The creator economy has democratized how content is produced, distributed, and consumed. In previous generations, content was mostly dictated or regulated by big companies. Today, the content economy empowers both the creators and their audiences.
No longer do we have to sit through a predetermined lineup of shows or scroll through very limited or generalized content. With the advent of the creator economy, consumers now choose what to watch, browse, read, or listen to whenever they want to.
Content has also become increasingly specialized, enabling creators to capture niche audiences. It provides us with countless opportunities to earn while doing what we love or producing content that aligns with our interests. It gives us the means to disrupt the existing system and create a unique economy that’s entirely our own.
The Creator Economy Landscape: Examining an Economy That’s Changing the World:
- The Creator Economy at a Glance
- What is a Creator?
- What Does It Take to be a Content Creator?
- How Creators Earn Money Online
- The Fall of the Social Media Monopoly
- Content Creation for Marketing
- Gig Economy vs. Passion Economy vs. Creator Economy: Are They One and the Same?
- How Are Creators Making Use of the Creative Economy?
- Generating Content
- Building and Maintaining Your Audience
- Monetizing Your Content
- The Creator as an Entrepreneur
- Common Challenges Creators are Facing
The Creator Economy at a Glance
As discussed in “What is the Creator Economy?, the evolution of the internet has decentralized traditional media over time. From being a repository of information, it has now evolved into a powerful resource for the various and diverse needs of billions of users. It has become a platform that we can all capitalize on to pursue and express our passions or to connect with a wide audience.
In the past, content production involved specialized equipment, expensive software, and elaborate sets. Nowadays, content can be produced using only basic audio or video equipment, shot in a very simple setting. This is why we’re seeing more content from ordinary individuals—almost anyone can be a content creator.
There’s no denying that the creator economy has taken the world by storm. Even those who aren’t familiar with the term “creator economy” or “content economy” are likely to have encountered some iteration of it.
Have you watched any YouTube videos lately or listened to a podcast this week? Have you subscribed to a Patreon account? These are only some of the many iterations that exist within the creator economy.
Source:
What is a Creator?
With around 50 million individuals worldwide who identify themselves as creators, evidencing the democratic thrust that the creative economy has brought, it can be difficult to determine who really counts as one.
Source: signalfire.com
Our “What is a Creator?” article expounds on the specifics of how creators are identified, but according to Li Jin, a renowned investor and startup advisor, a creator is an individual who has managed to create an audience on digital platforms. They curate or produce content in a variety of formats. This content should meet the needs and interests of their target audience.
While content creators can also create offline content, for the purposes of this article, we’ll be focusing on online or digital content creators.
Content Creator Types
There are many types of content creators, and they can be differentiated based on the platform or channels that they’re using. We’ve identified four broad types of creators, which include:
- Web Content Creator
This is a broad term that encompasses individuals who create written content, such as blog posts, articles, landing pages, and ad copy. They can also work on mediums like eBooks, white papers, and case studies. Aside from informing and educating their readers about a particular topic, a web content creator may also be tasked with the goal of converting visits to leads or to sales.
- YouTube Creator
Also known as YouTubers, these creators utilize YouTube as a platform and publish videos on channels. Content on this platform varies, with some ranging from the mundane to the elaborate or niche. Being on YouTube gives content creators the opportunity to go into partnerships with brands or to collaborate with other YouTubers.
Nowadays, anyone can have a YouTube channel. In 2020 alone, YouTube had more than 37 million channels, all operated by a range of creators, from those with millions of subscribers to those with only a handful.
Source: tubics.com
However, despite the number of channels on this platform, 85% of YouTube views are generated by only 3% of them, as discovered in research done by Mathias Bartl. His study concludes, however, that newer channels can still have the opportunity to succeed, provided that they choose the right genre or those with a high demand and supply ratio.
- Podcast Creator
Another popular content medium, podcast platforms share a few similarities with YouTube channels. Both can be made by anyone using equipment and a setup that’s easily accessible. Both can cover a whole gamut of broad and specialized topics, and there are different tones and styles that can be applied to the creation of content.
