Is this the end of the Creator Economy?

Navigating the crossroads: Assessing the sustainability and the future of the Creator Economy

Content is King — a famous essay title by Bill Gates, and a phrase I’m sure you’ve heard many times before.

In his masterpiece, written almost thirty years ago, Gates predicted that the majority of income generated through the internet would come from content creation.

And as you can see, his prophesy seems to have become a reality.

According to Linktree, there are over 200 million content creators worldwide, and 1 in 4 people class themselves a “content creator”.

If you’re a content creator yourself, with around 45 million professionals and 170 million amateurs flooding the World Wide Web with their offerings every second of every day — where do you stand with your content?

The stats from our internet giant, Linkree’s 2023 Creator Report reveals that:

“The creator economy is bigger than ever. In one “internet minute,” 60M minutes of content are streamed, 167M TikTok videos are watched, and 65k photos are uploaded to Instagram.”

But despite the economy being largely made up of non-professional enthusiasts, in itself it is worth over $250 billion. And according to Goldman Sachs, it is expected to double in market size by 2027.

Your place in the Creator Economy

The creator economy is a realm defined by independent content creators, influencers, and entrepreneurs.

The likes of Jeffree Star, Gennady Vaynerchuk, better known as Gary Vee, Ali Abdaal, Mr Beast, and Dan Koe are all topping the popularity charts. These rather ambitious humans have contributed towards the unprecedented growth of the creator economy in recent years.

The rise of platforms like YouTube, Instagram, and TikTok has empowered millions to turn their passions and talents into full-fledged careers.

However, as we approach the mid-2020s, there’s a growing debate about the sustainability and future of the creator economy.

Is this rapid ascent merely a bubble waiting to burst, or is it a lasting transformation of how we define work and success in the digital age?

A Flourishing Digital Ecosystem

The creator economy, also known as the passion economy, thrives on the premise that anyone can create content, products, or services that cater to niche audiences.

This niche focus allows creators to develop devoted and engaged communities, who, in turn, provide support and revenue through advertising, sponsorships, merchandise sales, and paid memberships.

This digital ecosystem has created opportunities for millions of people worldwide to make a living from their passions.

While the overview of this ‘flourishing digital ecosystem’, seems to be filled with stardust and unicorns, a closer look at real-life data reveals a very different story.

Let’s have a look at 3 of the biggest platforms that gave birth to some of our most popular and richest content creators of the 21st century.

1. # YouTube

YouTube has become a major rival of most TV networks. It is a go-to platform for millions. Whether you need to figure something out or want a quick ‘how to’ guide — YouTube is your buddy.

Its highest-earning celebrity, Jeffree Star took home around $15-$20 million in 2022 alone.

While the sky’s the limit when you’re a free-spirited content creator, the brutal truth is, that it takes more than imagination and visualising yourself with $20 million in your pocket to turn your stardom dreams into tangible reality.

According to research from Bloomberg, 96.5% of YouTube creators don’t make enough to reach the US poverty line.

2. #TikTok

TikTok became the third most popular platform on the internet in 2019. Its app became the fourth most downloaded non-game app in the world.

With over 1 billion monthly users, according to Influencer Marketing Hub, the highest-paid TikTok creator is 19-year-old, Charli D’Amelio, who earns around $17.5 million per year. Ouch!

Not bad, considering the platform is flooded with influencers, and most of its audience is made up of highly competitive Gen Z, and countless of Millenials.

Earning a few million bucks here and there from video clips that are almost as short as a goldfish’s attention span, is a rather nice idea.

But once again, the sad reality is that you need at least 100,000 views to start cashing in the lucrative 2–4 cents per 1000 views. Now, that sounds like a great investment.

3. #Substack

Substack is the 6th biggest platform that is home to around 17, 000 writers. According to data from Backlinko, the company has a dedicated paying subscriber base of over 500,000 members and millions of readers.

