What do businesses think of the concept of the Creator Economy (and how you can create a business model to benefit from it) --

      as a creator of content There are many options to earn money: through the sale of products and services, by selling of classes, or through sponsored content.      

A lot of content creators are able to build upon their passions: through blogging or course development, as well as creating merchandise that reflects their brands. The sponsorship of content is another excellent way to increase your revenue.

With a little bit of knowledge, some data to support your argument, and some outreach and you'll be on your way to earning more, and building relationships which will pay off.

      What is the Creator Economy? Economy Function?      

The Creator Economy is the distribution of content (education entertainment, entertainment, as well as information) that is made available via the internet and web app platforms to people in general. As per Signalfire that the Creator Economy comprises "over 50 million independent content creators, curators, and community builders such as bloggers, influencers on social media, and videographers, plus finance and software tools designed to help them in their growth and to monetize."

Creators

Creators are the backbone of the economy of creators. Creators provide the content that consumers love to consume. From dancing on TikTok to pictures posted on Instagram, tutorials on YouTube (and all the way to) Creators offer us all a reason to scroll in order to be educated, be entertained, and enjoy ourselves.

Creativity is desired and will always be a demand. Creators are the ones who bring it to the public.

Consumers

Think of consumers as a creator's customers. On most platforms, consumers don't pay for content. Users vote using their thumbs - by clicking quickly, or just visiting a creator's profile to partake of their contents.

Though consumers might not actually make a purchase for content they enjoy but they can be influenced by content creators to make purchases or goods that are either blatantly being presented, or subtlely shared.

Between 2020 and 2021, TikTok creators began displaying the Coldest(tm) bottle of water on the 60 second videos. While the company hasn't divulged their revenues because of this product placement due to the duration of the brand's placement and the amount of content creators involved, one can assume that there was, at least, modest results, or even expansion. An internet search of the product reveals pages and pages of customer reviews as well as sales possibilities.

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

Platforms

Platforms for content creation come and go - or come and stay. Vine, for example, was an American short-form video hosting service which allowed users to upload six-second-long, looping video clips. (Wikipedia.) Vine was short-lived. Others social-sharing platforms (like Facebook, YouTube, Instagram, Snapchat, and TikTok) are still around.

Platforms give creators the opportunity to share their content, and a built-in audience to consume it.

Companies

The Creator Economy Businesses are any or a combination of many contributing parties. Creators themselves can develop into businesses. The social sharing sites are definitely companies. However, what we're going to focus on here is the role of businesses as content sponsor.

Businesses (like the one called The Coldest(tm) mentioned above) look for content creators for influencers they can partner with through product placement or endorsement.

Content sponsorship is a part of a business's advertising strategy. Engage influencers and spread your brand's message so that their audiences will become your customers.

      The Creator Model of Business Model      

From our definitions above, the relationships between content creators, their platforms, and businesses have the capacity to generate the creators with revenue. There are several ways that this could occur.

Platform Revenue Sharing

Sometimes referred to as "creator funds" platforms provide more prominent creators with funds for their continued creation of content. As creators drive the use of their respective platforms, social media giants like Facebook, Instagram, Pinterest, Twitter, and yes, TikTok, pay creators to keep the traffic coming.

The platforms pay advertisers for advertising place and time. (How many times did you have to sit through five15 or 10 second advertisements on YouTube in order to view a video?) The platforms rely on the creators to drive traffic. So having content that drives traffic is worth investing in. This is where you, as the creator of the content comes in.

Platforms are waiting to compensate you for content that provides something (information, education, entertainment).

Affiliate Marketing

Content creators have been a part of affiliate marketing since the beginning of social sharing. Armed with affiliate links, Bloggers, YouTubers and Facebookers and more share about products and services that they use within their content They then distribute their affiliate links to their fans, which they make purchases.

Affiliate marketing (like the placement of brands and products below) can be effective since followers are conditioned to believe that the creator of the content shares and supports the information they're sharing. Sometimes referred to as "social proof," endorsements and reviews assist consumers to make purchases that are based on trust.

Product Placement

Similar to the Coldest Water(tm) example before it, the placement of product is generally discreet. (With this example, TikTok users simply had their trademark bright blue bottle somewhere within the video.)

The placement of a product also indicates endorsement by the content creator. If you see somebody you admire wearing the product, it is likely that they are happy with it. You then assume that you would, too.

According to an article by Elite Daily, the users of platforms become obsessed with items they've found via influencers. From skincare products to food storage containers, placing products on the market works.

