The Creator Economy
The Creator Economy is a new way of doing business. It’s no longer just about social media influencers or celebrities; it’s about those who are creating content. We’re focusing on what people can do and creating a world where any creators are making money by connecting with their audience through their content.
To understand how creators can make money in today’s economy, it is important first to learn about the different platforms that are making an impact.
The Creator Economy on Web2
TikTok is one of the world’s largest social media platform for creators. It has over 1.5 billion downloads and 500 million daily active users. Their direct competitor, Meta has over 2 billion active users, and its advertising revenue is growing at an incredible rate as more people continue to use the social network. In addition, these platforms have a lot of data about user behavior that can be used to create targeted ads and content recommendations for them.
With this kind of scale, these are some of opportunities for creators to make money on Web2 :
- You can create your own original content and get paid through creator/platform revenue share program
- You can sell ads on your videos or product placements within them to earn revenue from advertisers who want to reach your audience.
- You can also earn money by becoming an Influencer and promoting brands’ products in exchange for compensation.
The Payout on Web2
Let’s look at how much these well-established Web2 platform do in terms of creators payout :
- Meta said that by the end of 2022, at least $1 billion would be paid out to creators on Facebook and Instagram.
- In 2020, TikTok pledged to pay creators over $1 billion in the next three years.
- In the last year alone, Snapchat paid $365 million to some of its top creators—and was prepared to pay even more.
The Creator Economy on Web3
Web3 is providing a new way for creators to monetize their work. Creators can now list their products and keep 100% of the profits from each sale on the platform, which includes no transaction fees or listing charges.
Creators who used OpenSea platform are earning over $1Billion in annual creator fees, with tens of thousands of transactions being transacted every day. This does not include sponsorship revenue, engagement incentives or grants! These earnings are generated directly by creators from the resale of their work and royalties made, and instantly settled on-chain between buyer, seller and creator.
It’s a big world of creative people out there.
The Creator Economy is here to stay. It’s not going away, and it’s only going to get bigger. As more creators come online, the need for more platforms that support them will grow be it Web2 or Web3. New forms of technology, like blockchain and NFTs (non-fungible tokens), are creating new business models for creators that allow their work to be monetized in more sustainable ways.
Creators now have more ownership over their work, greater control of long-term business strategies, a direct connection with fans and the ability to bring their most creative ideas to life.