As of March 2021, there are almost 2 million podcasts, with over 47 million episodes being aired, and with millions of people in the U.S. alone tuning in to them. Out of the 2 million podcasts, approximately 730,000 of them remain active, particularly on Apple Podcasts. This makes the creation of podcasts one of the more popular methods for generating content and reaching out to audiences.
- Social Media Creator
Social media creators focus on developing content for social media channels, like Facebook, Instagram, Twitter, and the likes, and may or may not work for businesses or organizations. They can be specialists in the industry who produce professional-quality output and share curated content.
These creators include photographers, writers, or artists.
- Influencers
Nowadays, influencers are lumped with social media content creators. While factors that classify these two may overlap at times, they have distinctions.
Influencers may engage in content creation themselves, but they are almost always featured on the content they produce. They tend to focus on engagement or on growing and strengthening a community. Included in this category are YouTubers, bloggers, and reviewers.
Influencers have established their authority over their fields of interest and are trusted by their audiences. They also have their own classifications, as discussed in “What is an Influencer?”:
- Mega-Influencers
Simply put, these types of influencers have more than 1 million followers on at least one social media platform. They’re usually seen as celebrities and most likely have high rates for their services. More often than not, they work with talent agents.
- Macro-Influencers
Classified as influencers with around 40,000 to 1 million followers, they are more numerous compared to mega-influencers. This subgroup can include B-grade celebrities or online experts who already have a robust following.
- Micro-Influencers
Micro-influencers are individuals who have around 1,000 to 40,000 followers. They’re everyday people who can be considered specialists in their particular niche.
- Nano-Influencers
Nano-influencers typically have fewer followers—around the 1,000 mark. However, they have dedicated followers who constantly and enthusiastically engage with their content. Nano-influencers include specialists in a particular field and, thus, can work with highly-specialized brands or businesses with niche products.
Moreover, influencers can be classified according to the content they produce:
- Bloggers
Many influencers have gained a large following through blogs. Aside from having an authentic and active relationship with their fans, they’ve also established themselves as experts in their particular field, be it music, fashion, or finance by offering high-quality, valuable content.
- YouTubers
YouTubers are a varied bunch, from gaming reviewers to musicians. With some of the more popular creators racking up to hundreds of millions of subscribers, it’s no wonder many brands and agencies are collaborating with these creators.
- Podcasters
Podcasters are also considered as influencers. Given how effective podcasts are in engaging audiences, they’re valuable assets that influencers can use to build a following and to influence an audience. Podcasters can collaborate with others to be able to connect with a different audience segment and expand their reach.
- Social Post Producers
Influencers don’t wait around for new content. They also cross-promote their content across multiple social media platforms. Instagram is one of the most popular avenues where influencers create posts that usually revolve around beautiful imagery.
Other Types of Content Creators
There are as many types of content creators as there are subjects or material for content. Dedicated bloggers and YouTubers aren’t the only ones who are getting into the creator economy.
There are many individuals who can be considered as creators, including:
- Networkers who create videos and community networking events
- Craftsmen or artists who make video tutorials or how-to articles
- Company executives who venture into the podcasting or vlogging
- Teachers who publish tutorials or articles online
- Event promoters who make social media posts
What sets a great content creator apart from all the other creators in their respective fields?
Aside from being able to churn out relevant and premium content for your audience, you also have to be able to understand them, what they want or need, and what moves them. We’ll delve deeper into the topic of growing with your audience in the subsection below.
One of the greatest challenges of being a content creator is staying relevant and producing up-to-date content. How do you stay on top of things? How can you consistently deliver content that aligns with your audience’s interests?
What Does It Take to be a Content Creator?
Aside from grit? A lot of other things, to be honest.
While it might seem that generating content is as easy as recording a trending dance on your phone and adding effects after, it’s actually more grueling than that. Yes, you might have the right studio equipment or setup or you might have the best material, but if you haven’t satisfied the basic requirements as a creator, then you might have a hard time getting the results you want.
