Why many content creators are going back to 9-to-5 jobs

New Delhi: As a social media user, you may have come across creators and said, “What a cool life they have.” Well, that is not the case with every creator. In fact, content creators are going back to 9-5 after living the influencer life. 

Despite the industry’s growth in the last few years, a stark wealth gap persists between small and big creators.  

A Goldman Sachs report notes that only about 4% of global creators earn more than $100,000 annually, with the majority of brand deals reserved for this elite group. 

This is a global trend, but what’s happening in India?  

“In India, the situation is even worse as the number of creators far outnumbers what brands are willing to pay for every creator,” said Kalyan Kumar, co-founder and CEO of Klug Tech. 

Even a Bank of America report noted that its share of customers who reported being content creators doubled in 2021 but has been declining steadily in the past few years. 

Explaining what the report holds for new creators, Deepak Joshi, Head of Partnership & Alliances at Qoruz, said, “The report hints at systemic challenges, including over-saturation, rising costs, and unequal distribution of brand deals.”  

However, he emphasised that this creates an environment where creators entering the market need to be more strategic and consistent in building their audience and partnerships. 

A maturation phase? 

While the news may sound crushing to small creators, Kumar calls this a maturation phase in the influencer economy.  

He said, “In the digital economy, the gap between the successful and the struggling has widened significantly. This is similar to the 80-20 principle, which states that 80% of the effects come from 20% of the causes. In this context, it means that a small percentage of people or businesses reap the majority of the benefits, while the rest struggle.

Just like in the music industry, where only about 2% of musicians make significant money while the rest barely get by, the influencer economy is similar. Only the big, well-known influencers can monetise their content, while the majority struggle to gain recognition and make a living. Most musicians and influencers rely on side jobs or other professional work to support themselves, as becoming famous and financially successful is rare.”

Expanding his thoughts on why creators are going back to traditional jobs, Joshi said, “Creators are returning to traditional jobs due to financial instability. The competition for brand deals is intense, and the majority of deals are going to the top 4% of influencers. For micro-creators, sustaining themselves solely through content creation is tough. In India, while specific numbers are unclear, the trend is evident. Many creators, especially those who can't sustain high engagement or evolve quickly, are reconsidering the viability of full-time content creation.” 

Presenting a counter-argument to his above statement, Kumar added, “Influencer marketing is evolving, with brands increasingly preferring to work with micro and nano influencers due to their credibility. As influencers grow and demand higher premiums, their niche appeal and genuine audience connection often diminish. Globally, there's a trend towards micro and nano influencers, as they offer higher engagement and better value for money.  

Marketers are recognising that smaller influencers are more believable and effective. As influencers grow, their followers are less likely to trust their endorsements. Hence, the bigger the influencer, the less likely their followers are to believe their positive claims about a brand. This shift highlights the strategic advantage of smaller influencers in the marketing ecosystem.” 

What if small creators leave the economy? 

So, what if small creators leave the ecosystem? How will it impact the industry?

Answering the query, Parth Chadha, Co-Founder & CEO at STAN, said, “If small creators start leaving, the diversity of the ecosystem will drastically decline. Also, the content authenticity would be reduced, and brands would have to rely heavily on the macro creators. This will also drive up the cost of collaborations, which upcoming brands may not be able to afford. The retention of these small creators is essential for the long-term success of the influencer economy.” 

Adding to Chadha’s comments, Joshi said, “The departure of small creators could destabilise the ecosystem. Without them, brands may struggle to connect with niche audiences authentically, and the ecosystem risks becoming overly commercialised and top-heavy. The diversity and innovation small creators bring are irreplaceable for maintaining audience interest and trust.”

Further highlighting the importance of small creators for the ecosystem, Preety Singh, Co-Founder and Managing Director of Boomlet Group, said, “Small creators, particularly nano influencers, are crucial to the influencer ecosystem, especially in India. Despite reports like the one from Bank of America highlighting low incomes for micro creators compared to traditional employees, the value they bring cannot be underestimated.  

Nano influencers are cost-effective and foster genuine connections with their audiences, offering higher engagement rates than many macro influencers. Their relatability and trustworthiness make them indispensable for brands, particularly in the FMCG sector, which extensively leverages them in India.” 

