Influencers decry pay disparity

Hey all, it’s Alicia Clanton in New York. Social media influencers are still largely flying blind when it comes to pay. But first...Three th [View in browser]( [Bloomberg]( Hey all, it’s Alicia Clanton in New York. Social media influencers are still largely flying blind when it comes to pay. But first... Three things you need to know today: • US prosecutors widened a probe of SAP and [tech reseller Carahsoft](. • Italy and Asterion made a new bid for Telecom Italia’s [subsea cable unit]( • Google is working on AI that resembles human reasoning, seeking to [catch up to OpenAI]( No rules Style influencer [Jamie Hamilton]( was a newcomer to the world of social media marketing a few years ago when she landed an exciting deal to promote a clothing brand to her Instagram followers. She negotiated a price she was proud of, but a year later, Hamilton befriended another model on that same campaign and found out she’d been paid thousands of dollars less. The two influencers had roughly the same number of followers. The only difference was Hamilton was considered “plus-size” and her friend was not. Hamilton’s story is, unfortunately, not unique. I spoke with nearly a dozen plus-size influencers over the past few weeks who have gone through similar situations related to pay disparity. Some say their jobs have also gotten tougher as some brands have pulled back from body positive clothing campaigns [citing a lack of demand](. Pay disparity has touched other groups as well. Some reports have found that [Black influencers are drastically underpaid]( for example. The social media influencer industry is so unstructured, though, that these stories can be hard to track, which can make the issues worse. It’s not unusual for creative, gig-based industries to be informal or even disorganized when it comes to someone making a name for themselves and earning a living. But I spent the past few months reporting on the world of social media influencers and have been surprised at just how unstructured this massive industry still is.  Influencer marketing isn’t just affecting the way people spend money — it’s now changing the way people digest news and engage in politics. Influencers are serving as guides for an entire generation of [young people following the Olympics]( and could shape [voting decisions come November](. The industry is expected to grow to about $24 billion by the end of this year, [according to the research firm Influencer Marketing Hub](. One estimate predicts that by 2027, creators could add [half a trillion dollars]( to the US economy. This is no longer just some side hustle industry for a few select Instagram stars. But as substantial as this work has become, it’s also an industry with serious problems around compensation. Pay is often kept secret and there is no official market rate for posts or brand deals. Some creators work with agencies who position them better in negotiations, while others try to negotiate with billion-dollar brands on their own. Deals are haphazard, making them difficult to track and compare. Influencers have few if any of the legal protections of a corporate job even though their work is profitable for the companies they represent. Their businesses can fall just as quickly as they rise, and brands can select or ignore them for opportunities at will. Some of these influencers are the same children that lawmakers are struggling to protect online. Just two US states have laws requiring parents to set aside a [portion of profits that child influencers make]( and neither law restricts how many hours these kids can work. As massive as influencer marketing has become, one would think it would be more standardized. My time covering the industry left me with the belief that there should be more rules when it comes to simple questions of compensation, structure and protections. But for now, creators seem to rely on the help or advice from professionals who are in the know or friends willing to open up about their own business experiences. Unfortunately, it’s a strategy that simply doesn’t scale.—[Alicia Clanton](mailto:aclanton2@bloomberg.net) The big story OpenAI closed a huge fundraising round that valued the company at more than $150 billion, making it one of the three most-valuable [venture-backed startups](. Microsoft, which has already invested $13 billion in OpenAI, pitched in another $750 million in the round. One to watch [Alok Sama, former president and chief financial officer of SoftBank Group, is interviewed on Bloomberg Technology about his new book that takes a look behind the scenes at big deals made by the powerhouse investor.]( Get fully charged Nvidia is teaming up with Accenture [to boost corporate AI use.]( YouTube channel Dude Perfect hired as CEO the man who ran the National Basketball Association’s [digital and social platforms](. AI will only take about 5% of jobs in the workforce, says an MIT economist who worries too much money is being thrown [at the emerging technology](. The Philippines needs to address a skills gap among its workers as it seeks to defend its share of the nearly $300 billion [call center outsourcing business](. More from Bloomberg Bloomberg Screentime: The swiftly shifting entertainment-business landscape — from the ascendance of women’s sports to the impact of artificial intelligence on content creation, new disruption in gaming to strategies for winning the streaming wars — is on the agenda at the Screentime conference Oct. 9 — Oct. 10 in Los Angeles. Join Bloomberg’s Lucas Shaw in conversation with media executives, actors, dealmakers and trendsetters from Sony Music Group’s Rob Stringer to Snoop Dogg. Don’t miss our exclusive, in-person experiences as we help define the next era of pop culture. [Get your tickets today](. 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