According to Peter Yang of the Creator Economy, creators have a unique set of needs, which he organized in a hierarchy. Think of Abraham Maslow’s popular model, but geared toward content creators.
In Maslow’s theory, the needs on the lower portion of the hierarchy, or the basic needs, should be satisfied first before an individual can begin to address the needs on the upper portion. The same principle applies to Yang’s model, albeit with some differences.
Creator Hierarchy of Needs
Yang’s Creator Hierarchy of Needs emulates and breaks down what creators would need to account for to make relevant and high-quality content, build their audience, and earn from what they produce. At the bottom of the pyramid is the need to publish, followed by the need to grow. The pyramid is topped with the need to monetize.
Yang posits that each stage involves a set of actions that need to be executed in order for a creator to be able to fully realize the needs hierarchy.
Source: creatoreconomy.so
Publish
Before anything else, a creator should first determine their niche. According to Yang, a niche can be anything, from what you’re interested in or what you consider yourself to be good at to what you think people want to see. This is perhaps one of the biggest hurdles in becoming a content creator—how would you pick a niche in an online landscape that’s saturated with similar content?
If you want to specialize in doing game reviews, there’s probably someone out there who has done that already. To stand out in a sea of niches, Yang suggests that you go and find what he calls “a niche within a niche”. Say, you plan to do game reviews; instead of reviewing or testing popular titles, like Silent Hill or Resident Evil, you could focus on reviewing or alpha and beta testing more obscure titles, such as House of Rules or The Last Faith. Having a unique niche gives you the opportunity to come up with more unique content.
After determining what your niche is, you can proceed with creating content. But, as a content creator, how often should you publish content?
Here, Yang suggests that publishing content frequently and regularly, be it on a daily or a weekly basis, can help you grow your audience faster. However, keep in mind that your content should still be high quality and be valuable for your audience.
After determining what and how often to publish, you also have to find ways to keep yourself motivated. Being a creator in this day and age isn’t just about living your dream life on your own terms. There’s also a challenging side to the economy.
It’s difficult for creators to stay enthusiastic, in light of constant pressure, says Yang. Staying relevant, protecting your personal brand, exercising patience in growing your audience, and seeking ways to earn from your endeavor all involve a lot of effort.
In fact, in an article by Taylor Lorenz for the New York Times, she writes that creators are finding new ways to monetize themselves or other aspects of their lives. Recently, platforms such as NewNew have allowed creators to create polls that let their audience decide what they’re going to wear or where they should go, essentially commodifying human life.
The pressure that creators feel can escalate to anxiety or depression, something that many of them already struggle with today. In order to stay motivated, Yang recommends that creators take breaks and allot time for connecting with other human beings who can relate with them. It’s also important to be open to seeking professional help.
Grow
Part of being a creator is growing your audience. To be able to do this, you have to look at data or evidence and determine what works and what doesn’t when it comes to your audience. You can’t keep on churning out cookie-cutter pieces that don’t resonate with your target audience and expect to gain a larger following.
Moreover, as a creator, it’s important to engage with your fans. Yang shares that only focusing on one aspect of creatorship, like publishing content, can stifle your growth as a creator. Audience interaction is a crucial part of every creator’s growth. Making them feel that they’re special—and being earnest about it—is one of the best ways to show your audience that you care about them.
There are a number of ways creators can interact with their audience. Here are a few of Yang’s suggestions:
- Giving a shout-out to your fans and thanking them for their patronage
- Replying to comments, messages, or questions
- Asking them questions
Another way through which creators can grow is by collaborating with other creators. Collabs come in many variations, from music videos to duets on TikTok.
Monetize
The final piece of the pyramid is only achievable once you’ve built a solid base. Once you’ve come up with consistent, high-quality, and relevant content and have expanded your presence and audience reach, you can then focus on monetizing your content.