However, based on some insights from Fortune:

Substack’s paying newsletter subscribers represent only 5% — 10% of the total readership.

As you might have guessed it, the majority of writers allow FREE access to their newsletters, making a total of $0 from this platform.

The Problem and Why Are Not More Content Creators are part of the 1% Millionaire Club

1. #Saturation: One of the primary concerns is the sheer volume of content creators entering the field. Everyone is becoming an ‘expert’. The space has become increasingly saturated, making it more challenging for new creators to stand out and gain a substantial following. Are you wondering if you’re too late joining the content creator party?
2. #Platform Dependence: Many creators rely heavily on a single platform, and algorithm changes or the platform’s overall health can significantly impact their income. This over-reliance can be risky.
3. #Burnout and Mental Health: The pressure to constantly produce content and maintain a thriving online presence can take a toll on anyone’s mental health, leading to burnout.
4. #Income Inequality: While some top-tier creators earn substantial incomes, many struggle to make ends meet. The creator economy has brought issues of income inequality to the forefront.
5. #Platform Control: Creators often operate on platforms that dictate the rules and terms of service, making them vulnerable to platform decisions that may not align with their interests.

The Solution - Adaptation and Resilience

The concerns surrounding the creator economy are legitimate, but we must recognize that this is an evolving space.

Just as it’s facing challenges, it’s also adapting. Creators are exploring various income streams and a lot of creators are also upping their games.

It seems that these passion driven individuals support each other in this vast and rapidly expanding new realm, keeping the wheel spinning of the creator economy.

Additionally, many creators are diversifying their online presence by leveraging multiple platforms, building their websites, and exploring offline opportunities like live events.

Could being more intentional with your content and getting more specific with your niche help you narrow down and bring you closer to earning a more satisfying income from your passion endeavours?

As Kevin Kelly would say, “You only need a 1000 True Fans”. And perhaps it is true that anyone can become wealthy by sharing their passion without having millions of followers. Maybe, “a 1000 true fans”, is really all you need to create your dream reality.

A New Paradigm of Work

The creator economy represents a significant shift in how we perceive and define work. It is easy to see why every 4th human sees themselves as being part of the movement.

We each have the same amount of time. And while money lost can be recovered, time lost is irreplaceable.

Being part of the creator economy challenges the traditional 9-to-5 employment model, offering flexibility and autonomy.

This shift is not likely to disappear entirely. Instead, it’s prompting discussions and explorations of how to make it more sustainable and equitable for all participants.

Regulation and Legislation

As the creator economy matures, it’s likely to attract more regulatory attention. Governments and platforms are starting to address issues like copyright, taxation, and labour rights for creators.

These efforts can help create a more stable and secure environment for creators.

Maybe soon you won’t have to sell your gigs for $5 on Fiverr. Hopefully, soon, you can charge what you really deserve.

The Future of the Creator Economy

It is unlikely that the rapid growth of the creator economy will slow down anytime soon, and it’s unlikely that this new wave of passionate individuals will disappear entirely.

Instead, it’s evolving into a more sustainable and inclusive industry.

Creators will continue to find ways to monetize their content, diversify their income streams, and build meaningful connections with their audiences.

Additionally, the shift towards recognizing the value of creative work will hopefully help influence the broader job market, encouraging greater flexibility and autonomy in traditional employment models.

In conclusion, the creator economy is not on the brink of extinction but rather at a crossroads. Its rapid ascent has raised valid concerns, but it also reflects a significant shift in how we view work, creativity, and entrepreneurship.

The road ahead involves addressing these concerns, adapting to new challenges, and shaping a more sustainable and equitable future for creators.

This is not the end of the creator economy; it’s the beginning of its next chapter.

And remember, there’s plenty out there for everyone. Go ahead, and grab your share.

Before you go, don’t forget to share your thoughts on the creator economy. Are you part of this rapidly expanding ecosystem? Where do you see it going?

Thank you for reading.

©D. Sahaya

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