What is the “Creator Economy”?

For many decades, "big media" ran the world of entertainment and news. A relatively small number of companies controlled what most of us read, viewed, and listened to. To contribute to the conversation, we had to be employed by one of these media conglomerates, or at the very least, be significant enough to feature in the stories they told. We watched scheduled television programs, listened to radio slots, read newspapers written by journalists following their editors' orders, read books and magazines from large publishers, and spent evenings at the cinemas, watching films distributed by a small number of studios. 

However, the internet changed things. It was a slow, almost insidious process, but over time, media decentralized. We found many different types of content that we loved. More importantly, much of this content isn't owned by traditional media companies. Much if it is written, spoken, or filmed by ordinary people like us. And as a result of this, we gained the confidence to make content ourselves. Now people are happily consuming content that we make and distribute without the need for the traditional companies. This is the era of the creator economy, and it is markedly different from what went before.

What is the "Creator Economy"?:

The Stages of the World Economy

A century ago, we lived in an industrial economy. It was the age of manufacturing, and most people (men at least) earned money demonstrating their physical prowess in some form of a factory (or in "modern" agriculture, taking advantage of improved farming practices). Most people earned their living by making "stuff."

By the 1950s, however, we were turning into a consumer economy. People had been through a depression and a second World War and were looking at new ways to spend their cash. People began to earn income by performing services for others. Trade became more globalized, with people wanting a wider variety of 'stuff" from around the world. Traditional media, television, in particular, showcased the latest and greatest, and repeatedly encouraged people to spend more on consumer goods, to "keep up with the Jones."

In the era of the internet, however, we entered the knowledge economy. Technology wiped out many traditional jobs, particularly in manufacturing and, before long, also in services. This developed into the creator economy, where people found a way to earn money by marketing their inane skills, hobbies, and interests online. 

What is the Creator Economy?

Eric Freytag of Streamlabs summed up how media consumption has changed in an article he wrote for VentureBeat: "Rather than ten TV shows consumed by billions of people, we now have hundreds of millions of shows that cater to billions of people. You could be only one of ten people in the world interested in a niche topic, but chances are you'll find content for it. Additionally, the people who are creating content for that topic are truly and authentically passionate about it."

The Creator Economy doesn't totally coincide with the invention of the internet, however. It took a while before people discovered the internet's true potential. Indeed, you can say that it matches up with Web 2.0 – a point when the basic paradigm of the internet changed. People stopped it being simply for information gathering and storage and discovered new potential uses, such as social media and video sharing. Web 2.0 offered numerous opportunities for people to express themselves online, and the Creator Economy grew from this.

Is the Creator Economy People Performing Their Dream Jobs?

In many ways, the creator Economy consists of people performing their dream job. It gives people a chance to specialize in their passion. A generation ago, you might have had to go to work in a traditional shop, office, or factory. At night you could come home and engage in your preferred leisure activity. You might have secretly hoped that you could become a professional in your favorite activity. Some actors, musicians, and sportspeople succeeded in their dreams. But most people simply played their games, engaged in their hobbies, or passively consumed content in their leisure time, unpaid, often losing a considerable sum of money to their leisure pursuits. 

Now many more people can make money from their passions. Who would have thought you could earn a living from sitting at home playing computer games, commentating as you make your moves. How many amateur writers would have expected that they could earn an income from their craft, or teenagers thought they could make money from making funny videos in their backyard? Two decades ago, a generation watched enthralled at the antics of the Jackass crew, unaware that their future sons and daughters would be sharing similar videos to larger audiences just by using their phones.

Most Influencers Are Part of the Creator Economy

All of this has created a new kind of celebrity. The modern celebrities are no longer the stars of the latest blockbuster playing at your local multiplex, or even the leads in a high-ranking TV program. They are the teenagers or twenty-somethings who make funny videos on YouTube or the gamers who stream through the night their progress playing Fortnite. And while many musicians whose music plays on the radio still have fame, so do youngsters who lip-synch to their favorite video clips on TikTok. 

