Navigating the Creator Economy

The Creator Economy is having its Moneyball moment: “There is an epidemic failure within the game to understand what is really happening.” Companies, brands, even presidential campaigns, are miscalculating influence and paying the price. Stop measuring only views and followers: The stark difference between Trump and Harris’s creator/influencer strategy (and their outcomes) has spotlighted that views are not a complete representation of influence. Creators are now like icebergs. Measuring their influence purely by views/followers is as effective as measuring an iceberg by only what you see above water–you’re missing 7/8th's of the story. Start measuring depth: Instead we need to measure influence along two axes, breadth AND depth. Breadth is measured in views and followers. Depth is measured in units like watch time, average revenue per fan (ARPF), and a myriad of other options. Combining these two axes X*Y (or the area) provides a much more accurate representation of a creator’s influence. While both Trump and Harris were effective in gaining earned media via views–only one candidate was simultaneously gaining depth. Parasocial relationships are not measured in breadth, they are measured in depth. In last night’s post election episode of 60 Minutes, Scott Pelley described a “connection, an emotion” that Trump supporters felt they “knew him and he knew us.” That is the definition of a parasocial relationship. That is depth. Measuring breadth AND depth also explains why the two biggest creators right now are live streamers: IShowSpeed and Kai Cenat. Both are able to combine the typical depth of a live streamer with the breadth of a short/long form video creator. The result is two creators at the top of the influence game. Not all views are made the same. Deepen your understanding of influence and you'll see much better results.

I'm convinced that Gen Z verticalized communities are one of the fastest paths to $1M+ in revenue - whether as a side hustle, bootstrapped startup, or venture-backed business. Here's why 👇 🌟 Look at TKS (The Knowledge Society) - charging $489/month + $1k deposit with 4,000+ active students. That's $24M+ annual revenue potential from a program focused on ambitious 13-17 year olds. 🌟 Ali Abdaal's Part-Time YouTuber Academy: 1,500+ students paying $1,499 per cohort = $2.2M+ per cohort teaching creator skills to young audiences. 🌟 Even micro-communities are crushing it - saw a TikToker selling out coffee experiences in her condo repeatedly. Imagine turning that into a $150/year "Serendipitous Society" membership with exclusive tastings, merch, and content. The business model is proven: - Low overhead (mainly community management) - High margins (digital-first with strategic IRL moments) - Sticky revenue (annual memberships) - Network effects (value increases with member quality) We're seeing this explode across verticals: - ZCON (Gen Z conference backed by LinkedIn, Yahoo, Spotify) - Creator Economy NYC (monetizing through brand partnerships) - The PR Habitat (PR professionals) - Her Game Plan (sports) - The Z List (consumer) - Build Clubs (AI) My prediction: By 2025, every profession will have its verticalized community involving Gen Z. Charge $1k/year, get 1,000 members = $1M revenue with minimal overhead. The playbook is simple but execution is key: 1. Pick your niche 2. Curate high-signal members 3. Create exclusive experiences 4. Add brand partnerships 5. Scale thoughtfully I run GenZtea, a global community across 21 countries, and I've never been more bullish on the space as we are partnering with big brands + universities. The opportunity is massive and we're just getting started. Here are some from my market map: Z Fellows (Cory Levy), The Knowledge Society (Hari Mahesh), Creator Economy (Brett Dashevsky), Fabrik (Jaclyn Pascocello & Gwen Wiscount), Whop (Keta Bagashvili), Girls Into VC (Isabella Mandis), Reach (Dylan Huey), STUDENTpreneurs , Build Club (Annie Liao 🇦🇺), Party Ventures (Nia Johnson), BUDDY (Claire Wright), Pie (Gustavo Casas), Swsh (Alexandra Debow), Partiful (Shreya M), AfterWork (Zoya Khan), Posh (Avante Price), Mindot (Natalie Abuchaibe), Monday Girl (Rachel Wong), Sigma Squared Society, Verci (Ami Yoshimura 🍵), Mighty Networks (Gina Bianchini), Changemakers (Yasmin Kahkesh), next play (Ben Lang), The PR Habitat (Damaryan Benton) Who else is building in this space? Drop your community below 👇 #GenZ #Community #StartUp #Future #Innovation #Entrepreneurship P.S. Want the full breakdown of the community landscape + opportunities? Check out my newsletter in the comments (next edition is all about market predictions 2025 with Gen Z lens)

