You might be confused when you hear what the Web3 Creator Economy is, but that’s a thing of the past now. The creative economy is made up of people who, like the rest of us, have a hobby or a passion that they may monetize their content on traditional platforms. However, it is social media platforms that enable creators to create relationships with fans and earn a living doing what they love. A YouTuber and TikTok creator, for example, create material for their viewers thanks to a monetary policy and sponsorships.
This frequently leads in restricted revenue alternatives, such as merchandising, subscriptions, ad revenue, influencer marketing, affiliate advertising, or tipping, which are sadly only viable for the top 1% of creators with significant followings. Stick with us and you’ll be navigating the Web3 creator economy in no time just like your favorite creator, and possibly reveal some exciting investment opportunities.
Creating Content
With the term “creator” now commonly used, the creator economy market has grown to an impressive $104.2 billion. According to the same study, one billion people will self-identify as creators in the next five years. Indeed, a startling 29% of American high school students claim they want to be an “exclusive content developer.” Looks like this is the new dream job these days.
Make no mistake: in the realm of niche entertainment, this is becoming a more viable career option. “The same way that Silicon Valley became a mindset and millennials from all over the world recognized that digital entrepreneurship can be a career option, Gen Z’ers can now earn a living from their inventiveness online for the first time,” says Niko Bonatsos, Investor at General Catalyst. However, in order to stay relevant, they have to meet the demand for content on social platforms.
Since anyone can access these platforms and produce exclusive content, the industry is competitive but also provides a lot of options for creators. This can be a huge pain for creators, since they need to produce content that stands out from the rest, appeals to audiences on platforms, attract monetization opportunities, and prevent creator burnout while doing this. Yikes!
Easily Accessible Content
As we move into a “mobile-first” economy, consumers are increasingly flocking online, focusing their attention and dollars on smartphones. Billions of users now spend approximately seven hours each day online across various social networks, with 93% of those predominantly using mobile phones. This new economic reality will test the ability of creators, since they are competing against social media influencers, tech company marketing campaigns, artificial intelligence, and each other.
A Great Investment Decision
However, this expansion of the creator economy is also being propelled by record amounts of potential investment streaming into the sector from famous investors – $1.3 billion in 2021 alone. Andreessen Horowitz, Greylock, Bessemer, Northzone, and Atomico are among those involved. It looks like there’s some serious dough in this industry.
Online creator companies and distributors such as YouTube, Facebook, and TikTok have all launched their own creator funds, allowing them to enter the market directly while also attracting creator communities and a large population of users to their platforms.
Of course, this business model makes sense when we consider that the quality of material on a platform establishes its worth and is directly responsible for attracting and retaining millions of users. It’s a no-brainer.
Despite these advancements, the same issues challenges creators for the most part, as they have for years: they are not adequately reimbursed for their labor, making it impossible for them to generate a consistent primary source of income.
However, this is changing. The age of content creation is now!
Hold My Royalties
Ownership of content will be enforced on traditional platforms by “smart contracts.” Since the integration of non-fungible tokens and advancements like blockchain-based games, it’s a lot easier for creators to have direct ownership of their work and potentially sell it for profit. Blockchain technology will get rid of any unnecessary waiting, guaranteeing that those in creative fields are receiving their source of income in a reasonable time frame.
This will clearly specify content ownership, making piracy more difficult and less common. Web3 ecosystems and smart contracts will become the norm when platforms hosted on the “old web” fade away.
More Revenue Please
Most enticingly, content creators will be able to drive money through new channels and more transparent business models in the realm of Web3.
Artists used to rely on middlemen — dealers, stores, curators, and broadcasters — to display and sell their work before the internet. All demanded a high charge, leaving little for the artists themselves. Not an ideal way to make money.
Amazon, Apple, and any other successful creator economy platforms that exploits its popularity to take large portions of purchases have been the digital equivalents of those intermediaries. Double-digit percentages are typical. The largest NFT marketplace, OpenSea, has a low transaction cost of 2.5%. The artist receives the remainder of the initial sale, allowing for a better generation of wealth.
Creative Power To You
Historically, technology has been about democracy. Consumer software and hardware are rapidly catching up to professional-grade equipment – edit bays, recording studios, and printing presses all compete with software freely available on low-cost laptops giving a lot more opportunity for creators these days. This shift has compelled the old gatekeepers to change their business strategies or close down completely due to the new generation of platforms.
The future, is certainly now!
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