The growth of the creator economy has splurged during the pandemic. So much so that it has become an industry worth over $100 billion. Recently, this rapid growth of the industry has introduced a competition for creators in all fields. Many companies take the “influencer marketing” approach. Which provides sponsorship and funding for creators.
What made the creator economy grow so fast?
For over two decades, creators have made a fortune with incredible storytelling and depiction of their out-of-the-ordinary life. Then, Instagram and YouTube are some of the oldest platforms where creators have laid their foundation.
These platforms allowed creators to reach an audience. This audience, a.k.a. fans, would follow them on all websites, including their personal blogs.
It’s a no-brainer that during the pandemic our screens were our only escape into the world outside our homes. When the majority of people were locked inside their houses away from their regular pre-pandemic life with exception of frontline and essential workers. This made most people resort to TikTok and other social media platforms to look for an insight into other people’s lives. The surge of TikTok users benefitted creators.
What do the statistics say?
The creator economy market size blew-up right by the end of 2020. Back then, the industry had $850 million in investments. This proved that the creator’s economy and its constituents on social media are going soar higher as the investments flow in. The investment leads up to influencer marketing and other deals. As of May 2021, the creator economy is estimated to hit $104.2 billion in market size.
Do platforms have creators’ best interests?
In this huge industry with sky-rocketing investments, it comes with its own competition. There are over 50 million creators around the world. Only 2 million are considered professional and the rest are amateurs.
The quote, “rich get richer and the poor get poorer,” which applies to the global economic system, somewhat applies to the creator economy as well. The more popular creators who land the best deal get to earn for the lavish lifestyle they showcase.
These creators only make a fraction of the 50 million creators in the world. Whereas, a majority of them don’t even make the minimum wage (annually).
Apart from the struggles due to competition, there is nowhere to go but up within the creator economy. If you take the right steps with creating content there is more room for you with the high-earning creators.
What is creator washing?
Alex Finden introduced the term Creator Washing. It means creators are exploited and misled by capitalist companies. Most companies like Spotify, Instagram, and even Youtube have creator funds worth millions of dollars. This textbook capitalist shark attack technique uses creators for their art to promote their products. Finden reports that out of over 98% of 3 million creators on Spotify make only $12 in revenue. That’s less than Spotify’s monthly family plan.
A word to the wise
There are companies that believe in making deals with creators which results in mutual benefits. While dealing with companies, creators want to make sure that it will be beneficially worth your time and art. Creators should also consider diversity, inclusion in mental health before making any deals with companies.