Commission Gap: How creators may end up on the losing side

The creator economy has become one of India's fastest-growing professions, with influencers negotiating campaigns worth lakhs of rupees every month. But earning more does not always mean taking home more. Behind sponsored posts and brand collaborations lies a system where creators can unknowingly lose money in multiple ways, from hidden campaign values and unlimited advertising rights to "free" brand trips and tax mistakes that can cost lakhs.

Imagine congratulating a friend after spotting their Instagram Reel as a paid advertisement months after the original campaign ended, only for them to discover they were never paid for the extended usage. 

Beyond agency commissions, creators are increasingly finding themselves shortchanged through opaque deal structures, undisclosed campaign values, unlimited advertising rights, poor tax compliance and even by exchanging multiple paid collaborations for "free" experiences that cost them far more than they appear.

Read On: Payment delays cripple creator economy: Will the industry wake up?

According to Neal Gogia, Co-founder of Iplix Media, creators are often losing value in ways that go beyond agency commissions.

"A worrying trend today is that creators are giving away multiple brand deals in exchange for sponsored travel. If a creator typically charges Rs 5 lakh for one campaign, but hands over two or three campaigns just to get a free trip, they're effectively undervaluing their own inventory. The intermediary then bundles those deals and sells them to brands for Rs 10-15 lakh, making the real profit while the creator loses out.

"For many creators, travel has become a form of social currency. Instead of paying for it themselves, they prefer to exchange their reach and influence. That may make sense for creators who are just starting out and don't have the financial means, but it becomes a problem when established creators do the same. They're blocking valuable brand inventory and handing it over to middlemen who monetise it far more effectively.

The concern, Gogia says, extends beyond individual deals to the long-term pricing dynamics of the creator economy.

"If this continues, it will distort pricing across the creator economy and encourage more businesses to exploit creators' emotional desire for experiences over fair commercial value. Creators need to recognise the worth of their influence and stop trading multiple campaigns for perks that they can afford to pay for themselves."

Industry estimates suggest that talent management agencies in India typically charge between 15% and 25% commission on brand deals, with 20% considered the industry norm. Higher commissions of 25-30% are generally associated with exclusive management arrangements or creators seeking extensive business support.

Read On: Why brands are backing creators with distinctive content styles

Gaming creator Kaashvi Hiranandani, popularly known as KaashPlays has recently alleged financial discrepancies in several brand collaborations managed by her former talent agency, raising larger questions about transparency in creator management. 

In a video posted on July 16, Kaashvi alleged that the amounts communicated to her for certain brand collaborations did not match the actual amounts brands had paid. She clarified that the figures used in her explanation were illustrative.

According to her example, if a brand paid ₹1 lakh for a campaign and the agency was entitled to a 30% commission, the creator should receive the remaining ₹70,000 after applicable deductions. Instead, she alleged that a creator could be informed that the campaign was worth only ₹60,000 and eventually receive ₹42,000, while the agency retained the balance.

She further alleged that such discrepancies occurred on multiple occasions. She also claimed that she bore several production expenses herself, including studio rentals, videography, editing and actor fees.

The gaming creator said she initially refrained from raising the issue because she was relatively new to the industry and had long-standing personal relationships with those involved. According to her, repeated assurances that the matter would be clarified eventually turned into months of waiting.

She later sent a formal email, copying her lawyer, seeking an explanation for the alleged discrepancies. She says she never received a response.

Kaashvi has filed a police complaint against 8Bit Creatives. The matter is currently under investigation.

Responding to the allegations, Animesh Agarwal, founder of 8Bit and S8UL, said: "The allegations and insinuations being circulated in a recent video are false and misleading, and are inconsistent with the values of integrity, transparency and ethical conduct that have guided me and S8UL over the years."

