How will Web 3.0 change the Creator Economy?
Editor’s note: this is part two of a two part series. Find part one “What Is the Creator Economy” here
The Creator Economy — what exactly is it?
This fast-growing small business sector has an extremely low barrier to entry, which means that anyone who that has internet connectivity – on a phone or a desktop – can become a productive participant in the Creator Economy, be it by selling crochet patterns or to teaching people how to date. This sector has no limits – anyone can participate, from your 10-year-old nephew to Grandma – as long as creators deliver value through their offerings and the market demonstrates an appetite for it. In some ways, everyone on a social media platform like Facebook, or an individual leaving a review on platforms like Yelp, is creating content, therefore a content creator – whether you know it or not.
Who are the Creators?
Creators are taking their future and earning potential into their own hands by taking control over their income to make money for themselves. What remains a barrier is that in many ways big media companies are the gatekeeper to access the markets. This is bound to change as we gradually enter a new age of decentralization with web3.0.
If you look at the numbers, they are nearly split evenly among gender:
51.9% women, 48.1% men.
Unlike other industry sectors where we see large pay gaps, it is much smaller amongst creators. While Spanish language creators are the second biggest segment, they represent only 11.7% of current creators. That means there’s room to grow.
How will Web 3.0 change the Creator Economy?
- Increased interoperability: One of the main goals of Web 3.0 is to create a more interconnected and interoperable web, which could make it easier for creators to distribute and monetize their content across different platforms and networks.
- Tokenization: Web 3.0 technologies, such as blockchain and non-fungible tokens (NFTs), could enable creators to tokenize their work and sell it directly to their audience, potentially cutting out intermediaries and allowing them to retain a larger share of the profits.
- Decentralized platforms: Web 3.0 could also enable the creation of decentralized platforms that allow creators to connect directly with their audience and monetize their work in new ways, such as through micropayments or subscriptions.
- Improved transparency and control: Web 3.0 technologies could provide creators with greater transparency and control over their work, including the ability to track and verify the use of their content and set terms for its distribution and licensing.
Overall, it’s likely that Web 3.0 will have a significant impact on the creator economy by providing more autonomy to creators.
How do creators monetize their content on social media?
- Sponsored content: Many creators partner with brands to create sponsored content, which is essentially advertising that is integrated into the creator’s regular content.
- Affiliate marketing: Creators can earn a commission by promoting products or services from other companies and including affiliate links in their content.
- Patreon: Patreon is a platform that allows creators to receive recurring payments from their fans in exchange for exclusive content or perks.
- Merchandise sales: Some creators sell merchandise related to their brand, such as t-shirts or hats, through their social media accounts.
- Courses and ebooks: Creators can also sell educational or instructional materials, such as online courses or ebooks, through their social media accounts.
- Services: Creators may also offer services, such as consulting or coaching, to their followers.
New changes big players
The power dynamic is tipping towards creators and how creators earn money. In the past social media platforms secured most of their content for free. That is changing platforms are offering a range of incentives to attract and retain creators, including:
- Partner programs that offer creators access to exclusive features, tools, and support in exchange for creating high-quality content.
- Monetization features: Some platforms, such as YouTube and TikTok, offer creators the ability to monetize their content through advertising or other means.
- Collaboration opportunities: Creators may have the opportunity to collaborate with other creators or brands on social media platforms, which can help them expand their reach and grow their audience.
- Community support: Many platforms also provide resources and support to help creators build and engage with their communities, such as through forums, workshops, and events.
- Visibility: Social media platforms can also help creators gain visibility by featuring their content in searches, recommendations, or other curated areas of the platform.
What’s next in 2023 and beyond in the Creator Economy? These are the trends to watch:
- Although short format videos, live streaming and content-led commerce will continue to be the dominant influencer marketing trends, AR and VR driven content represent an opportunity for creators to produce and monetize immersive content.
- Creators are likely to play a significant role in the development and growth of the metaverse. There are many ways in which creators can contribute to the metaverse, including creating immersive experiences, designing virtual spaces and objects, and producing content for use in the metaverse. In addition to traditional content creators such as artists, musicians, and writers, the metaverse may also provide opportunities for new types of creators to emerge, such as designers of virtual experiences and environments. As the metaverse continues to grow and evolve, it is likely that the creator economy will play an increasingly important role in its development.
- Better Creator Funds might be good to spur new creators into a career if large platforms can get it together.
- Ways to monetize content is shifting away from Ad revenue models and more into the value in their brands and the content they produce.
This is definitely a fast moving and growing sector of the economy that we should watch for in 2023 and beyond.
Part 1: “What Is the Creator Economy”