clients’ companies, establishing contracts for their talent based on equity isn’t a lucrative option. Instead, there’s a preference for securing quick, cash-based contracts. But is this in the best interest of the talent? 

Why Equity Is The Right Incentive 

Look at The Honest Company with Jessica Alba and Chris Gavigan or Casamigos with George Clooney. Both of these companies have been valued at around $1 billion. Why would I, or my fellow influencers, want to take an endorsement deal when I could build a company with my team, own half and then directly benefit in its success when promoting the product?

Look at digital creators like my partner Bryce Hall and me. We founded Ani Energy, our energy drink company, with real operators. We own real equity in it, too, which gives the creator a shot at the real upside. 

People also need to remember: If a brand is paying talent to do an endorsement deal, there is a reason they are paying. Usually, it is because the endorsement brings them a decent return on investment (ROI). With that, if it is the perfect product for someone’s brand, the talent should not be afraid to ask for equity or build it out on their own. 

While agents are supposed to be looking out for the talent they represent in order to develop their careers, it often appears to me to be self-centered because the incentivization structure doesn’t help their talent. Creators who look toward the future should continue to listen.

Developing Equity-Based Partnerships With Creators 

As a business owner, if you are interested in engaging with digital creators for endorsement deals or paid partnerships, only pursue talent that is a natural fit for your company or brand. Then, offer them equity as part of their compensation. Offering them skin in the game ensures they are committed to and believe in the product. This is likely to result in a more engaging partnership as well as a long-lasting relationship.

Find influencers who are a good fit by researching which ones already organically mention your products in their content. Which influencers might have a real need for your product or service and could greatly benefit from being involved in your company? Show them the inherent importance of the product and the white space in the market that it seeks to fill. Creators are bombarded with the latest “skinny tea” and fake vitamins to sling to their audience every day, and some offer decent money. Set yourself apart and prove your worth.

You would think the pitch is the hard part, but the real work comes in once the deal’s terms are agreed on and the relationship must be built. This is why it is so important to find the right talent fit for your brand. They must be passionate about your brand and their work; otherwise, your efforts will fall by the wayside.


Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?


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