Your Guide to the Creator Economy
The creator economy is where people (creators) earn money by sharing their talents or knowledge in online communities.
The size of the creator economy is predicted to reach $480 billion by 2027.
There are at least 50 million creators out there already, with 30% of kids listing “YouTuber” as their top career choice.
What is the creator economy?
The Creator Economy is a term that’s been popping up more and more in our digital world. What is the creator economy exactly, you ask? Basically, it’s the ecosystem where people (aka ‘creators’) produce, share and monetise their content or expertise within an online community. It’s the world built by YouTubers, TikTokkers, Instagrammers, Streamers and Podcasters.
You have social channels and streaming to thank for this brave new world where people can make an actual full-time living online. Business Insider tells us the creator economy market size is currently hovering somewhere around the $250 billion mark, predicted to reach $480 billion in the next three years *insert exploding head emoji*. So yeah, it’s serious business.
Creator economy growth has really been driven by the rise of platforms like TikTok, YouTube, Meta and Twitch, but the concept isn’t entirely new. It’s actually been around since the mid-2000s when some of you, dear readers, were more focused on learning your ABCs rather than your engagement metrics. Let’s throw it back for a sec…
When did the creator economy start?
Not so long after the Y2K, bloggers were starting to shape the creator economy as we know it today. The fashion industry is the perfect example. Street style was king and online opinion makers and thought leaders were setting the trends, and fashion houses couldn’t afford to ignore them.
“The first really public sign that that was starting to change was in 2009 when Dolce & Gabbana seated bloggers alongside top magazine editors in 2009. After that, there was no avoiding that a new genre of media was here to stay.” (Vogue)
Fast forward to today and the creator economy hasn’t slowed down, with an estimated 50 million creators out there and more added by the day. Last year (2023), Influencer Market Hub predicted brands would spend an estimated $21 billion on creator marketing, up from just $1.6 billion seven years earlier. Just an easy 1212% increase.
Vlogs may have taken over from blogs, but online thought leaders hold more sway than ever. Just look at MrBeast: currently YouTube’s biggest creator, the 25-year-old (real name Jimmy Donaldson) is said to earn between $600–$700 million a year mostly through his online content. If you’re still wondering “but really, how big is the creator economy?” Beyonce’s net worth currently sits around $540 million. Some YouTuber who I personally have little knowledge about is worth more than BEYONCE!
Are creator economy jobs for real?
You bet your bottom dollar. It might all sound a bit surreal to the Millennials out there, but Gen Z (and especially the up-and-coming Alphas) know the power of an online platform.
In a poll by Lego back in 2019, nearly 30% of 8- to 12-year-olds listed “YouTuber” as their top career choice. Keep in mind this is from FIVE YEARS AGO! You can only imagine those numbers are growing by the day, and it makes total sense since YouTubers are generally the highest-paid content creators.
Creator economy examples like Mr Beast aside, there are heaps of companies dedicated to this space. We should know; after all, Scrunch has been working with creators since back in the day when we called them ‘influencers’.
Content creation and creator economy startups like Patreon, Substack, Linktree and Circle make for perfect case studies. And then there’s OnlyFans. The company kicked off in 2016 and was profitable within just four years. This is huge, for anyone who’s been in the startup game. The platform generated an insane $5.6 billion from users in 2022. So yeah, you could say creator jobs are for real.
How do you make money from the creator economy?
Okay, here we go. This is what you really came here for. We hate to tell you there is no secret algorithm or platform hack that can turn you into a social superstar. Here’s the not-so-secret hack:
First you build the audience, then you make bank.
That first step can be hard and time-consuming. You have to have something worth sharing and you have to be consistent in sharing it. Basically, you have to create. And create, and create, and create. Check out Forbes’ Top Creators of 2023 and you’ll get it.
It can be slow-going, but if you have your heart set on a future as a creator, this is the path you’ll have to walk. Once you have an engaged online community who care about what you have to say, you can start monetising your content through the following ways:
Paid subscriptions
Advertising revenue
Sponsorships or brand partnerships
Digital products or services
Events or live appearances
Licensing or royalties
In saying all of that, it’s important to be realistic. There’s a big gap between the high earners and the rest of us mere mortals just trying to monetise our content. Fellow influencer marketing platform Later (formerly Mavrck) found more than 50% of creators make less than $500 per month, around 25% earn more than $2,000 a month, and less than 5% are in the $10,000+ monthly bracket.
Entering the creator economy 2.0
Welcome to the creator economy – upgraded! Like we said, the creator economy isn’t a new phenomenon, but gaining more momentum means it’s gaining more attention.
You only need to look to India’s burgeoning creator economy scene. More internet access, adoption of smartphones and accessibility to digital platforms means the country with the world’s largest population is primed to become a hub of creators in this new creator economy 2.0 era.
AI is another factor you can’t ignore. The meeting of technology and creativity is presenting some pretty interesting opportunities for creators, as well as challenges.
AI-powered tools mean content creation is easier than ever, while tailored content discovery for audiences can see your engagement metrics skyrocket. YouTube’s suite of new AI tools even includes dubbing into other languages, so you can extend your influence into new regions you wouldn’t have played in before.
But on the flip side, there are concerns around intellectual property rights (who really owns what content? Think about remixes or duets as a prime example), and biases in the algorithm (e.g. a platform favouring content created by certain types of people over others).
Creator economy growth isn’t slowing down, so if you’re a budding creator or a brand thinking about working with creators the best time to start was yesterday, but the second best time to start is today.
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