its for laundering money. write off expenses etc
I'm curious how it will work
Managing production costs, salaries, distribution, promotions and touring and still making profits is not going to be easy
I'm assuming they are going to have lean teams of 15-20 employees
I read on akp that Sm made a net loss in this quarter so it's never too easy to maintain profitability
It still takes massive amounts of capital, well compensated and competent staff, and strict accounting, just to mention a few things, in order to run a successful agency. They're also doing this without the resources of a publicly traded company in YG. They will need investors of their own, in addition to their own funding.
I'm not saying it's impossible. I don't have a strong stance on this. It's just objectively hard to run a successful and profitable agency. Name brand is just the beginning.
But I'm not making a prediction. I'm just curious what people here expect, especially Blinks.
yeah
Some people are clearly missing the point on purpose. Its not about whether they will debut new groups, just running an agency full stop is rough. Yes they all have bags of money, but balancing the books is difficult and if you have no experience and qualifications its easy to find yourself in a hole or trusting the wrong person to help you do all the above. Paying your employees (their pensions, insurance, benefits), paying for music (plus its production, buying rights to anything associated with that), MV's (paying for sets, outfits and the film crew/MV production company), etc and its not like any of them went to school for company management and I don't think any of them even managed to finish high school (not a drag BTW, just a point).
There are loads of extra costs associated with running a company in general they are going to have to absorb. Even if a CB is hugely successful, if they overspend in an area (for example getting consent to use a specific set, art work, outfit or even security to film in public or lock down areas), the company may still end up in the red.
20% of new businesses fail during the first two years of being open, 45% in five and 65% in 10. Don't forget Ravi tried to delay enlistment because the company would have gone belly up without him. Sure they don't need to enlist, but if they decide to take 2 months off, the company isn't making any money but your employees and contractors still need to get paid. I honestly wish them all the success, but its going to be far more difficult than fans think.
As many stated above: I think they established their companies only so they could have more power and freedom over their own career. As long as they self-manage instead of trying to debute idols themselves and if they remain popular (I doubt that fans will leave them) they will be fine. It is difficult to run a business but they have the money to hire the right people and they are top popularity, I think they will manage it alright.
They don't need a lot of full time employees. They can pay their stylists, make up artists, dancers, producers, choreographers, extra security etc only when they are working on something.
All they need is a few members (2-3), for security, a secretary/admin assistant, a manager, 1-2 regular assistants, a driver and I don't know who else regularly and the costs involved can be met by their modelling gigs only. I believe that that's how Jessica Jung has done it for about 10 years now.
And, smart ones would invest in real estate for their offices to avoid rent as their investment appreciates.
I think Lisa company will probably be the most successful, given how much connection she has. I think she has 100M followers or something of that sort. That is a pot of gold for any entertainment industry, because they can leverage her for their own, and she can also leverage them as her own. Business is Business.
I just hope they treat her well TBH, given some history she had with previous manager. She looks great in that golden outfit, like an oscar, a golden globe, a trophy. A trophy that the 1% can drag around and put on display and say "look at what I got!". But hey, I don't know their interpersonal relationship and maybe they really like her.
At first, no, that's obvious. Every company needs YEARS to be profitable. The problem here is that Blackpink is pretty much over, like it or not, Blinks. YG didn't really care about them as artist for 7 years, and I don't think they will start it now. IF the girls can be successful soloists, they have a bigger chance to gain RESPECT in the industry. Like it or not, people don't respect them, the only thing they have is POPULARITY. But that can change if other Labels will see, if they're doing a good job. You can see how other (IDOL) Labels struggling, so it's not easy, even if you're a member from the most overhyped group.
We need YEARS to judge their abilities as CEO's. Also, don't forget, it's not really THEIR companies, because I'm 100% sure they have a lot of investors too. It's not like the girls are billionaires.
I think Lisa company will probably be the most successful, given how much connection she has. I think she has 100M followers or something of that sort. That is a pot of gold for any entertainment industry, because they can leverage her for their own, and she can also leverage them as her own. Business is Business.
Insta followers has nothing to do with REAL business.
A lotta great points addressing the difficulties of running your own label, but i dont think these will be "normal" labels.
Others in this thread have pointed out that these will just be shell companies to market and promote themselves and their music and other endeavors. They won't be hiring trainees or debuting groups lol, they dont even need to hire very many employees tbh. Hell, in this day and age, they dont even need to rent an office. Unless there are strict Korean labor laws about contractors, they could just hire contractors to do almost everything for them, from legal advice and contract execution, to accounting, all the way down to hair and makeup.
They will only need a few trusted experts to help them with the nuts and bolts of the company. They could own shares in the company or they could be the few employees that are actually hired.
