Why traditional talent agencies see huge money-making potential in influencers, and how they're changing the face of marketing.
INFLUENCERS ARE THE NEW TALENT
When 17-year-old Tik Tok star Charli D’amelio rose to fame as the most followed person on the app in 2020, United Talent Agency (UTA) saw her potential and signed her, opening up the doorway to the goldmine opportunities TikTok influencers would bring to talent agencies.
Back then, Charli D’amelio had 17.7 million followers on Tik Tok and 4 million followers on Instagram.
Fast forward to today, the social media star has amassed a following of 137.5 million users on Tik Tok and 47.5 million Instagram followers, making her still the most followed person the viral short-form video app— and a top-tier influencer.
A quick glance at her page would show that she has done a plethora of brand sponsorships and collaborations with huge names like Dunkin’ Donuts, Hollister, Pura Vida, Orosa Beauty, Morphe 2, and EOS Skincare.
Around the same time, WME signed Addison Rae and Creative Artists Agency signed Cosette Rinab, two other huge names in the Tik Tok influencing world.
WHAT DOES THIS MEAN?
The fact that traditional talent agencies are now signing influencers instead of solely models and actors show that the fame landscape is shifting.
Talent managers are focusing on a new generation of talent because they believe that Gen-Z creators are shaping pop culture and current trends in both younger and older generations.
THE FUEL INJECTOR: A DIGITAL TALENT MANAGEMENT FIRM
Many in the industry saw the emergence of Tik Tok influencers in early 2020 as a great opportunity to start their own digital talent management firm, including 23-year-old Devain Doolaramani, the founder and CEO of The Fuel Injector.
“I found Musically (now called Tik Tok) through my baby cousins and I saw them all using it. I thought that if the demographic is 9 to 15-year-olds using the app, it’s definitely got to be powerful because those kids are eventually going to be the “tastemakers” in the world,” -Devain Doolaramani.
Doolaramani was one of the first managers in the entertainment industry to start his own digital talent management firm in January of 2020. The Fuel Injector provides services in
social media management, music marketing, and branding
to help influencers secure brand deals.
“My end goal for my clients is: how do I build them a business in different verticals within their business to keep money, revenue, and profitability coming? Not for the next five or 10 years, but for the next 50— their lifespan essentially.”
As a TikTok influencer, it’s not just about making content. Influencers have to build their brand image in order to secure brand deals and revenue.
That’s where Doolaramani comes in and helps influencers create brand longevity and stable sources of income.
Doolaramani says talent agencies like his help young creators handle the business and logistics side of things, while allowing young creators to enjoy their childhood.
“I think it just gives them (influencers) the freedom to like, just hang out and be kids. And I take on the actual business side of things," Doolaramani said.
Kody Antle (28.6M), Brooke Monk (18.5M), Jerome Copeland (9.1M), and Harry Raftus (1.3M) are just four of the 17 influencers Doolaramani is currently signed with.
WHY INFLUENCERS?
Compared to actors and models, companies see a bigger and brighter advantage to collaborate with influencers because of their prevalence and popularity on various digital
platforms, whereas actors may not have a significant social media presence across Instagram, Tik Tok, YouTube, and Snapchat.
“They (influencers) are the most prevalent demographic in the world right now. Even one of my clients, Brooke— she's getting around 800,000 likes a post. I don't think many actors pull those numbers. The big ones do, but the smaller ones, brands aren't going to be willing to pay as much for not receiving as big as an audience.”- Devain Doolaramani
According to Business Insider, talent managers typically earn a commission between $1000 to $20,000 a month for their services, depending on the scope of the work and the influencer’s following. This number can vary between agencies.
As the talent manager of The Fuel Injector, Doolaramani makes around 20% of commission from his clients’ campaigns and brand deals.
As talent agencies head towards a more digital- centric pathway, agents are rushing to sign up and coming Tik Tok influencers. Compared to Instagram and YouTube, companies are finding that Tik Tok is the best platform for advertising products and trendsetting.
“You have a multi-billion-dollar conglomerate like Bytedance (Tik Tok’s parent company) backing it (Tik Tok) and they're not slowing down anytime soon. Tik Tok is where every trend starts, whether it's in music, fashion, or whatever it might be. I don't really see people buying stuff off Instagram or YouTube as much anymore."- Devain Doolaramani.