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Choosing Independence or Allegiance

Feb 14, 2024, Update: Feb 15, 2024, author: Hairstrokes.com / Holistic PMU
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"Deciding on affiliate relationships is crucial for artists in the brow business at some point in their careers. This article examines the pros and cons of joining academy models and corporate affiliate programs based on insights from experienced artists. It's informative for independent artists and those who align closely with these systems."

1. Background


This article is based on 251 interviews with pigmentation artists. Each artist has at least three years of experience. Most specialize in microblading, powder brows, hairstrokes, and lip pigmentation. These artists are from the EU, with 12% in the United Kingdom and 7% in the US. The research took place from 2019 to 2024. Some studies are still ongoing. They explored aspects of career planning and business success.

About 18% of the participants were artists with over seven years of experience. Their views were very similar, almost identical. There was a firm agreement on the main findings.

This article highlights the key pros and cons of participating in any hierarchical system within the brow pigmentation industry. It focuses on making essential decisions about one's career as an artist in the brow business.

About Making an Informed Choice

It's crucial to note that the following information applies only when an artist has a natural choice. This concerns whether to enter an affiliate relationship with an academy or a corporation. Critiquing the decision to join or avoid an affiliate model is only relevant if the artist has options.

For example, consider an artist in a salon with a fixed relationship with a specific corporation or academy. If all artists in that salon must use certain supplies, or if the services are advertised as being associated with a particular academy, then the artist's choice is greatly restricted.

Likewise, suppose an artist has no chance of advancing within an academy's hierarchy, or no corporation is willing to form an affiliate partnership after many attempts. In that case, there is no natural choice.

However, in many cases, a reputable artist with adequate skills and a strong portfolio will face this decision. At this point, understanding the consequences and potential benefits of affiliation is essential for making an informed choice.

2. Hierarchical Systems Explained


In the brow business, examining the hierarchical structure, including academies and affiliate systems, is helpful. Understanding MLM (multi-level marketing) and affiliate partnership models is crucial.

MLM Systems

MLM systems are based on the idea that new members must recruit others below them. The recruiter earns a commission from the sales made by these recruits, which could provide passive income. However, the reality is that only a small percentage, usually the top 1-2%, earn substantial profits. Over 80% of participants often invest much time and effort but receive minimal returns. This results in a pyramid-shaped income distribution, with most benefits going to those at the top. MLM's origins date back to the 1940s, starting with companies like the California Vitamin Company, known today as Nutrilite, and have evolved across various industries.

Affiliate Systems

Affiliate marketing is a direct relationship between a producer or service provider and a seller. Sellers promote goods or services using discount codes or links, earning a commission for sales made through their referrals. Amazon's affiliate program is a prime example of this. Despite the potential for significant earnings, success often differs from expectations. Many overestimate their ability to convert followers into buyers. Achieving substantial income through affiliate marketing usually requires an established platform and access to a potential customer base. The concept of revenue sharing, which predates the digital age, forms the basis of affiliate systems but has become particularly relevant with the growth of online commerce.

In both MLM and affiliate systems, success depends on joining and understanding the market, having a broad network, and using effective strategies to attract and convert potential customers. The hierarchical nature of these systems indicates that while there are profit opportunities, they tend to be concentrated at the top or demand considerable effort and expertise.

3. Affiliate Systems in Brow Business


In the brow business, many academies adopt the affiliate model. This means that an artist who joins becomes directly associated with the academy and benefits financially from products sold as a result of their efforts.

What distinguishes affiliate programs in the brow business is that academies may not always pay affiliates a profit for each product sold. Instead, rewards can be based on vanity metrics.

Typical Rewarding of Affiliates

Typically, affiliates receive about 5-75% of the sales price in a standard affiliate model. The commission rate largely depends on the product type. For example, the software might offer higher percentages due to its high profit margins, whereas tangible products with lower margins may offer less. The process is direct: the affiliate encourages a client to make a purchase, which is tracked via a discount code, link, or form. This system "labels" the buyer as referred by the affiliate. If a sale is made while the affiliate relationship is active, the producer compensates the affiliate immediately or after a set period.

Vanity Metrics as a Reward

In the brow business, rewards can also take a unique form. Instead of monetary compensation, academies often reward affiliates with things they value, such as fame and status, or a "feeling of individual significance.”

Here's how it works: An artist affiliate generates sales, typically through "kits" or "starter packages," and would generally receive a percentage of each sale. To grow their business, affiliates must broaden their reach, which often requires significant promotion and personal branding investment.

Academies may reward affiliates with vanity metrics, such as elevating their status within the academy's hierarchy (with different levels for artists, masters, etc.), instead of direct payments. Since many affiliates are also trainers, earning from student fees for their training and teaching, this affiliate relationship can benefit both parties. The academy boosts the trainer's status, while the trainer aids in the academy's growth and reputation.

4. Positive Side of Becoming an Affiliate


Joining a hierarchical system as an affiliate offers several benefits. Seasoned artists identify the main advantages as financial gain, career advancement, and increased reach. Let's explore these benefits further.

Financial Success

Becoming an affiliate can be very profitable if there's a strong local demand for the academy's services and products. The artist links the academy's brand and clients needing the academy's educational services or products.

This was particularly noticeable during the microblading boom from 2014 to 2017 when the service became globally popular. Early affiliates in this period could sell products and training sessions continuously, earning significant amounts. This financial success stemmed from the market demand, with students actively seeking them out. This allowed artists to benefit from the flow of money towards the corporation, taking a share from each transaction.

Career Advancement

The second key benefit is career advancement. Aligning with a specific level or brand immediately places artists in a particular category in the eyes of peers, the public, and potential clients. Attaining a rank within an academy's system often allows one to adopt a "public identity" marked by titles like "master," "professional," "pro," "VIP," "senior," etc. This system effectively differentiates individuals and establishes a hierarchy.

