What Do Businesses Think of the concept of the Creator Economy (and the best way to make money profit) (and how you can position yourself to earn from it)

      As a content creator you have a variety of opportunities to earn money through sales of goods or services, sales of course materials, as well as by promoting content.      

Content creators often build their careers around their passionsthrough blogs, course creation, and creating merchandise that reflects their brand. Sponsored content is another great option to grow your income.

If you have a bit of knowledge, some data to support your argument, and some outreach with a little effort, you'll be in the process of earning more and creating relationships which pay off.

      How Does the Creator Economy Work?      

The Creator Economy is the creation of information, content (education or entertainment information) delivered via the web and app websites to the general public. According to Signalfire The Creator Economy is comprised of "over 50 million content creators, curators and community builders including social media influencers, bloggers and videographers, along with the software and finance tools designed to help them with growth and monetization."

Creators

Creators form the foundation of the Economy of Creators. Creators provide the content that people love to consume. From dancing on TikTok to images on Instagram, tutorials on YouTube (and all the way to) Creators provide us with all a reason to scroll for information, to pass time, and to be entertained.

Creative content will always be desired and will always be a demand. Creators provide that content for the general public.

Consumers

Imagine consumers as creator's clientele. In most cases, users don't pay for content. Users vote using their fingers - clicking quickly, or just stopping on a creator's account to take in their content.

Though consumers might not actually purchase the content they enjoy, they are often influenced by content creators to purchase goods or services that are either blatantly being shared, or subtly present.

In the years 2020-2021, TikTok creators began displaying the Coldest(tm) water bottles on their 60-second videos. While the company hasn't disclosed their revenue because of the product's placement, based on the longevity of the brand's placement and the amount of content creators that were involved, one can assume that there was, at least, modest success - if not existential increase. An internet search of the product will reveal many pages of customer reviews as well as sales opportunities.

The way consumers are influenced can come from creators they follow and admire.

Platforms

Platforms to create content come and go - or remain. Vine was one of them. was an American short-form video hosting platform where users could share six-second-long looping videos. (Wikipedia.) Vine was a short-lived platform. Other platforms for social media sharing (like Facebook, YouTube, Instagram, Snapchat, and TikTok) have endured.

Platforms allow creators to post their content with a built-in audience that can enjoy it.

Businesses

In the Creator Economy business could be one or a combination of many participants. Creators themselves can develop into companies. The social sharing sites are definitely businesses. But what we want to pay attention to is companies as content sponsors.

Businesses (like the one called The Coldest(tm) previously mentioned) seek out content creators as influencers who they can work with through product placement or sponsorship.

Content sponsorship is an integral part of a marketing strategy for businesses. Engage influencers and spread your brand's message to ensure that their followers become your customers.

      The Creator Business Model      

From our previous definitions, connections between the creators of content along with their platforms as well as corporate sponsors can be used to earn revenue for content creators. There are many ways it could happen.

Platform Revenue Sharing

Often called "creator funds," platforms offer more well-known creators to continue to produce content. Since creators such as these have a major impact on the usage of their social media platforms, giants such as Facebook, Instagram, Pinterest, Twitter, and yes, TikTok, pay creators to keep the traffic coming.

Advertisers pay for platforms to provide ad place and time. (How often have you had to endure 5- or 15- second advertisements on YouTube to be able to watch the video?) They rely on their creators for traffic. So having content that drives traffic is worth investing in. And that's where you, the content creator, comes in.

Platforms have the capacity to pay ready to pay you for media that provides something (information, education, entertainment).

Affiliate Marketing

Content creators have been a part of affiliate marketing from the moment the beginning of social media sharing. Armed with affiliate links bloggers, YouTubers, Facebookers and more share about products and services that they utilize in their posts They then distribute their affiliate links for followers to purchase from.

Affiliate marketing (like branding and product placement below) works because followers assume that the content provider both shares and supports the content they share. Sometimes referred to as "social evidence," endorsements and reviews assist consumers to make purchases by relying on trust.

Product Placement

Similar to the coldest Water(tm) example before, product placement is usually discreet. (With this instance, TikTok users simply had their signature blue bottle somewhere within the video.)

Product placement also implies approval from the author of the content. When you observe someone you admire using the product, it is likely that they are happy with it. You then assume that you would as well.

According to an article by Elite Daily, people who use the platform become obsessed by items they've found through influencer use. From skin care products to food storage containers placing products on the market works.

