This story is available exclusively to Business Insider subscribers.Thirteen influencers said the talent-management firm IQ Advantage took their money but failed to deliver on its promises to help grow their Instagram followings and get them brand deals.
In November, IQ Advantage's US founder confirmed to Business Insider that the company was shutting down.Nazarian, 19, had been building an influencer career over six years. She focused on beauty and lifestyle content and had amassed 25,000 Instagram followers and another 15,000 on YouTube. A draft contract from IQ Advantage reviewed by Business Insider said that "in case the profit or campaign value of $299USD is not achieved within the timeframe of the agreement, XX will be fully re-imbursed by IQ Advantage." Nazarian said she was under the impression that if IQ Advantage didn't get her any brand deals, she would get her deposit back.
But, Nazarian said, the brand deals never came. At first, she thought it was the impact of the coronavirus pandemic, . But as the industry began to rebound, and she saw other influencers posting sponsored content, her IQ Advantage manager stopped responding to her altogether. "Every contract will have the engagement groups from the very start," Reding said, adding that they were "listed in the contract itself."
— who were looking to break out in the industry. They were impressed by the roster of influencers and brands that IQ Advantage said it worked with. In early October, when Business Insider began speaking with influencers who had signed with the agency, IQ Advantage shut down its website and Instagram.
"I just think that influencers are legitimately in this sort of vulnerable place," Lynsey Eaton, the cofounder of the influencer talent-management agency Estate Five, said.When IQ Advantage was up and running, its website had little information about Reding or the other people behind it. "And since they had mentioned that they were going to refund the money after my first sponsorship with them, I thought it was a good deal," Solis added, referring to the $299 deposit.
"I never saw a single email go out," she said. At times, IQ Advantage would respond to inbound emails on Bearman's behalf, she added, but nothing came of these.IQ Advantage did, however, add creators like Bearman into engagement pods. This was part of the "growth tactic" IQ Advantage sold to creators, Bearman said.
Solis said her media kit inaccurately presented her as a "model" and "travel blogger," and misspelled her name. Reding acknowledged that some influencers had not received the media kits they were promised and said if they hadn't, they would be entitled to a refund of their $299 deposits. Finally, Strøm had a prospective paid brand deal for Lejeune: a model casting for a "new fashion company," she said. Lejeune responded, asking for the brand, budget, and location.
After someone apparently sent Forby screenshots from the group chat, Bearman said he sent her another voice note telling her that he was planning on getting lawyers involved and then told her that because he placed her in engagement pods, she lost her deposit. "You're never asked to pay a deposit," said Erin Cutler, a talent manager and the founder of the influencer talent-management agency Neon Rose. Instead, managers typically charge based on commission, which is usually between 10 and 20%.
Estate Five's Eaton said micro influencers should also generally be wary of signing with a manager too early in their careers.
It’s a great article for nano to micro creators, who may be eager to get an agency. Do your due diligence. Upfront fees is a red flag 🚩.
You mean 13 suckers paid $299....
Why do you run this story on Twitter but make people pay to read it once they click on. That’s really low level marketing. Fire the person that did that, it is not brand building.
Why would I want to be influenced by these people
Sounds like they managed their talent quite well
So they influenced someone to pay for fake publicity... Isn’t that the point?
so you’re saying influencer marketing is a pyramid scheme? surprising.
this is terrible news