The Creator Economy Explained: Why You Should Get In on It and How to Do It

We’re pretty sure that by this stage, you’ve all heard of the term “creator economy” or the “influencer economy.” For something that didn’t exist a matter of years ago, the creator economy wields massive influence over just about every aspect of our lives today. From entertainment to marketing to news, business, travel and everything in between, entire industries are being shaken up by this relatively new phenomenon.

Given its influence and importance (which will only grow over the next decade), you’d do well to understand what it is, why it matters and how you can get involved. So read on to learn everything you need about the creator economy.

What is the creator economy?

The creator economy is what you’d expect – an economy that’s been created by creatives. The monetization of work by thousands of individual creators, enabled by the advent of the Internet, has led to platforms such as YouTube, Instagram and TikTok.

Take one look at any of these platforms, and you’ll see how real the shift in the entertainment industry is. Audiences are no longer locked to rigid TV schedules across 10 channels. For younger generations, it’s hard to believe that was ever the case! They can now choose what, when and how to watch it, and they feel far more engaged, becoming a part of a niche community. Whatever your interest is, you will find a creator producing content based on that topic or hobby.

So, these creators are earning an income and a living from the videos, photos and content they put out. This is the basis of this economy, which also encompasses the companies supporting these creators through brand deals, creative tools and analytics platforms. So, if you make, benefit from or support independent content creation, you are a part of the creator economy.

Roughly speaking, then, there are 3 main components to this economy:

1. Creators – The creatives who build an independent business around a specific goal, skill or expertise.
2. Digital platforms – The places on the Internet that host these creatives and their work, giving them an opportunity to grow their communities and business.
3. The audience – the people that follow the creatives on these platforms, buy their content, pay for their services and merchandise and become part of the online community that helps build up the creator.

How it all began

So, just how did the creator economy come to be? As we alluded to above, it’s all down to the Internet. Of course, throughout history, there have always been creatives. Authors such as Tolkien and playwrights such as Shakespeare. But the thing is, the only reason we know these household names is because they were the very best of the best. In past decades and centuries, only the very top could make it as a creative because the demand was relatively low, and the gatekeepers decided precisely who would make the cut. There were undoubtedly thousands of brilliant, talented creators in all sorts of professions, but they were never able to find an audience.

Facebook and YouTube

And then the Internet happened. Although it took a while to become established, in the mid-2000s, we began to see the birth of the modern-day Internet with the founding of sites such as Facebook (2004) and YouTube (2005). As Facebook pioneered social media, YouTube made it easy for literally anyone with a computer and internet connection to start a channel and start sharing videos of…well, whatever they wanted!

The iPhone

Then, in 2007, Steve Jobs took to the stage in an iconic moment, announcing the very first iPhone. It was the perfect timing, and since that moment, we haven’t looked back. The combination of smartphones and the Internet changed how we consume entertainment. Almost overnight, we shifted from gathering around the family TV watching pre-scheduled shows (that we probably weren’t all that interested in) to being able to watch whatever we wanted, whenever we wanted.

Naturally, demand for content skyrocketed. We could watch things 24/7 wherever we were, and we wanted more. Independent creators rushed to fill that gap, fed by a fast-evolving tech industry that gave them better tools for a fairer price. Suddenly, making good videos was accessible to and possible for everyone. You could literally just start vlogging in your bedroom. The creator economy was born.

The creator economy today

So, what’s the creator economy market size today? In a word, huge. With magazines like Rolling Stone publishing a “creators issue” and stars like Emma Chamberlain interviewing celebrities for Vogue on the red carpet at the MET Gala, it’s safe to say that the creator economy is now the mainstream entertainment industry. Independent creatives and influences have taken over, and they’re going nowhere. The importance of video content is evident for all to see.

The Covid effect

It’s worth remembering that the pandemic has certainly added some fuel to the fire here. With the whole world locked down and indoors for months on end, we saw a massive increase in the number of people watching online content (most noticeably TikTok content), helping the industry flourish and cement the position it finds itself in today. Coupled with this is the ever-evolving technology that allows us all to create better content. You can now do practically everything with a flagship smartphone, from shooting with your phone camera to production management to mobile editing, distribution and community management.

With over 50 million people now involved in this influencer economy, including editors, vloggers, videographers, artists, photographers, writers, coders, marketers, producers and managers, this rapid growth is set to continue throughout the next decade and further.

The future of the creator economy

So, what does the future of all this look like? One thing is for sure – the creator economy market size will continue to grow. A key trait of the industry is that it never stands still. It keeps evolving and moving at an almost breathless pace and is hard to keep up with. There are changes overnight, with new trends and algorithm tweaks demanding adaptation. Because it’s so relentless and fast-paced, it can be pretty tricky to predict what happens next, but there are a few clues.

Going independent

More creators are moving their top fans onto their own websites, apps and monetization tools to avoid being dependent on social media platforms’ content and monetization rules.

Brand building

Furthermore, expect more and more creators to become founders of businesses, brands and everything in between. They’re building tools and fully-fledged teams that look a lot like more traditional production companies while using branding and merchandise as a way to help support these businesses.

The Metaverse

It’s clear that community is the foundation of everything else, and creators are constantly innovating when it comes to how they connect with and involve their audiences. One of the newer developments in this sphere is the idea of NFTs and the metaverse. While there’s still a long way to go in developing these tools and ecosystems, the fundamentals behind the space enable creators to involve their communities in a much more direct way. So expect to see audience members directly investing in their favorite creators and helping to support creative projects with a much more hands-on approach. 

More monetization options

The current AdSense models feel a little lacking and flawed – something widely discussed with many creators. So expect to see subscription-driven platforms such as Patreon, Substack and Buy Me A Coffee continue to grow, as well as platform-specific tipping and support options. 

How can you capitalize on the creator economy?

So, I guess the burning question is, how to become a content creator? With the industry having found its feet and growing exponentially, there’s never been a better time to get involved in something like TikTok or the YouTube economy. Many are asking about how to become a social media influencer. Due to the nature and vastness of the industry, there isn’t really any right or wrong answer here. The YouTube video creators who have risen to the top have all done so in very different ways.

Just do it

There is one rule, of course, and that is to create. The only way you’ll find your style is through practice and repetition. Remember, none of your favorite creators was great straight away. It takes time and perseverance to hone in on your voice and style. So pick up your camera and just get started! Yes Theory’s Omar described it as “throwing your backpack over the fence.” Once your bag is on the other side, you’re now committed. You have to find a way to get over the fence.

Find your niche

Over time, once you have a voice and style nailed, you can begin to attract an audience. Identify your niche, set your goals and remain consistent with your uploads. That way, people will know what to expect from your channel and are far more likely to keep coming back. Tools like a social media content calendar can help you with this. In addition, starting off in one niche helps position you and your platform as an expert within this part of the Internet, enabling people to discover your content quicker by making the algorithm’s job much easier. 

Another top tip is that you don’t necessarily need to worry too much about production quality in the early stages. Once you begin to grow, you can start leveling up with the wealth of tools at your disposal. For example, utilizing royalty-free music and stock footage services such as Artlist can help improve the overall quality of your work, enabling you to stand out from the crowd.

Wrapping up

We hope you leave this article feeling a bit more clued up about the creator economy. It’s a vast, exciting, relatively new space and rapidly expanding. Despite the seemingly-impossible task of “making it” on a platform like TikTok or YouTube, we’d argue that there’s never been a better time to become part of the influencer economy.

Now that you understand what it is and how it works, we hope you feel ready to take your first steps into this new, exciting world where the possibilities are seemingly endless.