The creator economy refers to self-employed persons who generate money off of their knowledge, talents, and skills by creating content.
With more than 50 million independent content creators, curators, and community builders, this generation of micro-entrepreneurs are interacting in a market that could grow to a $104-billion market in 2022. About $800 million in venture capital was invested in creator ventures during the last year.
The creator economy partially owes its skyrocketing growth to social media and the opportunity to reach many eyeballs in a short period of time. Thus, entirely new communication channels and monetization models were created facilitating the growth of a new segment of creative people. Such creators enjoyed the opportunity to create their content part-time without sacrificing their full-time job, so that gradual shift to a full-time job as a creator is not that painful financially.
There are numerous types of creator content available:
- Live video
- Software tools
- How-to guides
- Education courses
- Photos and illustrations
- Blog posts
- Literary works
The rise of digital platforms like YouTube and Instagram paved the path for the influencer economy we know today, which includes everything from sponsored postings to Instagram stories. Individuals were able to build significant pools of followers on social media platforms, but they had a few options for direct monetization. YouTube was one of the leaders by giving out 55 percent of ad money to creators.
Other platforms are attempting to compete with the social media leaders. The most successful creators have the power to attract consumers to new platforms, motivating platforms to compensate them.
That’s how 90 percent of membership money goes to Substack writers. Twitch players get half of their subscription revenues. Patreon creators receive from 88 percent to 95 percent. The participants of OnlyFans keep 80% of their earnings.
Key trends in the creator economy
The following trends will shape the future of the creator economy:
- Creators shifting their top fans off of social media and onto their own websites, apps, and monetization tools are three of the top trends in the creator economy.
- Creators are gaining clout in the media industry, as fans prefer to interact with real people rather than impersonal corporations.
- Creators are now being compensated by brand sponsors instead of being rewarded by platforms like YouTube with ad revenue shares in exchange for bringing in an audience to the platforms.
- Artists who want to start enterprises are becoming founders, putting together teams and developing tools to assist them do it while still focusing on their art.
Another trend that is that blockchain and Web3 are gradually changing the entire creator economy. Creative economy will be affected by the introduction of NFTs, the metaverse, and decentralization protocols. Such changes will create new ways for creators, brands and users to interact. The creative economy, now worth more than $100 billion, is exploding as the worlds of e-commerce, social media, and online communities converge.
Top creator economy monetization models
The key trend is that creators’ revenue streams are becoming more diverse over time, and they’re getting more direct payments from their fans.
Right now there are numerous ways creators can monetize their content and social media activity:
- Advertising revenue shares
- Sponsored content
- Product placement
- Paid subscriptions
- Digital content sales
- Live and virtual events
- Creating fan clubs
- Cobranding initiatives.
Main business models in the creative economy
The creative economy gave rise to different types (business models) of companies that help creators to cater to the needs of more and more demanding users.
- Content Creation: Companies in this category assist creators with the development and editing of content such as pictures, podcasts, videos, and short clips.
- Financing: These companies assist creators in obtaining funding. These can range from equity-style finance, such as that provided by Creative Juice or HumanIPO, to credit tailored to creators.
- Marketplaces: Companies in this category act as marketplaces, bringing influencers and artists together with brands.
- Other types of companies include community management companies, ad platforms, administrative tools, analytics, and operations.
With the evolution of blockchain, the Web3 creator economy will receive a new boost. In 2021 about $30 billion was invested in the Web3. Some of the largest investment firms and accelerators in the world are betting on Web3, blockchain, and NFT-based technologies and projects.
How DEIP changes creator economy with blockchain and Web3
Here at DEIP, we believe that in five years, many web applications will be using Web3 under the hood, and some people will not even notice. Probably, in several years, music services will be done on Web3 using this protocol, and all the data and assets will belong to the people. Creative economy will have huge benefit from blockchain and Web3 when the creative assets will be tokenized and NFTs will be introduced.
As virtual assets blend with real-world experiences, NFTs can also be used to build a new form of fan involvement. Their experience will combine physical and digital elements. NFTs can be linked to real-life benefits. Another major benefit is the openness and transparency offered by blockchain.
Contemporary creators have a choice having to deal with an ever-increasing number of channels and access points in order to build new and current fan bases. It’s an exciting moment to be a creative person now that the Web3 age has arrived. DEIP is one of the new blockchain protocols that offers different types of artists and creators the opportunity to own their own content and interact with their fans in new and exciting ways.
For example, with F-NFT offered by DEIP, you can split your digital asset in many fractions owned and governed by many people, thus having access to the ownership of the creative objects like expensive pieces of art and mire, which was not possible in the pre-Web3 and blockchain epoch.
DEIP started as a concept for a new transparent reputation system, or proof of reputation. Then we saw how strong this item could be, because it has the potential to serve as a new economic foundation in the future.
We realized that it should be done as a centralized protocol, which is transparent and belongs to everyone, rather than as a centralized organization. This methodology should allow everyone to make changes and adjustments. That is why blockchain is such a vital component of our project.
On March 2021, DEIP announced an IDO, which will allow content creators to become participants of the platform and benefit from its growth.
Another way to participate in the DEIP platform development is to become an ambassador and assist the project in the following areas:
- Content creation
- Community contribution
- Tech ambassadorship
- Talent scouting
DEIP project offers a breakthrough technology developed by a great team. Creators will have access to a number of tools and will experience the unparalleled freedom offered by blockchain and the flexibility offered by Web3. The users will receive a trustworthy ecosystem supported by reliable blockchain protocols.
So take your chance, join us today!