The creator economy assembles 50 million+ individual content creators, influencers, vloggers, community champions, social media platforms, thought leaders, and software companies. This renaissance collective is an ecosystem of diverse talents characterized by individuals and businesses working to monetize their passion and generate income, from anywhere in the world.
The driving force behind the creative economy is the wealth and resources of human ideas. These ideas are taking shape, changing the future of work, and redefining digital income.
An individual’s income potential is now being less determined by corporations and business institutions as the creator economy becomes “recognized as a significant sector and a meaningful contributor to the national gross domestic product“, stated in the Creative Economy Outlook report published by the United Nations.
The creation of value is shifting from corporate boardrooms to collaborative living rooms, and this shift continues to have profound implications for society, culture, and the economy worldwide.
What it Means to Be a Creator
Creators conceptualize, implement and distribute ideas in the public domain. They are but are not limited to, entrepreneurs, artists, writers, musicians, filmmakers, designers, thinkers, programmers, architects, photographers, illustrators, animators, bloggers, videographers, and everyday people designing something unique for the future.
Being a creator means having the curiosity to explore and the courage to build something.
Creativity is at the heart of every human’s ability to express themselves in a meaningful way. All individuals have the innate ability to imagine, conceive and produce an idea. Creativity has been at the core of civilization, from the earliest hieroglyphic carvings to the latest iPhone apps. It is the fuel that drives innovation and change.
And now, in today’s digital-first world, creators can share their ideas, passion, knowledge, and talents with anyone around the globe.
Therefore, the creative economy includes all people engaged in both traditional and non-traditional creative sectors and roles.
Anybody with an idea can create a course, write a book, sell a product service, create a youtube channel, start a blog, build an e-commerce store, create and sell NFTs, and more. The possibilities stretch as wide as one’s imagination can reach.
The creative economy allows people to tap into doing what they love and redefine work on their terms.
All over the world, creators have decided to launch into their passion and start sharing work that matters to them the most.
How Big Is the Creator Economy
The rising tide of digital transformation was already in high gear for many companies in the mid to late 2000s.
However, the workforce faced massive change almost overnight due to the pandemic.
People were required to stay home. As a result, many experienced layoffs, businesses began to close, and former employees started looking for more flexible ways to work.
During this period of isolation, people began to reflect on how they wanted to spend their time. They began giving serious thought to what they truly wanted to do with their life. As a result, people started to learn new skills, invest in their interests, and utilize their talent and experience using their phones and the internet to create a better life.
Fast-forward to today, the total market size of those individuals known as creators is currently over 50 million worldwide, according to SignalFire, earning a living and making income from their online business and social platforms.
Businesses have also been a part of the growth of this economy. Many creator-focused companies have seen a massive increase in funding creative startups in recent years. Some of these companies include Patreon, Kajabi, Cameo, and others.
According to a study by CB Insights published in June, the creator economy saw a record $1.3 billion in funding in the first half of 2021 alone. That’s a 188 percent increase from all of 2020. (microsoft.com)
The market size for creators is rapidly expanding.
Combined with the influencer marketing industry, the total size of the creator economy was 13.8 billion in 2021. With hundreds of new online business startups, the market size to over 104.2 billion and growing.
How are Creators Making Money
There are many different ways to make money online. For example, you could sell things you create yourself, such as music, paintings, other artwork, courses, books, clothing, your expertise, etc. You could also sell things that other people created, such as subscriptions, software, and affiliate programs.
Creators should focus on making content that people want to watch. People prefer watching things that feel authentic. For example, if you make a video about your favorite hobby and interest, people will enjoy it more. You should also aim to create content that expresses someone who loves what they do.
Creators learn to be great storytellers, entertainers, educators, and leaders on their social media platforms. In addition, they commit to learning digital skills that enable them to produce good work.
Recent projections indicate that the earning potential for creators is increasing. The Creator Economic Report released by The Marketing Factory reveals the various income produced by creators. The top five revenue streams reportedly earned by creators include:
- 31% marketing (brand deals)
- 25% of their own online business
- 15% creator funds
- 8% marketing
- 7% merchandise
Companies and brands pay creators who want to promote their products and services. Influencers make money when brands hire them to spread their message.
It is feasible to succeed in this new economy because of your ideas. Imagination, inventiveness, and invention are essential commodities in our economy. The more value these commodities bring, the more a person or organization possesses them.
According to the Creator Economy Report, the top platforms earning creators the most money are:
- 30% TikTok
- 22% Instagram
- 22% Youtube
There are many different ways the individual creator can get started as a newbie in this space. So many other platforms to create content and several ways to monetize your content. Many different methods for creators to connect.
In the Creator Economy, individuality and authenticity are the primary drivers of value. The power and originality of your concept, rather than the efficiency of your manufacturing line, are more crucial in a creative economy.
Recent projections indicate that the earning potential for creators is increasing as the opportunity continues to expand.
Top Trends You Should Know
A new generation of online creators is emerging. Content creators build communities, launch startups, develop teams, and equip their audience with tools that help empower them to start their businesses and promote their work.
Online creators are beginning to move their followers off of social platforms and into their private communities to provide exclusive content and other creative endeavors.
Big companies and brands use creators’ influence to connect with their audience, create personalized experiences, and promote sales.
