LATEST DEVELOPMENT
Campaign's investigation reveals that up to 87% of creators have experienced late payments or payment issues, with many waiting months beyond contract deadlines to receive compensation, exposing systemic flaws in the $250B creator economy where individuals and small teams lack cash reserves to float unpaid work while brands demand fast turnarounds.
INDUSTRY TALK
"It's Net 30, 60, 90. After that amount of time, at what point does it just feel like unpaid work? It's not sustainable. More brands need to realize this is a lot of work, and it's what we're using to support ourselves."
BY THE NUMBERS
Crisis indicators include:
87% of creators experiencing late payments or payment issues (Tipalti/Lumanu data)
$250B creator economy value projected to nearly double within two years
£1.1B payment backlog across UK creative agencies and freelancers (Monet)
Net 30, 60, 90-day payment terms standard across industry
6+ month payment delays reported for some brand campaigns
PAYMENT CHALLENGES
Systemic issues include:
Antiquated payment practices carried over from traditional industries
Creators unable to cover rent, bills, or keep businesses afloat during delays
"High-scope, low-pay" deals with 4+ month payout windows
Contract loopholes allowing agencies to avoid late payment fees
Brands treating small payments as afterthoughts despite fast deliverable demands
REGULATORY RESPONSE
Government intervention includes:
UK proposing 60-day payment term caps eventually reducing to 45 days
Fines for large firms paying late under new proposals
Late Payment of Commercial Debts Act 1998 allowing interest claims
Growing cash flow crisis disproportionately affecting creative sector
Momentum building for transparency and equity reforms
CREATOR REACTIONS
Survival strategies include:
Requesting upfront deposits for larger campaigns
Implementing 10% non-compounding monthly late fees
Negotiating reduced payment terms from 30-60 days to 10-15 days
Working directly with brands instead of platforms for control
Some abandoning influencing for freelance work with vendor control
THE BOTTOM LINE
VideoShops is betting that the future of influencer commerce lies in seamless, native checkout experiences rather than traditional affiliate links—creating a democratized platform where anyone can become a seller while merchants benefit from streamlined transactions, positioning the company to capture significant market share as user-generated content continues reshaping retail.