What Do Businesses Think of the Creator Economy? (and the best way to create a business model to benefit from it) -

      As a content creator you have a variety of ways to make money: by selling goods and services, by selling of course materials, as well as through sponsored content.      

Many content creators build on their passionsthrough blogs, course creation, and designing merchandise to go with their branding. The sponsorship of content is another excellent way to increase your revenue.

With a little bit of expertise, some numbers to back up your pitch along with some networking and you'll be on your way to earning more and creating relationships which yield.

      What is the Creator Economy? Economy Function?      

The Creator Economy is the creation of content (education, entertainment, and information) delivered via the web and web app platforms to people in general. Based on Signalfire The Creator Economy comprises "over 50 million Content creators and curators and community builders including bloggers, social media influencers and videographers, as well as the software and finance tools that help grow and make money."

Creators

Creators form the foundation of the Economy of Creators. Creators provide the content that the public loves 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 keep our attention, and entertain ourselves.

The creation of original content is always sought-after and continue to remain a need. Creators provide that content to the masses.

Consumers

Imagine consumers as creator's customers. Most platforms, customers aren't charged for content. People vote by their fingers - scrolling quickly, or stopping on a creator's account to take in their contents.

Although consumers may not directly make a purchase for content they enjoy but they can be influenced by content creators to purchase goods or services that are either blatantly being distributed, or are subtly being offered.

Throughout 2020-2021, TikTok creators began displaying the Coldest(tm) containers of water within their 60-second videos. Though the company has not disclosed their revenue because of the product's placement due to the duration of the product placement, and the number of content creators involved we can conclude that there was at the very least, a modest amount of growth, if not even expansion. An internet search of the product will show many pages of sales and reviews opportunities.

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

Platforms

Platforms to create content are in flux and can come and stay. Vine is one example. It was an American short-form video hosting service which allowed users to upload six-second-long looping videos. (Wikipedia.) Vine was short-lived. Other social sharing platforms (like Facebook, YouTube, Instagram, Snapchat, and TikTok) have survived.

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

Companies

In the Creator Economy business are any of a variety of contributing parties. Creators themselves can grow to be companies. The social sharing sites are definitely business models. What we're trying to concentrate on is the role of businesses as content sponsor.

Companies (like The Coldest(tm) that was mentioned earlier) are looking for creators of content as influencers who they can work by putting their products on display or endorsement.

Content sponsorship is a part of a marketing strategy for businesses. Find influencers who will use and share your products so that their audiences will be your new customers.

      The Creator Model for Business Model      

From our previous definitions, connections between the creators of content as well as their platforms and business sponsors have the potential to generate revenue for content creators. There are many ways this could occur.

Platform Revenue Sharing

Oft referred to "creator funds" platforms offer more well-known creators to continue to produce content. Since creators such as these are driving usage of their respective platforms, social media giants such as Facebook, Instagram, Pinterest, Twitter, and yes, TikTok, pay creators to ensure that traffic continues.

The platforms pay advertisers for advertising place and time. (How often have you sat through 5or 15 second advertisements on YouTube in order to watch videos?) They rely on their creators for traffic. Thus, having content that can drive traffic is worth investing in. This is where you, as the content creator, comes into the picture.

Platforms are willing to pay for content which provides something (information or education).

Affiliate Marketing

Content creators have been part of affiliate marketing since the beginning of social media sharing. Armed with affiliate links social media users, YouTubers, bloggers and more share about their products and services they utilize in their posts and then post affiliate links for followers to use for purchases.

Affiliate marketing (like product and brand placement below) can be effective since followers are conditioned to believe that the creator of the content utilizes and approves of what they are sharing. Often termed "social evidence," endorsements and reviews assist consumers to make purchases based upon trust.

Product Positioning

Similar to the Coldest Water(tm) previous example the example, placement of products is typically discrete. (With this instance, TikTok users simply had their signature blue bottle within this video.)

Product placement also implies endorsement by the content creator. When you observe an individual you admire with a product, you assume they enjoy it. Then infer that you'll, too.

According to an article by Elite Daily, people who use the platform become obsessed by products that they've discovered through influencer use. For everything from skin care items to food storage containers product placement works.

Brand sponsorship

Brands will sponsor content. Whether you're providing a newsletter, video, podcast episodes blogs, or course content that are sponsored by brands, they will be willing to pay to promote your material.

