Creator-Operators Underprice Influence, Jeopardize Business Growth
TL;DR
- Operator-creators underpricing themselves risk significant opportunity cost, as the time diverted from core business operations for influencer deals is often worth more than the compensation received.
- Focusing heavily on creator deals can pull operators out of their core business, leading to a diminished focus on sustainable business growth in favor of short-term creator income.
- Misrepresenting expertise in content creation, particularly in fields like finance or taxes, erodes audience trust and can lead to public correction by credible sources.
- Prioritizing sensational content for likes over substance can lead to misleading information, alienating audiences and potentially attracting scrutiny from knowledgeable individuals.
- Neglecting to learn and adapt to AI tools, despite claiming a lack of time, represents a failure to evolve with the changing definition of "useful" work, risking obsolescence.
- Relying solely on surface-level engagement metrics like likes or views for content decisions can misdirect marketing efforts away from content that actually engages ideal customers and drives revenue.
- Developing data fluency is crucial for marketers to effectively navigate the "messy middle" of customer touchpoints, identifying indirect drivers of ROI rather than just direct conversions.
Deep Dive
Creator-operators are significantly underpricing their content deals, leading to a substantial opportunity cost that detracts from their core business operations. This underpricing stems from a misunderstanding of the true value of their time and influence, which, if properly leveraged, could yield greater long-term business growth than short-term sponsorship revenue. The focus on creator deals also risks shifting an operator's primary identity away from business ownership towards content creation, potentially leading to sensationalized content, a loss of audience trust, and a decline in sustainable business building.
The core argument is that operators who engage in influencer marketing are leaving significant money on the table and potentially jeopardizing their primary business. Pricing should reflect the high opportunity cost of an operator's time, which is more valuable than the revenue generated from most influencer deals. For instance, an operator making over $10 million annually should charge at least $25,000 per post, with prices potentially reaching $50,000 or more for top-tier individuals. This high pricing acts as a natural filter, ensuring that only deals that genuinely align with the operator's business objectives are pursued. The implication is that most operators, by accepting lower rates, are essentially subsidizing brands at the expense of their own business growth.
The downstream effects of this underpricing and over-engagement in creator deals are multifaceted. Firstly, it creates a "knowledge bottleneck" for senior operators who become gatekeepers for content creation, thereby slowing down their core business activities. Secondly, it can lead to a dilution of an operator's brand and a loss of audience trust if the sponsored content is not authentic or aligned with their core values and expertise. This is particularly evident in the current landscape where many "business creators" disseminate unsubstantiated or misleading information, often driven by the pursuit of likes and sponsorships. This trend leads to content that is sensationalized, lacks factual basis, and can be easily debunked by genuine experts, ultimately eroding credibility.
Furthermore, a heavy focus on creator deals can distract operators from developing crucial business skills and long-term strategies. The allure of quick sponsorship money can lead to a shift in focus from building a sustainable business to chasing ephemeral creator income. This transition can result in operators becoming "content creators" rather than "business owners," which may lead to a decline in the quality and authenticity of their advice, as seen with creators making dubious claims about tax loopholes or career progression. The consequence is a potential loss of genuine expertise and a move towards a more superficial engagement with their audience.
A critical second-order implication is the shift in the definition of "work" itself, especially in the context of AI. Operators and their teams must embrace AI fluency not as an optional add-on but as a fundamental requirement for productivity and relevance. Those who resist this evolution risk becoming obsolete, as companies will inevitably move towards integrating AI to achieve significantly higher efficiency. This necessitates a proactive approach to learning and adaptation, where individuals who do not embrace these changes will be left behind.
Finally, the transcript highlights a crucial distinction in data fluency for marketers. While surface-level metrics like views and likes are easily accessible, they often fail to capture the true ROI of content. Operators must learn to analyze deeper data, such as hours watched, comment sentiment, and the job titles of engaging audience members, to understand which content truly resonates with their ideal customer base. This nuanced understanding allows for more strategic content creation that drives conversions and revenue, rather than simply chasing vanity metrics. The ability to interpret data effectively, especially in the "messy middle" of the customer journey, is paramount for driving long-term business success.