Community is created in the comments, and brands are starting to catch on. If you look at your own social media behavior you likely have many scroll sessions where you spend more time in the comments than flicking through content. Frankly, for how much buzz brands like Duolingo and Ryanair get, I think their comments are even better than their posts. Last summer Katie H. wrote an article in Morning Brew about how Dove has 5 community managers and strategists who spend most of their time reading and replying to comments on Dove’s posts, as well as finding commenting opportunities on user-uploaded posts. That’s a conscious decision by a brand to prioritize community building. And I’m not saying every brand has to, but it’s a decision that requires resources to get right. Community building can often have very different tactics than organic content creation, or paid influencer partnerships, or creator generated content production. Ideally they all create a flywheel that sings together, but they are all definitely nuanced in their own ways. I encourage all brands to have a conversation this year about whether community is important to their social strategy and if so do you actually have a strategy to build that community. Either way, don’t sleep on the value of comments and the work it takes to build a comments framework that fosters a community. #influencermarketing #socialmedia #creatoreconomy

2024 was a year of legitimacy for the creator economy. 𝟮𝟬𝟮𝟱 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗮 𝘆𝗲𝗮𝗿 𝗼𝗳 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻. Marketers will get serious about influencer marketing as it is held to higher measurement standards - and more “serious” industries like B2B and healthcare embrace the tactic. Some creators and influencers will also get more serious, as their social content moves from ad hoc to episodic—and scales into podcasts, CTV, and retail. Here are 5 𝘷𝘦𝘳𝘺 𝘴𝘱𝘦𝘤𝘪𝘧𝘪𝘤 (and some a little unexpected) predictions for the industry in 2025: 𝗠𝗶𝗱𝘁𝗶𝗲𝗿 𝗰𝗿𝗲𝗮𝘁𝗼𝗿𝘀 𝘄𝗶𝗹𝗹 𝘀𝘁𝗮𝗴𝗲 𝗮 𝗰𝗼𝗺𝗲𝗯𝗮𝗰𝗸. Follower counts don’t accurately reflect a creator’s ability to drive business outcomes for brands. In 2025, brands will prioritize choosing creators on metrics that matter - like engagement and creative alignment. This will benefit the longtail of creators, particularly those with medium-sized audiences, strong creative and high-quality engagement. 𝗠𝗲𝘁𝗮 𝗰𝗼𝘂𝗹𝗱 𝗯𝗿𝗶𝗻𝗴 𝗯𝗮𝗰𝗸 𝗹𝗶𝘃𝗲 𝘀𝗵𝗼𝗽𝗽𝗶𝗻𝗴. Meta shut down live shopping on Facebook and Instagram in late 2022 and early 2023, as its ad business was suffering. With its ad revenues booming - and a TikTok ban looming - the time could be right to try again. Live commerce has been a boon for some creators and small businesses on TikTok, and it could make Meta a more attractive alternative for users, creators and brands. 𝗬𝗼𝘂𝗧𝘂𝗯𝗲 𝗰𝗼𝘂𝗹𝗱 𝗿𝗲𝘃𝗶𝘀𝗶𝘁 “𝗢𝗿𝗶𝗴𝗶𝗻𝗮𝗹𝘀.” Serial creator video is taking over social media, shifting TV viewers and audiences. As more YouTube creators bring their content to streamers like Netflix and Amazon or FAST TV channels, YouTube will want to give them more reasons to stay. YouTube will also continue to push into CTV: Last week, it announced that “Watch With” will come to TVs soon. 𝗟𝗧𝗞 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗮 𝗳𝗼𝗿𝗰𝗲 𝘁𝗼 𝗯𝗲 𝗿𝗲𝗰𝗸𝗼𝗻𝗲𝗱 𝘄𝗶𝘁𝗵. Its technology has quietly underpinned social shopping behavior for years. In 2024, LTK deepened its relationship with retailers and the social platforms, most notably through an integration with TikTok. It also launched LTK DM on Instagram, helping drive more traffic and spending to creators on its app, which has become a go-to for creators and shoppers looking for a more curated and controlled experience. 𝗕𝗿𝗮𝗻𝗱𝗲𝗱 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 - 𝗮𝗻𝗱 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 - 𝘄𝗶𝗹𝗹 𝗿𝗶𝘀𝗲. The social platforms are saturated with sponsored content. In 2025, both brands and creators will continue to look for more sustainable ways to reach audiences. The rise of both predictable video and creator-founded products will offer new opportunities for brands and creators to collaborate, such as sponsoring a series or a co-branded product launch. And stay tuned for my 𝘷𝘦𝘳𝘺 𝘴𝘱𝘦𝘤𝘪𝘧𝘪𝘤 social media predictions later this week.

