‘1099 Generation’ Wants Easier Ways to Pay — and Get Paid

The definition of “employment” is continuing to shift, and that’s led to a corresponding shift in expectations on how workers in the gig economy get paid. And creators such as bloggers, photographers and influencers are redefining themselves as “solopreneurs” — independent contractors with all the freedom (and financial hassle) that involves.

These members of the “1099 Generation” work where they want, with whom they want, on what they want — and make a living doing it — but may prefer to focus their craft rather than chasing the money, Tony Tran, co-founder and CEO at Lumanu, told PYMNTS.

“The problem is so much more than moving money from point A to point B,” Tran said. “It’s about solving the anxiety around getting paid, filling out forms and doing taxes after you receive your money.”

To help solve those problems, Lumanu offers a business app for creators that includes invoicing tools and EarlyPay, which gives them instant access to their money.

On June 21, the company added a second product called Lumanu for Business, which is a payments and financing solution designed to meet the needs of creative businesses and help these creative agencies, talent managers, brands and influencer agencies pay and get paid faster.

“The same problem is encountered by a solopreneur on YouTube, a photographer, a studio of five and a creative agency of 50 — the underlying math is all the same,” Tran said. “At the end of the day, the money is coming from either the brands or the platforms — the platforms being like a YouTube.”

Solving Problems for Creators, Creative Businesses

One problem creators face is the possibility of not getting paid if they unknowingly do work for a bad actor. Tran told of a creator who had experienced that and then began asking potential clients for 50% payment upfront. Because some companies can’t do that, the creator was turning away business.

With Lumanu, the network of creators can identify those bad actors as well as put in a good word for others that have paid as promised.

“That just gives people a lot of peace of mind,” Tran said. “That’s actually one of the powerful things about Lumanu — as more people use Lumanu, you know, a rising tide lifts all boats, right?”

Similarly, the platform can share information that will help creators do their taxes. For example, many creators didn’t know that the 2.9% fee that is charged for EarlyPay is a 100% write-off as a business expense.

Another challenge independents face is that when creating an invoice, something like Microsoft Word or QuickBooks is overkill, with more tools than they need. An app created just for them, on the other hand, makes invoicing easy.

Similarly, companies that have received invoices from creators via Lumanu have seen how easy it is to use and may use the new Lumanu for Business to offer that same experience to others.

Seeing a Proliferation of Freelancers

The independent creators who use the app pay nothing, but businesses that use it pay a subscription fee.

Speaking of the current macroeconomic situation, Tran said that for creators and creative businesses, it may provide a tailwind rather than a headwind.

Work still needs to get done, Tran said. For example, eCommerce stores still need to get photos and articles.

“You still need to do the thing you do, but everyone’s a lot more cost-conscious, and there’s nothing more expensive than full-time employees,” Tran said. “So, what we’re seeing is a proliferation of freelancers, contractors and agencies being hired to do things that maybe, originally, you would have hired a team of 10 marketers to do.”