Action Items
- Create pricing tiers: Define 3-4 revenue-based price points for influencer deals (e.g., <$1M, $1M-$5M, $5M-$10M, $10M+).
- Audit influencer deal criteria: Establish 2-3 conditions for accepting deals (e.g., current clients, desired clients) to prevent distraction.
- Develop AI adoption roadmap: Outline 1-2 key AI skills for team development (e.g., AI fluency, data fluency) over 1-2 years.
- Implement data analysis framework: Define 2-3 metrics beyond views/likes for content evaluation (e.g., hours watched, comments, ideal customer engagement).
- Design AI integration workflow: Identify 1-2 tasks where AI tools (e.g., Comet) can augment human effort for 10x efficiency gains.
Key Quotes
"I believe that most creator operators are they're underpricing themselves I think that if you're making less than a million dollars a year ideally you're not doing any of these deals at all where people are offering you to do a post but if you're going to take one maybe you're charging 3 000 okay if you're under a million if you're doing a million to 5 million a year maybe you're charging 5 to 10 grand if you're doing 5 to 10 million a year you're charging 10 to 25 grand if you're making 10 million plus a year charge 25 grand and what I mean by this is per post"
The speaker argues that creator operators are significantly underpricing their services for sponsored posts. They provide a tiered pricing structure based on annual revenue, suggesting that those earning over $10 million per year should charge at least $25,000 per post. This highlights the speaker's belief in the high value and demand for content from established business owners.
"The opportunity of costs of the opportunity cost of being taken away from running your business is actually worth more than the 25 grand or whatever that you're being paid and so you know I remember the other day um someone someone sent us a message and they're like oh but you only get x amount of views but it was very disrespectful right I'm like yeah that's why I charge you know 25 grand plus because I'd have to deal with people like you"
The speaker explains that the opportunity cost of diverting attention from their core business operations is a critical factor in pricing sponsored content. They assert that the time and focus required to engage with such deals, especially with clients who question their value based on views, justifies a higher price. This demonstrates the speaker's perspective that their primary business is more valuable than the revenue generated from influencer-style posts.
"My point in saying this is it sounds like maybe we're coming from a place of privilege and and and I would say maybe we are but you're going to make a lot more money in the long term focusing on your business the other problem too is if you focus too many on too many of these creator deals you end up getting sucked into this creator world because you know 10 grand a pop 25 grand a pop you do a few of these it starts to add up and you're like man I'm I'm really doing well right now and and you are personally but it's not good for your business"
The speaker acknowledges that their pricing and approach might seem privileged but emphasizes that long-term business growth should be the priority. They caution against becoming overly involved in creator deals, as the immediate financial gains can be misleading and detract from the sustainability of the primary business. This illustrates the speaker's concern that a focus on creator income can lead individuals away from their core entrepreneurial activities.
"The two I did they were with current clients I tend to only do them with in two circumstances one current clients or b with companies that I want as a client but they're not going to be as a client and I'm I would look at who's hitting me up because if it's another ad agency hitting me up it's not going to help me get them as a client so I need the company to actually reach out and then I can get in the door and potentially get more contracts with them but I don't do influencer deals unless it's one of those two and I'm pretty flexible I think I only just charge like 50 grand but it's just for one post and when I say I only charge 50 grand I think I only charge 50 grand not 49 not 45 it's just 50 take it or leave it"
The speaker outlines a selective approach to influencer deals, limiting them to current clients or companies they wish to acquire as clients. They state a preference for direct outreach from potential clients rather than ad agencies, as this can lead to further business opportunities. The speaker also emphasizes a firm pricing of $50,000 for a single post, indicating a no-negotiation stance to maintain perceived value.
"The point I'm getting at this is Eric's spot on we're starting to see way too many people on social media just create content that's just a ton of bullshit so they can get likes like it makes me just start disliking these people and them be like I don't care if you claimed you worked at Goldman Sachs you're you have no clue what you're talking about focus on what you know stop talking about all this bull crap"
The speaker expresses frustration with the prevalence of unsubstantiated or misleading content on social media, particularly in areas like finance and taxes. They criticize individuals who present themselves as experts without genuine knowledge, suggesting that this behavior erodes trust and is detrimental to the audience. This highlights the speaker's concern about the spread of misinformation and the importance of authentic expertise.
