In the latest episode of “Black Entrepreneur Blueprint 501,” host Jay Jones takes you on an inspiring journey into the world of the Creator Economy, decoding the secrets to transforming passion into profit. Jay delves into the strategies necessary for aspiring entrepreneurs to thrive in the dynamic landscape of content creation.
Drawing from his own experiences and successes, Jay shares invaluable insights on monetizing creativity, building a brand, and navigating the challenges of the digital marketplace. Whether you’re an artist, writer, or anyone with a creative spark, this episode is a blueprint for turning your passion into a sustainable source of income in the Creator Economy.
LISTEN TO THE FULL EPISODE
BLACK ENTREPRENEUR BLUEPRINT SHOW NOTES – EPISODE # 501
WHAT IS THE CREATOR ECONOMY? The creator economy also known as influencer economy, is a software-facilitated economy that allows content creators and influencers to earn revenue from their creations.
SIZE OF THE CREATOR ECONOMY & PROJECTED GROWTH
According to a December 2023 article in Forbes Magazine: The creator economy is still in its early stages, but it is growing rapidly. In 2021, the creator economy was valued at $104 billion, and it is projected to reach nearly half a trillion by 2027. Dec 13, 2023
Apr 19, 2023 — Goldman Sachs Research expects the 50 million global creators to grow at a 10-20% compound annual growth rate during the next five years. Goldman Sachs article link: https://www.goldmansachs.com/intelligence/pages/the-creator-economy-could-approach-half-a-trillion-dollars-by-2027.html
Understanding the scale of the creator economy is vital. It’s not just a niche industry; it’s a global phenomenon with a colossal user and revenue base. According to a report by Goldman Sachs, the creator economy “could roughly double in size over the next five years to $480 billion by 2027 from $250 billion today.” This projection underscores the immense opportunities it presents for brands and marketers.
HubSpot Article info and link: https://blog.hubspot.com/marketing/creator-economy-predictions
Currently valued at $250B, the creator economy is expected to reach $480B by 2028. This growth is fueled by increased cash flow from brands and higher demand for content.
Per a recent study by IAB:
- 44% of advertisers plan to increase spend with content creators in 2024
- Brands anticipate increasing creator content budgets by 25% in 2024
- 39% of consumers watch more content now than the year prior
Creator content is no longer just a top-of-funnel play. In 2024, a well-rounded marketing strategy has content embedded throughout, and strong relationships with creators are essential to making these strategies work. Here are the top predictions of how the creator economy will evolve in 2024.
2024 CREATOR ECONOMY PREDICTIONS
The Growth of YouTube Shorts
YouTube launched Shorts, its short-form video feature, worldwide in 2021. Two years later, Shorts continues to grow. In February it crossed 50B daily views and rolled out a revenue share program for creators who share videos on Shorts.
While Shorts haven’t yet matched Reels which garner 200B views daily across Instagram and Facebook, the feature still has a lot of untapped potential for marketers.
YouTube is a powerful search engine with a large global user base. Pew just released research stating Gen Z now spends more time on YouTube than TikTok each day. With this in mind, the potential to get in front of a large audience by creating SEO-rich short-form videos is high.
Additionally, as creators look to diversify their presence on platforms, many will likely repurpose their content on Shorts to get in front of new audiences. This could generate additional engagement on Shorts that is appealing to marketers.
CREATOR ECONOMY PLATFORMS
The creator economy encompasses diverse spaces and platforms where creators thrive. Let’s explore some key platforms where creators make their mark.
Social media platforms are at the forefront of the creator economy. Creators on Instagram, TikTok, and YouTube craft content that entertains, educates, and engages millions of users. These platforms provide creators with tools to connect directly with their audiences and monetize their content through brand partnerships/creator programs and more.
Podcasts have become a powerful medium for creators to share their stories, expertise, and entertainment. From true crime enthusiasts to business gurus, creators use podcasting to engage listeners in long-form content that resonates deeply with their audience while monetizing through advertisements and brand partnerships.
Patreon is a platform that allows creators to generate income by offering exclusive content and experiences to their most dedicated fans. Creators can receive ongoing financial support from their patrons, creating a sustainable income stream. While other social media platforms are beginning to offer more ways for creators to monetize their content, like YouTube’s channel memberships and Instagram’s paid subscriptions, Patreon remains the most popular way for audiences to support their favorite creators directly.
Substack has revolutionized the world of newsletters and written content. Creators, including journalists, writers, and thought leaders, use Substack to reach their subscribers directly and monetize their writing.
Newsletters are a great way to build an audience and become a part of the creator economy.
Twitch is a live-streaming platform that has become a hub for gamers and content creators. Its interactive nature allows creators to engage directly with their audience in real time. Creators can monetize their content through brand partnerships, creator programs, and paid member subscriptions.
BUILDING A PLATFORM
- IG – great for short content especially Reels to compete with TikTok.
- YouTube – Great for longer form content over one minute
- YouTube Shorts – designed to compete with TikTok
- TikTok – Short video content skews towards younger audiences
- Twitter – Geared towards more mature audiences where video and comments are most popular
How To Grow Your Audience
- IG Theme pages, YouTube Shorts, and long video content, –
- Post 3 to 5 times per day consistently you can use Hoot Suite, Loomly, Sprout Social
- What niche are you going to focus on and can you monetize it easily?
- Examples: The Shade Room (millions of dollars per month $6,500 for a post, Wealth 9 M followers, The Smoothie Guy 975K followers, Humans Best Friend (dogs) 275K
- Diversify Income Streams: Paid advertising or page posts, partnerships, affiliate marketing, selling your products or services.
- Build a sustainable business model around your content: Make sure you can get content and study similar page content – use Upwork and Fiverr to get someone to create viral content.