Brand Sponsorship

Brands sponsor content. If you're offering videos, newsletters podcasts blogs, or yes, even courses, brands will pay you to endorse your material.

A lot of TikTok creators' entire accounts are dedicated to Amazon "finds" that they wish you to purchase and experience. And in many cases, the products could be sold to you through endorsements. The benefits of sponsored content are for both the brand as well as the consumer.

A majority of companies seek to fund content that is relevant to their products or services they provide, however that doesn't mean that it is always the case. Brands with larger reach, such as Coca~Cola as an example are sponsors of events and other content just because they perceive opportunities for selling as well as the content can be seen by lots of. The most well-known CocaCola commercials depicted a footballer "Mean Joe Green" drinking Coca~Cola in a soccer match. Athletes seldom consume beverages such as that during sporting games, but this advertisement did a great job with people and continues to be a reference over 40 years later.

Most brands, however, tend to seek sponsorships for content that is in alignment with their products and services. If you offer online courses on photography, for instance then you could seek sponsorships from products or platforms like photo sharing websites for professionals, professional cameras, and photography equipment.

The courses that offer cooking and recipe content might find sponsors in the makers of kitchen equipment, cooking tools as well as food preparation tools as well as food and beverage brands.

The closer to your brand's content, and the bigger your reach is, the more likely a company will agree to sponsorship possibilities.

      Partnering with Sponsors to monetize Your Content      

Though sponsors could be interested in working together, it's much more likely that (at least when you're first getting started) you will have to contact prospective sponsors. You'll want to have prepared prior to doing this, to ensure that you make your presentation professional, and be equipped to answer questions that they have.

Develop Your Sponsorship Offerings

Start by deciding which sponsorship opportunities you'll be, and how much you'll make a charge for your sponsorship. Think about all the contents you offer, the often you post in the future, and how you'd like to establish the fees for that.

Some content to include in sponsorships

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

Define the duration of the sponsored content:

• Per blog post
• Per social post
• Per course/lesson
• In the form of a newsletter
• Per podcast episode
• For a specific length of time, such as weekly or monthly.

Make a landing page for your site (or download a PDF) with a description of sponsorship opportunities. You can then direct marketing efforts to this pageas well as any inquiries you receive.

Design the Media Kit

Your media kit can be a place to really shine! It must include all the elements necessary to show off your company's image. You can incorporate information taken from your About Us page, but shouldn't be as much a narrative as easily digestible information bits of information. Bullet points and short paragraphs are great in your media kit.

Be sure to include:

• Brand stats
• What number of students attend your classes?
• How many site visitors you've got
• The number of subscribers to newsletters
• Podcast listenership
• Information about the course (how many lessons? How many lessons?)
• Audience demographics
• Followers of social media per platform
• Information about the brand
• Logo
• Tag line
• Testimonials
• The timeline of your beginning up to the point you're at, showing the growth

A well-designed media kit can aid potential sponsors in deciding if your brand is a good fit for them, and where they would like to spend their sponsorship dollars.

Develop a List of Potential Advertisers

Spend some time creating a list of potential sponsors/advertisers. Make use of a spreadsheet to include their website, email address (or Contact page) or contact number (if you already have one) and phone number and any other pertinent information.

Make an email that you can send to advertisers you're interested in (or for use as the text of their contact forms) in which you describe who you are, the brand you've created and what sponsorship opportunities that you're promoting. (You can also use this loosely as a script for calling prospective sponsors.)

Make notes in a section of your spreadsheet that details the date of your campaign, then the additional discussions you had with sponsors and the outcome.

Keeping all of this information together will allow in coordinating your outreach and make sure you're not being left out of any possible possibilities.

      The future of the Creator Economy      

From the invention of printing presses, through the most recent social media platforms and the capability to publish whatever you like online, content continues to be consumed in massive amounts.

As young people get older, their use of technology for making a more self-managed living grows. Innovation and understanding of the many ways that content generates income has made it possible to lead a nomadic life (van lifestyle, making things yourself cycling, and DIY to mention a few) as well as funding the dreams of those who have no money (like small sustainable farms, tiny homes, as well as photography), and supplementing day job opportunities with passive income (like paid content, e-commerce products) and course design).

The future is filled with content and you're at the edge of creating something truly amazing (and getting paid in the process).
     Use our Creator Business Canvas template to create your own path to financial stability through the creation of content that matches your interests!