The new celebrities are the content creators. And not coincidentally, many of these are also influencers. There is a clear correlation between influencers and creators.

However, there is one proviso here. The term "influencer" is often bandied about and misused, particularly in the mainstream media they have tended to usurp. As we wrote in one of our first posts:

An influencer is someone who has:

• the power to affect the purchasing decisions of others because of his or her authority, knowledge, position, or relationship with his or her audience,
• a following in a distinct niche, with whom he or she actively engages. The size of the following depends on the size of his/her topic of the niche.

Not everybody who thinks they are famous online is an influencer. An influencer needs to establish a genuine following in their niche, just as most good content creators do. 

Today's younger generations, however, look to these content creators as their influencers. They don't follow traditional movie and television stars because they don't waste their limited time going to movies or watching scheduled tv. They would far rather be entertained by someone like Ryan Kaji, a nine-year-old who shares videos on YouTube where he reviews his toys. The 32.6 million subscribers to his Ryan's World YouTube channel must be the envy of all traditional television networks.

Source: youtube.com

Ways Creators Can Earn Money Online

The internet has generated many opportunities for creative people to make money online. Writers, musicians, filmmakers, and other content creators can all share their creative visions with an appreciative audience. There are also new niches, such as livestream gaming and podcasting.

In the past, you generally had to work with traditional publishing houses, film companies, or record labels if you wished to earn a living from your creative endeavors. Now creators can make money themselves without the need for managers or long-term watertight contracts with "Big Media."

In their recent Creator Earnings Report, NeoReach surveyed over 2,000 creators and found that almost half of that number worked in content creation full-time. On top of that, 35% of surveyed creators who had been building their audience for over four years earn an annual income of at least $50k. Not only is content creation/influencing a veritable way to earn money, the young generations pioneering this way of career building know how to build trust and stability with their audience.

There are numerous marketplaces now where you can sell your creative talent online. There are obvious sites like Amazon Publishing, Etsy, and eBay. However, other platforms can also benefit creators, such as Tumblr and WordPress (for bloggers), Twitch and Mixer (for live streamers), Instagram and Pinterest (for photographers), and YouTube and TikTok (for filmmakers).

There isn't a set way for creators to earn money online, but in most cases, they revenue-share with the platform on which they operate. So, if you are a popular Medium blogger, for example, you can generate income that comes from the money Medium earns from subscriptions. You share that money with Medium and the other popular bloggers. 

If arts and crafts are your thing, you are likely to make products you can sell on Etsy. Etsy charges sellers three types of fees: 

1. Listing fee – 20 cents per listing
2. Transaction fee – 5% of the listing price per sale
3. Subscription fee – Etsy Plus costs $10 per month

Etsy sellers can then keep the remaining proceeds from their craft sales as profit for themselves.

Popular YouTubers play ads on their channels and get to keep a portion of the advertising revenue. You revenue-share in some way with all the other creator marketplaces.

Creator Economy Startups

Fitness

	Animoto	https://animoto.com	Create video content
	Salut	https://www.joinsalut.com	Create livestream content, monetize community
	Magisto	https://www.magisto.com	Create video content
	Playbook	https://playbookapp.io	Create video content, manage community, monetize community, grow community
	Strydal	https://www.strydal.com/	Create livestream content, manage community, monetize community, grow community
	Superset	https://www.supersetapp.com/	Manage community, monetize community, grow community
	My PT Hub	https://www.mypthub.net/	Creates livestream content, manage community, monetize community