According to SignalFire’s Creator Economy Market Map, there are a myriad of ways creators can generate income from their content, including:
- Banking on their influencer reach, where they can work with brands to come up with campaigns
- Establishing themselves as a business, where they market their skills, products, or services on platforms such as Cameo, Gumroad, OnlyFans, Mighty Networks and Teespring.
Once you’ve expanded your reach, you may need some help with managing your business. With exponential growth also come more opportunities to branch out and try your hand at other ventures.
Yang’s Creator Demand Curve
Source: creatoreconomy.so
Aside from the Hierarchy of Needs, Peter Yang also posits the existence of a Creator Demand Curve.
It’s basically a figure that tells you how many fans are willing to pay for your content, considering your pricing strategy. There are two most common scenarios that can play out in this case:
- Set your price too high and run the risk of being inaccessible to other fans
- Set your price too low and end up short changing yourself
If you’re a creator who would want to diversify not only your portfolio but also your income streams, you’d want to strike a balance between different platforms, so you can optimize your content and maximize your earnings from each avenue.
The demand curve figure also shares how fans can be classified into three distinct groups. There are casual fans, active fans, and super fans. Casual fans are the ones who won’t shell out anything, while active fans are willing to pay up to a certain amount.
Then, there are the super fans or “true fans”. These fans are willing to pay a lot of money for their favorite content creator. In fact, according to venture capitalist Li Jin , you only need 100 true fans, and not necessarily 1000 true fans, to be able to have a sustainable and rewarding career as a content creator.
Source: a16z.com
In this setting, creators are leveraging audience loyalty and monetizing the content that their fans love. In a similar vein to Yang’s Creator Demand Curve, Li Jin shares that creators can classify their audience and, from there, create tailored content that can satisfy every relevant price point.
But, before you can be on your way to earning more with fewer fans, you need to step up your game and be innovative about what you would offer.
Simply providing content won’t necessarily cut it if you’re looking to have a solid base of true fans who are willing to pay a high value for what you produce. Instead of seeing a conventional model where the audience is paying to benefit the creator, apply an approach where your audience pays for content that would benefit them
This benefit can encompass many aspects of an audience member’s life, be it personal growth, work, health, or education.
Creators can bank on their audience’s desire for self-improvement or life betterment. As a creator, you need to identify what value you can give to your target audience. What do they desire at the moment? What challenges can you help provide solutions for? What can you offer them to help them satisfy their needs?
To gain 100 fans who are willing to pay $1000 for your content, you need to give them unique, valuable, and curated content—the kind of which value and results are tangible.
Blogging is an indispensable tool in a content creator’s arsenal, with it, surprisingly, being one of the most shared types of content on the internet. In fact, contrary to popular belief, long-form content, including content with more than 2000 words, actually gets shared more often than their short-form counterparts.
Source: okdork.com
Aside from giving them premium and exclusive content, you can also give your true fans access to a one-of-a-kind community of individuals who share the same interests, values, or mindsets. This way, you’re not only giving them invaluable material, but you’re also providing them with reinforcement.
How Creators Earn Money Online
The internet and the creative economy have opened plenty of opportunities for creators to make money. Creatives can sell their own artwork or self-publish their articles without having to go through publishers or other middlemen.
Is gaming one of your passions? In this economy, you can have the chance to earn money while hosting a livestream gaming session on Twitch, for example. If you have a unique set of skills, you can use that as leverage and become a creator on popular platforms such as Patreon or Teachable, where you can get paid by uploading tutorials or creating courses.
Creators aren’t limited to one specific way of earning money online. They’re free to diversify their reach and can create content on a number of different platforms. For example, a YouTuber who specializes in art content and watercolor tutorials can have a Patreon account where they do in-depth painting tutorials. This same creator can also have an Etsy shop where they sell prints of their works.
In most cases, however, creators don’t get 100% of the revenue. Most of the time, they share a part of the total revenue with the platform or marketplace that they’re using.
