- Social media has not only played a huge role in the common people’s lives but it has also made stars. Rock star performers like Justin Bieber and The Weekend were all discovered from social media through content creation. Social media platforms like Tik Tok, Instagram, and YouTube are attributed as talent mines from which many of our favorite stars have emerged. Data Analysis Reports say around 50 million content creators – amateur and professional enthrall online audience worldwide. Therefore, the Creator Economy has grown huge over the years and is still expanding.
- If you are thinking of breaking into the Creator Economy by using your talent and content, this blog post will help you a lot.
- In this post, we will be covering the crux of the Creator Economy, how content can be monetized, the evolution of the creator economy, benefits of the creator economy, challenges faced by the creator economy, and what the future will be like for content creators.
What forms the crux of the Creator Economy?
The core of the Creator Economy comprises the customers who help influencers, vloggers, bloggers, and independent performers earn money on social media by using some software and financial tools.
How can content be monetized?
As per a poll conducted by the Lego group in 2019 to encourage space explorations, it was found that 29% of the kids had aspirations to be YouTubers and around 11% had aspirations to be astronauts. Since the late 2000s, online content creation has been looked at as one of the main sources of income and not just a “timepass”. Content creation as a career has been lucrative for some because people are fine with paying money to watch relatable content by known faces thus leading to the creation of a huge fan following for influencers. Even big brands know the importance of social influencers and are banking on them to promote their products and services.
What are some of the sources from which a content creator can earn money and sometimes, a lot of money?
1) Advertising Revenue Sharing.
2) Paid Subscriptions made by content consumers.
3) Project-Based Financial Applications like GoFundMe or Kickstarter.
4) Creator–Based Financial Applications like Patreon (90% is pocketed by artists).
5) Financed Content.
6) Online Sales.
7) Personal Branding.
Brand Deals are said to be the highest source of revenue (77%) for creators. Can you imagine, some sponsored influencers are worth as much as $8 Billion?
Evolution of the Creator Economy
The evolution of the Creator Economy can be studied in three phases. They are:
1) Foundation of Media Platforms – With the foundation of media platforms, content creators saw many doors opening up for them in terms of content creation. Distribution algorithms and editing tools sucked up huge investments in this phase.
2) The monetization of Influencers’ Influence – In the second phase, content creators started to look for companies to share advertisement revenue and even other avenues to monetize content. This phase also saw the emergence of influencer marketing agencies like Viral Nation, Upfluence, etc., which led to the integration of manufactures and content creators.
3) Creation of Fan bases – In the current phase/the third phase, creators have themselves turned into entrepreneurs by creating strong fan bases that have led to the creation of multiple revenue sources including merchandising, events, etc.
Benefits of the Creator Economy
Are you eager to learn about the benefits of the Creator Economy? Here they are:
1) Content Creation is based on passion and when you follow your passion, it leads to enhanced job satisfaction and helps you maintain sanity.
2) Relevant content connects content creators and content consumers.
3) The Creator Economy influences the purchase decisions of the consumers and that is brought about by the ability of the content to be relatable.
4) Technology helps in the distribution of control that in turn enhances the experience of the users.
Challenges faced by the Creator Economy
When there is a positive side, there will be a negative one as well. We have presented the challenges faced by the Creator Economy in this section:
1) Common users will look for free content considering the Creator Economy is a new development.
2) It is difficult to make followers watch full advertisements.
3) If you want to use popular music as your background, copyright will pose a challenge for you.
4) If you depend on one platform, you may not be able to adapt to the changes made in the features, algorithms, policies of the platform.
What will be the future like for Content Creators or the Creator Economy?
The Creator Economy is slowly but steadily gaining popularity and the proof of the same is the emergence of fintech companies whose services are tailor-made for influencers. Fin-tech companies and monetization tools and platforms will come together in the future to provide end-to-end solutions. When we are talking about the Creator Economy, we cannot ignore an important trend which is the emergence of the creator class that lies between the famous creators and the struggling ones.