I'm publishing a new blog post tomorrow Subscribe at andrewchen.com to get it in your inbox The title is: Creator Economy 2.0: What we've learned, why it's hard, and what's next A quick preview: There's been a big wave of Creator Economy startups over the past few years, as the rise of social media platforms has empowered content creators to become a focal point for consumer engagement. This wave of startups promised creators that they could help them better monetize their audience on social media if they only promoted their products. We've all seen these -- creators promote a startup's new offering via a link in bio, or mentions in video or via links -- and drive their followers to a landing page that enables some new interaction or functionality involving the creator. Initially, these started almost as "tip jars" but over the years, many, many creative products have been tried, spanning e-commerce to newsletters to Q&A, and more. These products all promised a win/win with creators so that when their fans spent money, the company would only take a % of earnings, usually something like 10% plus or minus. There have been big successes, with some of these Creator Economy companies hitting billions of earnings paid to creators, while others have struggled. The successful creator startups are much more defensible than previously thought, and new entrants (often with splashy celebrity backing) have struggled to launch. Now that a few years have passed, what have we learned about the dynamics of this sector? Why have some Creator Economy startups worked and why have others lagged? I have a few theories of the dynamics at play: - The creator power law: A small, concentrated number of creators have all the audience, which makes Creator Economy startups potentially fragile and dependent - Battle for the bio link: Creator economy companies acquire their audience from larger social media platforms that often just have one spot -- the link in bio -- to promote a single company. It's a zero-sum game to overpower other companies - The graduation problem: Startups often charge a take rate -- % of bookings -- and if the creator is acquiring own their customers and also doing the underlying work, they want to pressure you towards reducing costs. The biggest creators often "graduate" from a platform, building their own, and taking their revenue with them - Algorithmic feast and famine: Creator traffic is driven by social feed algos, which lends itself to big spikes in traffic that appear and then go away -- the opposite of the steady, durable growth that startups seek These are all concepts that I've learned from meeting dozens of creator companies over the past few years. And as the next generation of Creator Economy startups emerges, these are some of the dynamics they'll have to figure out how to navigate.

I’ve seen firsthand how social commerce can be a game-changer. Platforms like TikTok Shop have rapidly become essential tools for any brand serious about scaling up in today’s digital-first world. Even Amazon, the largest digital marketplace, has recently inked deals with TikTok and Pinterest to boost product discovery and purchase. Now, YouTube is expanding its partnership with Shopify, giving brands new opportunities to tap into the power of social commerce. For those of us who help brands grow, this evolution presents an incredible opportunity to leverage these platforms for exponential growth. Here are three core reasons why social commerce should be at the heart of any brand’s growth strategy: - Expansive Reach and Deep Engagement: With billions of users actively engaging on platforms like YouTube and TikTok, social commerce offers unparalleled reach. These platforms allow brands to connect with consumers in a highly interactive and personalized way, leading to stronger customer relationships and higher conversion rates. At REACH, we’ve seen how this engagement translates into sales. - Creator-Driven Growth: The power of influencers and creators can’t be overstated. YouTube’s expanded Shopping affiliate program and TikTok Shop’s integration allow brands to partner with creators who authentically resonate with their target audience. This creates genuine connections that drive brand loyalty and growth. REACH has harnessed this dynamic to elevate clients’ presence and sales. - Real-Time Insights for Strategic Scaling: Social commerce platforms provide a wealth of data, giving brands real-time insights into what’s working and what’s not. This data-driven approach enables brands to pivot quickly, optimize their strategies, and scale more effectively. These insights help our clients stay ahead of the curve, ensuring their growth is both sustainable and scalable. Social commerce offers brands—from local businesses to global players—the tools they need to thrive. With the ability to reach global audiences, digital marketing dominates, wherein traditional marketing simply can’t match. ------ Read more from Aisha Malik for TechCrunch: https://lnkd.in/gTTJXXZ4