As we wrote in The State of the Creator Economy, one of the ways through which creators earn money is by generating advertising revenue. YouTube, for instance, implements revenue-sharing with the creators on their platform. If a creator meets the criteria for becoming a YouTube Partner, they’ll be eligible to put ads on their videos. All factors considered and met, including YouTube’s monetization policies and valid watch hours, these ads can generate revenue, 55% of which goes to the platform and 45% to the creator.
There are many other ways creators can make money online. These include:
- Creating and charging for online courses
- Fan donations, tips, commissions
- Subscriptions
- Partnering with brands or services to create sponsored content
- Participating in affiliate programs
- Utilizing community engagement
- Selling digital content
The Fall of the Social Media Monopoly
Social media is a double-edged sword. It has changed the way we view and use the internet. On one hand, it’s addictive and has its fair share of flaws. On the other, it’s an indispensable tool that can help bring people together. It’s also a wellspring of opportunities that paves the way for better things, especially within the context of the creator economy.
With the advent of the creator economy, social media has transformed from an avenue of impersonal interactions to a place where online communities and meaningful connections are thriving. It’s become a place where niche communities can connect and, possibly, realize their value or potential as individuals.
In the past, social media giants, such as Facebook, Instagram, and Twitter, have dominated the industry. But, flaws like non-specific content and data sharing and privacy issues have caused a great change in how social media is being viewed and utilized by individuals.
Over the years, there’s been a shift from the attention economy, where attention is commodified and used as a currency, to a creator-centered economy, otherwise known as the creator economy. People are now becoming more conscious of how they use the internet and of the negative effects of social media.
Recently, we’ve seen the growth of niche communities, which have provided higher-quality and meaningful experiences for consumers all over the world. This has given individuals the opportunity to become creators who publish quality content and to build a deeper relationship with their niche. It has also enabled them to do what they love and, in some cases, earn a living from it.
Though social media is here to stay, the creator economy has democratized content choices and has distributed power to individuals who now have a venue for sharing their interests and passions.
Content Creation for Marketing
Content marketing is still one of the best ways for creators to gain attention, promote awareness, establish credibility, and drive conversions.
In a study conducted by the Pew Research Center this year, it was found that 31% of U.S. adults, or 3 out of 10, go online constantly. Additionally, there was a 9% increase in the people, aged between 18 to 29 years old, who use the internet almost constantly.
What do all these numbers mean in the context of content creation? With millions of people going online for hours daily, creators now have bigger opportunities to reach out to their target audience. In a way, content creators can become marketers and use what they produce as a means for turning their audience into paying customers.
Blogging is an indispensable tool in a content creator’s arsenal, with it, surprisingly, being one of the most shared types of content on the internet. In fact, contrary to popular belief, long-form content, including content with more than 2000 words, actually gets shared more often than their short-form counterparts.
Why is this so? Aren’t we supposed to prefer short-form content given that most of us do our browsing using our mobile devices? What about the reports on shorter attention spans?
Source: okdork.com
In the midst of memes and short videos, people still want to read and share something that’s substantial and well-researched. Content that’s detailed and manages to convey digestible data through graphics, such as lists or infographics, receives more love from their audience.
Gig Economy vs. Passion Economy vs. Creator Economy: Are They One and the Same?
The creator economy is an umbrella term for a constantly evolving economy that’s driven by individuals or creators. It describes an economy where creators strive to integrate value into their content and establish connections with their audience in a conscious attempt to steer away from traditional models.
This term also covers individuals who use the internet to share their talents, knowledge, and skills to create consumable content, which can take on the form of tutorials, podcasts, and livestreams, among other iterations.
Meanwhile, as popularized by venture capitalist Li Jin, the passion economy is technically a subset of the creator economy. It puts an emphasis on a person’s passion and on monetizing an individual’s skills, while enabling them to work at their convenience, giving creators freedom. This setup also gives them the chance to turn their passions into a source of income.
