Famous Allstars: Form a "Creator Venture" to a Fundraising Plan (Part II)

This is part II of two writings. Writing Part I presents the views of the Co-CEOs of Famous Allstars Alex Wijaya and Arief Rakhmadani on the landscape of the creator economy, monetization, and regulation in Indonesia.  

How was the transition going when Famous and Allstars merged?

Arief (Ar): Post-merger, Famous Allstars (FAS) has three business pillars, namely (1) agency linking brand and creators, (2) talent which is now part of the ecosystem creator economy, and (3) technology through the platform Allstars.id. For us, these three pillars provide a solid foundation to move into areas of potential growth, both when it comes to Web2 and Web3.

Alex (Al): Usually, during a merger, [businesses] are cut left and right because there is duplication. private, when GoViral, Avenu, Indovidgram, and KokikuTV merged to become Allstars, and Allstars merged with Famous, the entire business model did not duplicate each other.

Indovidgram operates in media that focuses on developing creators in the community. The model similar with KokikuTV and Avenu, but each operates in the F&B and beauty-fashion. Meanwhile, GoViral is moving in community and buzzer. When we joined Allstars, all of our business pillars complemented each other. Even though they operate in different industries, the goal remains the same.

At that time, Famous was conventional agency who works with brand to create influencer marketing campaignsg, projects, or strategy. All business models are in synergy, which is why Allstars owns it agency, connecting with brand. Famous actually got it inventory that can be brought to brand.

How does the Allstars.id platform meet the expectations of creators and brand?

Air: Feedback from the creator and brand is a factor why the FAS business continues to grow. One that is desired brand pada tech platform influencers is the capability to view demographic performance. At Allstars.id, brand You can search based on eight demographic categories. For example, a brand want to find creators from Surabaya with numbers follower around 1.000-10.000 with that budget. In fact, a lot brand who works with an influencer or small scale creators.

From the creator's side, they want to know how much rate card for his work. We then created a calculator feature, a kind of simulation, to calculate that. For example, costs engagement rate 3% is a fair price. So, we developed tools based on feedback from them. Our product team also provides input, such as security and payment aspects. Another example, we ask for consideration from the creator, when is the ideal time withdraw when the project is completed.

In the near future, we will launch the feature measurement on the Allstars.id platform to find out performance from the creator and brand. This capability will also likely be platform independent (separate) because there are many creators and brand who want to know their performance. Apart from that, we also have something interesting going on too, namely live streaming.

In measuring a metric campaign, how to develop tools to accommodate needs of various categories brand?

Air: In general, we develop tools from pre-planning, campaign, to post-campaign. For example, brand want to use as many as 50 an influencer for a campaign. Brand want to know how much engagement rate or content that the creator has worked on, according to the agreement or not.

Actually, for this metric, creators can just look at it social media assets they. But our features are directly on one platform. To measure metrics by category brand different, actually there are many. For example, Return of Investment (ROI), or engagement rate and cost per view as a metric standard. For now, we are not that deep [in development tools] for more complex metrics, such as the number of sales generated from a campaign or where the sales come from,

By: The reason we formed Allstars.id from the start was because we wanted to accommodate the needs of MSMEs. So far, most people have used it agency is brands big. But creator economy it's not just needed by big brand, but MSMEs. Cost agency it is expensive and MSMEs cannot possibly use it. They need it job, with the number follower small ones, how do they monetize their services or work. If MSMEs get job, they can increase popularity, skillset, and audience.

Talking about developing innovation, our platform makes it possible brand for creator filters or an influencer what they are looking for. Vice versa, an influencer can also search brand. Other than that, we take it further [a capability] where brands can search for creators based on demographics follower-his. This could be starting points which is good because we develop capabilities on the side discoverability and deeper analytics.

Formerly brand make campaign using service agencies, they meet for discussion, then make a report in power point form. On this platform, activity campaign can be monitored in dashboards. Brand you can use the capabilities we provide, for example tracking campaign in a manner real-time, no need anymore agency send reports in Power Point form. Brand can monitor performance an influencer what they use, such as quantity post, like, comment, or how much ROI can be obtained with that budget.

All of these capabilities will bring Famous Allstars to Next Level. That's what we aim for, we push from a technological perspective, it's not just [digitizing] conventional methods from a method agency work.

What plans is being prepared by FAS this year?

By: Beyond feature development, we believe there is future plans which is interesting and will be our next focus, namely creator venture.

Creator venture is a collaboration between FAS and creators to establish a business. This is nothing new, just the term. The business model is old. For example, Geprek Bensu is a business founded by the creator/an influencer. Another example, Kylie Jenner founded a business Skincare and cosmetics.

Previously, we had formed j together with RANS Entertainment to establish new media Bund Lifetainment, then investment from EMTEK to establish 1ID Entertainment. Second, we collaborated individually with Bayu Skak, one of them talent us, to produce the film "Youwis Ben".

We see creator venture will be the next wave to go. This is one way for us to move to the next level. We don't just become stakeholder, managing talent, or connecting brand, but also strengthen relationships by deepening business with creators. I'm sure every creator has one passion, but it may not necessarily be possible to run or capitalize on your own. Here, they will have ownership of the business they built.

Is [this way] make sense to be sustainable business? So far, we have only collaborated on a limited basis commercial or transactional deals. But, we want to become partners next, right? agency or management. Creator venture will be an important part of identifying which creators can work with FAS.

What is the business model creator venture?

By: We identify two interesting pillars, namely F&B and beauty. We look at both of these businesses sustainable and enough ever lasting, Have high growth margin, proven profit, and the industry won't die--it's not like it won't have an impact, right? Apart from that, there are many creators or an influencer in these two sectors.

We explore sectors beauty in Indonesia, because local players and market potential are very large in Indonesia. We'll see acceptance to brand local is very high. As well as appetite market, they have great exploration power.

The essence of creator venture is the creator has ownership of the business. There are two models, (1) forming j (JV) and (2) providing investment into businesses that creators already own. Variations in [share] ownership are a matter of agreement, but the essence can be mutual co-owned.

Does FAS plan to fundraising in 2022?

By: Everything we said above starts from searching talent, develop innovation, and create venture new, that requires funding. Since last month, we spoke to more than ten venture capital (VC). Goal us, it doesn't matter funding just and neglect VCs who have already invested in FAS, but are looking for synergies. creator economy very broad, that's why VC can fulfill it goal we become important because they will carry and connect FAS to network wider.

In context creator venture, if one of the VCs we are exploring has expertise or portfolio in F&B and beauty This can make it easier for us to develop the business. If there are languagest is great in F&B, we can connect to the network owned by VC. So, we searched expertise, network, and portfolio so that we can accelerate the business we will build.

Regarding investment from EMTEK, of course there is a big synergy because EMTEK is media mogul. Our focus remains on entertainment media and EMTEK's synergy will make it easier for us to develop talents. EMTEK has an ecosystem, we can play a role sourcing talent for them too. That is the pillar of our collaboration with EMTEK. It's beyond funding.

Plus, it's easier for us to build creator venture This is because it utilizes EMTEK's large ecosystem to accelerate its business growth.