Latest / Influencer Marketing with Fexingo: Creators, Sponsorships, and Modern Endorsement Deals / Why Creators Are Buying Their Own Talent Managers
Transcript
- Lucas: So there's this moment in a creator's career where they realize they need help — real help, not just a friend who handles emails. And for the last few years, that help has come from talent managers. But here's the new twist: some of the biggest creators aren't just hiring managers anymore. They're buying the agencies those managers work for. Luna: Buying the agency? That's a big step. I mean, we've talked about creators buying their own production studios, their own ad servers, even their own malls. But a talent agency — that's the layer that's supposed to be looking out for them. Lucas: Exactly. And it makes sense in a weird way. If you're a creator doing fifty million dollars a year in revenue, and you're paying ten to twenty percent of that to a manager, that's five to ten million dollars a year just in management fees. At that scale, owning the agency isn't a vanity purchase. It's a cost center you can bring in-house. Luna: So it's like vertical integration for the creator economy. Instead of paying someone else to negotiate your deals, you become the someone else. Lucas: Right. And there's a real example from last month: a beauty creator with about eight million followers bought a boutique talent management firm that had been representing her for three years. The deal was reportedly around twelve million dollars, mostly in stock and future earnouts. She didn't just take over her own contract — she took over the contracts of about twenty other creators. Luna: Twenty other creators. That's not just self-management, that's building a business. What does she get out of it beyond saving on fees? Lucas: Several things. First, she gets the commission from those other twenty creators — that's new revenue. Second, she gets control over her own negotiating position, because now she's the one calling the shots on her brand deals. And third, she gets a seat at the table when decisions are being made about the direction of the agency, which means she can shape the industry norms, at least for her own roster. Luna: But isn't there a conflict of interest? She's managing herself and other creators. If she's competing for the same brand deals, how does that work? Lucas: That's the question everyone's asking. And honestly, it's a real issue. But the agency she bought has a mandate to represent creators in different niches — she's beauty, but the agency also has fitness and gaming creators. So the direct competition is limited. Still, it's a delicate balance, and it's something the FTC is reportedly keeping an eye on, especially around disclosure. Luna: Disclosure — because if she's negotiating on her own behalf, is she really acting as a neutral party? That's a whole new layer of transparency. Lucas: Precisely. And this isn't just one isolated move. I've seen at least three similar acquisitions in the last six months — not all at that price point, but the pattern is there. One gaming creator bought a small talent management outfit for a few million dollars, just to handle his own team and a couple of friends. Another lifestyle creator took a stake in her management agency rather than a full buyout, which gives her a share of the upside without all the operational headaches. Luna: So there's a spectrum — from full ownership to partial stakes. What's driving them to do this now? Is it just about money, or is there something else? Lucas: I think it's about control, but also about the maturation of the creator economy. These creators have been burned before — by managers who took high percentages and didn't deliver, by agencies that dropped them when the algorithm changed. So they're saying, if I'm going to trust someone with my career, why not trust myself? Luna: That's a powerful statement. But running an agency is a completely different skill set from creating content. How are they handling the management side? Lucas: That's the catch. They're not doing it alone. In the beauty creator's case, she kept the existing management team on board — the founder stayed as CEO, and she's the chair. So she's not sitting in on every negotiation; she's setting the vision and reaping the financial rewards. It's a really smart move: she gets the business, but she doesn't have to learn the HR and contracts side overnight. Luna: So it's more like a strategic acquisition than a hands-on takeover. But what about the smaller creators? This trend seems limited to the top one percent. Lucas: It is, for now. But I think it's going to trickle down. If you're a creator doing five million a year, you might not buy an agency, but you might hire a full-time manager who used to work at an agency. That's already happening — we're seeing an exodus of agency talent going in-house at creator companies. So the services are being internalized even without the actual acquisition. Luna: That's a good point. And that shift is probably changing the agency landscape too. What are the traditional agencies doing to compete? Lucas: They're fighting back. Some are offering equity in the agency itself to lock in top creators — so instead of the creator buying the agency, the agency gives the creator a piece of the pie. Others are creating special divisions with lower commission rates for mega-influencers. It's a negotiation, and the creator now has the upper hand. Luna: Interesting. So this is reshaping the power dynamics in influencer marketing. But what about the risk? If a creator buys an agency and it fails, they could lose a lot of money and reputation. Lucas: Absolutely. And that's why not everyone is jumping in. It takes a certain kind of creator — someone who's already diversified their income, who has a business mind, and who's willing to take on the risk. But for those who do it well, the payoff is huge. They're not just celebrities; they're media moguls. Luna: Media moguls — that's a strong term. But it does feel like the creator economy is becoming more like the traditional entertainment industry, where the biggest stars eventually own their production companies. Lucas: Exactly. And that's where this is heading. We're seeing the same pattern that happened in Hollywood: the talent realizes they're the product, so they start controlling the means of production. The difference is that in the creator economy, the barrier to entry is lower, so it's happening faster. Luna: So what's the next step? Full ownership of the entire supply chain? We've already seen creators buying their own payment gateways, ad servers, and now talent agencies. What's left? Lucas: Probably the platforms themselves. But that's a whole other conversation. For now, the takeaway is that the creator-manager relationship is being flipped on its head. The most successful creators are no longer just clients — they're owners. And that changes everything about how deals get made and who gets the lion's share of the value. Luna: Before we get too deep into that, I want to talk about something that's been on my mind. We're a listener-funded show, and I think that's worth acknowledging. Lucas: Yeah, it's a good moment to pull the curtain back a little. We do this show without ads, and that's only possible because a small group of listeners chips in monthly through buy me a coffee dot com slash fexingo. Luna: It's not something we push, but it's what keeps us going. And it lets us cover topics like this without any sponsor pressure. Lucas: Right. And we appreciate everyone who does. Now, back to the bigger picture — I think this ownership trend is going to force a rethink in how talent agencies are valued. If creators can buy them, what's the real worth of their client lists? Luna: That's a great question. The value of an agency is often tied to its relationships. But if the creator owns the agency, the relationship is with themselves. That could disrupt the traditional revenue model of management firms. Lucas: Exactly. And we're already seeing some agencies diversify beyond management — they're getting into brand partnerships, merchandising, even IP licensing. So the acquisition trend might be a catalyst for the whole industry to evolve. Luna: So for a creator listening, what's the one actionable takeaway from this episode? Lucas: If you're thinking about your long-term career, start treating your management relationship like a business partnership, not just a service. Ask questions about where the fees are going, what value you're getting, and whether it makes sense to eventually bring certain capabilities in-house. You don't have to buy an agency tomorrow, but you should be preparing for a future where you have more control. Luna: That's solid advice. And for the rest of us, it's fascinating to watch the creator economy mature into something that looks a lot like a traditional industry — but with a new set of rules. Lucas: Absolutely. It's a space we'll be keeping an eye on. And if you have thoughts on this trend, we'd love to hear them. We're always reading comments.