What is the creator economy?
Creator economy is the system built by independent creators on social media platforms such as Instagram, Youtube and TikTok, in which the content creators get the monetary compensation in exchange for their follower’s engagement. They design, create, and distribute their own content to the audience, with the goal of gaining more followers and engaging the followers they already have with their socials. The monetization of social media platforms has created a whole new working class of people who make their living out of producing content and accumulating followers as well as a big amount of creator economy startups who seek to support creators in their content creation.
The type of content and platform varies depending on the field of expertise of that creator, and each creator chooses the social media platform that suits them the most. Although they mostly have a main platform, in which they are most present, they are usually active in all the “big ones”, and motivate their followers to follow them on all the different socials. But followers and views aren’t enough, they need to be constantly active and engage with their audience, through comments and sharing.
How big is the creator economy?
It is a very known fact that the creator economy is big – and growing. But how big is it? It’s hard to imagine since there are so many platforms and creators out there, but according to the 2022 State of the Creator Economy Report, the market is bigger than we all imagined. It’s not an easy job to quantify the number of creators in the creator economy, but the Influencer Marketing Hub estimates that 50 million people out there consider themselves content creators. Of those, 93,4% consider themselves amateurs, while the remaining 6,6% -that sums it up to two million- consider themselves as professional creators, making enough revenue for this to be their only source of income.
Since Youtube was the first platform to pay its creators, it’s normal that more than half of those 50 million have youtube as their main social media platform. Right after, 12,5 million consider themselves Instagram influencers, and 300K are professional twitchers. The rest is spread across multiple platforms and types of content. In total, it’s estimated that the size of the creator economy is over 104 billion dollars. It’s hard to estimate how much each influencer makes, since they all have multiple sources of income, and once the millions are hit, they get showered with brand collaborations and partnerships. However, Fortune Magazine reports that the top ten YouTubers, alone, made from 30 to 50 million dollars in 2021 alone.
10 creator economy startups to watch in 2022
Now that we have established that the creator economy is an ever-growing market there are a lot of creator economy startups out there offering services to support creators. We will break it down for you and present the 10 most noteworthy creator economy startups in 2022:
Passionfroot is a berlin-based creator economy startup that has made it its mission to empower creators to feel less overwhelmed and protect their creative spark while building their platforms and businesses. Passionfroot is a workspace where creators can manage their business and organize their finances, serving as a sort of “back-office”. From content planning, payment processes to collaboration management and more, Passionfroot aims to unify various tools creators use to run their business. The platform is launching soon for beta users so sign up and secure a spot!
The founders of Pallet believe that the future of hiring is distributed and community driven. Their goal is to unlock talent in professional communities through a job board for creators. Communities on Pallet can monetize via posting jobs to their audience, or recommending candidates from their audience directly to businesses. Pallet is a creator economy startup that offers an opportunity for creators to have a two-sided marketplace instead of selling to their audience in a one-sided value exchange.
Stir is a financial platform for creators to manage their revenue streams, analytics as well as collaborating and splitting revenue.
It is a more efficient way to collect payments on brand deals and send payments to collaborators. The platform enables instant bank-to-bank payment without any attached fees which is a great alternative to PayPal which takes 2.9% of the transaction. Stir has already been able to get popular creators on board such as Casey Neistat or Colin and Samir. Stir was declared one of the top 50 most promising startups by “The Information”.
The creator economy startup Kajabi provides a platform for creators to turn their knowledge and passion into income. On the platform creators can build, market and sell online courses, membership sites, coaching programs, podcasts and more. Kajabi also offers marketing tools and templates for content and campaigns as well as an option to manage CRM, payments connected to Stripe and PayPal and monitor analytics. It is a single dashboard where creators can access their website, products, marketing and communities.
Fanhouse is a subscription platform where creators can monetize their content, share exclusive behind-the-scenes content and engage with their fans. It allows creators to build a community platform that is in their full control. Creators receive 90% of their earnings while Fanhouse keeps 10% of the transactions for operational services which is lower than for most other platforms. This creator economy startup has already gained popularity among creators such as The Chainsmokers.
Bildr offers a visual web development platform that allows creators to build their own apps and browser extensions. With an extendable toolbox and ultimate design freedom, Bildr has a built-in infrastructure that enables creators to easily launch their own app.
Karat is a creator economy startup that was designed for creators and creative-led businesses offering customized financing, rewards and support tailored to Instagram, Youtube and Tiktok creators. Many times banks reject creators when they apply for a business credit card because their business is often not considered legitimate.
Karat has a different approach and takes creators’ engagement rate and follower count on their social channels into account when they apply for a credit card, which gives creators more capital based on the size of their audience. Their rewards include categories that are not offered by other banks focusing on rewards that creators actually need and can use. They also offer financial planning support to help creators with corporate structuring, planning and taxes.
Customuse is a platform that provides an easy way to create and sell your very own designs in popular games and on social media. Creators can develop wearable AR outfits that are fully customizable, professionally designed and optimized for popular platforms, to promote their brand and interact with their audience.
The london-based experience commerce platform Easol, gives creators an opportunity to build and sell their very own experiences to their audience.
The founders of Easol, former experience creators themselves, experienced ineffective tools, manually tracking bookings, paying third-party booking fees and investing heavily in custom solutions. That is why they developed Easol which is the very first experience commerce platform. They have created an all-in-one solution to manage the entire experience business from syncing creators’ websites with smart booking, payment as well as marketing tools. Thus, with this creator economy startup creators can sell any experience wherever they want, run their business all in one place and quickly grow their business.
Wonnda is the operating system for the sourcing and the launch of innovative consumer products enabling anyone (including creators) to get their very own product on the market. Wonnda is a berlin-based start-up that was built to take out the guesswork when it comes to sourcing and launching your own product line through private label. Here at Wonnda, we work with top European manufacturers for private label production and contract manufacturing. The first step in getting your product to market is probably the most crucial – finding the right production partner for your project.
The great advantage of wonnda.com is that you can simply let our platform do the heavy lifting. On wonnda, you can find product ideas and the right manufacturers. With our collaborative sourcing tool, you’ll be able to launch your next best-seller, fully digitally. Sounds interesting? Then sign up on wonnda.com.