On May 14, 2024, the company Influo, well known in the field of influencer marketing, officially declared bankruptcy, leaving hundreds of influencers and content creators in a precarious situation.
The news caught many users of the platform off guard, with some of them facing payment arrears reaching tens of thousands of euros. This article looks into the behind-the-scenes of this high-profile bankruptcy.
A story of promises and disappointments
Created in March 2015 and based in Ghent, the Influo agency had quickly established itself as a must-have platform for influencers and brands looking to collaborate in an efficient and organized way.
Promising a community of highly qualified creators and a simplified communication interface via its social-network-style feed, Influo attracted both major brands and small entrepreneurs alike.
A well-maintained façade despite financial troubles
On the surface, the agency continued to operate normally even after the bankruptcy declaration. Content creators reported that the platform was still offering paid campaigns that very day, fueling hopes of payments.
The company’s accounts reveal that Influo was already posting substantial losses, mainly due to staffing costs. In addition, Influo had raised more than €600,000 in investments in 2018.
Despite these obvious financial difficulties, Influo kept reassuring its users with repeated excuses about IT issues to justify payment delays. This situation dragged on for months until the bankruptcy, increasing frustration and uncertainty among creators.
Influo’s business model under scrutiny
Influo’s business model was based on brands prepaying for campaigns, thereby guaranteeing the availability of the funds needed to pay creators once the work was completed. However, given the scale of the financial losses, the question arises as to how these funds were managed and where they went.
A lack of transparency and communication
Influo boasted that it prioritized quality over quantity and maintained strong relationships with influencers. Yet this promise of transparency and communication seemed to collapse with the crisis. Creators, dependent on payments for their freelance work, found themselves in financial distress, misled by unfounded assurances.
The consequences of mismanagement
Influo’s downfall is a stark warning in the influencer marketing sector. It highlights the risks tied to questionable financial management and the crucial importance of transparency to maintain user trust.
Influencers and content creators, who trusted the platform for their career and income, are now faced with the difficult task of recovering what they are owed, in a context where the prospects of payment are dwindling.
Influo’s bankruptcy marks a turning point in the Belgian influencer marketing world. As content creators continue to seek answers and solutions, this situation underscores the need for stricter regulation and increased oversight of platforms that claim to facilitate collaborations between brands and influencers. Trust, once lost, is hard to regain, and it remains to be seen how the industry will respond to this scandal shaking its foundations.
Are you an affected creator? Here are the steps to follow:
1. Follow the tutorial by cetait_aurore, legal professional and content creator, to file your claim:
Then, get in touch so that you can be added to her collaborative Excel sheet, which aims to gather the data of everyone concerned