The creator economy won’t survive without fixing payments

In Hollywood, actors do not wait half a year to get paid. Under SAG-AFTRA contracts, residuals are distributed within 30 to 60 days of the union receiving payment from studios. That is the standard in one of the world’s most complex entertainment ecosystems.

Meanwhile, in the creator economy, worth $250 billion and growing, creators are still waiting 90, 120, sometimes even 180 days for money they have already earned.

If actors can rely on 30 to 60 days, why can’t creators? They are the directors, the producers, the talent of the digital age. Yet they are treated like unsecured creditors. It is not just unfair. It is destabilizing the entire ecosystem.

That is why we need a clear industry standard. If we could get to net 60, or even net 45 over time, it would fundamentally change the trajectory of the creator economy.

NO SINGLE ACTOR CAN FIX THIS ALONE

Of course, we are not there yet. Sequential liability, procurement cycles, and legacy payment systems make net 45 every time feel aspirational. To get there, we need to address the structural issues holding payments back. The industry must work together to get there. 

Agencies must absolutely do their part, but fronting payments is not a sustainable model at industry scale. While some agencies with deep-pocketed parent companies can do it, many simply cannot.

The big debates for progress usually fall into three camps:

1. Regulation and audit

No agency should ever use creator funds as cash flow. 

Our industry is fortunate enough to have the support of industry bodies that are working to address payment challenges—such as the Influencer Marketing Trade Body, Digital Creators Association, and Creators Guild of America. 

An accredited audit scheme led by an industry body, working with a Big Five auditor, would force transparency. Agencies would have to prove they release creator funds as soon as they are received.

2. Escrow accounts

Escrow is often pitched as a solution to hold client funds on behalf of creators. 

In practice, it adds another middleman, more complexity, increased cost, and further delays. This industry does not need more friction. It needs discipline and enforceable timelines.

3. Become the bank

Some say the answer is new financial products from banks or fintechs, such as Lumanu which enables creators to be paid within 24 hours by fronting payments at a cost, and settling with clients later.

This represents a significant milestone in financial empowerment and transparency within the industry. But, like with all industries, financing is most suited as a bridge versus a business model.

HOW COULD WE GET TO NET 45?

We cannot pretend the industry will abandon procurement systems overnight, when they have been in place for decades. That is not realistic. But we can work within those processes to move the needle.

That means:

• Agencies invoice clients as soon as deliverables go live, not weeks later. For multicreator campaigns, issue weekly invoices for assets delivered. 
• Clients agree to pay within 30 days, in line with how they already pay for other media.
• Agencies release creator funds in their next weekly payment run, rather than holding them for cash flow. This should be audited by an accredited industry scheme.

If these steps are in place, creators could achieve day 45. Not when procurement clears. Just like SAG-AFTRA residuals, it becomes a predictable and enforceable standard.

TWO FUTURES

The industry now faces a choice.

The collective future: Agencies commit to audited standards that prove creator funds are released the moment they are received, provided deliverables are complete. Creators align on consistent terms so expectations are clear across the market. And if clients are able to pay the talent portion of creator fees upfront, even better.

Taken together, this raises the bar for everyone. It professionalizes the space, builds trust, and strengthens the foundations of the creator economy for the long term.

The bank-led future: If a collective solution is too far from reach, banks and fintechs can step in to fill the gap and advance the money. This type of financing keeps the wheels turning, and the industry should be grateful that it has the option. 

Yet, financing remains a bridge versus a business model because of the fees and their potential impact to creator earnings.

It does affect the economics of the ecosystem. Inevitably the cost of these fees will create an inflationary ripple across the chain.  What looks like a fix could become a systemic tax for the industry.

THE BOTTOM LINE

We need a call to action. Industry leaders must work together, not as one voice but as many, to align on and champion a fix that can be adopted industry-wide.

Creators are the industry. Without them, our entire industry fails. They already navigate volatility. Platforms shift, algorithms change, briefs land late. Payment delays should not be part of that volatility.

If Hollywood can guarantee 30 to 60 days, the creator economy can too. Net 45 with a net 60 cap is within reach, but only if we work together.

Ben Jeffries is cofounder and CEO of Influencer.

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