What is the creator economy? Well, are you following Jason Derulo on TikTok? Subscribed to Mr Beast on YouTube? You already know it.
The creator economy is the landscape that rewards influencers for making content. In other words, it’s how influencers bag a check.
The most common manifestation of the creator economy is branded content; for example, Layton Williams x Skittles, or Gizzi Erskine x Glenmorangie (trust us, we could go on).
However, as the influencer industry hots up, there’s more ways for creators to cash in on their content beyond #spon.
PLATFORM SUBSIDIES
Firstly, platforms need influencers. So much so, that they’re even building them into their company structure.
For instance, TikTok launched Creator Fund, to hand out £231M over three years to influencers hitting over 100k monthly views.
Likewise, YouTube Shorts creators were set to earn up to £100M last year, in line with the newly founded YouTube Shorts Fund.
This allows creators to earn a living amidst changing guidelines and ever-increasing competition. However, do you remember YouTube’s ‘Adpocalypse’ back in 2016? Where channels were punished with mass ad removal? It still stings.
Apparently, 97.5% of YouTubers don’t even reach the U.S. poverty line, so side hustles have become a second nature to many…
INFLUENCER OWNED BRANDS
Secondly, influencers can make money by polishing up their niche, tapping into their black book, and summoning a bit of good old-fashioned entrepreneurial spirit.
From YouTuber merch to A-list actress-owned make-up lines, the list of celebrity owned brands is only getting longer. Why? Because they work.
These companies boast of influencer advocacy beyond a 3-month contract, and above all else, consistency is key in forging authenticity. Plus, the more a creator is invested in a final product, the more their audience is inclined to support it. Therefore, it’s a win win.
CROWD FUNDING
Last but not least, there’s crowd funding. OnlyFans, Cameo, Pearpop, and Patreon have contributed billions to the creator economy, with the latter earning $2B for influencers in 2020 alone.
As mentioned, by dealing directly with followers, influencers will bypass platform restrictions to earn a buck. For example, instead of risking their IG for a risqué picture, they can cross over to another platform. Due to this, creators can now have different stations for different audiences.
Celebrities are no stranger to this either. Head to Cameo and get a birthday wish from the likes of Snoop Dogg and Reece Witherspoon, secure in the knowledge that 75% of the booking will end in the creator’s pocket.
In conclusion, the creator economy is firing up. Your brand needs to get involved. Hit us up at info@seenconnects.com to see what doors we can open for you. We look forward to hearing from you.
Read more about the Creator Economy here in our 2022 Trend Report, and hit us up at info@seenconnects.com to see what doors we can open for you. We look forward to hearing from you.