Lastly, in the gig economy, individuals are seen as, for lack of a better word, commodities. This is prevalent in specialized or “narrow” services, such as food delivery and transportation. It’s also characterized by a monetization model that’s centered on a one-time revenue, unlike in the creator economy and passion economy, where revenue can be an ongoing venture.
Another main difference between the gig economy and the passion economy is in the interaction between the consumer and the provider. For the former, there’s a limited opportunity for consumer engagement. For the latter, there’s ample opportunity for both parties to interact with each other, to build a community, or to find like-minded individuals. There’s no one right or wrong economy. It ultimately boils down to what you need and what you really want to do.
The gig economy is ideal if you’re looking for a quick way to supplement your income. The passion economy can also provide that benefit, but it may take some time before you actually start earning money, even if you can manage to produce brilliant content.
How Are Creators Making Use of the Creative Economy?
Source: creatoreconomy.us
As with most things, the creator economy follows a cycle. According to Hugo Amsellem of Arm the Creators, the creator economy follows this structure:
- Creators generate content
- They grow their audience
- They own their audience
- Monetize online
- Monetize offline
- Creators manage their business
While Amsellem offers a logical perspective on the creator economy cycle, this can be further simplified into four core concepts: generating content, building an audience, monetization, and business management.
Generating Content
A creator needs to produce or curate content—this is a given. Various media platforms have ushered the birth of the creator. From video and streaming platforms to writing platforms, they’ve paved the way for millions of individuals to come up with all kinds of content, from the highly specialized and valuable to the more entertaining and mundane.
Is there a formula to creating content? There’s no one-size-fits-all approach to content creation. And while it’s not exactly rocket science, content creation entails a lot of careful planning, clear goals, a vision, content marketing know-how, and creativity.
It’s also paramount that your content should capture your audience’s attention. But, how can you do that in a digital landscape that’s already saturated with different content?
One way is to find your niche. Again, we go back to Peter Yang’s Hierarchy of Needs, particularly finding what he calls your “niche within a niche” for this. If we dissect what a niche is, David Ramos gives us a good idea of what it’s made up of. According to Ramos, a niche should have the following elements:
- Topic
- Format
- Language
- Audience
- Voice
- Platform
Source: ghost.org
We can say that the content economy itself stemmed from a need to break away from the traditional schema and the need to express oneself. Advancements in technology and the evolution of the internet contributed in many ways as well. The creator economy communicates the need for an avenue where individuals are free to express themselves, do what they love, and earn money while doing so.
The development of various social media platforms, such as Facebook, Instagram, and TikTok, has paved the way for more and more people to find what they love and make a living out of it. From these social media giants came a bevy of startups that cater to the growing needs of millions of creators worldwide.
Content creation may come across as an easy venture. But, as with any endeavor, it takes a lot of time, effort, and other resources to create compelling and high-quality content. Aside from having the right equipment and setup, there are other tools that content creators should have in their arsenal.
Building and Maintaining Your Audience
How can a creator build their audience? From there, how can they best maintain and grow their community? The platform you’re on can potentially make or break your following.
Some of the more popular avenues for building an audience include YouTube, TikTok, and Twitch, all of which double as platforms for monetization.
Source: smartinsights.com
As a creator, it’s not enough to simply make or curate content. Returning to Yang’s Hierarchy of Needs, a creator needs to publish content regularly. Content also needs to be high-quality and relevant—something that resonates well with your target audience.
You’d also need to make content that not only captures your audience’s attention but also encourages new patrons to subscribe or join your community.
At this stage, it’s not enough to just grab their attention with your content. You need to make your audience trust you. You want to make them become part of your tribe.
A key element to being a creator is having a following that’s engaged. There should be a connection between creators and their audience. This requires that you make an effort to deepen your relationship with your audience.
Moreover, if you want to have more independence as a creator, it’s not enough to rely on well-established platform giants. Aside from having tons of competitors, such as those who have similar content or are in a similar niche, these avenues can have some restrictions that may limit creators to some extent. Diversifying your platform can help.
