Ways to Protect Yourself as an Influencer?‍

These days, it's never been easier to make money online. One of the simplest methods is to become an influencer, meaning you create content and build a following. As your audience grows, you can monetize it by partnering with businesses, selling products to your followers, or generating ad revenue with your content.

One of the main advantages of being an influencer is that you have the flexibility and freedom to work however you like. You can create content on your schedule, and you can come up with as many creative ideas as you like. Plus, once you build a following, you can earn a substantial income, giving you financial freedom as well.

On the other hand, though, being an influencer isn't all sunshine and rainbows. Not only is there incredible pressure to keep up with content creation, but everything falls on your shoulders, from ideation to shooting to publishing and everything in between. On top of all that, you must also protect yourself financially and legally.

So, with that in mind, let's go over the various ways you can protect yourself as an influencer, no matter the size of your audience.

How to Protect Yourself as an Influencer

Once you start making money from your content, you must abide by specific rules and regulations. Depending on the type of content you create, you may have to navigate more obstacles and challenges than other influencers. For example, if you like to talk about popular culture, including movies, TV shows, and music, you must make sure you don't violate copyright protections.

Although the specific hurdles you'll have to overcome may be unique to your content, here are some general ways to protect yourself and your earnings as an influencer.

Form the Right Business Entity

There are four types of business entities you can create when starting a company. They are:

● Sole Proprietorship - You're the only employee and the one in charge of the business. All income is regarded as personal income, so you're liable for your business earnings and debts.

● Limited Liability Company (LLC) - You can form an LLC by yourself or with other partners. As the name suggests, you have limited liability when it comes to business earnings, assets, and debts.

● Partnership - A partnership exists between two or more people, and it can only continue to exist as long as everyone in the original agreement stays a part of the company. The partnership document outlines individual liabilities and responsibilities within the business.

● Corporation - A corporation is a separate legal entity, so you have to create a rigid company structure, including having a CEO, CFO, etc. While a corporation limits your liability the most, it can also cost more with taxes.

As an influencer, an LLC might be a good option because it limits how much liability you have within your company. So, if you have to borrow money (i.e., to pay for film equipment and props), you're not personally on the hook for those debts. Also, if you want to hire other people like assistants, editors, or camera operators, you can do so with an LLC. If you're a sole proprietor, you can't have employees.

Forming the right entity is crucial because it affects how you can earn money. For example, some entity types have to pay a portion of their profits to the government for the right to remain in business. LLCs have to pay an annual fee to stay open, which can vary from one state to the next. Also, if you maintain separate earnings between yourself and your business, you can save on taxes.

Thankfully, starting an LLC is quick and easy, and it's often the best choice for new and established influencers. It offers a lot of flexibility with how you structure your business, so you can add more executive officers as needed without having to dissolve the entity.

Maintain Privacy and Safety Online

At first, it may seem virtually impossible to maintain privacy as an influencer since your name and face are part of the "brand." However, just because you're the star of the show doesn't mean you can't maintain a separation between your personal and professional life.

For example, it's often a good idea to create a stage name. Most big influencers do this (e.g., Mr. Beast, MatPat, etc.) to maintain some level of anonymity and privacy in their personal lives. Your stage name can even be a play on your real name, such as an anagram. For example, the singer Halsey's real name is Ashley—she just rearranged the letters to make a stage name.

Behind the scenes, you can separate your influencer life from your real life by using unique email addresses, contact numbers, and bank accounts. Not only will doing this help you avoid overzealous fans from getting too deep in your personal life, but it will also help you keep your business cleaner and more organized and keep your personal data protected. From an accounting and business management point of view, the more separation you have, the better.

Get Insurance

If you're still new in your influencer career, buying insurance may seem like an unnecessary expenditure. However, as you start making money and expanding your business (i.e., hiring employees), insurance is a must. Here are some of the main policy types to invest in as a business owner:

● Umbrella Liability Coverage - This type of insurance protects you and anyone working for you from lawsuits and other liability claims. Even if you're at fault, this coverage can help pay for legal bills and settlements so they don't come from your company accounts.

● Defamation Insurance (aka Media Liability Insurance) - When creating content about other people or organizations, you could wind up with a defamation lawsuit. While general liability coverage may include defamation, it's also a good idea to get a separate policy for this purpose.

● Commercial Property Insurance - As you grow your following, you may be able to move into a dedicated studio or office space. Since you're using this space for business purposes, you need commercial property insurance. This way, should anything happen (e.g., a fire or natural disaster), you don't have to pay for repairs out of pocket.

● Cyber Insurance - Since your business lives mostly online, you're more susceptible to cyberattacks like ransomware. While you can take steps to mitigate this threat, it's also good to get a cyber insurance policy to cover any losses from an attack.

● Commercial Auto Insurance - If you have any "company" vehicles that you use for your content, you need to buy individual commercial auto policies. These policies work well because they allow employees to drive the vehicles without having to name everyone on the paperwork.

Overall, the costs of an accident or lawsuit can derail or destroy your business. Even if you have a massive following and substantial earnings, these expenses can make it harder to keep your company afloat. So, it's much better to invest in various insurance policies, so you have total peace of mind. Also, discuss your specific situation with your insurance agent to ensure you have sufficient coverage for any unforeseen incidents.

Utilize Contracts and Agreements

As an influencer, contracts are critical for long-term success. One of the best ways to earn money as an influencer is to partner with other companies and brands. Without a contract, you could wind up in a bad situation, such as earning less than you were promised or ruining your partnership over an unforeseen circumstance.

Even if the project seems easy and straightforward, it's always best to have everything in writing. Contracts protect everyone involved and ensure that there are no assumptions or miscommunications within the partnership.

That said, it's also critical to read any contracts that another brand or business may have you sign. Sometimes, they may have clauses that prevent you from making specific types of content, such as a "no-compete" clause. In this case, you may not be able to create content for competitors of that brand, which could limit your earnings potential.