Digiday Says Creator Pricing Is Broken. Price the Work, Not the Audience.

Digiday Says Creator Pricing Is Broken. Price the Work, Not the Audience.

Digiday Says Creator Pricing Is Broken. Price the Work, Not the Audience.

On August 28 Digiday ran the piece where creator marketing finally said the quiet part out loud. Nobody knows what anything costs. Billion Dollar Boy surveyed 1,000 marketing and procurement leaders and half of them misprice creator fees. Forty percent think they overpaid.

Harley Block, CEO and co-founder of the brand strategy firm IF7, called creator pricing "out of control." James Nord, who founded the creator platform Fohr, didn't soften it. "This is not a functioning market," he said.

If the quote for a creator post felt invented, it was. I'm not complaining.

For a small brand that's the best news in the story. Almost nobody reads it that way.

Nord gave Digiday the cleanest read on the problem I've seen.

"Imagine the real estate market where you could never look up what a house on your street sold for."

Then he named the mechanism.

"Prices never go down... there's no clearinghouse, there's no transparency, so it creates this information asymmetry."

Jamie Gutfreund founded Creator Vision. She told Digiday the siloing isn't an accident.

Brands "have no historical benchmarking, which means they can't do anything predictive," and the same party holding that history is the one charging for access to it.

The IAB published creator economy definitions and a taxonomy.

It published no pricing guidance at all.

The tools filling the hole inherit the prices that made the hole

Fohr just shipped Price Check. You drop in a creator, an offer amount, and the deliverables, and it tells you if the number looks fair.

Billion Dollar Boy put a pricing feature inside Companion. Thomas Walters, their chief innovation officer, called it guidance for both sides of a bad negotiation: agents undercutting the proposal on one end, brands who've never bought this work on the other.

The tool isn't magic. It's a scoreboard for people who were guessing.

I want those tools to work. I also want to say plainly what they're made of.

A benchmark assembled from agency-brokered deals gives you agency-brokered prices. If most of the history in the database is six-figure campaigns routed through intermediaries, the number it hands back is not what you should pay a creator you can reach on the phone.

Block made the same point with a hypothetical. Brand brings a calculator result to a creator's manager. Manager says fine. He's double.

Use the tools to sanity-check your ceiling. Don't let one set your floor.

I can price the work because I still do the work

I've been on both sides of this table for twenty years, and I shoot most of what I ship.

Nearly three decades behind a camera. These days it's a rigged iPhone more often than the Canon bodies I used to haul around. That got me smirked at on more than one set by people with bigger budgets and worse results.

I wrote about it in What Three Decades of Shooting Taught Me About Content That Actually Connects.

The gear fight isn't the point. When somebody quotes me a rate for a piece of content, I'm not guessing at what sits underneath it. I know how long the setup takes. I know how many usable frames come out of an afternoon in west Texas wind, and what a reshoot costs when the label won't sit straight.

An audience isn't a unit. That's the whole disconnect, and the industry still tries to price one.

Nobody can tell you what ten thousand followers are worth. They're worth nothing until somebody buys something.

The work is a unit. A ninety-second video with two setups, a product handoff, and a ninety-day usage window. You price that the way you price a plumber.

Osman Badat advises creators as The Social Accountant. He told Digiday he regularly sees two creators with similar engagement get very different offers for identical deliverables. The short money hits creators of color hardest.

That's the same evidence Gutfreund is describing, just from the other chair.

When the deliverable is the unit, two offers for the same job either match or somebody has to explain why they don't.

What to put in the contract this week

Stop asking for a rate. Propose a structure.

No reference price in the market means the party who brings the structure sets the terms. That side is almost never the national advertiser. Their procurement runs on templates.

Pay a modest flat fee for a named deliverable. Not for a follower count.

Give the usage window a real end date so you know how long you can run the asset and where it can show up.

Build in a performance tier that pays the creator more when the thing actually works.

And let them keep whatever affiliate revenue the post throws off. As of last week that money exists whether you allow it or not.

August 27 YouTube flipped on Amazon product tagging for eligible US creators. Shorts, long-form, livestreams. Commissions land next to the AdSense check.

You've got to be in YouTube's shopping affiliate program and Amazon's influencer program, then link the two.

That rewrote your negotiation whether you were watching or not.

The creator you're paying a flat fee now has a revenue line competing for the same seconds of screen time. It doesn't run through you.

YouTube won't give creators product-level or video-level breakdowns on it. Newest money in the creator economy showed up carrying the same blind spot as the oldest. Nobody can see what any single piece of content actually produced.

Build the file nobody will sell you

Start a spreadsheet. One row for every creator you've ever talked to.

Platform, follower count, what they asked for, what you paid, what they delivered, how long you could run it, and what it actually produced.

If you've run four deals, you already have four more data points than the average brand walks in with. Their history is sitting in an agency CRM.

After a year that file is a real benchmark for your category. Not the industry's. Yours.

That's the one that matters. A rate that works for a DTC skincare launch tells a regional salsa brand almost nothing.

I ran this argument in June from the other direction in The Middle Layer Is Disappearing, and Your Audience Is the Only Thing That Survives It. Sell side. Creators walking past agencies because they could finally document a sale.

Digiday just told the same story from the buy side.

The intermediary never sold access. It sold the information gap. Once both parties can prove what a post did, there's not much left in the middle to bill for.

Underpaying a creator once is survivable, though creators talk to each other far more than brands do and you may not get a second try. Overpay once and you survive that too.

What quietly burns the budget is treating creator spend as a campaign line item. Next year you're rebuying the same audience at a higher price because nothing carried over.

The brands doing this well stick with a smaller handful of the same creators for years. By the third year that creator knows the product, knows which shots you actually use, and has stopped asking what the deliverables are. The rate stays negotiable because the relationship is real.

I wouldn't build a 2027 budget around a real creator rate card.

There's a version of the next few years where the IAB drops pricing guidance, the benchmarking platforms consolidate, and a rate card means something by the end of the decade. I'm not counting on it.

The parties holding the data have no reason to publish it.

Block sells strategy for a living. He said the honest thing about the tools trying to fix it anyway. "Technology can be helpful in informing negotiation, but it's never going to be the driver because the people that are making these tools don't set the prices."

So pricing opacity persists, and the operator with a spreadsheet, four honest relationships, and the discipline to ask what the last post actually did is going to buy better than the brand with the retainer. It won't be close.

If you handle social media marketing for food brands and you are staring at a creator proposal you have no way to score, the fix isn't a better calculator.

Write down what you already paid and what came of it. Structure the next deal around a deliverable and a window, not a follower count.

If you want somebody to build that file with you and rewrite the next three contracts against it, that's the unglamorous work a good food and beverage marketing agency should finish before it books a single creator.

That's the work I do.

adage, emmy, telly & webby award-winning digital marketing consultant for purpose-driven food & beverage brands.