Rohit Raghavendra, who has over 200,000 followers on his Instagram handle, @rohitraghv_, launched a content creation course in June to supplement his income. The parody artiste realized within nine months of becoming a full-time creator that content creation would not bring in steady income, and that brand collaborations are "unpredictable."
“There is seasonality when it comes to brand collaborations. During Diwali and Christmas, there are more brand deals, while other months are lean,” he said. “I launched my course to avoid stressful periods with no money inflow. This should add another 30% to my existing income in a month.”
The Pune-based content maker who pockets ₹140,000 per collaboration is not an anomaly, as the creator economy is brimming with such internet 'influencers'.
“The success rate of influencers is really low,” said Prateek Sinha, partner and experience consulting leader at PwC, adding that income is low for most influencers, which pushes them to diversify and create new income streams.
“In India, the industry is still maturing, and the competition is very high—from 'nano-influencers' posting content as a side hustle to mega influencers who are celebrities in their own right,” Sinha said.
Nano influencers have fewer than ten thousand followers, while mega influencers boast an audience of over a million. This distinction reveals the broad spectrum of influencer marketing and its differentiated impact potential.
Another distinguishing feature pertains to the length of content. While short-form creators on Instagram who make reels of less than 60 seconds can only rely on brand collaborations, long-form video-sharing platform YouTube gives creators an option to monetize their content via advertisements.
“For most small creators, monetizing through advertisement revenue is not working well these days, except for some distinctive ones,” said Neel Gogia, founder of influencer management firm Iplix. “YouTube often contributes less than 10% of their total revenue.”
Some creators, like Shlok Shrivastav, a popular technology influencer with 4.6 million followers on his Instagram handle, @techburner, have launched their own direct-to-customer (D2C), or online-focused, brands.
Shrivastav founded a clothing brand called Overlays in August 2021 and a phone skin brand called Layers in September 2022.
“At the moment, we are looking at scaling the business which we bootstrapped, so we are reinvesting the profits. But it has a very good potential of adding to our earnings,” Shrivastav said. “It can surpass the earnings that we get from YouTube at least fivefold if we do it right.”
Companies have decided to tap into this need for content creators to bank on other revenue streams. E-commerce firm Amazon started the Amazon Influencer Program in 2017 and Amazon Live in 2022, which allowed creators to earn by recommending Amazon products and earning commissions on purchases.
“Amazon recognizes the power of creators and their content. That is why we have invested heavily in building a thriving two-sided marketplace where creators and customers connect,” said Kishore Thota, director of shopping experience, India and emerging markets, Amazon, in an emailed statement to Mint.
Currently, around 600 content creators from India are a part of the Amazon Live program, and close to 18,000 creators are in the Amazon Influencer Program.
Startups too have noticed the business potential of getting content creators to come up with parallel businesses.
“We have more than 10,000 users on our platform, and in the past couple of years, some creators have earned up to 80% of their income through alternative streams like courses and workshops,” said Suyash Sinha, chief executive officer and co-founder of Exly.
Exly, a Gurugram-based startup, provides tools for creators and professionals to create and market content online in various categories like healthcare and lifestyle, as well as conduct online courses, consultations, and workshops.
Merchandising is also gaining traction among popular influencers having millions of followers.
YouTuber Prajakta Koli, who started a merchandise line with Merch Garage in June 2021, is one such example. Merch Garage is a merchandising platform that helps artistes and content creators sell their official merchandise to their fans and customers worldwide.
“Merchandising cannot be seen as only an occasion-led product with possibly inferior quality that lasts only for a short while. Customers and fans won't want to pay for that,” said Gurpreet Singh, co-founder of Merch Garage.
The business, he said, has been seeing double-digit revenue growth since its inception in 2021.
However, expanding the merchandise business for influencers involves dealing with counterfeits and competition from larger franchises.
“Genuine merchandise has to compete with easily available cheap counterfeits,” said Amiya Swarup, partner and marketing advisory leader at consulting firm EY. “Merchandising is not evolving as a key revenue contributor.”
Unlike in the West, where franchises such as Star Wars and Marvel thrive on merchandising, Swarup says influencers should view merchandising as a powerful branding tool rather than a revenue stream.
