Tedious TDS

How will the new TDS rule on freebies impact content creators? An influencer marketer and manager debate

“This will build a trust in creators among their audiences”

With this new addition, ethical advertising will definitely start taking shape again. This move not only regulates and validates the creator economy, but also will help add a layer of authenticity to brand promotions. Creators will start promoting products that they strongly believe in and use themselves, rather than just post a story or give shoutouts as an obligation in return for a PR package. They will need to carefully pick and choose what brands align with their core values and fit their image ecosystem. This will actually benefit creators by building a strong trust factor and accountability with their audiences, and give them a long retainer with brands rather than push them to blindly jump to the next PR collaboration.

“CREATORS WILL START PROMOTING PRODUCTS THEY BELIEVE IN, RATHER THAN JUST POST A STORY AS AN OBLIGATION IN RETURN FOR A PR PACKAGE.” — VIVEK AHUJA

“IF A CREATOR GETS A GADGET WORTH ₹1 LAKH, THAT ₹1 LAKH WILL BE ADDED TO THE CREATOR’S INCOME AND THEY WILL PAY TAX ON IT” —NEEL GOGIA

It’s a win for brands as well because they’ll be able to find authentic brand ambassadors who are actual users of the they endorse.

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For micro and nano creators who are just starting out with their journey, while this may seem like a setback since the majority of their collaborations are structured as barters with brands, this also is an opportunity for them to reassess and push for monetary compensation for the services they render, making it a fair exchange.

Vivek Ahuja is an artist manager & content strategist and heads an audio production company.