In this structure, those at lower levels are seen as below those at higher levels, fostering a perception of superiority. Understanding and accepting this dynamic is crucial when entering such hierarchies.

Reach

"Reach" refers to accessing more potential clients and followers, providing financial benefits. Academies and corporations significantly aid in expanding reach. For instance, when academy leaders promote an artist's social media posts, it simplifies building a following compared to working solo. Each share or endorsement acts like a mini-marketing campaign, which would otherwise be expensive.

These promotional efforts can significantly enhance the artist's engagement and reach over time, leading to a substantial following. This digital asset is valuable and durable. It's a tangible advantage of affiliating with a larger organization, offering visibility and credibility essential for a successful career in the brow business.

5. Downside of Becoming an Affiliate


To offer a comprehensive perspective on becoming an affiliate, examining the potential drawbacks many seasoned artists encounter is crucial. We'll discuss the negative aspects of affiliate relationships in terms of financial success, career advancement, and reach.

Actual Profitability

Many artists who have been part of hierarchical systems and collaborated with academies for years report that financial profitability often remains theoretical and unattained. This discrepancy stems from two main reasons. Initially, the financial success of previous artists was mainly due to high market demand, which did not require extensive efforts to attract customers. This demand facilitated a focus on selling professional training materials and supplies from the academy. However, when the market demand declines and artists need to find customers actively, the academy system can become burdensome. Without solid market demand, the system's added value is minimal, and artists may feel like they're merely sales agents for the corporation, sharing their income in a manner reminiscent of an unfair taxation system.

Furthermore, artists who have joined affiliate programs as "professional teams," "elite artists," or "masters" find that being tied to one brand and its products can be limiting if there is no genuine demand for those products. This limitation can restrict their flexibility and ability to adapt to market changes or personal growth.

Actual Influence on Career

Many artists agree that affiliation can be beneficial for career advancement, especially for the "smallest fish in the pond." This term refers to artists at various levels of experience, reputation, reach, and brand value within a group. Joining a hierarchical group can raise or lower the group's average level within a more prominent academy or corporate hierarchy.

Joining a higher-status category can significantly advance the careers of less experienced artists with smaller reach and brand recognition. They benefit from the group's established reputation and resources. However, for artists who are among the group's more experienced and well-known members, affiliation might slow their career progression as they may end up supporting the group's status at the expense of their advancement.

Artists should carefully evaluate their position and potential career impact before joining any hierarchical group, assessing whether the affiliation will genuinely elevate their status or if they risk becoming a support for others' rise.

Actual Reach

Affiliate-structure artists often recognize the potential to expand their reach through academy and corporate affiliations. However, there are important considerations. Promotion within many systems is contingent upon the artist's profitability to the academy, either through sales or enhancing its reputation. This support often diminishes when the artist's contributions decrease, indicating that promotional efforts are rewards for past success rather than investments in future potential.

Artists also face intense competition within these hierarchies, where backstabbing and diplomacy are expected to gain favor. The quality of the reach gained is another concern. Followers acquired through affiliations are often already connected to the academy's brand, and converting them into paying customers can be challenging, especially if the artist leaves the affiliate academy or corporation. This highlights the need to understand the quantity, quality, and engagement level of the reach gained through affiliation.

6. The Principle Question of Identity


A critical insight from seasoned artists is that entering affiliate relationships with academies and corporations raises a profound question of identity: "Who are you at your core?" Artists who have established their academies and brands, avoiding such affiliations, often mention that they could not compromise their integrity. They refuse to "bend the knee and kiss the ring," seeing it as a betrayal of their true selves. Frequently, these are the individuals who find significant success on their own.

On the other hand, some artists adopt a more pragmatic approach to these affiliations. They may advocate for a "flat team" concept or argue that such relationships lack hierarchies. However, this view is more of a rationalization than a reality. Even in the most seemingly equal teams, there is usually a founding figure ("godfather" or "godmother") who benefits the most, effectively being the "master of the system." True equality in these structures is rare, as a domain cannot have two masters.

This dichotomy is an essential consideration for artists considering entering affiliate relationships. It reflects the extent to which they are willing to compromise their identity and autonomy for potential gains.

7. Conclusions


Hierarchical systems and affiliate relationships in the brow business primarily utilize MLM (multi-level marketing) and affiliate models, with the latter being more common in academy and corporate structures.

Affiliating with an academy or corporation can bring several benefits, such as financial gains, career advancement, and increased reach. Artists can profit by acting as intermediaries when there's a demand for the academy's products and services.

Joining a hierarchical group can significantly boost the careers of artists with less experience or smaller personal brands. Furthermore, academies and corporations often provide marketing support that can expand an artist's reach.

However, experienced artists who have left these systems note that financial advantages were most apparent when market demand was high. In its absence, the system may become a limitation rather than a source of profit.

Career progression within these systems is complex and largely depends on the artist's position within the group. Artists reaching a higher level may support others' growth instead of their own.

The reach provided is controlled by the system's leaders, who promote artists benefiting the system. Yet, they might withhold support if an artist becomes too independently successful. The reach quality is typically linked to the academy or corporation, posing challenges in leveraging this following for other product sales later.

Deciding to join an affiliate relationship ultimately reflects on the artist's core identity: whether they value independence or are willing to integrate deeply into the system. Observations indicate that while those who integrate may achieve moderate success, independents ("mavericks") face either more fantastic failures or achieve substantial achievements.
 
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Comments
 
Diana
Thursday, Feb 15, 2024

Nice article and makes me think a lot about all such co-operations. I think there are a lot of changes coming regarding those things in 2024.


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