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

The influencer marketing industry has been facing a crisis as delayed payment cycles and multiple intermediary layers between brands and creators have been putting immense financial strain on agencies.

Industry insiders reveal that while influencers drive brand engagement, their payments are often stuck in a complex chain, leading to unsustainable business models for many agencies.

Farhan Rajani, CEO of Bartergram explains that the core problem lies in how media mandates and vendor networks control payments. “Big brands don’t pay agencies directly. They go through large media companies that hold mandates. These companies then work with vendors, who then engage smaller influencer marketing agencies and talent managers. By the time the money reaches influencers, it’s been passed through so many hands that payments are delayed for months.”

Payment cycles at the top of this chain range from 60 to 90 days but often stretch to 120 days or more. The result? Small agencies and influencers are left scrambling. “If a creator charges one lakh rupees, the agency at the top often quotes four lakhs to the brand. Each intermediary takes a cut, and the actual influencer gets what’s left—often far less than they deserve. It’s a broken system,” Farhan explained.

Former employees and partners have publicly called him out, but Farhan insists that all outstanding dues will be paid. “Negativity won't solve anything,” he told an e4m reporter. “I’m working hard to fix this mess.”

The never-ending chain of middlemen

Surviving in an unfair system

To work around these delays, Farhan founded Bartergram, a platform where influencers get high-value products and experiences instead of cash. “Waiting for months to pay creators was harming the ecosystem. So instead of delaying payments, I started offering them luxury products—iPhones, trips to Korea, premium brand collaborations—so they get something immediately instead of waiting endlessly for payments.”

But not everyone is convinced this is the answer.

Anubha Tiwari, founder of Denaro Media, has her own ordeal. “It’s exhausting to constantly chase payments that are rightfully ours,” she said. “We have daily calendar reminders just to follow up. This is not how professional businesses should function.”

Tiwari, like many others, is frustrated by the system. “On social media, agencies look glamorous—flashy brand campaigns, influencer events—but behind the scenes, we’re left struggling for the money we’ve already earned. For small businesses like ours, these delays are not just an inconvenience—they are a financial nightmare that stops us from taking on new projects and growing.”

 The bane of payment delays

Anirudh Sridharan, CEO of HashFame, who closely works with creators and brands, shed more light on how large network agencies manipulate payment timelines.

He told e4m that the delays are often intentional. “Brands do pay on time, but the big network agencies hold onto the money to earn interest on it. If a brand clears the payment by January 15th, the agency might still hold it for another 60 to 120 days just to make money off it. Meanwhile, smaller agencies and influencers are left struggling.”

The pressure to keep cash flow intact is making influencer marketing unsustainable for smaller players. Government policies exist to protect MSMEs (Micro, Small & Medium Enterprises), requiring payments within 45 to 60 days, but enforcing these rules is tricky. “If a small agency complains, they risk being blacklisted,” Sridharan explained. “It’s an unspoken rule—challenge the system, and you lose future business.”

Speaking out: a risk or a necessity?

With influencers also feeling the heat, some have started calling out brands and agencies publicly. Sridharan pointed out that this tactic often works. “If an influencer posts an Instagram story saying, ‘XYZ brand hasn’t paid me,’ the brand immediately pressures the agency to release the payment. But not everyone dares to do this because they fear losing future collaborations.”

View this post on Instagram

A post shared by C H A I T A L I O A K (@chaitu_oak)

The need for change

According to industry expert Danny Advani, Head of Business Strategy at Dot Media, the solution lies in restructuring payment terms. “Brands need to take responsibility. If they enforce strict payment guidelines for their partner agencies, this problem would be solved. But as long as agencies benefit from holding payments, things won’t change.”

Sridharan agrees, adding that smaller influencer marketing agencies are the ones suffering the most. “They do all the work but get squeezed between network agencies and creators. Until brands regulate how payments are handled down the chain, these delays will continue.”

For now, small agencies and influencers are left to fight their battles alone, hoping for a system that values transparency over profit. The question is—will the industry finally wake up and fix this mess before more businesses collapse?