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Are you navigating the complex world of influencer marketing? What do you look for in an ideal creator-agency collaboration? Many agency owners focus solely on follower counts when seeking creator partnerships, but is that really the key to success? Our featured guest launched his influencer marketing agency in 2019, anticipating the explosive growth of the creator economy. Having built his business over the past five years, he brings valuable perspectives on what truly matters in creator-agency relationships. Through both successes and setbacks, he's developed a nuanced understanding of what makes these partnerships thrive. Tune in for insights into the influencer industry and the challenges of running a business with a partner.

Alex Sunshine is the founder and CEO of Rising Suns Agency, a social media influencer agency that specializes in connecting brands and influencers. He built his agency five years ago when he noticed a need for more representation from influencers. He’ll share the complexities of mixing business and personal relationships, why real influence and trust is worth more than millions of followers when working with influencers, and the future of the influences economy.

In this episode, we’ll discuss:

What you should look for in an influencer partnership.
Setting realistic expectations for a successful creator-agency relationship.
The future of creator economy in the AI era.

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You Are Who You Associate With: Being Cautious Agency Partnerships

Alex's journey into the influencer marketing industry began organically, helping his then-girlfriend manage sponsorships and grow her social media presence. Although their relationship eventually ended, this experience proved invaluable when he launched his own agency in 2019, having identified a growing need for professional influencer representation.

Over the past six years, his agency has flourished, now employing a team of 25 people. However, this growth journey has taught Alex one crucial lesson: the importance of careful association, particularly when it comes to bringing new people into the business.

In his view, agency owners make the assumption that bringing in a partner or employees is straightforward and that they share their same level of skills, independence, and character. However, that is not necessarily the case and even three months might not be enough time to learn about someone’s true character.

While there are strategies like starting with temporary arrangements, such as 1099 contracts, before transitioning to more permanent roles, Alex draws an interesting parallel with dating and admits there are many variables. In the end, you can’t be sure what you’re going to get so be very careful with who you associate your agency brand that you’ve worked hard to build.

His advice is to be vigilant and take time to thoroughly evaluate potential partners' values, work ethic, and overall compatibility. After all, a business's success isn't solely determined by its products or services – it's equally dependent on the strength and integrity of its partnerships.

Working with Influencers? What You Should Look For

The key to successful influencer marketing isn't necessarily working with those who have massive follower counts. What truly matters is finding individuals who have carved out their own distinct niche and built a trusted relationship with their audience, regardless of its size. This trust becomes the foundation for authentic engagement and meaningful impact.

The most effective influencers are those who remain true to their genuine passions, whether they're sharing financial advice, discussing tech trends, or creating entertainment content. Their authentic approach naturally creates a unique identity that resonates with viewers. Modern audiences have become increasingly sophisticated, gravitating toward creators who offer genuine insights and relatable experiences rather than carefully curated personas.

This shift in audience preferences reflects a broader evolution in influencer marketing. Today's followers are less impressed by flashy displays of lifestyle and wealth; instead, they seek content that adds real value to their lives. This transformation emphasizes the importance of substance over style, with successful influencers focusing on creating meaningful, impactful content.

To effectively deliver value, influencers must deeply understand their brand partners' challenges and create content that meaningfully addresses these issues. Those with truly loyal audiences typically invest time in developing their unique content format rather than simply chasing trends. Success comes from self-awareness – understanding their strengths and weaknesses – and creating content that authentically showcases their personality while serving their audience's needs. This genuine approach is what ultimately captures and maintains audience attention.

Setting Realistic Expectations in an Ever-Changing Market

Success in the creator economy isn't a simple equation of strategy plus talent. As Alex learned through experience, there are numerous external factors beyond anyone's control that significantly impact outcomes. Early in his career, he made the common yet crucial mistake of over-promising results to creators based on past successes.

While these promises were grounded in previous achievements, Alex now recognizes the fundamental flaw in this approach. No matter how impressive an agency's track record, they remain subject to ever-changing market dynamics. This reality check led him to rethink how he communicates with potential clients.

Today, Alex advocates for a more measured approach: setting realistic expectations from the start. Rather than making grand promises, he transparently shares his team's past achievements while emphasizing that similar results—not necessarily greater ones—are what they confidently aim to deliver. This honesty in communication serves a dual purpose: it builds trust with creators and helps them understand that success often requires patience.

By establishing this clear understanding early in the partnership, creators are more likely to remain committed to the long-term process, even when immediate results don't match their initial expectations. This alignment of expectations ultimately creates a more sustainable and successful relationship between agencies and creators, benefiting all parties involved.

The Future of the Creator Economy in the AI Era

In Alex’s opinion, creators are not in the brand conversations as much as they should, with a lot of companies still investing in billboards and TV commercials. There’s a massive marketplace growing for creator spend and a lot of need for innovation.

There’s a lot to see about the creator economy’s future and many things will change thanks to innovation like AI. For instance, brands are increasingly exploring the creation of AI-driven accounts to manage their online presence, allowing for greater control over their messaging and engagement without the unpredictability that can accompany human influencers. This shift toward AI highlights the efficiency technology can bring and underscores a desire for consistency and brand integrity in an ever-evolving digital landscape.

However, despite its promise, AI is not without limitations and its rapid advancement raises ethical considerations around authenticity and trust. As brands increasingly turn to AI for content creation and customer engagement, there is a growing concern about the potential for disingenuous interactions. With this in mind, the challenge lies in striking a balance between leveraging AI's capabilities and maintaining a human touch that fosters trust and connection. Ultimately, the future belongs to those who can navigate this landscape with integrity and a commitment to serving their audience's needs.

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Lessons to Get Ahead in the Creator Economy with Alex Sunshine | Ep #743