Lisa is dating a literal trillionaire, i'm sure his BF is helping her with this. Her dad runs or used to run a big restaurant, he can offer plenty of advice. Teddy is there, i highly doubt he would turn his back on her or any of the other members. Jennie's mom was rumored to also be a very successful businesswoman, i highly doubt she wont have support in establishing her label as well.
Yeah, their agencies will do well.
Naah I'm sure they're ready for it before they even began to establish it. 
Display MoreA lotta great points addressing the difficulties of running your own label, but i dont think these will be "normal" labels.
Others in this thread have pointed out that these will just be shell companies to market and promote themselves and their music and other endeavors. They won't be hiring trainees or debuting groups lol, they dont even need to hire very many employees tbh. Hell, in this day and age, they dont even need to rent an office. Unless there are strict Korean labor laws about contractors, they could just hire contractors to do almost everything for them, from legal advice and contract execution, to accounting, all the way down to hair and makeup.
They will only need a few trusted experts to help them with the nuts and bolts of the company. They could own shares in the company or they could be the few employees that are actually hired.
Lisa is dating a literal trillionaire, i'm sure his BF is helping her with this. Her dad runs or used to run a big restaurant, he can offer plenty of advice. Teddy is there, i highly doubt he would turn his back on her or any of the other members. Jennie's mom was rumored to also be a very successful businesswoman, i highly doubt she wont have support in establishing her label as well
looking at Jennie’s gigs and collaboration, I think she also has wonderful business skills.
Insta followers has nothing to do with REAL business.
I think you're wrong. Advertiser chose their sponsor by the amount of followers they have. At 100M followers, that's a gold mine. One hundred million. You know how much brand exposure and marketing that could do to a business?
Even if only 1% of her fan base purchasing things she's endorsing, that's one million people. That's a crazy amount. Tiger JK lost an endorsement deal years ago because as Tiger JK quoted 'They said we didn't have enough followers to make a deal with us'. That's fucked up, but that is real business.
It depends. If it is only to book events and sign CFs and licensing deals. Yes.
If they going to be independently producing music, manufacturing, designing, promoting, marketing, etc. all by themselves, then the expenses can start racking up.
"After the disclosure on February 9th and 10th, images of Lisa’s billboard advertisements in pivotal metropolises such as New York, Los Angeles, Singapore, and Bangkok have been circulating online, attracting considerable interest. Sources indicate her agency is headquartered in New York."
Display MoreJust curious which direction AKP Forums are leaning on this.
I have no strong opinion one way or the other honestly.
But running your own agency is a ton of work and potentially a huge money pit
I wish them all the best
They are too selfish for sharing their success with nugu trainees. As ISaidISaid said, it's for self-promotion purposes
I don't vote because it a queastion that can't answered without more information about what we acctually means with "agencies be successful and profitable".
What will the companies/"agencies" be used for? Will in only be for their personal activities and other artisits in music and similar acctivities, like an YGE in mini-format? I doubt they will have any huge success or profits in the long run. Sure, they will probable do well they first years or so when they are still "hot" and well known. But their status will probably cool pretty fast when they are not the hottest thing in kpop anymore.
But, nr 2, if their companies ("labels) are more of a company to manage all their money and investments they probably can do well depening on how your define "successful". They can burn some money on their "labels" acctivity, but earn money on investments in real estates, capital investments an other business.
And it also depeneds a lot of what kind of people the members are surrouned by and who works for them.
I wish them all success but it is too soon to say. A successful company isn’t built by one person, it literally takes teams of people. So like others have said, it depends who the ladies are working with or hiring to help them out. If they have a strong, solid team - they should be fine. However, if they have ‘yes’ ppl. and weak support, it may be a challenge.
I'd personally laugh my ass of if any of them do start debuting groups and then compete with YG's fifth gen groups. But yeah, I agree this will probably just be about promoting themselves, at least for the near future.
I think a lot of good points are made:
It does take more than just existing to make the companies profitable. They need people for all kind of things. Even if they just want to sell instagram posts to sponsors, they need accountants, people who negotiate deals, drivers etc. If they want to do more than that, which is likely, they will need way more people.
That said, even if they just do instagram: their instagram reach is enormous. The amount of money people with large followings make from just one post is astronomous. In addition, with instagram, it's not just about how many followers you have, but also about the engagement and strength of passion people have for the person they follow. There are plenty of people who follow a Kardashian or an athlete, without being passionately devoted to them. With Kpop artists, there is much more passion. Kpop fans gush and even brag about the deals their faves have, spreading the names of these brands even further. Even I know roughly what brands Lisa and Jennie are sponsored by and I'm not even a Blink. This means that one of the BP members posting has enormous value for the brands beyond just a fleeting instagram impression.
