GTM Sauce

An e-commerce brand paying on performance · B2C · discussed example

Pay creators only a share of ad spend or sales, nothing up front

One creator made 35 videos before earning; hurts loyalty

Mixedugc-creatorscreator-ops

What they did

Brand asks creators for e.g. 10 ad creatives with nothing up front, paying a percentage of ad spend or of tracked sales if an ad is run and wins.

What happened

All risk is on the creator: one made 35 videos before earning a dollar. Good for brands that can find creators to accept it, but hurts creator loyalty; most creators want upfront pay.

In their words

Drew Levin - I Studied 1,000,000 UGC Ads, This Is What Will Grow Your App

Play from 41:12

… this is like we have the creators oauth their accounts in and all the spark codes are directly delivered to your account so like you're guaranteed them have you ever seen people do pure performance based just ad creatives like from the beginning you just say just make ad creatives for me and then i'll give you a percentage of spend the issue with it it's hard to build creator loyalty a creator i talked to a creator yesterday who was doing this

41:12

for an econ brand he said he made 35 different unique videos before he made a dollar because they didn't get run as paid or they like got ran as paid for like five minutes or like you know what i mean like it was clearly like not a winner quickly so this gives the brands essentially infinite upside with all the risk being put on the creator so if you are a brand and can find creators to do this definitely do it and if you're a creator i would never do this i guess with ad creatives like you don't need to spend as much time like iterating on stuff you kind of just like follow directions on a brief instead of like oh i need to go viral because i'm getting paid for

41:44

views yeah i do think that ad creative videos take longer to make and i do think that the brands it's somebody you see like the more creatives the better the more you're testing the better so the ask from the brand to the creator is like make me 10 videos and i'll pay you nothing up front and then if they do well then i'll pay you a percentage some of them are not even doing percentage of spend they're doing percentage of sales because because …

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Tags: meta, creator-comp, performance-only, rev-share