The recent lawsuit against Jennifer Lopez by a photographer and photo agency for alleged copyright infringement serves as a critical reminder for EVERY content creator and influencer. Even major celebrities can face significant legal challenges when using images they didn't create or license properly. Here's what happened and why it matters to YOU: ⚫ J.Lo is being sued for allegedly posting copyrighted photos of herself on Instagram and X without permission. ⚫The photographer and agency claim her use was "commercial in nature," aiming to market the designers she was wearing. ⚫They are seeking substantial statutory damages (up to $150,000 per photo!) and a jury trial, despite alleged prior discussions about a monetary settlement. ⚫This isn't the first time this has happened – Lopez has faced similar legal action for photo usage in the past. Why this is crucial for content creators and influencers: Just because a photo is of you doesn't mean you own the copyright or have the right to post it. The photographer is typically the initial owner of the copyright. Using an image to promote brands, products, or even just your own self without proper licensing can expose you to serious legal and financial risks. Here are some things to consider to protect your creator business: 🟢 Always assume images taken by others are copyrighted. 🟢 Obtain explicit permission or a license - even if you're featured in the photo, ensure you have a clear agreement or license from the photographer/agency before posting. 🟢 Understand "commercial use" - promoting products, brands, or even just your personal brand can be considered commercial use, which often requires specific licensing. 🟢 Get it in writing - oral agreements can be difficult to enforce. Always have licensing terms documented. If you're a content creator or influencer and have questions about image rights, licensing, or protecting your own creative work, feel free to reach out. It's always better to be proactive than reactive! https://lnkd.in/ehTxFmcR #Influencers #CreatorEconomy #SocialMediaLaw #IntellectualProperty #CopyrightLaw #EntertainmentLaw

(Part 3) I sat down with Kevin Espiritu who turned the largest gardening YouTube channel into a $45 million/year ecom business, here's what I learned... You can't force Product-Creator Fit. Let's define the term. Product-Creator Fit is the alignment between a creator’s product (or the products they endorse) and their social media audience’s values, needs, and interests. Ensuring that what they offer naturally resonates with, engages, and provides value to the followers they’ve already cultivated. Kevin and his team at Epic Gardening have NAILED this. The gardening products he sells organically and seamlessly fit into his content and empower his audience to take their home-gardening to the next level. Kevin's advice for other creators and brands? Let the audience lead you. Is your audience constantly asking questions about certain products in your life? Is there a common need/thread they constantly are asking you for? These DMs and comments come from your most engaged followers and are likely indicative of a broader shared need amongst your audience. Then, and very importantly, ask... how do the economics work? Will people actually pay for this and what would our estimated margin and LTV look like? Product-Creator Fit is one of THE most important exercises to go through for brands working on creator partnerships and for creator-first brands.

Should we be outsourcing human creativity and foundational content to AI? Advancements around RLVR (reinforcement learning from verified rewards) could do just that, by teaching AI with a reward system that allows it to make entirely synthetic datasets. The implications are broad – for example, what happens to publishers and content creators? Would it destroy their model?   Proposed legislation would deregulate AI oversight for the next decade, but RLVR is a prime example of why regulation is need. Yes, AI companies should actively be building in their own technology guardrails, but are they truly rising to this challenge?   Referencing the publisher/content creator example, there are constitutional protections for creators through copyright and patent law. It enables them to protect their creativity for a period of time…being rewarded for their efforts. But AI systems (and RLVR as the next step) can easily accelerate that destruction (e.g. a patent expires and the generic content begins).   Creators, inventors, discoverers and more should have (and use) the best AI tools to accelerate their creativity and innovation. But with the right combination of controls. That way we can honor the creators and increase their capacity, not replace them. Yesterday, Axios offered some interesting perspective around AI's impact on content creators. https://lnkd.in/exGn2W6A 

I've worked on over $20M in creator brand partnerships. And I'm noticing a significant shift in where brands are spending their money. It's not that creator marketing is slowing down. It's just becoming more targeted. Here's what's happening... Brands are pulling back from creators with younger audiences and doubling down on those with older, more affluent demographics, or with more niche audiences. Creator channels struggling to land brand partnerships: • Kids content • Pre Teen-focused entertainment • Gaming channels with young audiences • Creators with high views but audiences who have low purchasing power Creator channels thriving: • Finance and investing • Home and lifestyle • Professional development • Creators with affluent, adult audiences I'm starting to think the right litmus test brands should be using is: "Does this creator's target persona own a credit card?" If the answer is yes, the deals are flowing. If the answer is no, it's getting really cold out there. Brands have finally figured out that a million views from 12-year-olds using their parents' accounts won't drive the same ROI as 100,000 views from adults with purchasing power. What makes it even harder is that the metrics on YouTube's backend often don't tell the full story. A channel might show 18-34 as their primary demographic, but the actual viewers could be much younger using their parent's account. In this new phase of the creator economy, audience quality is trumping audience quantity. #creatoreconomy #marketing #business