There are many TikTok creators' entire accounts are devoted to Amazon "finds" which they would like you to purchase and experience. It is not uncommon for these products are able to sell to you through endorsements. The benefits of sponsored content are for both the brand and the consumer.

A majority of brands look to sponsor content that is in relation to the products and services they offer, but this may not be the case all the time. The larger brands, like Coca~Cola, for example are sponsors of events and other content simply because they see an opportunity for sales as well as the content can be seen by many. The most well-known CocaCola commercials depicted a footballer "Mean Joe Green" drinking Coca~Cola at a football match. The majority of athletes don't drink such as that during sporting events, but this commercial did a great job with people, and is still referenced over 40 years later.

Most brands, however, tend to seek sponsorships for content aligned with their offerings and products. If you provide online classes on photography, for instance then you could seek sponsorships from products or services like photo sharing sites that cater to professional photographers, cameras, and photography equipment.

The courses that offer cooking or recipe-related content may have sponsors from the producers of kitchen equipment, cooking tools as well as food preparation tools and even food companies.

The more aligned your content a brand is as well as the larger your reach is, the more likely a brand is to say yes to sponsorship possibilities.

      Working with Sponsors to monetize Your Content      

Though sponsors could approach you to work with you, it's most likely that (at least when you're first beginning) you'll need to contact prospective sponsors. There are things you will want to have prepared prior to doing this, to ensure that you effectively present your services and also be prepared to respond to any questions they might have.

Develop Your Sponsorship Offerings

Start by deciding the sponsorship options you will beand the price you'll make a charge for your sponsorship. Consider all the information you publish, and how often you update it in the future, and how you'd like to establish your fees.

Some content to include in sponsorships:

• Main site
• Instruction
• Lessons
• Blog posts
• Newsletters
• Podcast episodes
• Social media posts

Define the duration of sponsored content:

• Per blog post
• Per social post
• Per course/lesson
• For newsletters
• Per podcast episode
• or for a specified duration of time: weekly or monthly.

You can create a page on your site (or download a PDF) that outlines the opportunities for sponsorship. It is then possible to direct all marketing efforts towards the page and also any inquiries you receive.

Create an Media Kit

The media kit of your company is an opportunity to shine! It should contain all the essential elements to showcase the brand you represent. You can incorporate information taken from your About Us page, however it shouldn't be as much a narrative as easily digestible details nuggets. Bullet points and short paragraphs are great in your media kit.

Include:

• Statistics on brand names
• What number of students attend your courses
• What number of site visitors do you have
• Amount of newsletter subscribers
• Podcast listenership
• Course information (how many lessons? What is the number of lessons?)
• Audience demographics
• Social media following per platform
• Information on the brand
• Logo
• Tag line
• Testimonials
• A timeline from when you first started up to the point you're at and showing your progress

A good media kit will assist potential sponsors to determine if your brand is a good fit for them, and the best place to spend their sponsorship dollars.

Create a list of potential Advertisers

Spend some time creating a list of potential sponsors/advertisers. Make use of a spreadsheet to include their site and email address (or Contact page), person to contact (if there is one), phone number, as well as any other relevant information.

Make an email that you can send to potential advertisers (or for use as the body of their contact form) in which you describe who you are as well as the name you've developed, and the potential sponsorship opportunities you're sharing. (You can also use this loosely as a script to call potential sponsors.)

Note in the column in your spreadsheet of the date and time of the outreach and the additional discussions you had with sponsors and the outcome.

All of this data in one place will help you streamline your outreach, and ensure that you're not missing out on any potential possibilities.

      the Future of the Creator Economy      

Since the invention of printing presses, to the latest social platforms and the capability to publish everything you'd like to the internet the internet, content is consumed in large amounts.

As the younger generation grows older, their use of technology to create a life that they can manage themselves. Creativity and understanding the different ways content creates revenue allows to live a nomadic lifestyle (van living, DIY cycling, and DIY to mention a few) and funding goals (like tiny sustainable farms, tiny homes, and even photography), and supplementing day job opportunities with passive income (like sponsored content, e-commerce merchandise), and course creation).

The future is content, and you're just a few steps away of creating something truly amazing (and earning a profit for it).
     Use our Creator Business Canvas template and create your own path to financial stability by creating content that matches your passion!