What exactly is the "Creator Economy?"" The Future of Monetization in 2022
Every day , people are informed of a new video or post on social media from a creator of content that has been viewed by millions. Who are the creators and what is inspiring their work to produce content people want to engage with?
Creator economy the newest class of businesses made up of over 50 million self-employed content creators who are banishing the corporate gatekeepers, and creating new rules that allows anyone who has a desire and a smartphone to communicate their ideas across the globe.
However, before we go too deep into what these creators are up to in spreading the message of their creation, we should begin by defining what the term "creator" economy is in simple definitions.
What exactly is the "creator economy?"
The creator economy consists of self-employed creatives who've discovered ways to utilize their knowledge and skills to create a side-hustle or full-time venture. This community of creators includes social media influencers, bloggers, videographers, and the technology firms that enable their capability to communicate their interests with the world. This unique community of creators makes use of technology to promote their skills through products such as ebooks, ebooks, and courses as well as specialized services and more.
Chances to be a creator of content
Live streaming and video
Photography, painting, drawing, illustration, graphic design
If you are drawn to the visual arts, then media platforms such as Instagram, Snapchat, Pinterest, etc. permit you to showcase your artwork along with text that delve more deeply into what the work is about. You can invite followers to comment on your work or tag you in some of their own work in the spirit of one of your postings. It is possible to direct them to a link that allows users to purchase original items as well as other merchandise with your design. Set up a membership system which allows you to provide special content with paying customers by using Patreon.
Podcasts and Music
Are you a performer or musician looking to bypass the labels for a chance to put your music direct before your desired public? Maybe you're a thought-leader with a compelling message you want to share on your radio show. Media platforms like iTunes, Spotify, Pandora and Soundcloud could be the perfect devices you're seeking. There's never been a better time to record, create and then share your music with millions of users around the world. Create your own sounds as well as other products and services available to purchase using simple-to-use technology which simplify the process of selling digital goods.
All genres of writing
Writers, essays, humorists and consultants as well as authors and more are able to create and publish their personal experiences on various platforms including Twitter, Medium, Quora and Substack. Create a community around your thoughts and ideas. Become known as the "go-to expert" in your field of expertise. Create a library of electronic or printed books , as well as other sources that your fans are able to refer to at any time.
How big is the creator economy?
If you're looking to find out how much you can make when you create content for YouTube as well as other platforms, the truth is that your answer could vary. The answer is contingent upon a variety of variables including the number of followers and the kind of content you produce as well as the power of the algorithm as well as a myriad of other touchpoints that are not always under your control. But let's take a look at how many dollars YouTube's top creators of content earn the course of a year through ad revenues.
- Ten-year old, Ryan Kaji, creates videos for kids to help them discover more about the world. In the month of January, 2022 Ryan's channel that had around 31 million users earned a whopping $26 million dollars for advertising revenues alone.
- Gaming enthusiast, MrBeast, made $ 24 million between June 2019 and June 2020 over various channels, with 87 million subscribers.
- The social media star and boxer, Logan Paul, has over 23 million followers on his main channel and earns around $20 million per year.
Creator platforms are expanding quickly and one of the most popular social media platforms, TikTok. Are they as profitable like creators who are on YouTube? Although YouTube creators can make money directly with ad revenue, TikTok uses built-in monetization tools like virtual "gifts" which can be transformed into cash, and the Creator Fund that pays creators who have at least 10,000 followers and 100,000 views over a 30-day time. Even though Creator Fund payments don't pay for all the bills some creators are turning towards deals with brands to earn extra money.
So is it possible to succeed without millions of followers on YouTube or TikTok? It is possible however it's only for people who create a business strategy that matches the intensity of their desires.
Start your own website to make money from your content
What subscription model can work most effectively for your business? Let's take a look.
#1. Create exclusive content for paying subscribers.
Do you create specialized information that you wish to share with serious learners? Perhaps you are a teacher of the art of watercolor as well as vegan cooking or interior design. Membership-based subscription models enable you to develop contents for those who are willing to spend money on exclusive content that serves their needs. Members can opt to interact with pre-made content on their own time. You, the creator, could also incorporate live streaming demonstrations, and respond to your members' questions live in real time.
2. Become your personal Netflix with original niche entertainment.
No, you don't have to be a huge media firm like Netflix in order to develop an online streaming service. All you have to do is focus on creating high-quality, fresh content that leaves people wanting more.
With an entertainment model that is niche in its monetization it allows you to perform more of what you do best - create great videos. Your subscribers will be able to stream your content in real-time. Furthermore, you'll be able forecast the amount of your income each month or year and develop plans for scaling.
3. Make a library of contents that's available all year long.
If you've got a business which is dependent on events that are time-sensitive or seasonal, you can create the content library which users can access whenever they want. If you're conducting an author tour, speaking appearances, or product lines, your followers can go home and connect with you through their mobile device that they prefer.
How does this model work for creators? It allows you to stay connected with your fans and followers in between shows without having to skip out for a new source of income. Stay connected to your community whether you're on the move or at home.
4 Hook subscribers will receive free content, then transition into paid.
It is sometimes logical for creators to try to draw new viewers through free content. It allows them an opportunity to meet the person behind the content prior to being requested to pay for sophisticated content. These are called invested subscribers and are those who understand that the value of the content and decide to remain in touch. This works well for fitness instructors as well as other creators that are offering the content which is focused on the outcome.
#5 Establish a community both online as well as offline.
The content could be from lectures and classes, as well as recordings of special guest speakers, and more. The cost of membership can offset the ticket prices of events which attracted less than expected attendance or that needed to be canceled completely.
A few examples of companies/content creators making money through OTT
ISC Sports Network is Indiana's top sports streaming channel, featuring live and on-demand sporting events to the state's most ardent sports-lovers. How do they earn money? You can subscribe to an ongoing service for those who never want to miss an event. In addition, there are options to provide paid advertisements and ticket sales for one-off event. The app can take payments directly from the app while increasing opt-ins for pay-per-view occasions.
Speed51 is the official website of short-track and grassroots racing in the U.S. It is the most popular site for live and editorial broadcast coverage of race events. They made waves through the outbreak with their pay-per view live streaming in addition to the regular service of video-on demand. They were able to make back some of the funds lost from ticket sales for live events.
GazeboTV has created many of Canada's best-loved film classics such as "Anne of Green Gables." In lieu of waiting for a limited distribution on television, the company decided to transfer their films from home video and DVD sales to launch a live streaming service in 2015. OTT enabled the company to launch a transactional online video demand (TVOD) service that allowed users to have digital versions of their best-loved content.
DIRTVision, World Racing Group's on-demand and live streaming service, has more than seven hundred hours of no-cost dirt racing-related content streaming coming from the U.S. The company found they were outgrowing their initial platform, and moved to OTT because of its ease of use. They required a single partner and one reliable platform on that they could operate their programming. Along with streaming content for free it has also hosted hundreds of races and earned income from live pay-per-view events as well as in-app purchases.
Are you looking to include subscriptions in your company's creative side?
As the creator economy starts to produce more professional content and turn it into profitable businesses it will be necessary to be equipped with tools that will allow them to have more control over their work. OTT provides an ongoing subscription platform for creators that permits them to produce new content and also repurpose existing material that could be transformed into multiple streams of income. Creators can create communities, create live streaming content or create content that is exclusive, and many more.