Are you a creator?
Does it seem like everyone else out there is making seven figures from “influencing”? From dispensing “advice”? From “sponcon”? Are you faking “#ad” to feel like part of the club? Do you feel like you are the only one that is missing out on the creator economy boom? Well, you’re not alone and the reality is that most creators are struggling to some degree.
The pandemic has driven many new players into the world of the “creator economy.” But like most things, it follows traditional “power laws.” Once known as Pareto’s principle, where 80% of anything comes from 20%, and reworked for the new exponential age as 90/9/1 (the 1% rule) where 90% contribute a little, 9% contribute sometimes, and 1% create most of the content. It also fits many of our popular websites, income distribution, and now models the “creator economy.”
Twitch, the online video streaming platform, was recently hacked and data released showed the distribution of funds; that 1% are responsible for over half of the revenue and that most users have made less than $120. Substack has shown that the top 10 newsletters make $20 million in aggregate, while all other newsletters make considerably less (in the tens of thousands). OnlyFans, a membership platform, shows that the top 10% make nearly three quarters of all the money with the median income being $180 a month. On Patreon, only 2% make the minimum wage ($1,160).
Even though the big platforms, like Snap, TikTok, YouTube, Instagram have made headlines by offering creator funds, these funds are aimed at incentivizing big-name social stars to stay on the platforms. The same 1% law seems to follow throughout the rest of content and earnings, from Squid Game to podcasts to music to books. The 1% is thriving in the pandemic, stay-at-home, creator economy.
While the 1% are doing well, what about everyone else? Twitter’s “super followers’ feature which allows for tipping generated only $6,000 in total. The creator economy is truly a side hustle with many users working very hard to earn $100 a month. However, most of this revenue comes in the form of direct subscriptions or tipping. Many smaller creators do not have access to advertising, merchandise, or content teams to further drive the divide in earnings. And let’s be honest, most of the top earning influencers are doing so through advertising and merchandise while also continually growing their audiences with a myriad of content.
Here at Famecast, we’ve noticed this and have created solutions for the 99%. Atelier Capital founder, Li Jin, offered a few suggestions for the burgeoning creator middle class, which we’ve taken to heart. We do provide you with similar membership, tipping, and subscription tools but we take a much smaller percentage than the other providers of this service (and only make money when you do). In addition, most creators will qualify for advertising, merchandise, and our content generation software which helps you create more content about things that your audience cares about. We’ll have collaboration opportunities as well as chances to crowdfund for fans to build your next line of merchandise.
Coming down the pipeline, we’ll have NFT capabilities, financing, partnership, and many other ways to help you build your business that was asked for! What other tools do you need? What else are you looking for? How can we help grow the next generation of creators? What are other great ways for you to monetize? Let’s collaborate! How can we help you? Drop us an email, give us a test drive, and perhaps your suggestion will end up in the next Famecast iteration!