Outlandish's Response to me regarding the new Brand Adspend policy

Here is an explanation as to why brands reduce commissions during ads spend and how creators actively benefit from it.

Cost Breakdown for Sellers: Sellers pay multiple costs when running ads; creator commissions (e.g., 20%), ad spend (e.g., $10), and platform fees (e.g., 10%). These combined expenses often result in sellers losing money.
Sellers’ Hesitation to Advertise: Due to the high costs, many sellers refuse to run ads on creators’ videos, reducing the videos’ potential reach and sales impact.
Importance of Profit Margins: Sellers need a 60%+ profit margin to justify running ads. If creator commissions are lower, sellers can afford to spend more on ads, leading to higher exposure for creators’ content.
Double Attribution: With ads, sellers are essentially paying twice, once for creator commissions and again for ad spend. Reducing commissions balances the cost and makes advertising viable.
Better Outcomes for Creators: More ad spend on shoppable videos means greater reach, increased sales, and potentially better long term partnerships with sellers.

14 comments