Issue #003: Influencers as Investors, Winners & Losers, Poppi & Alix Earle
PLUS news summaries re: Poppi's new investor, Poppi's big lawsuit, Alix on the cover of Sports Illustrated
EDITOR’S NOTE <3
Happy June! I’m starting to get in the groove with this newsletter… hope you are enjoying it as much as I am.
PS If you are new, you can learn more about my business story by clicking here.
👀 WHAT YOU CAN EXPECT FROM THIS WEEKLY NEWSLETTER »
Extra, extra, read all about it! The ScrollSavvy Newsletter features the latest in business, law & the creator economy… pulling back the curtains showing BTS of my business… sharing savvy tips to help you not get screwed… & creating community thru common personal interests.
🎧 PLAYLIST THIS WEEK »
Curated just for you :) Click here or preview below. ** I’ve added some new songs from the Anjunadeep 15 drop… IYKYK.
💭 MOOD THIS WEEK »
How I feel lately around a particular Person.
What my life will look like next week in the South of France.
Me watching the sailing event at the Olympics in August.
Don’t get ahead of yourself & get discouraged bc you’re not where you want to be yet.
HEADLINES »
Just the tip… (of the iceberg, get your head out of the gutter)
💸 IN BUSINESS »
The latest in the Influencer-To-Investor Pipeline.
Alix Earle invests in prebiotic soda drink, Poppi. This is only the latest in an ongoing trend, where big influencers are shifting away from typical brand deals (where they are at the mercy & creative control of a brand) to investment opportunities (where they can get a much larger ROI for their role in brining brand awareness & building brand goodwill).
I’ve talked about this on my page before: the creator economy is shifting as competition increases. We’ve seen this with many creators & even professional athletes / celebrities. I’ll share a deep dive into some case studies as part of this week’s feature.
📜 IN LAW »
The end of Poppi?
By now, you may have heard that Poppi is being sued for misleading consumers about its health benefits.
According to Forbes, “a lawsuit filed last week claims since Poppi drinks only contain two grams of prebiotic fiber, they don’t contain enough prebiotic fiber to support any ‘meaningful gut health benefits,’ and the suit cited a Cornell study in mice that found 7.5 grams of daily inulin for three weeks had no meaningful benefit on gut health, and it actually caused intestinal inflammation, weight loss and diarrhea.”
According to AP news, “Poppi is one of dozens of brands in the exploding category of functional beverages, which claim to improve health and wellness. U.S. sales of prebiotic and probiotic drinks more than tripled last year, according to data compiled by consulting firm AlixPartners.” (<< not affiliated with Alix Earle, who we will discuss just invested in Poppi… talk about sh*tty timing)
But with these new bold health claims comes heightened scrutiny & standards. When you market your product as something to choose especially because of XYZ health benefit, that is the promise you are making to consumers & it’s almost like a “contract” you need to uphold. We are purchasing the product in reliance on that promise (well, not everyone… some TikTok commenters are saying:
I’m not drinking Poppi for the probiotics I’m drinking for the flavor and low sugar
i’m still gonna buy poppi bc i drink it as a soda alternative not necessarily for gut health😅 that’s just been an added benefit for me lol
I don’t drink it for the prebiotics, I drink it bc it’s a much better alternative to soda
No more gate-keeping legal tips for creatives
It’s no secret that creatives often get taken advantage of by their clients or brands: if you try to enforce your boundaries, you might be undercut by your competition who will just “do it for less.” That’s why it’s important for the industry to come together & raise the standards. In case you missed it, I’ve teamed up with Chey Franke & Jackie Sterna to create a new legal workshop specifically catered towards photographers, videographers, & media teams, to help the community come together to identify, communicate & enforce their boundaries. We hosted the workshop live, & recorded a “replay” (well, had to re-record bc of tech issues) for you to check out here.
This 75 min workshop is jam-packed with value without being too overwhelming.
The end of credit card points & rewards programs in the US?
