Who would have thought that one day an individual would amass 500 million followers on social media? That is the population of more than two countries. We are now in the age of creators where influence can be exerted worldwide with a click.
Over the past year, the creator economy attracted over $1.3 billion in funding in 2021, and it’s on the move. Upward, that is. For instance, Google Trends' interest in the term has quadrupled from March 2020 to today.
While 2021 was a year of incredible and unprecedented growth, we have also seen individual creators experiment with the blockchain, NFTs, and the metaverse, and the prospects are mind-boggling.
We have spent the last couple of months with industry professionals and experts, and we now understand the role of creators in the economy and what the future entails.
Here’s what we learned:
Authenticity Will Rule Over Everything
There is growing skepticism in the minds of consumers toward traditional ads, and it doesn’t help that traditional advertising doesn’t support a two-way conversation. Today consumers are looking for active and genuine information.
Thanks to influencers, brands can now solve all these problems and communicate effectively with their audience. However, consumers are also becoming skeptical of influencers for their lack of authenticity.
Since consumers are fully aware that influencers make money by promoting brands online, they are now starting to question these promotions and the intentions of the endorser and the brand. The way out for creators and brands is to partner only when their values align.
Money Will Continue To Flow
The overall size of the Creator Economy is pegged to be more than $100 billion, and so far, more than $15 billion has been invested in some 300 Creator Economy startups since 2021.
In other words, there’s no shortage of funds, and roughly 17 million creators were found to earn revenue in nine major digital platforms as of 2017.
For the first time, members of the Creative Class can make money using their intelligence and creativity. With social media platforms like Facebook, YouTube, TikTok, LinkedIn, and Twitter, creators can monetize their content and have fun doing what they love.
For example, YouTube superstars like Ryan Kaji, MrBeast, and PewDiePie are perfect examples of creators who have made a fortune from their content. However, creators can make money in numerous ways:
- Selling digital content
- Charging for courses
- Donations from fans
- Receiving subscriptions
- Creating or sharing a sponsored content
- One-off sales
- Affiliate marketing, and a lot more.
The Woes Of The Creator Economy
In a survey of 750 participating creators, we found that 87% either don’t get paid on time, get paid the wrong amount, and sometimes, not at all. So it has been a menace in the Creator Economy that often takes a toll on the creator’s confidence.
Despite the billions of dollars being pumped into the creator economy, only 1.4% of creators make more than $1 million per year. According to an Influencer Marketing Hub study, another 1.5% earn between $500,000 and $1 million.
Sadly, more than a quarter of creators earn less than $1,000, looking like the winner-take-it-all pattern. The way forward is to create a more significant and sustainable middle class of creators.
With adequate support from the government and also from social media platforms, more creators can earn a living from their creative endeavours than they do today.
The Future Of The Creator Economy
There is a growing number of agencies, sponsorship marketplaces, and talent representation companies, offering creators the opportunity to advance their careers doing what they love.
Unlike before, when creators were seen as hobbyists, they are now recognized as businesses. As a result, a lot of creators have managed to create setups where their fans follow them off-platform, allowing these creators to have multiple streams of income.
The future of the Creator Economy is about handing financial control to content creators and complete control of their careers without having to act a certain way for fear of being canceled.
Years ago, content creation was in the hands of a few people with costly equipment. But that changed with the introduction of the internet, and the game changed completely!
Wrapping Up!
The future is here, and brands that successfully build a strong presence in the marketplace are those with meaningful relationships with their talents. These brands understand that at the other end of the conversation is a human – not a robot.
While influencer marketing remains the best marketing strategy, the best way to ensure repeated success is to make sure your creators get paid immediately after a job – without waiting for days or weeks to get the money in their local bank account.
And as a brand, this solidifies the relationship you have started with them. For this reason, Gigapay was born – a payment solution that allows brands, marketers, and marketing agencies to quickly pay their talents, regardless of where they are in the world.
To learn more about our payment solution, feel free to get in touch by booking a demo.