"The definition of work right is is you want to be useful to your company but the definition of useful is changing so the way you might have designed you know in the back in the day is you might have designed creative by hand well today you're orchestrating different workflows for for maybe 10x the output or for recruiting us as an example we're using sourcing and screening agents for 10x the output"
The speaker argues that the definition of "work" and "usefulness" is evolving due to technological advancements, particularly AI. They contrast traditional methods of creative design with modern approaches that involve orchestrating workflows for significantly increased output. This illustrates the speaker's view that adapting to new tools and methodologies is essential for remaining valuable in the workplace.
"My point of saying this is that wait wait who's telling him to do other work the manager which this is what led to this tweet over here okay so I I put in air quotes over here I said look people who say I don't have time to learn AI I'm too busy with work that's the biggest bs excuse because the definition of work right is is you want to be useful to your company but the definition of useful is changing"
The speaker refutes the excuse that individuals are too busy with current work to learn AI, labeling it as "BS." They explain that the nature of work itself is changing, and what constitutes being "useful" to a company is shifting. This demonstrates the speaker's belief that embracing new skills, like AI proficiency, is not an optional add-on but a necessary adaptation to evolving job requirements.
"The people watching are learning marketing and if you look at their titles on linkedin they're not just learning marketing specifically most of them are doing their own thing like as entrepreneurs and they're related to the marketing space like creating agencies or they're being a freelancer and helping other people with their marketing I'm like this is not who's paying us for our work but on the flip side we've
Resources
External Resources
Books
- "The Art of War" by Sun Tzu - Mentioned as a foundational text for strategic thinking.
Articles & Papers
- "The Trump Family Burying Donald Trump's Ex-Wife on His Golf Course" (Your Rich BFF) - Discussed as an example of misinformation regarding tax write-offs.
- "How to do well in the corporate world" (Your Rich BFF) - Referenced for the advice that one should switch jobs every year and a half.
People
- Sun Tzu - Author of "The Art of War."
- Tim Cook - Mentioned as an example of a CEO with a long tenure at one company.
- Satya Nadella - Mentioned as an example of a CEO with a long tenure at one company.
- Sundar Pichai - Mentioned as an example of a CEO with a long tenure at one company.
- Andrej Karpathy - Mentioned as a top AI researcher expressing feelings of being behind in programming.
- Wade - Mentioned as an individual from Zapier who cut 10% of their staff.
- Guitano - Mentioned as a mutual friend who introduced the speaker to Sterling Pacific.
Organizations & Institutions
- Zapier - Mentioned as an organization that cut 10% of its staff.
- Goldman Sachs - Mentioned in the context of someone claiming to have worked there without having relevant knowledge.
- Pro Football Focus (PFF) - Mentioned as a data source for player grading.
- New England Patriots - Mentioned as an example team for performance analysis.
- NFL (National Football League) - Primary subject of sports discussion.
Websites & Online Resources
- Etsy - Mentioned as a platform for selling designer clothes.
- LinkedIn - Mentioned as a platform where job titles and companies are listed.
- Vouri - Mentioned as a brand of clothing.
Podcasts & Audio
- Marketing School - Digital Marketing and Online Marketing Tips - The podcast where this discussion took place.
Other Resources
- Bonus Depreciation - Discussed in relation to real estate property and its applicability in California.
- Cost Segregation - Mentioned as a method for depreciating assets more quickly.
- Search Everywhere Optimization - The topic of a marketing roundtable discussion.
- AI Fluency - Identified as a focus for 2026.
- Data Fluency - Recommended as a skill for teams to improve upon.
- Comet - Mentioned as a browser that can scan YouTube comments and create tables based on user information.
- Perplexity - Mentioned in relation to its browser, Comet.
- Sterling Pacific - Mentioned as a suitcase company that was a sponsor.
- Dreamhost - Mentioned as a past sponsor that was a great partner.
- Claude Opus - Mentioned in the context of AI advancements.