The death of the talent agency?
What is a Talent Manager?
Before diving into the intricacies of talent management, let's paint a clear picture of what a modern talent manager looks like in today’s creator economy.
Evolving from the role of a celebrity agent, a talent manager—or a talent agency, comprising several managers—helps content creators handle their “business stuff.”
If "business stuff" sounds vague, that's because it is. The role of a talent manager is often intentionally ambiguous. Managers claim to handle all the daunting tasks creators might feel incapable of managing themselves. While this might be true for a small subset of creators, the reality is that most creators with a bit of savvy can manage these tasks themselves, and often do so more effectively.
The Reality of Talent Management
The hard truth is that talent managers are often glorified personal assistants. They take over a creator’s email inbox and wait for brands to reach out with paid opportunities. If the opportunity isn’t paid, managers typically won’t engage, even though these unpaid opportunities could be long-term wins for a creator. Managers only profit when you do, so they’re not interested in non-revenue-generating activities like event invitations or free products.
How the Relationship Works
When a creator signs with a manager or agency, they’re usually set up with a new email address (which the creator doesn't have access to) and instructed to update all their social bios with this new contact info. This means the manager controls all brand interactions, sidelining the creator from these discussions.
Managers negotiate deals, set rates, and have the power to reject potential partnerships that don’t benefit them. They take a substantial cut—typically 20%—of all brand deal revenue. For many creators, brand deals constitute 100% of their income, making this cut significant.
What Are You Really Getting?
Creators, like any business, want to grow and generate more revenue. Managers and agencies exploit this desire by promising more brand deals in exchange for 20% of the creator's earnings. But what exactly are they doing to earn this fee?
A good manager or agency should actively seek out opportunities on behalf of the creator. This involves creating a media kit (a deck with all the creator’s stats and rates) and proactively pitching to brands. However, not all managers do this.
When a deal is secured, managers perform two crucial tasks: reviewing contracts to ensure there are no hidden pitfalls and invoicing/accepting payments on behalf of the creator. However, there are issues with this arrangement. Unless the manager is part of a large agency with a legal department, they are not qualified to review legal documents. For legal advice, creators are better off hiring a lawyer.
Secondly, when managers handle invoicing, payments go into their accounts first. This means creators must trust their managers to be honest about payment timings.
The Downsides Summarized
In this arrangement, creators lose:
Control of their emails and opportunities
Direct relationships with brands
Qualified legal advice
Control over their own cash flow
For creators overwhelmed by their inbox, intimidated by negotiations, terrified of legal documents, or poor with money, this arrangement might seem appealing. But there are alternatives that won’t cost 20% of your revenue.
The Modern Creator: CEO and Founder
Creators need to realize they are not just creators—they are CEOs and founders. In the U.S., only 7% of people own and run an established business, making it a tough club to join. Creators have it even tougher, building something from scratch under public scrutiny.
Despite this, creators often fail to see themselves as business owners. A shift in mindset from “I’m a creator” to “I’m a business owner” can lead to smarter business investments.
In no other industry would a startup give up 20% of its revenue for a personal assistant to handle emails, invoices, and contracts. These tasks can be managed by an intern or automated tools, leaving creators free to focus on what they do best—creating content and growing their business.
Alternatives to Using a Talent Agency
Creators have more options than ever to manage their business without handing over 20% of their revenue to a talent agency. Here’s how you can take control of your operations:
Email Management
Managing a high volume of emails can be daunting, but services like Superhuman can simplify this task. Superhuman offers advanced features like AI-powered sorting, shortcuts, and follow-up reminders, allowing you to maintain control of your inbox efficiently and effectively.
Legal Review
Understanding legal documents may seem intimidating, but familiarizing yourself with common clauses and potential pitfalls can empower you to handle contract reviews. Resources like online legal courses or websites that offer contract templates and explanations can be invaluable. For specific concerns, it's worth consulting a professional lawyer, especially for high-stakes agreements.
Invoicing and Financial Management
For invoicing and managing finances, tools like Helm provide an easy-to-use platform for creating, sending, and tracking invoices. These tools often include features for expense tracking, reporting, and client management, allowing you to maintain oversight of your financial transactions without the need for a middleman.
Summary
If additional help is necessary, consider hiring a personal assistant from regions like the Philippines, where the cost is lower, or bringing on a fractional operations or finance manager. These solutions offer professional assistance for a fraction of the cost of a talent manager, enabling you to retain more control and revenue from your business.
By adopting these strategies, you can maintain full control over your operations, build direct relationships with brands, and keep more of your hard-earned revenue. Remember, the modern creator isn’t just a creator—they’re a CEO, a founder, and a business owner.
