The creator economy is emerging as a potent catalyst for economic transformation, transcending geographical boundaries and reshaping the way we work and consume information. The industry is poised to become a crucial driver of global economic growth and recovery. With estimates projecting a staggering $104.2 billion market value in 2022 with strong growth projected for coming years, the creator economy is quickly gaining momentum.
As digital technology becomes more accessible and affordable, more people are turning to creative pursuit as a way to express themselves, connect with audiences, and earn a living. The emergence of new monetization models, such as subscriptions, fan contributions, and NFTs (non-fungible tokens), is further expanding the revenue streams available to creators.
We’ve seen a significant shift in how people across the world are leveraging their creativity and expertise to generate income as digital products and this shift is having a profound impact on the economy. The creator economy is fostering entrepreneurship on an unprecedented scale. This entrepreneurial spirit is not only creating new opportunities for creators but also stimulating economic growth by leading to the creation of supporting industries and services
As the creator economy continues to grow, it will impact not only the livelihoods of millions of individuals but also the overall structure of the global economy. The rise of the creator economy echoes previous transformative periods in history, highlighting the power of technology to reshape economic systems and empower individuals
According to Douglas Kendyson, CEO Selar, an e-commerce store builder that helps creators monetise their skills as digital products “Something we say a lot at Selar is, each creator is a powerhouse for multi-million dollar businesses tomorrow, and that’s a fact. Over the years we’ve seen creators selling their digital products go from less than $100/month in revenue to over $1,000 a month. While this doesn’t apply to all creators, we’ve seen this growth in many and that’s why we really believe creators are the next big driver for global economic growth”
“The best part about the creator economy and specifically digital creators is that their products cross so many borders and they make sales to customers all over the world with so much ease , speed and unprecedented scale” He added.
Ignored Impact: Why Investors Should Take Notice
The growing number of unicorns in the creator economy shows the huge potential for venture capital investors and startup founders. Investors can attract more creators to the ecosystem. When creators see successful individuals and companies securing funding, it sends a signal that the creator economy is a viable path for entrepreneurship. This influx of talent can lead to a richer and more diverse ecosystem, further fueling its growth.
According to Jobberman research, the creative sector currently employs an estimated 4.2 million Nigerians, making it the second-largest employer in the country, and has the potential to create an additional 2.7 million jobs by 2025.
The creator economy must not be overlooked as it is a thriving source of income for many people, especially young people. A recent survey showed that more young people prefer to be content creators or social media influencers in the future rather than traditional professions such as medicine.
Douglas Kendyson said “The creator economy is a very big market and one company can’t serve every use case. Investors have a big opportunity to fund the various creator-focused companies that cater to different sectors and use cases, which eventually trickles down to more success for creators and their platforms.”
Social giants allowed individuals to amass large followings but left them with few, if any, avenues for direct monetization. YouTube was the exception, giving creators 55% of ad revenue rather than no revenue sharing at all. It’s paid out $30B to creators in the last 3 years according to cbinsights.com
Creative Juice, a banking app designed for creators, introduced a funding approach of $50 million to support creator businesses. This means that creators can request an upfront cash injection to help grow their businesses. In return, they agree to share a portion of their earnings over a specified period, which usually ranges from six months to three years.
The New Frontier of Global Recovery
The rise of the creator economy represents a paradigm shift in the way individuals participate in and shape the global economy. Enabled by technological advancements and social media platforms, creators are transforming their passions and talents into viable economic opportunities. The democratization of entrepreneurship, the power of personal branding, and the shift towards authentic, relatable experiences are reshaping the economic landscape.
As the creator economy continues to grow, it will impact not only the livelihoods of millions of individuals but also the overall structure of the global economy. The rise of the creator economy echoes previous transformative periods in history, highlighting the power of technology to reshape economic systems and empower individuals.
Douglas said “At Selar, one of the biggest trends we’ve seen is creators not just selling to customers in their home country but customers all over the world. This has a direct impact on foreign exchange in a country.”
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