New Startup PlugForward Utilizing Data To Help Creators Monetize Their Value Through Entrepreneurship

It is no secret that there is a booming industry generated by content creators changing the landscape of marketing, with over $60bn of sales generated from creator-led campaigns in 2020. The data on this growth is undeniable, according to a recent forecast from businessinsider.com, the portion of companies using creator marketing is expected to rise from 62.3% in 2020 to 72.5% of companies in 2022. This has been driven by the proliferation of social media platforms and the data that they provide that allow creators, such as musicians, actors, and beauty influencers, to build more authentic connections with their fans. With the available data, brands are able to determine underperforming but high potential content, evaluate its ROI, and, ultimately, determine what content to create. Whilst the result is that influence has improved for the brands, the compensation offered to the creator does not always reflect the true value that they bring to the table. 

This has led to a new business model emerging, in which creators bypass traditional brand partnerships and launch direct-to-consumer businesses and products like non-fungible tokens (NFT’s). Everything seems possible when a creator has access to the same data as a brand, but that’s exactly where the challenge lies. How will they make sense of this data and grow their businesses without data literacy skills or access to the resources that can make sense of the data? The sad reality is that most creators will fail to leverage valuable analytics on their own. 

Two entrepreneurs, Tommy Williams and Chris Hunte, who between them have a breadth of experience that includes managing Grammy award-winning musicians, launching e-commerce businesses and investment banking have started a venture studio to co-found businesses with creators, named PlugForward. 

Background

Tommy and Chris have relatively different backgrounds. Tommy, a London native, gained a place at Oxford University, where he studied Economics & Management before working on the trading floor at Goldman Sachs. He had always dreamt of working in a more entrepreneurial capacity, therefore when an opportunity arose to join e-commerce giant Rocket Internet, at their portfolio company Jumia in Lagos, he took it. This developed a passion for e-commerce and over the years that followed he launched multiple businesses personally across beauty and fitness. Additionally, he spent time working with ZX Ventures’ portfolio company Master Of Malt developing, launching and selling drinks brands before spending some time at Amazon FBA aggregator Heroes where he helped to build out their Brand Management team. 

Chris also grew up in London, a Computer Science graduate with a passion for data he took an unorthodox path and entered the music industry working as an A&R at The Ingenious Group before going on to be a part of the founding teams for Warner Music Group imprint Black Diamond Records and Black Butter Records joint venture Broken Records. Since then he has worked as a consultant and guided clients with creator projects such as Chris Brown, Jessie J, and Rick Ross across a variety of areas from negotiating deals to utilizing data to launch and manage viral marketing campaigns for global brands such as Beats By Dre, Nike and Unilever.

PlugForward’s Mission

The two came together in 2021 and through numerous conversations exchanged notes on the effectiveness of marketing campaigns driven by creators and also whether they are fairly compensated. They have noticed a significant appetite from creators looking to diversify their income streams after a tough period during the COVID-19 pandemic when other income streams such as live performances slowed down. 

Citing examples such as Rihanna with Fenty, George Clooney with tequila brand Casamigos and Kayla Itsines with Sweat app, the concept of launching businesses with creators has started to evolve. The company had largely been operating in stealth but launched formally at the start of 2022. Based on the data collected over the years, the duo target creators at the larger end of the spectrum with their unique algorithm, identifying which creators are most suitable for certain products. The duo understands the advantage data can offer them in a space such as this, and so far have added a number of musicians and influencers to their roster, including Grammy award-winning musicians and popular cultural figures from both the U.K. and the U.S.

The business model at PlugForward is they co-found businesses across four categories which include direct-to-consumer e-commerce stores, Amazon FBA stores, Digital products such as courses and they also launch NFTs. They fund the business, manage all operations and set up so the creators can focus on their craft and ownership is shared. However, the most important part for them is how the business operates post-launch. 

They leverage the data gathered from the initial launch and their database to drive further sales and continue to grow the business in perpetuity where they will benefit from higher conversion rates than traditional non-creator-led businesses for significantly lower marketing spend in a climate where companies are struggling to optimize paid ads. 

Working with a company like PlugForward is a way that creators can truly leverage the game-changing benefits that data promises. Without it, creators would simply have to go with their gut and create content that may or may not resonate. Following a data-driven approach will avoid wasting time connecting with the wrong audiences in the wrong places. Working with data, PlugForward will help identify target audiences and their trending topics, channel-specific preferences of potential customers, and match them to the creators most relevant to those groups.

The team has been backed by several prominent investors from a range of fields including e-commerce, cryptocurrency, and private equity, and have big plans to launch 10 businesses this year. If you’re a creator or someone who manages a creator you can find out more about PlugForward here. 

This is another great example of the power of data and the benefits that it provides to those that are willing to work with it.