HomeIndustry NewsWhy Clients Keep Working with Unethical Agencies - and Why It Needs...

Why Clients Keep Working with Unethical Agencies – and Why It Needs to STOP

The Creator Economyโ€™s transparency problem runs deeper than unpaid invoices. Hereโ€™s why unethical agencies keep getting hired โ€” and how to change it.

Written by Nat Cortazar – Founder and Managing Director of The Good Egg

Letโ€™s talk about the elephant in the room: unethical agencies.

Unethical agencies come in many shapes and forms, theyโ€™re not just the โ€˜dodgyโ€™ crypto-bro founded shop. They are the ones who hire and let go people in hordes because of poor planning, the ones that work with dubious clients within the FMCG and fast-fashion industries, the ones that donโ€™t pay creators on time โ€“ or not at all.

And somehow, they keep winning business. Every. Single. Time. I see it constantly: a new RFP goes out, the usual names get shortlisted, and no one dares to ask the most basic question:

โ€œAre they ethical?โ€

Letโ€™s face it: The Creator Economy has a transparency problem. A values problem. And a basic-human-decency problem. And one of the reasons it still exists is because both agencies and clients let it.

The Transparency Trap

Letโ€™s start with money.

Most brands have no idea where their influencer budget actually goes. They get a big shiny number from an agency, and think itโ€™s all going to creators. Spoiler: itโ€™s not.

Behind the scenes, youโ€™ll find inflated mark-ups, hidden โ€œservice fees,โ€ and creators being paid months late (if theyโ€™re paid at all). Iโ€™ve heard of agencies using creator fees to cover their own cashflow. Creators chasing invoices while the brand assumes everyoneโ€™s been paid.

This is why, when I set up The Good Egg, I promised myself we would always show clients exactly where their money goes. Because if youโ€™re confident in the value you bring, you donโ€™t need to hide behind vague spreadsheets or โ€œbundled budgets.โ€

But hereโ€™s the scary part: a lot of clients have got used to the opacity. Theyโ€™ve normalised it. They donโ€™t ask the questions. And thatโ€™s how unethical behaviour keeps thriving โ€” not through malice, but through silence.

Saying Yes to The Wrong Things

Now, letโ€™s talk about ethics.

Everyone loves a sustainability panel. Everyone posts about inclusivity, empowerment, representation.

And then quietly signs a deal with an extreme fast-fashion brand. Or a weight-loss company selling pseudoscience. Or their whole C-level board is composed of trust-fund kids and thereโ€™s not a single voice in charge from a different background. Because money talks. And agencies are terrified of saying no.

The irony? Many of the agencies that claim to be โ€œpurpose-drivenโ€ are the same ones chasing every brief, no matter the brandโ€™s ethics. Or are the ones that think that by claiming they donate X and Y they can pay creators late, or never at all. 

You canโ€™t call yourself transparent if your clients canโ€™t even see your fee split.

The Unpaid Creators Nobody Talks About

And now, the part that truly infuriates me. Creators not getting paid. Itโ€™s shocking how normalised this has become.

Iโ€™ve heard stories about agencies going down with over $5 million in debt, while the founders are out there showing zero accountability, and asking team members to block emails. And yes, well-known names. And yet, somehow, itโ€™s always brushed off as a โ€œcashflow issue.โ€

No. Itโ€™s an ethics issue.

If your agency canโ€™t pay creators on time (or at all!) you shouldnโ€™t be running campaigns. Full stop. Creators arenโ€™t your vendors. Theyโ€™re your partners. And when theyโ€™re treated like disposable suppliers, the whole industry loses credibility. In fact, itโ€™s the clientโ€™s name what they are representing so, if things go south โ€“ your brandโ€™s name goes along.

Why Clients Still Look Away

So why do unethical agencies still get hired? Because they look good on paper. They have contacts. They have a glossy deck. They promise viral results. Procurement teams love them because they tick the right boxes. Marketing teams donโ€™t always see what happens behind the curtain.

And sometimesโ€ฆ brands donโ€™t want to know. Itโ€™s easier to believe โ€œeveryone does itโ€ than to confront the fact that your budget might be funding late payments and low-quality work.

But let me be blunt: if your agency isnโ€™t ethical, youโ€™re complicit. Itโ€™s your responsibility to choose partners who reflect your values โ€” not just in the tagline, but in how they treat people. Internally and externally.

So How Do We Fix It?

Itโ€™s not complicated. We just need standards.

1. Fee transparency must be non-negotiable.
Every client should see exactly how their budget is split: influencer fees, agency fees, media, production. If itโ€™s not clear, walk away.

2. Keep creatorsโ€™ fees aside from agency fees and paid upfront.
Influencer fees should be held on third-party trusts and, if this is not available, on separate accounts from the agency fees ones. And, where possible, clients should pay those fees in advance to ensure cash flow.

3. Ethical vetting needs to be part of procurement.
If you audit your suppliers for sustainability, why not your agencies for integrity? Ask about their client portfolio, any open legal causesโ€ฆ and do a quick ChatGPT search on whatโ€™s being said about them online. Youโ€™ll be surprised you donโ€™t need to dig that deep to find gold, or myrrh.

4. Agencies need to grow a backbone.
It works both ways โ€“ say no when a brief doesnโ€™t align with your ethics. It might hurt short-term, but it builds the kind of trust you canโ€™t buy.

The Future Will Be Ethical or Irrelevant

Or thatโ€™s what, hopefully, Iโ€™d like to believe.

The influencer space is entering an accountability era. Audiences expect transparency. Creators are smarter. Regulators are watching. In the end, the agencies that survive wonโ€™t be the biggest โ€” theyโ€™ll be the most trustworthy. Or they should be. 

And to make this happen, we need educated, conscious clients and procurement teams who want to push the industry forward, and agencies that live up to what they are promising on their decks.

Will you be helping me, and many others, or will you continue financing the wrong people?


Nat Cortazar is the Founder & Managing Director at The Good Egg, a 4-time-in-a-row Boutique Creator Agency of the Year winner, who champions transparency and accountability in the Influencer space. Her experience spans over 12 years at different international agencies and clients and since 2020 leads TGE, working with clients of the likes of LEGO and Silverstone.

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