Monetizing Your Content
What makes the creator economy very appealing to the public is the opportunity to make money from doing or sharing what you love. Many creators monetize their reach via ads, which according to Hugo Amsellem, operates at the attention level, going back to the stage where you generate content.
Source: armthecreators.com
Without an audience, it can be challenging to earn money online as a creator. Even if you’ve gained a sizeable following, it can still be a struggle trying to make a living online. Being able to gain your audience’s trust makes it somehow easier to get through this hurdle. The key is to offer them something genuine—something of value that can help fulfill their need for self-improvement or transformation.
There are many ways creators can monetize their content online. You can sell digital downloads, offer value-adding courses, or market fan interactions. We’ve listed some tools and platforms that can help you monetize your content and gauge how much you can potentially earn.
One of the most popular ways of monetizing your content is through selling your own merchandise. Platforms such as Teespring and CrowdMade are officially integrated with social media giants like YouTube and Twitch. But while you may see your favorite creators plugging their merchandise on these channels, SignalFire’s Yuan and Constine remark that selling merchandise isn’t necessarily a reliable source of income.
Source: smartinsights.com
The Creator as an Entrepreneur
The creator economy is considered the fastest-growing classification of a small business. According to SignalFire’s Yuanling Yuan and Josh Constine, there are approximately 2 million professional individual creators who make a living on a full-time basis by making content.
Moreover, there are more amateur individual creators—around 47 million—who earn from content creation part-time through monetization. Like any other business, ventures in the creator economy need to be managed.
Common Challenges Creators are Facing
There are a lot of misconceptions about the creator economy. There’s more to the carefully curated albums, seamlessly edited video tutorials, and breathtaking artwork than meets the eye. Despite the accessibility of equipment and content creation platforms, creators are still faced with several challenges. Here are some of the most common ones:
- Lack of Financing
Like any other business venture or transaction, creators need money so they can have something to work with. In Michele Canzi’s article, he states that emerging creators have problems with financing. This comes with a certain amount of risk.
For someone with an established audience, it may be relatively easy to build or grow their audience. However, for someone who’s still new to the game, it may take a while for them to realize success.
There are a number of platforms, including some of those in our list, that require upfront capital in the form of subscriptions. While there are platforms that do offer discounted rates, it can still be difficult for some creators to gain access to these paid services, consequently limiting their reach.
There are also creators who need financing so they can purchase equipment or supplies, such as cameras or microphones, before they can start producing content.
- Missing Middle Class
There’s a great divide between content creators. In many scenarios, a select few take up a majority of earnings or views and become very successful. The rest are struggling and make significantly less than the top creators.
In a Harvard Business Review article, Li Jin argues for the establishment of a middle class for the creator economy to combat the stark inequality and offer more opportunities to other creators.
- Platform Dependency
It’s difficult to separate a creator from a certain platform. Even if creators do make their own content, there’s still a dependency on platforms for content generation, publishing, and management.
While some platforms are ideal for emerging creators, they may have limited features for creators who have a larger audience or those who have bigger revenues. At the end of the day, most of these platforms limit creators in several aspects. There’s still a lack of discovery options and fewer opportunities for creators to “own” their audience.
The New Economy for the New World
The internet has reshaped the way we think and conduct our businesses. No longer are we dependent on traditional business and marketing models. The advent of the creator economy and the creation of startups have ushered in a more democratic and more accessible means for individuals around the globe to earn money while being able to do what they love.
While the creator economy seems like one of the best things that have happened within this generation, it’s not without its flaws. The lack of a middle class brings about a wealth inequality that mirrors that of the real world.
Also, creators are being viewed through a figurative filter. The economy can be romanticized and be seen as simply about pursuing passions while making money. However, it’s bigger than that. It’s also about taking back our freedom and individuality and asserting our space in a landscape that’s monopolized by big brands.
From here, how do we move forward? As demands grow and needs change, how will startup platforms and creators work to re-envision the digital landscape?
