Small finfluencers feel the pinch amidst YouTube clampdown: Experts

The primary revenue source for financial influencers—producing content on YouTube—seems to be under threat. YouTube has begun restricting access to videos created by financial influencers and registered analysts in India due to complaints from a government agency.

The online streaming giant's response to Mint regarding this matter indicated that it has implemented established policies for managing content removal requests from governments, regulators, and law enforcement agencies.

The platform stated, “We review these requests when notified through the appropriate legal processes and also assess content for any violations of our community guidelines."

The exact number of financial influencers in India remains uncertain; however, the sector has experienced significant growth. Creators like Pranjal Kamra, Rachana Ranade, and Sharan Hegde have garnered substantial followings by distilling intricate financial concepts for a wide-ranging audience.

However, YouTube's actions correspond with heightened examination from the Securities and Exchange Board of India (SEBI) regarding unregistered or unqualified investment guidance.

In June, SEBI implemented initial regulations aimed at protecting investors from potentially deceptive financial advice and ensuring that financial influencers function within a regulated framework.

SEBI also informed brokers and mutual fund companies to terminate collaborations with unregulated financial influencers for their marketing and advertising initiatives.

This regulation resulted in the elimination of more than 15,000 'content sites' operated by unregistered financial influencers.

The abrupt removals have led to significant upheaval for financial creators dependent on YouTube revenue.

Sahil Chopra, founder and CEO of iCubesWire, an influencer marketing agency, notes that smaller influencers with follower counts ranging from 1,000 to 100,000 are especially affected.

“Many of these influencers saw rapid growth during the pandemic without fully understanding the now-stringent guidelines,” he says.

CA Sakshi, a financial educator boasting 1.7 million followers on Instagram, perceives this action as a step towards more secure and reliable financial content.

She stresses the importance of clear and transparent guidelines to help creators understand content standards and avoid unintentional violations.

“For small creators who are authentic, this shift can be particularly challenging. Additionally, for those solely dependent on YouTube for income, this development has directly impacted their livelihoods,” she notes.

Sakshi refers to smaller creators with followings between 200,000 and 500,000.

Ramya Ramachandran, founder of Whoopl, highlights that the recent crackdown underscores the dependence of creators on platforms, exposing their vulnerabilities.

“YouTube’s decision not only impacts the income streams of finance creators but also underscores the reality that creators, regardless of their size or niche, are ultimately at the mercy of platform policies that can change overnight,” she highlights.

She suggests that, although the crackdown might seem like a hindrance, it offers a chance for flexible creators to develop something robust, impervious to the fluctuations of algorithms or shifts in policy.

In response, some financial influencers are diversifying their income by offering courses and membership programmes. Influencers such as Ankur Warikoo, Sharan Hegde, Rachana Ranade, and Pranjal Kamra are offering online financial courses, creating an additional stream of income.

(Read more: https://www.afaqs.com/news/influencer-marketing/sebi-finfluencer-clampdown-likely-to-force-them-to-find-alternate-revenue-streams)

Rachit Sharma, head of brand solutions (south and west) at Qoruz, an influencer marketing agency, voices concerns regarding smaller influencers who possess authentic knowledge but might be unjustly scrutinised.

“Some smaller influencers lack resources to navigate the complex regulatory landscape and may not have formal financial training, but they still provide valuable insights, especially to underserved communities,” he explains. 

He warns that YouTube’s crackdown could stifle diversity in the financial content space, favour established brands, and deter new creators from entering the field.

Experts agree that while regulating financial content is essential to protect viewers, YouTube must consider the impact on smaller influencers.

It is widely held that YouTube should establish clear guidelines, supply resources, and deliver training to assist creators in maintaining compliance and nurturing a balanced financial content ecosystem.