Bethenny Frankel posted this sponsored TikTok video explaining the consequences of a bill that has been introduced to Congress. The bill is from 2023, so I’m surprised this is the first I’m hearing of it, especially as a former lobbyist who watches legislation closely.
Basically, the US gov wants to reduce the “monopoly” that major credit card companies have over the economy, bc they say that the processing fees are burden some for business owners who accept cards.
The justification is that, with this bill, it might cost less for businesses to accept cards, therefore, prices will go down for consumers.
But we know that greedy companies won’t let that slide - they’re likely to keep prices the same, while simply pocketing the extra profit.
In turn, credit card companies will likely get rid of their points & perks systems, to make up for the lost revenue from the fees. You can read more from Nerd Wallet here.
🤳🏽 IN SOCIAL MEDIA »
Sports Illustrated announces digital covers
And for its inaugural feature? None other than Alix Earle. But people have been calling this collab out, predicting for it to happen, for months.
Not only that, but Alix Earle made it a point to showcase her SI debut in an unedited / unfiltered fashion. Instead of retouching her skin texture, underarm / bikini hairs, and imperfect boob job, she left those “flaws” in so that she could stay “on-brand” with her “hot mess” “relatability.” (That’s a lot of quotes).
FEATURE »
📸 THE INFLUENCER-TO-INVESTOR PIPELINE »
This week’s feature is piggy-backing off of our headlines: influencers as investors & what this means for brands & creators.
As I’ve talked about on my Instagram, influencers and creators are shifting away from typical brand deals as competition increases in a saturated market. The creator economy is estimated to reach $480 billion by 2027, with over 50 million creators trying to make a living online (as stated by Kajabi in its Creator Trends report, earlier this year).
More saturation = more opportunity for innovation…
So how can creators make more $$ in brand deals when there is so much competition?
Equity > Flat fees or commission
New subsidiaries & LLCs > Diluting an existing brand’s equity
👀 CASE-STUDY #1 » TIGER WOODS & TAYLORMADE
Business of Fashion covered a story earlier this year re: Tiger Woods’ new brand deal with golf brand, TaylorMade. He left his 27-year deal with nike in order to gain equity in a smaller brand.
THIS IS ON-TREND WITH A LOT OF ATHLETES & CREATORS OPTING FOR EQUITY IN A COMPANY FOR THEIR PROMOTION EFFORTS, RATHER THAN FLAT-FEE COMPENSATION OR COMMISSIONS.
OK, so we get it - athletes & celebrities have been getting equity in companies... but how does this work for the average content creator or influencer?
WE HAVE SEEN A RISE IN “ANGEL INVESTING” & EQUITY FOR CONTENT CREATORS, TOO.
Examples include creators like Nicole Bruno from NoBread - she started investing her own $$ in exchange for equity for the companies she promotes, instead of just getting paid flat-fees.
In this case, TaylorMade even created a new company with Tiger Woods, called “Sun Day Red.”
This was done to provide Woods with equity, totally separate from TaylorMade & to give Woods more influence over the brand.
👀 CASE-STUDY #2 » ALIX EARLE & POPPI
As we talked about in the headlines section, Poppi & Alix Earle announced a new kind of partnership between them… an investment opportunity. As reported in Passionfruit,
“The creator-investor structure offers the best of both worlds. Brands land an authentic spokesperson. Creators expand their business portfolio with an established, high-growth brand. Brands are able to move past the traditional endorsement deal (and upfront investment cost). Instead, they can offer a creator equity in the brand’s business.”
This trend, however, begs the question of where the line is drawn between acting as an “influencer” versus a “founder” or “equity partner.”
As we discussed in last week’s issue, advertising rules in the UK & US still apply to “founders” (like Grace Beverley with Tala) or influencers with financial interests in the company (like Alix Earle with Poppi).
It’s still crucial that, when making a post promoting or featuring a product, this “material connection” is disclosed. Becoming an investor or a founder of a company is not an excuse to skirt FTC rules regarding advertising, like partnership disclosures.