Social network content creation tools have become very popular in developing digital content. Some platforms have embedded tools, but others offer point solutions for creating enhanced content. Today, creation tools with a social network attached are the most profitable.
Creator Tools in the Marketplace
There are powerful tools like Canva, that help you create professional designs, logos, posters, social media content, etc. Canva is an online tool that allows users to create graphics and designs easily. It also offers free stock photos and videos. It lets you create memes, funny videos, motion pictures, music videos, etc. You can also download your creations for free.
Many easy-to-use video editing apps are available today, such as WeVideo, CapCut, and Kawping. These tools allow creators to edit video content right on their iPhones or iPad. It’s simple, fast, and fun! You can add filters, overlays, transitions, stickers, music, text, and many other features.
Creator sites for professional music makers and DJs use Ableton. Ableton includes numerous templates and an extensive sound bank. Audio creators typically lean towards the podcasting format, as it has grown in popularity over the last few years. One of Signalfire’s portfolio companies, Red Circle, helps podcasters reach their audience and monetize their content. Other companies that help publish podcasts include Podbean Megaphone Buzzsprot and Soundcloud.
How to Be a Part of the Creator Economy
A key success factor of this economy is its low barriers to entry. You don’t have to be a creative person in the traditional sense to get in the game; you only need the willingness to learn new skills, pursue your passion, and ideas and take action.
No degree is required or special qualification is necessary.
There are many money-making opportunities for creators. As this relatively new business model continues to expand and define itself, creators have the chance to create multiple sources of income in various ways.
Here are a few ways individual creators are earning income:
- Creating or distributing paid content
- Product placement
- Collecting donations from supporters through a website
- Ebooks, Courses, Content
- Selling Digital assets
- Outsourcing creative services
- Buying and Selling NFTs
- Affiliate marketing
- and more
Creators are not limited to a single income. Specific routes can become more profitable than others. Having multiple passive revenue options is key.
The most remarkable advice as a new creator is to focus on something you are good at and create engaging content around it. Then, as a digital creator, you can share knowledge or skills that you are passionate about sharing.
Starting anything new can be scary and challenging when you are inexperienced at it.
When first starting, it is essential to develop the habit of mental discipline; you must be open and embrace the changes and the learning ahead.
Billions of people have untapped talents and gifts; allow yourself to try new things, shape new habits, and improve your skills when your business grows.
Here are three quick tips to help you get off to a good start and avoid the common pitfalls that many creatives make when they first start.
Choose your niche focus. You’ll want to avoid the trap of being generic. We often seem to gravitate towards doing what everybody else is doing and mimicking the way that they are doing it. However, you must avoid doing this at all costs. The key is to narrow down your area of interest and topic to speak to the specific audience seeking the information you have. This is how you begin to learn your audience. Once you are clear on your target niche, you can develop your work more efficiently and fine-tune your craft, messaging, and delivery.
Define your type of content. Long-term success requires understanding the type of content your audience wants and engages with you the most. It’s essential to try different things; however, to get good at what you are doing, you will want to define your subject of interest well enough to deliver on the value your audience seeks to gain from being connected to your platform(s).
Figure out your platform. Figure out what platforms you will frequently post on. Because new platforms arise frequently, this information should be reviewed regularly. Next, assess your online presence on these platforms. Make sure you are using the right strategies to optimize your platforms because this is likely how the majority of your audience will find you.
Educate. Empower. Entertain. Equip. teach, inspire, laugh, and develop tools, templates, resources, and software that help people find their way to where they are going.
Let your authenticity show up. There is nothing basic about you or your personality. You are the only of your kind. You are the only one able to share the knowledge you know, and the experiences you have, and present yourself in ways that no one else can. You must find your voice and hone your style. People are attracted to your uniqueness.
The key here is for you to take the time to become more aware, learn to accept, and finally develop the attributes that make you unique in your specific industry and interest.
Set out to do work in a meaningful way that aligns with your true self and avoid the trap of being like everyone else. Allow the people to experience the real you.
As the saying goes: “there’s nothing new under the sun,” but just know that everything you put out there in the social space should always have your unique spin on it.
Always deliver with value. The goal is to turn your passion into profits. Unless you plan to pay your bills with likes, views, and shares, gaining attention isn’t enough. If you want to establish a sustainable income stream, you’ll need to convert that attention with a suitable method.
Although the term value is not limited to a specific definition, if you were to ask ten people to explain it, every one of them would have a different opinion about what they considered to be valuable. However, in terms of providing helpful content online, most people want to engage with content is that is either entertaining, educating, inspiring, or helps them solve a problem.
You can take advantage of the creative economy no matter what interest you have or your business.
Connect and collaborate with others. Eliminate barriers of procrastination, self-doubt, lack of ideas, and knowledge gaps by collaborating with other like-minded creators and individuals like you that are also in your niche. The benefits of connecting with others are unlimited. You can collaborate with individuals and teams to help create and promote your content. Never underestimate the power to build relationships and teams. It could lead to long-lasting relationships and unforeseen opportunities in the future.
Stay in the game and be consistent. Finally, to expand your reach, start sharing content your audience is looking for or is interested in regularly.
The creative economy is a long-term trend that will continue. So it’s not a question of whether or if creatives, content providers, and brands should adapt; it’s a matter of defining how to function effectively in this period of rapid evolution and then getting started.
Believe in your idea.
Believe in yourself.