Table of contents:
- What is the creator economy?
- How does the creator economy work?
- What’s the state of the creator economy?
- What are the creator economy business plans?
- The common content creator economy types in mobile apps
- Apps that help the content creator process
- Why is the creator economy a big deal?
- Twitch for live video streaming
- YouTube for on-demand video content
- Instagram for images and short videos
- TikTok for short videos
- Facebook for multi-media content
- Bloggers/Vloggers who give guidance or advice on issues for which they are well-known. Fashion bloggers, for example, on what's new in the fashion world.
- Entertainers who generate content through writing, music, or any other type of art. As an example, consider an artist who shares songs on Soundcloud.
- Experts and guides who offer their expertise on products, services, and other issues.
- Existing celebrities use their fame to generate content.
- Platform revenue sharing plan
- Affiliate marketing plan
- Product placement plan
- Brand sponsorship plan
- Subscription-based plan
The power dynamics of the creative economy are quickly shifting. Creators are now in the driver's seat, with greater independence than ever before. Examples of content creators are YouTubers and TikTokers. They produce material for their audiences constantly. Today, creator platforms take too many profits away from the creator. They don't allow artists to be discovered through their algorithms.
Also, few provide direct ownership where all stakeholders have a financial advantage. All depending on their contributions. Creators are not only the product; they are the new economy.
What is the creator economy?
Long ago, there was a small number of people who created material and a larger group that 'consumed' it. As new platforms and technology evolved, content took on a variety of shapes and forms.
The creative economy is rather vast. It's composed of side hustles, independent companies, social media influencers, bloggers, and videographers. Over 50 million people globally consider themselves independent producers, according to Signalfire.
The creative economy also includes a diverse range of businesses providing creators services. Such as content development, online analytics systems, and website hosting.
The creator economy refers to the 50 million+ independent content creators and community builders. They create free or paid material, then distribute it to their followers via apps. A combination of factors has resulted in a shift in the ecosystem. Resulting in what is now known as the creator economy.
Common app channels for the creator economy include:
How does the creator economy work?
The creator economy fosters a network of creators, consumers, advertisers, and other stakeholders. This ecosystem has far-reaching ramifications. From the creation, distribution, consumption, and monetization of material.
There are majorly five stakeholders:
Creators are infopreneurs who generate content that their audiences consume. The material might be educational, entertaining, or motivating. These content makers use their knowledge to generate content. To also grow audiences, and monetize their work.
There are four kinds of creators:
Consumers are those who consume content. They are the creators' intended audience. Consumers interact with expert-created material. They financially support them or follow their opinion leaders for knowledge and enjoyment.
Platforms are third-party services. They assist in the development, distribution, consumption, and monetization of content. Platforms are utilized by both stakeholders to communicate with one another.
Platforms deliver value-added services. They generate money through adverts or membership fees. Some well-known examples are YouTube, Instagram, TikTok, and other platforms.
Businesses are organizations that want to promote their products and services. This happens through the use of content creators. They target the creators' audience by collaborating with influencers. This generates content around their offering, then delivered it through the influencer's networks.
Influencers and corporations work together to create effective brand awareness campaigns. This new business model benefits both stakeholders. Influencers can monetize their influence by charging a premium. And then companies that can effectively market their brand.
What’s the state of the creator economy?
There is now a huge shift in the way material is consumed and created. Many internet businesses are building sustainable plans to monetize their platform. Thus the creator economy is growing in strength.
YouTube, Instagram, and TikTok are deciding how content is made nowadays. They also decide how the content is delivered, consumed, and monetized.
What are the creator economy business plans?
How do users make money out of these apps? The creator economy has brought creative business models. These are transforming into long-term jobs by allowing them to focus on what they love most. Creating, interacting with followers, and monetizing their influence. Here are some examples of business models:
Platform revenue sharing plan
This is the most common plan with the lowest barrier to entry. It's for creators that use platforms such as YouTube, Facebook, and others. Creators may monetize their work by receiving a part of the ad income. Ad income that is earned by their channel and posts.
Affiliate marketing plan
Affiliate marketing is a commission-based strategy. Influencers are compensated for each consumer referred to a partner brand. Creators not only monetize their impact but also assist companies in creating leads. Through their content, they can position themselves as industry authorities.
Product placement plan
Producers are compensated for using or featuring brands in their material. Advertisers or corporations pay influencers in exchange for product/service mentions.
Brand sponsorship plan
A business or advertiser pays an influencer to promote their brand. They do this by promoting it in their content. This strategy requires artists to sign a contract. This states the exclusivity of specific products and services but it's more expensive.
Various sites offer subscription-based content, such as OnlyFans, Instagram, Patreon, and Twitch. Here viewers may subscribe to a creator's channel for a charge of their choice. Fans may then view unique content. Live broadcasts, and videos that are not available anywhere else on these channels.
Several creators even develop their products and services. It could be clothing lines, accessories, and so on. They make more cash and position themselves as a figure with authority in their field. This concept is better suited to artists who want to build a long-term business.
Donations are another common type of monetization in the creative economy. This model has existed for more than a decade, yet, it is less common nowadays. You can't rely on contributions because people will either forget or won't be able to pay them. This is why most influencers choose subscriptions, brand sponsorship, and affiliate marketing.
The common content creator economy types in mobile apps
Text This might contain everything from short articles to long-form content and newsletters. The simple premise of Substack, is to be "the home for exceptional writing". While most of its newsletters are free, Substack has over 500,000 paid members. According to The Guardian, “Substack takes 10% of subscription earnings, and payment company Stripe takes a further 3% with writers taking the rest. Writers charge around $5 a month (£3.66) or $50 a year for access to their newsletters, although the platform’s many free newsletters also have a big following.” Another fun fact is that the top ten Substack publishers make a combined $7 million each year.