Brand sponsorship

Brands will sponsor content. If you're offering an email newsletter, video podcasts, blog posts, and course content that are sponsored by brands, they will be willing to pay to endorse your material.

There are many TikTok creators' accounts are focused on Amazon "finds" which they would like you to purchase and test. In many instances, the products could be sold out simply through these endorsements. Sponsored content is a win/win for both the brand and the consumer.

Most often, companies seek to fund content that is in relation to their products or services they provide, however that isn't always the case. Larger brands, like Coca~Cola as an example are sponsors of events and other content just because they perceive an opportunity for sales and their content is likely to be seen by a large number of. One of Coke's most famous commercials featured a player from the football team "Mean Joe Green" drinking a Coca~Cola in a soccer game. It is not common for athletes to drink drinks such as that during sporting games, but this advertisement did a great job with people, and is still referenced more than 40 years after the fact.

Most brands, however, tend to seek sponsorships for content that aligns with their products and services. If you provide online classes related to photography, as an example, you might seek out sponsorships from products or platforms like photo sharing websites for professional photographers, cameras, as well as photography equipment.

Courses offering cooking recipes and other content could have sponsors in the makers of kitchen utensils as well as food preparation tools and food brand names.

The closer to the content you publish that a brand as well as the larger your target audience will be, the more likely your brand is to say yes to sponsorship opportunities.

      Collaboration with sponsors to Monetize Your Content      

While sponsors might be interested in working with you, it's most likely that (at at the very least, when you're just starting out) you will have contact potential sponsors. There are certain things you'll be required to know prior to doing this, so that you can effectively present your services and have the ability to address any questions they might have.

Develop Your Sponsorship Offerings

Start by deciding what your sponsorship offerings will beand the price you'd like to be charging for sponsorships. Consider all the information you publish, and how often you post, and finally how you want to set charges for it.

Certain content you should include in sponsorships

• Main site
• Classes
• Lessons
• Blog posts
• Newsletters
• Podcast episodes
• Social media content

Define the time span of the content sponsored by the sponsor:

• Per blog post
• Per social post
• Per course/lesson
• Per newsletter
• Per podcast episode
• For a specific length of time, such as weekly, monthly, annually

You can create a page on your website (or a downloadable PDF) with a description of sponsorship opportunities. Then, you can direct your all marketing efforts towards the page and also any inquiries you receive.

Design a Media Kit

Your media kit can be a place to really shine! It must include all the essential elements to showcase the brand you represent. You can incorporate information that is from your About Us webpage, but it shouldn't be as much an outline as it is easily digestible data chunks. Brief paragraphs and bullet points can be great for the form of a media kit.

Be sure to include:

• Brand statistics
• How many students take your courses
• How many visitors to your site do are you getting?
• Amount of newsletter subscribers
• Listenership to podcasts
• Course information (how many classes? How many lessons?)
• Audience demographics
• Social media following per platform
• Information about the brand
• Logo
• Tag line
• Testimonials
• The timeline of your beginning to where you are now and showing your progress

A good media kit will help potential sponsors decide whether your brand would be a good fit for them, and where they would like to direct their sponsorship money.

Develop a List of Potential Advertisers

Spend some time creating a list of potential sponsors/advertisers. Use a spreadsheet to add the website address and email address (or Contact page) or contact number (if you have one) as well as their phone number and any other pertinent information.

Write an email to prospective advertisers (or to use in the text of their contact forms) outlining your identity, the brand you've created and what sponsorship opportunities you're relaying. (You can also use this loosely as a script to call potential sponsors.)

Make notes in a section of your spreadsheet that details the date you conducted your outreach, and then the additional discussions you had with sponsors as well as the result.

The ability to keep all this information together will allow you streamline your outreach, and ensure that you're not losing out on potential possibilities.

      The Future of the Creator Economy      

Since the advent of the printing press through the most recent social media platforms and the capability to publish anything you want to online, content continues to be consumed in large amounts.

As the younger generation grows older using technology to create a self-managed living grows. The ability to think creatively and understand the various ways in which content can generate revenue can allow to live a nomadic lifestyle (van lifestyle, making things yourself, as well as bicycling to name some) as well as funding the dreams of those who have no money (like small sustainable farm, tiny houses, and photography) in addition to supplementing daily jobs with more passive income (like paid content, e-commerce merchandise), and course creation).

The future is content, and you're at the edge of making something extraordinary (and earning a profit for it).
     Download our creator business canvas template and create your own path to financial sustainability by creating content that matches your passion!