See more

Podcasters

	Acast	https://www.acast.com/en	Create audio content, manage community, monetize community, grow community
	Anchor	https://anchor.fm	Create audio content, manage community, monetize community
	Buzzsprout	https://www.buzzsprout.com	Create audio content, manage community, grow community
	Capiche FM	https://capiche.fm	Create audio content live
	Castbox	https://castbox.fm/	Create audio content, manage community, monetize community
	GetVokl	https://about.getvokl.com/how-to-broadcast	Create video content, manage community, grow community
	Glow	https://www.glow.fm	Create audio content, manage community, monetize community
	Podbean	https://www.podbean.com	Create audio content, manage community, monetize community, grow community
	Squadcast	https://squadcast.fm	Create audio content
	Supercast	https://www.supercast.com	Manage community, monetize community
	Vurbl	https://vurbl.com	Create audio content
	Red Circle	https://www.redcircle.com/	Monetize community, grow community
	Megaphone	https://www.megaphone.fm	Create audio, monetize community

See more

Writers

	Ghost	https://ghost.org/features/	Create email and newsletters, monetize community, manage community
	Letterdrop	https://letterdrop.co/	Create newsletters or blog, manage community, monetize community, grow community
	Medium	https://medium.com	Create written content, monetize community
	Revue	https://www.getrevue.co/	Create editorial/newsletters, manage community, monetize community, grow community
	Substack	https://substack.com/	Create blog/newsletter content, monetize community, manage community
	Steady	https://steadyhq.com/en	Create newsletters/posts, manage community, monetize community
	Tales	https://taleswriter.com	Create a book, monetize community
	Wattpad	https://www.wattpad.com	Create a book, monetize community

See more

Gaming

	Athenascope	https://athenascope.com	Create highlights
	Discord	https://discord.com/	Manage community
	Epic Games	https://www.epicgames.com	Monetize community
	GamerzClass	https://gamerzclass.com/	Create masterclass, monetize community
	Hiberworld	https://hiberworld.com/	Create game
	Lowkey	https://api.lowkey.gg	Capture gaming highlights
	Maestro	https://www.maestro.io	Create stream and game highlights, manage community, monetize community
	Manticore Games	https://www.manticoregames.com/	Create game, monetize community, grow community
	Replai	https://www.replai.io/	Create highlights
	Roblox	https://corp.roblox.com/technology/	Create games, monetize community, grow community
	Unity	https://unity.com/	Create game
	1v1Me	https://www.1v1me.com	Monetize community
	Combo	https://clips.joincombo.com	Grow community
	E-pal	https://www.epal.gg	Monetize community
	Metafy	https://metafy.gg	Monetize community
	Nexus	https://www.nexus.gg	Create channel, monetize community

See more

Livestreaming

	Streamloots	https://www.streamloots.com/	Create livestream, monetize community
	Loots	https://new.loots.com/	Monetize community
	Twitch	https://www.twitch.tv	Create livestream, monetize community, manage community, grow community
	Mandolin	https://www.mandolin.com/	Create livestream, monetize community, grow community
	Streamclub	https://www.stream.club/	Create livestream, manage community, monetize community
	Uscreen	https://www.uscreen.tv	Create livestream, manage community, monetize community
	Stream Elements	https://streamelements.com/	Create livestream, manage community, monetize community, grow community
	Crowdcast	https://www.crowdcast.io/	Create livestream, management community, grow community
	Streamlabs	https://streamlabs.com/	Create livestream, manage community, grow community
	Lightstream	https://lightstream.gg/	Create livestream
	Onyx Servers	https://www.onyxservers.com	Create livestream
	Restream	https://restream.io/	Create livestream
	Special TV	https://www.specialproject.io/	Create livestream, monetize community
	Stage 10	https://stageten.tv/	Create livestream, grow community

See more

Musicians

	Abletone Live 11	https://www.ableton.com	Create music
	Sonix	https://sonix.ai	Create music files
	Stageit	https://www.stageit.com	Create and host online concerts, monetize community
	Beatstarts	https://www.beatstars.com/	Create digital music, monetize community, grow community
	Createsafe	https://createsafe.io/	Create music business, manage community, monetize community
	Mastered	https://emastered.com/en	Create remastered music
	FL Studio	https://www.image-line.com	Create music
	Garageband	https://www.apple.com/mac/garageband/	Create music
	Kobalt Music	https://www.kobaltmusic.com/	Create music stream, monetize community
	Snapjam	https://www.snapjam.co	Create music
	Splice	https://splice.com	Create music
	Stem	https://stem.is/	Create music, manage community, monetize community
	Landr	https://www.landr.com/	Create music, monetize community

