The New Creator
You’ve probably heard of the creator economy. It consists of influencers: those that use their following to make a living. They spend their time creating content for others to view. This title is often given only to social media content providers. COVID, advancing technology, and work-from-home acceptance has begun to change that notion. The creator economy no longer needs to be the top 1% and limited to social media.
By the Numbers
Creators, as they are loosely defined, are those that create content for others to absorb. Most often, this content is social media content, but this is not the way of the future. The term creator is becoming more ambiguous as it begins to cover those who are not solely crafting videos and images on social media. Let’s define what the market looks like, where it’s going, and why.
1. The Creator Economy
On Patreon (https://patreon.com), only the top 2% of creators earn at least minimum wage (CB Insights, 2021). That means there are about 4,000 users of over 200,000 not making enough to call it a job. Let’s be real though, the minimum wage is a terrible benchmark. Let’s look at another platform. Of the 50 million creators, only a bit more than 2 million consider themselves professionals. 4.5% of self-proclaimed creators are able to call it a living (Geyser, 2021). This is often done through multiple platforms and requires additional tools to do so.
The results of a recent survey done by CB Insights showcased that of 2,000 creators, 77% of them rely on brand deals for their income. This is not sustainable. Take a look at Instagram. How do creators monetize ON Instagram? Right now, the only way to make money is through brand deals on many platforms. Even Youtubers require personal video time to do a brand shoutout. What about the creators that want to create content and are knowledgeable but don’t want to go after brand deals? What about true content creators?
What’s missing in many of these discussions is the new type of creator. It’s seen very briefly in the graph below.
Did you see it? There are new ways to earn as a creator that is beginning to be explored. Courses and subscriptions provide creators with new ways to incentivize their followings. Let’s dive in.
2. The Future Creator
Social media is a stepping stone to the creator economy. Yes, it will continue to be used, but it will not be the only source of income. This is a two-way street. Those that follow influencers and creators believe in them. Imagine being able to connect with someone you’re subscribed to on Youtube, following on Instagram, and viewing TikToks of every day. Maybe this individual creates a course, wants to share their ideas, or offers a new subscription model to better interact with his or her followers.
This is the future creator. Here’s the thing, we’re just scratching the surface.
Let’s take a look at a very real situation. Wave 👋 to our story’s protagonist, Sarah.
Sarah is a software engineer and has expertise in her field. She noticed how quickly her industry was changing and realized it’s tough to enter. Technology is already hard to understand, now new technology is being utilized by companies around the world faster than ever. She was lucky enough to have a mentor help her break into the industry and sponsor her as she ramped up in her field.
She realized that she made it in her field because she was able to ramp up on the nuances that traditional education doesn’t provide. She was able to work while being helped by this creator and now wants to give back since she knows the steps she took to get there. The thing is, Sarah is not an avid social user and can’t afford to do it for free. She’s still an entry-level employee and works on side projects to afford California rent.
Sarah is one of the many future creators. Her content does not come in the form of social media posts (although it would definitely help supplement her true content). Her knowledge and expertise can be provided to her followers and monetized. She is part of what is a quickly growing emerging market of the creator middle class.
3. Why?
If the above story isn’t enough, let’s discuss the why. What is the creator middle class? As the Li Jin of the Harvard Business Review puts it
…those that aren’t household names but have a solid base of customers who provide the foundation for a decent income.
A lot of people identify creators by their massive wealth, stardom, and ability to churn out content (don’t even get me started on burnout, which is definitely another reason the creator economy has to change). What about creators that want to build a lifestyle business or slowly switch from working part-time as a creator to full-time? They may have a decent following, but they are unable to monetize to dedicate themselves and their resources to outputting consistent quality content.
Here’s one more thing to consider: what if a creator wants to take a break? When do they get to go on vacation? Unlike traditional celebrities, creators bring their work with them. Look at how many Youtubers decide to go on vacation and blog during the entire trip. Is that truly a vacation? The creators need other ways to monetize themselves, and platforms are being created to help them do so. Hell, take a look at what we’re doing over at Pedestal to help these creators monetize their expertise and build a following while still being able to take a vacation.
References
CB Insights. (2021, June 15). The Creator Economy Explained: How Companies Are Transforming The Self-Monetization Boom. Retrieved from https://www.cbinsights.com/research/report/what-is-the-creator-economy/
Geyser, W. (2021, May 15). 22 Creator Economy Statistics That Will Blow You Away. Retrieved from https://influencermarketinghub.com/creator-economy-stats/
Jin, L. (2020). The Creator Economy Needs a Middle Class. Harvard Business Review Digital Articles, 2–11.
