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How do creators build wealth?
- Promote other people's products
- Sell their own products
- Invest
A quick thread on "Audience and Wealth" in the creator economy
https://thegeneralist.substack.com/p/audience-and-wealth-part-i
- Promote other people's products
- Sell their own products
- Invest
A quick thread on "Audience and Wealth" in the creator economy
https://thegeneralist.substack.com/p/audience-and-wealth-part-i
A note before diving in.
This is Part I of a series. Part II is coming next week. Subscribe to make sure you get it. Here's what we're covering today.
This is Part I of a series. Part II is coming next week. Subscribe to make sure you get it. Here's what we're covering today.
1
Why do we buy from creators?
(We can call them 'influencers' if we prefer.)
What do they give us?
Why do we buy from creators?
(We can call them 'influencers' if we prefer.)
What do they give us?
2
We live in an age of abundance. That's lead to the commoditization of information and products.
That's problematic for consumers, because purchasing a commodity:
- Grants no status
- Allows for no self-expression
Those are things we crave as humans.
We live in an age of abundance. That's lead to the commoditization of information and products.
That's problematic for consumers, because purchasing a commodity:
- Grants no status
- Allows for no self-expression
Those are things we crave as humans.
3
Creators solve this problem. By purchasing from an admired personality you create status and express your beliefs and allegiances.
Buying face cream says nothing about me. But if buy face cream from Gwyneth Paltrow, I'm making a statement about who I am.
Creators solve this problem. By purchasing from an admired personality you create status and express your beliefs and allegiances.
Buying face cream says nothing about me. But if buy face cream from Gwyneth Paltrow, I'm making a statement about who I am.
4
So, creators solve a valuable problem for consumers.
But what is the best way for them to monetize? What options are available?
There are three core strategies.
So, creators solve a valuable problem for consumers.
But what is the best way for them to monetize? What options are available?
There are three core strategies.
5
Model 1: Promote.
This is what we're most used to. Creators use their audience to sell someone else's products.
Advantages:
- Customer bears no monetary cost
- Requires little extra effort from creator
Model 1: Promote.
This is what we're most used to. Creators use their audience to sell someone else's products.
Advantages:
- Customer bears no monetary cost
- Requires little extra effort from creator
6
We see it across mediums and platforms.
- Podcasting
- Newsletters
- YouTube
- Twitch
Interestingly, little infrastructure helps creators monetize through *affiliates*. There's an opportunity here because this model has clear advantages (passive, evergreen).
We see it across mediums and platforms.
- Podcasting
- Newsletters
- YouTube
- Twitch
Interestingly, little infrastructure helps creators monetize through *affiliates*. There's an opportunity here because this model has clear advantages (passive, evergreen).
Aside:
I thought @gaby_goldberg's piece on "curators as creators" was an interesting companion to the thought about affiliates.
A powerful way to monetize curation. https://medium.com/@gabygoldberg/curators-are-the-new-creators-the-business-model-of-good-taste-5852727d4b54
I thought @gaby_goldberg's piece on "curators as creators" was an interesting companion to the thought about affiliates.
A powerful way to monetize curation. https://medium.com/@gabygoldberg/curators-are-the-new-creators-the-business-model-of-good-taste-5852727d4b54
7
Model 2: Sell.
Instead of selling someone else's products, creators are starting to sell their own.
Advantages:
- Ability to focus on their own content/products
- Capture more upside
Model 2: Sell.
Instead of selling someone else's products, creators are starting to sell their own.
Advantages:
- Ability to focus on their own content/products
- Capture more upside
8
These products can be digital or physical.
Digital
- Courses
- Ebooks
- Software
- Communities
Physical
- CPG
- Conferences
- Books
Many of the creators listed below do both, resulting in diverse revenue streams.
These products can be digital or physical.
Digital
- Courses
- Ebooks
- Software
- Communities
Physical
- CPG
- Conferences
- Books
Many of the creators listed below do both, resulting in diverse revenue streams.
9
Model 3: Invest
This is much less common. But some creators use their audience to build ownership. They do this by:
- Using audience as a selling point (distribution)
- Using audience as an ownership magnifier (syndicate)
- Using content as a trust and intimacy builder
Model 3: Invest
This is much less common. But some creators use their audience to build ownership. They do this by:
- Using audience as a selling point (distribution)
- Using audience as an ownership magnifier (syndicate)
- Using content as a trust and intimacy builder
10
What creators monetize through ownership?
VCs, solocapitalists, angel investors. Examples:
- @Jason
- @HarryStebbings
- @nbt
- @ljin18
All have built incredible, engaged audiences that can be "monetized" thru ownership. This is VC, viewed through a creator lens.
What creators monetize through ownership?
VCs, solocapitalists, angel investors. Examples:
- @Jason
- @HarryStebbings
- @nbt
- @ljin18
All have built incredible, engaged audiences that can be "monetized" thru ownership. This is VC, viewed through a creator lens.
11
This model is essentially unused outside of tech/VC.
- Ben Thompson isn't funding new writers
- Joe Rogan isn't funding new podcasters
- Bella Thorne isn't funding new OnlyFans stars
That might change. Over time, rationalizable asset classes for each could emerge.
This model is essentially unused outside of tech/VC.
- Ben Thompson isn't funding new writers
- Joe Rogan isn't funding new podcasters
- Bella Thorne isn't funding new OnlyFans stars
That might change. Over time, rationalizable asset classes for each could emerge.
12
These traditional models are being modified.
Next week I'll cover:
- The roles creators, audiences, and advertisers play
- The way this relationship is changing
- Opportunities this presents
Sign up here https://thegeneralist.substack.com/p/audience-and-wealth-part-i
These traditional models are being modified.
Next week I'll cover:
- The roles creators, audiences, and advertisers play
- The way this relationship is changing
- Opportunities this presents
Sign up here
https://thegeneralist.substack.com/p/audience-and-wealth-part-i
If you're interested in tech, and the mental models that explain its changes, you might like The Generalist.
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