GOSSIP COLUMN <3
… AKA personal updates. Sit down with your favorite morning cup cuz I’ve got some tea ☕️
I’m on cloud 9 ⛅️… Not only did I have a productive few weeks in NY (this place always brings out the best for my business & focus), & a relaxing past week in Canada (visiting Stony Lake with a special Skipper), but I also have an exciting week coming up, as I leave for a European adventure. This has been the first time in a long time when I feel like I can finally balance travel + adventure + creativity + client work + content + community / friends + loved ones + wellness (I know, that’s a lot). The only thing I am slightly skimping on is sleep (oops) & my skin is showing it.
Luckily, my PR package from Good Molecules arrived with a custom skincare routine for my lifestyle. This is my first beauty-related PR package and I am thrilled to let you know I am actually obsessed with the products. This isn’t sponsored (other than getting the free products), I’m not an affiliate, & they asked for nothing in return. I’m genuinely impressed with their line so far. Will keep you posted (on the skincare & potential for future brand partnership)!
The EuroSummer packing series continues… I’m narrowing down my outfit selection & packing list for my trip, using Notion + Pinterest. It’s a tough call deciding what to pack versus what to hopefully buy there as a souvenir (so far my souvenir hit list looks like: black Italian leather sandals, a cute dressy Italian leather purse for nights out, a gold charm bracelet, French skincare, & beach accessories from Türkiye). I know this might sound like a lot of luxury purchases, but I don’t shop designer, I rarely treat myself to nice clothes (bc I walked on dirt roads everyday for the last 3.5 years in Mexico) & these are staples for any wardrobe, am I right?!?! Jokes aside, I know I am very privileged to take this trip & consider “what will I pack / buy?!” slightly stressful. But on the other hand, this trip is much more than a vacation to me… it’s a coming-of-age story: I’ve finally matured enough in my life, career, style, finances, relationships to make the most of a trip like this & not take it for granted. After all, I am in my mid-thirties now… I joke that this means I need to buy a travel steamer / iron for vacations. If that doesn’t say “I am ready for a classy trip to Europe” then idk what does.
Collaborating & co-working really boosts my creativity & productivity. As you may know by now, I spent the last few months working closely with Jackie & Chey from Uupfront. We shot together for my personal brand shoot & I’m always impressed by their media team’s ability to set industry standards. This sparked a conversation to form a joint venture & create a contract template from scratch for photographers, videographers, creative directors & media teams. We had SEVERAL several-hour video calls coworking on the contract together… we spent MANY hours brainstorming contract terms, “what if’s?” & boundaries to protect media professionals… & we left TONS of comments to each other re: ideas, examples, & support. It’s been really refreshing & reminds me how much further we can go, when we go together. Community > competition, always. Watch our legal workshop for creatives, here.
OBITUARY »
We are no longer tolerating:
picking apart our appearances instead of taking tiny steps to feel more confident
procrastination
excessive consumerism & FOMO, feeling the need to make frivolous purchases
CLASSIFIEDS »
I’m looking to hire someone to help me with content repurposing & tech stuff. Here are the platforms I use: FloDesk, Substack, Notion, Instagram, TikTok, Pinterest, Linkedin, Showit, ThriveCart & soon bringing back the podcast. If you see a way you can help my business, send me a pitch at: nina@thecontractguru.com with subject line “HERE’S HOW I CAN HELP.”
PS… Got an opportunity you want to share? An event coming up? Looking to hire someone? Send a description & if it’s a fit for my audience, I will post it here in the classifieds section.
BRAIN FOREPLAY »
🍳 WEEKLY WORD SCRAMBLE »
NCRTTOCA
SAGUE
RACMAE
ENIUSAGTR
What’s the one thing these all have in common? Answers next week.
Last week’s answers: Carry, Checked, Packing, Voyage, Sarong. Theme = Travel
THAT’S IT FOR THIS WEEK <3 THANK YOU FOR READING!
See you next week!
xx Nina