This said, they will need to continue to keep the spotlights on them with other activities, to keep this devotion going, so they're going to have to make a serious and well-planned operation out of it.
I think you're wrong. Advertiser chose their sponsor by the amount of followers they have. At 100M followers, that's a gold mine. One hundred million. You know how much brand exposure and marketing that could do to a business?
Even if only 1% of her fan base purchasing things she's endorsing, that's one million people. That's a crazy amount. Tiger JK lost an endorsement deal years ago because as Tiger JK quoted 'They said we didn't have enough followers to make a deal with us'. That's fucked up, but that is real business.
I get that, but you won't make billions with Insta ads. That's like the tiniest part of your earnings. Also, she doesn't have 100M followers. Half of those are bots or duplicate accounts, and just like on Youtube or on any other platform, most followers don't really "follow" the artists. They just hit the button and that's all. I follow like 5000 people on Insta, FB, YT combined, and I FOLLOW like 100 for real.
I know it's a lot of money, but in this industry, that's like allowance from mommy, compared to what she earns from other companies. What I'm trying to say is that she won't make a profit with her Insta acc.
yes, since these companies are for their management as solo artists, they will definitely be profitable
I know it's a lot of money, but in this industry, that's like allowance from mommy, compared to what she earns from other companies. What I'm trying to say is that she won't make a profit with her Insta acc.
Lol, it will even generate more income than before
Before making any conclusions you should first find out
An average influencer who has only 10M followers can earn up to €100,000 per post
And for people known as idols/actresses/footballers the price is even higher
Income depends on: popularity, followers and community
If they go to another company, those nugu companies will only benefit from their influence
They made a good choice
It all really depends on how these ladies define success.
Display MoreLol, it will even generate more income than before
Before making any conclusions you should first find out
An average influencer who has only 10M followers can earn up to €100,000 per post
And for people known as idols/actresses/footballers the price is even higher
Income depends on: popularity, followers and community
If they go to another company, those nugu companies will only benefit from their influence
They made a good choice
I work in this industry, I know how these things works. Famous people like Lisa, only earn a lot of money from ads on Insta, because they made a deal with companies, not because she has 100M followers and everyone buys the products she's promoting. That's not how this works. She gets paid for posting ads, that's all. It's not like you upload a video on Youtube, and you'll earn more money if more people watch your channel.
For example, if she promotes a fashion brand, the company will pay in advance, it doesn't matter how many people will read her post. I mean, IU is THE richest Kpop celeb and she only has 32M followers. That's why followers doesn't mean anything.
Quote"An average influencer who has only 10M followers can earn up to €100,000 per post"
I don't know where did you get this info, but I know a couple of influencers personally, and they hardly get any money. Advertisement on social media is not like a real life job where you get paid every month. Sure, there are some people who can ear 100K per post, but they don't ear the same amount every day or every month. These numbers are rough estimates, nothing more.
Look at how many upvotes I got you. I bet this is a new career high 
I work in this industry, I know how these things works. Famous people like Lisa, only earn a lot of money from ads on Insta, because they made a deal with companies, not because she has 100M followers and everyone buys the products she's promoting. That's not how this works. She gets paid for posting ads, that's all. It's not like you upload a video on Youtube, and you'll earn more money if more people watch your channel.
For example, if she promotes a fashion brand, the company will pay in advance, it doesn't matter how many people will read her post. I mean, IU is THE richest Kpop celeb and she only has 32M followers. That's why followers doesn't mean anything.
I don't know where did you get this info, but I know a couple of influencers personally, and they hardly get any money. Advertisement on social media is not like a real life job where you get paid every month. Sure, there are some people who can ear 100K per post, but they don't ear the same amount every day or every month. These numbers are rough estimates, nothing more.
You misunderstand my dear, I'm talking about the money she receives from sponsored posts from brands and not the money from IG itself.
The money that people receive is all different even if they all promote the same brand
It depend on :
- Influence/Fame
- Followers
- Community that is involved.
Of course she won't be a billionaire (no one said that anyway)
Put that in your mind that she didn't start her own company to make the same money as big companies lol
Also leaves IU out of this, she has been in the industry for 15 years and does many things from acting to singing with Lisa who barely has cb and locked in YG's dungeon.
PS : Your influencer who is struggling to make money on IG is because she/he simply isn't big deal for brands even if they are promoting the same product.
i see their companies more of a way to manage themselves. And maybe, recruit some artists who can make their own music.
BLACKPINK’s ROSÉ will reportedly stablish her own agency for her solo promotions.
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