The controversy is not the first time creators have publicly questioned payment practices within talent management agencies. Over the years, several creators have complained about delayed payments, lack of clarity on commissions and difficulty reconciling what brands paid versus what eventually reached them. Kaashvi's allegations, however, have shifted the conversation from payment delays to financial transparency itself.

The second leak: Ad rights that never end

For years, creators complained about delayed payments. 

Now, the debate has moved beyond timing to a more fundamental question: are creators being paid everything they are actually owed?  

Saurav Fialok, Founder of influencer marketing company Melo Content, said creators often fail to realise that brands may continue promoting their content long after a campaign has officially ended.

"One of the biggest concerns for creators today is whether brands continue using their content long after a campaign ends. We regularly check Meta's Ad Library and other ad transparency tools to see if a creator's reel is still being promoted. If a campaign is running beyond the agreed period without renewed permission or payment, creators deserve to know. Ad transparency has made it much easier to spot these cases."

He added that creators today have far greater visibility over branded content than before.

"On Instagram's Professional Dashboard, the Partnership Ads section shows whether a brand is actively promoting a creator's content, when the campaign started and, in many cases, gives the creator the option to revoke ad permissions. Every creator should routinely monitor these permissions instead of assuming a campaign has ended simply because the brand stopped posting."

Read On: Not just one-off deals. Are brands now betting on creators for the long run?

Experts increasingly recommend that creators grant advertising permissions for limited periods, such as monthly ad rights, rather than providing open-ended access.

What creators have to say

Sahil Peris, a content creator, recently shared that he walked away from brand deals worth nearly ₹4.7 lakh in May because he did not believe in the products or the creative restrictions imposed by brands. "In May alone, I turned down brand deals worth around ₹4.7 lakh. That included ₹1.8 lakh for a hair care supplement because I don't believe in hair supplements, ₹1.5 lakh for a Shilajit supplement because I couldn't find solid scientific evidence to support it, ₹45,000 from a fashion brand that wanted to control every word I said, and ₹95,000 for a protein bar because I wanted to add a disclaimer that it wasn't suitable for daily consumption. The brand wasn't okay with that, so I walked away. I lose money, but I hope I gain my audience's trust in return."

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A post shared by Sahil Peris (@bookedwithsahil)

The issue extends beyond choosing the right brand partnerships. Creators are also increasingly discovering that their content may continue to be used in paid advertisements without their knowledge or compensation. In a viral video, another creator recounted how he only learnt about the unauthorised use of his content after a friend spotted his face in an advertisement.

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A post shared by MEETHIKA DWIVEDI (@the_sound_blaze)

"A friend told me he kept seeing my face in paid ads, and that's how I discovered a company I'd never worked with was using my video without permission. I found the ad through Meta's Ad Library and contacted the brand. They first replied saying they had taken the ad down. After I asked to be compensated for the three weeks it had been running, they initially offered me $300 because the ad 'wasn't really a top performer'. I negotiated and eventually settled for $600, but looking back, I probably undervalued myself. My advice to creators is to document everything, check Meta's Ad Library regularly and don't accept the first compensation offer you're given."

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A post shared by Sukansh Kataria (@sukanshkataria)

Sukansh Kataria, a filmmaker and a budding actor, said, "A socks brand recently approached me for a collaboration and said they wanted ad rights to my Reel in exchange for three pairs of socks. But that's not compensation. The content wouldn't even exist without their product, so the product itself can't be treated as payment. Brands need to stop positioning free products as compensation. Creators invest their time, effort, resources and creativity into every piece of content. All we ask in return is respect, transparency and fair pay for the work we do."  

Undoubtedly, the creator economy has matured into a multi-crore business, but many of its financial practices remain opaque. Whether it is undisclosed campaign values, indefinite ad rights, unpaid content usage or creators accepting products and experiences instead of fair compensation, the cost often falls on the creator.

As more influencers turn entrepreneurship into a full-time profession, industry experts say transparency, stronger contracts and financial literacy will become just as important as creativity in protecting both their earnings and their careers.