See more

Course Creators

	Airsubs	https://airsubs.com	Create classes, manage community, monetize community, grow community
	Avocado	https://www.avocadoaudio.com	Create course, manage community, monetize community
	Heights	https://www.heightsplatform.com	Create course, manage community, monetize community, grow community
	Kajabi	https://kajabi.com	Create course, manage community, monetize community
	Podia	https://www.podia.com	Create course, manage community, monetize community
	SamCart	https://www.samcart.com	Manage community, monetize community
	Skillshare	https://www.skillshare.com	Create course
	Teachable	https://teachable.com	Create course, manage community, monetize community
	Thinkific	https://www.thinkific.com	Create course, manage community, monetize community
	Xperiencify	https://xperiencify.com	Create course
	Virtually	https://tryvirtually.com	Create course, manage community, monetize community
	Slip	https://www.slip.so	Create course, manage community, monetize community

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Influencers

	Cameo	https://www.cameo.com	Create exclusive content, monetize community
	Memmo	https://memmo.me	Create exclusive content, monetize community
	iFans	https://www.ifans.com	Create exclusive content, monetize community
	Instasize	https://instasize.com	Create photos/videos
	Later	https://later.com	Manage community, grow community
	Lightricks	https://www.lightricks.com	Create photos/videos
	Looped	https://loopedlive.com	Create exclusive content, monetize community
	My Fanpark	https://myfanpark.com	Create exclusive content, monetize community
	Tipsnaps	https://tipsnaps.com	Create exclusive content, monetize community

See more

All Content Creators - Own Community

	Circle	https://circle.so	Create community, manage community, grow community
	Creator Metrics	https://creatormetrics.io	Manage community, grow community
	Disciple	https://www.disciplemedia.com	Create community, manage community, monetize community, grow community
	Jemi	https://jemi.app/	Create community, manage community, monetize community, grow community
	Ko-fi	https://ko-fi.com	Create community, monetize community, grow community
	Patreon	http://www.patreon.com/	Create community, manage community, monetize community, grow community
	Buy me a Coffee	https://www.buymeacoffee.com	Create community, manage community, monetize community, grow community
	Zebra	https://zebraiq.com	Create community, monetize community
	Vibley	https://www.vibely.io/	Create community, manage community, monetize community
	Creator Stack	https://creatorstack.com	Create community, manage community, monetize community
	Mighty Networks	https://www.mightynetworks.com	Create community, manage community, monetize community, grow community

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All Content Creators - E-comm/Merch

	99D	Create merch, monetize community	https://99designs.com
	Beacons	Sell content, manage community	https://beacons.ai/
	Big Cartel	Create store, manage community, monetize community	https://www.bigcartel.com/
	DFTBA	Create merch, monetize community	https://store.dftba.com/
	E-junkie	Monetize community, grow community	https://www.e-junkie.com/
	Etsy	Monetize community, manage community	https://www.etsy.com
	Fanjoy	Create merch, monetize community	https://fanjoy.co
	Fourthwall	Create merch, monetize community	https://jobs.fourthwall.com
	Spreadshop	Create merch, monetize community	https://www.spreadshop.com
	Gumroad	Create merch, manage community, monetize community, grow community	https://gumroad.com/
	Instaco	Create merch, monetize community	https://instaco.com
	Moteefe	Create merch, monetize community, manage community	https://moteefe.com/
	Merchlabs	Create merch, monetize community, manage community	https://merchlabs.com
	Offscript	Create store, manage community, monetize community, grow community	https://offscript.io/
	Payhip	Create store, manage community, monetize community, grow community	https://payhip.com/
	Pietra	Create merch, manage community, monetize community	https://www.pietrastudio.com
	Printful	Create merch, manage community, monetize community	https://www.printful.com/
	Printify	Create merch, manage community, monetize community	https://printify.com/
	Sellfy	Create merch, monetize community, grow community	https://sellfy.com/
	Selz	Create store, manage community, monetize community, grow community	https://selz.com/
	Shopify	Create store, manage community, monetize community, grow community	https://shopify.com/
	Scrollstack	Monetize community	https://scrollstack.com
	Spreadshirt	Create merch, monetize community, grow community	https://www.spreadshirt.com/
	Tee-sprimg	Create merch, manage community, monetize community	httphttps://teespring.com