Supplementing Singh’s thoughts, Kumar said, “India is a massive country, and digital adoption has skyrocketed, with over 350 million profiles on Instagram alone. The growth of creators has been so large that brands operating through traditional agencies can't access all of them. With around 8 million creators having more than 1,000 followers, the supply of revenue from brands can't keep up. The market is pegged at around Rs 2000 to Rs 2200 crore, but there's not enough to go around for everyone. Celebrities are often considered influencers, but they belong to the screen economy, not the creator economy. True creators are those who have gained fame through content on platforms like Instagram, YouTube, and TikTok. 

The growth of creators has outpaced the brand supply of revenue, leading to a disparity. Celebrities with big profiles are often plugged as influencers, but they are not true creators. True creators are those who create content online and have become famous for it. This distinction is important as it highlights the difference between those who are famous for their screen presence and those who have built their fame through content creation. The market needs to recognise and support true creators to ensure a balanced ecosystem.” 

Why are brands not working actively with small creators? 

Now that we have established that small creators act as a bridge between niche communities and help brands bring authenticity to the table, then why are brands not collaborating with small creators despite macro creators delivering engagement rates of 2-3%? 

Sharing his thoughts on the subject, Singh (Boomlet group) said, “Brands often hesitate to collaborate with small creators due to the perception of limited reach, despite macro creators often delivering engagement rates as low as 2-3%. This hesitation creates an untapped opportunity. I consistently recommend that brands incorporate nano-influencers into their campaign strategies because of the exceptional ROI they bring. Brands that focus on long-term engagement strategies and build consistent partnerships with nano-influencers—providing mentorship and resources to nurture their talent—can maximise their potential. With tailored, hyperlocal content and grassroots appeal, nano-influencers excel at driving localised campaigns and enhancing brand visibility, all at significantly lower costs.”

 Monetisation: Where do creators miss the mark?

So, when small creators are useful for brands and brands want to help small creators, where do small creators miss the mark when it comes to monetisation? 

Weighing in on where influencers miss the mark, Kumar said, “Influencers often miss the mark initially because the industry is highly competitive. Only a small percentage, about one in a hundred, make money, while the rest need to persist for a year or two to gain traction. Once they reach a threshold of 20,000 to 100,000 followers, they become more attractive to brands. However, the limited business opportunities make it challenging. Big brands, like Unilever, prefer working with well-known influencers due to ease of procurement and higher visibility. The challenge lies in discovering relevant small influencers, which requires human intervention to meet market demands. 

For influencers, the key is to be smart and consistent in content creation. Early monetisation is rare and often a matter of luck. More substantial earnings come from brand deals or platform monetisation on YouTube and Instagram. Influencers should proactively reach out to small brands, restaurants, or shops, making a business case for themselves. Success requires effort and persistence. Influencers need to think about the business aspect, add value through their content, and actively seek opportunities rather than waiting for brands to approach them. Building a loyal following and demonstrating value can attract collaborations and monetisation opportunities.” 

Elaborating on his thoughts on the subject, Singh said, “Small creators often fail to monetise due to inconsistent branding, a lack of niche focus, or an insufficient understanding of analytics. New creators should prioritise building a loyal community, maintaining authenticity, and aligning with brands that match their values.” 

“Small creators often struggle with consistency and diversification of revenue streams. Many rely solely on brand deals without exploring other opportunities like merchandise, courses, or exclusive content platforms. My advice to new creators: Treat content creation as a side hustle initially, focus on building a loyal community, and diversify your income. Persistence and authenticity are key. Don’t get discouraged by setbacks; instead, evolve with the market,” Joshi quoted. 

Future of influencer marketing for micro-creators 

Finally wrapping it up, Joshi said, “The future for micro-creators is promising; as brands move toward performance-driven marketing, micro-creators will emerge as the go-to choice for campaigns focused on engagement and authenticity. With technology platforms making it easier to identify and work with them, micro-creators will see a more level playing field. I believe the shift towards valuing quality over sheer numbers will redefine the influencer marketing space in the coming years. But micro-influencers still need to be business savvy and focus on increasing their chances of discovery because there are millions of other micro-creators in the market as well.”