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I think we've all seen enough of these stories to know that influencers take the piss etc etc - and articles like this always get coverage because we love to be

by iamben 6y ago

I think we've all seen enough of these stories to know that influencers take the piss etc etc - and articles like this always get coverage because we love to be outraged, but I don't know why more businesses haven't adapted. My brother works for a brewery - they often get influencers asking for free beer. They respond - "yeah absolutely, of course. Pay for this order, here's a code to give to your followers. When we've covered the costs of your order we'll refund it and send you some extra stuff." Some people take them up on it, others don't. Which I assume separates the wheat from the chaff.

JoshTriplett 6y ago
That sounds like a great way to handle it. Of the people who take them up on that offer, how many manage to generate sales? How many generate enough sales to actually cover the costs?
- iamben 6y ago
  I've just asked him for you. To paraphrase - most people take them up on it (nothing to lose). Some people never place an order, lots of codes are never used. Some have been used many, many times - but often they'll then go on to find them on the voucher code sites (at which point they'll usually just bin the code).
brtkdotse 6y ago
In Sweden, influencer deals have been deemed as exchange of services by the tax authorities. In the example above the influencer has taken payment for rendered services in the form of goods. If there isn’t a corporate entity formed, that’s getting taxed as income.
- dmurray 6y ago
  I'd expect the same in any tax regime. If someone gives you something, that's income. Exemptions are usually small. Are you saying something specifically relevant to the deal above where the influencer doesn't receive any freebies until they've brought in some sales?
- oliwarner 6y ago
  Makes me wonder if a company could "give" the influencer something that looks benign with an extravagant retail price (£100k+) that costs very little to make, and tip off the tax authorities. Would love to see HMRC come down on these jobsworths.

by iamben 6y ago

JoshTriplett 6y ago

That sounds like a great way to handle it. Of the people who take them up on that offer, how many manage to generate sales? How many generate enough sales to actually cover the costs?

iamben 6y ago
I've just asked him for you. To paraphrase - most people take them up on it (nothing to lose). Some people never place an order, lots of codes are never used. Some have been used many, many times - but often they'll then go on to find them on the voucher code sites (at which point they'll usually just bin the code).

brtkdotse 6y ago

In Sweden, influencer deals have been deemed as exchange of services by the tax authorities. In the example above the influencer has taken payment for rendered services in the form of goods. If there isn’t a corporate entity formed, that’s getting taxed as income.

dmurray 6y ago
I'd expect the same in any tax regime. If someone gives you something, that's income. Exemptions are usually small. Are you saying something specifically relevant to the deal above where the influencer doesn't receive any freebies until they've brought in some sales?
oliwarner 6y ago
Makes me wonder if a company could "give" the influencer something that looks benign with an extravagant retail price (£100k+) that costs very little to make, and tip off the tax authorities. Would love to see HMRC come down on these jobsworths.