See more

All Creators - Management & CRM Tools

	Cloutjam	Manage business	https://www.cloutjam.com
	Collective	Manage business	https://www.collective.com
	Creator Metrics	Manage business	https://creatormetrics.io
	Commsor	Manage business	https://www.commsor.com/
	Laylo	Manage business	https://laylo.com/
	ToneDen	Manage business, grow community	https://www.toneden.io
	Convert Kit	Manage business, grow community	https://convertkit.com/
	Memberful	Manage business	https://memberful.com/
	Lumanu	Manage business	https://www.lumanu.com
	Biolinky	Link in Bio	https://biolinky.co
	Linktree	Link in Bio	https://linktr.ee/
	Direct.me	Link in Bio	https://direct.me
	Milkshake	Link in Bio	https://milkshake.app
	LinkInProfile	Link in Bio	https://linkinprofile.com
	MoeAssist	Manage business	https://www.moeassist.com/
	TrustyOak	Manage business	https://trustyoak.com
	Stir	Manage bsuiness	https://usestir.com/

See more

All Creators - Crypto and Finance

	Karat	https://www.trykarat.com/	Manage business
	Zora	https://ourzora.com/	Monetize crypto
	Roll	https://tryroll.com/	Monetize crypto
	Rally	https://www.rally.io	Monetize crypto
	Cent	https://beta.cent.co/	Monetize crypto
	Onscout	https://onscout.com/	Monetize crypto
	Foundation	https://foundation.app/	Monetize crypto
	Release Plan	https://www.releaseplan.io/	Manage finance
	Keeper Tax	https://www.keepertax.com	Manage finance & Tax

See more

Li’s Newsletter from Substack created an interesting diagram summarizing the multitude of vertical-specific work platforms that have sprung up in the age of the Creator Economy. Many of these began as start-ups over the last decade. Li argues that these verticals originated from Craigslist. Once Craigslist operated as an overarching marketplace where people could offer their niche services and find interested customers. At that stage, there really was only space for one platform. However, with the growth of the Creator Economy, there was sufficient demand for these services (and in turn increased supply) to warrant the creation of many specialist, often niche, platforms.

Li argues, however, that we have moved on much further than merely unbundling Craigslist. “Work is being unbundled from traditional employment.” She observes that we are now seeing “the rise of “micro-entrepreneurs,” or free agents, creators, freelancers, and independent workers who utilize digital platforms to make a living by leveraging skills and knowledge in the absence of a traditional employer-employee relationship.”

It Takes Only 1000 True Fans to Make a Living

Kevin Kelly in The Technium makes the astounding claim that “To be a successful creator you don’t need millions. You don’t need millions of dollars or millions of customers, millions of clients or millions of fans. To make a living as a craftsperson, photographer, musician, designer, author, animator, app maker, entrepreneur, or inventor you need only thousands of true fans.” He wrote this back in 2008, indicating that the Creator Economy has evolved rather than simply appearing overnight.

His theory is that a true fan is somebody who will buy anything you produce. Most successful creators can probably recognize their own true fans. As Kevin says, “ diehard fans will drive 200 miles to see you sing; they will buy the hardback and paperback and audible versions of your book; they will purchase your next figurine sight unseen; they will pay for the “best-of” DVD version of your free YouTube channel; they will come to your chef’s table once a month.” 

If you can build a following of 1,000 of these “super fans”, spending $100 each per year, you can probably make a living from their purchases, regardless of any other sales you may make.

You might look at the followings of the more famous influencers, and despair at the millions of followers they have. Your following may be paltry in comparison. Yet that doesn’t matter, if you have sufficient “super fans.”

There is nothing special about the figure of 1,000 true fans. It all depends on how much they spend on your product or service. If you manage to charge higher prices, you need fewer “super fans”. For instance, if you can generate $1,000 income per year from your true fans, then you only need 100 of them for that six-figure income you’re craving.

Live Streaming Has Created New Opportunities

Source: twitter.com

One of the newer forms the Creator Economy can take is live streaming. This has to be one of the ultimate ways for talented people to express themselves to a broad audience. 

In the distant days of personal computing (the 1970s), personal video gaming entered its infancy, after a few experiments as far back as the 1950s. Atari released Pong in 1972 as the world's first arcade video game. They released a home version of that game in 1975. Yet in those days, games were single-person, with some expanding to two or even four-player, before long. However, even then, you were limited to playing friends physically in the room with you. This meant that games were intrinsically private. The biggest audience you might have would be standing watching you in an arcade if you were skillful enough to attract onlookers.

Today that has changed that system. Any gamer can sign up for an account on Twitch and live stream their gameplay. Most of these streamers play multiplayer games against people from across the globe. While there are a few streaming superstars, most are everyday people who just like to play in a public setting. They may not even be good gamers. Yet they have viewers, in some cases, millions of viewers. Why? Because people find their games fascinating. Often it is the quality of their commentary and self-analysis that attracts viewers, more so than their expertise at playing the game.

Social Media's Role in the Creator Economy

Social media has fueled the creator economy. It provides marketplaces where creators can make their living.  Successful creators also use social media to build a following and then share their latest creations with them. 

The average US adult spends 38 minutes per day on Facebook. Indeed, 16-24-year-olds devote a median of 3 hours a day to social media. Internet users, in general, spent an average of 2 hours and 22 minutes per day on social networking in 2019. That is a serious amount of time spent on social media, and this gives many opportunities for creators to promote what they produce to relevant, targeted types of people.

Social media is hugely linked to a small number of platforms: Facebook, YouTube, Twitter, Instagram, TikTok, and a few more. These platforms use algorithms that truly dictate what any individual will see. People who choose to advertise on these platforms have a larger audience than those who try an organic approach.

However, social media requires content. The platforms need people to upload posts, pictures, videos, and the like. Therefore, they make it easy for the best creators to make a living from their content, usually with a revenue-sharing model as described above.

Is the Creator Economy Broken?

The creator economy is a "dog eat dog" marketplace. Some people, mainly influencers, perform amazingly and make considerable sums of money. The bulk of people, however, make very little. They struggle to gain enough of a dedicated following to achieve economies of scale. For example, only the top 3% of YouTube creators yield more than $17,000 per annum in advertising revenue, and to do that, you need to average 1.4 million views per month. 

YouTube at least shares advertising revenue. Many of the others, such as Pinterest, Twitter, TikTok, and Snapchat, don't. Creators on these platforms have to find alternative ways to earn an income, such as influencer marketing or sponsorship deals. Facebook shares ad revenue with some creators, but only a select few.

But this doesn't necessarily mean the creator economy is broken. It has led people to innovate. Sites like Patreon have sprung up to make it easier for creators to earn an income and facilitate an exchange of money.

The creator economy is the ultimate way that talented people can express themselves and receive an income. It is evolving, however, and just like changes in technology and society left behind traditional music companies, platforms that don't make it fair for creators may well find themselves relegated to being a history article in Wikipedia.

About the Author

Influencer Marketing Hub

Writer

The Influencer Marketing Hub Team brings together a diverse group of experts with a passion for influencer marketing, digital trends, and social media strategies. Each piece of content crafted by this team is researched and written to provide valuable insights, tips, and updates for our readers. Our authors are dedicated to delivering high-quality, informative, and engaging articles that help businesses and influencers thrive in this rapidly changing digital world.