Between the widespread adoption of social media, the decentralization of big media conglomerates through the internet, and the pandemic, the conditions were perfect for a booming creator economy. Whether you want to explore your creative side or bring in additional income to your day job, it’s a great time to become a creator right now.
But before you make the leap, you need to know what you’re getting into. Here’s your guide to the creator economy, how it works, and how creators of all stripes are making bank.
What is the creator economy?
The creator economy consists of a vast group of people over 200 million strong with unique expertise, skills, and personalities who use digital platforms to build multiple revenue streams. This can range from an Instagram influencer making sponsored content, to an artist creating downloadable stencil templates, to a personal trainer selling online fitness classes. The common thread is that they’re all monetizing their content online, building a market that’s worth about $250 billion.
While the concept of the creator economy is buzzworthy today, it’s actually been brewing since the late 1990s with Web 2.0 and the rise of blogging platforms, which allowed early creators to build their own audience. Fast-forward to today, digital creators are pretty much just another kind of entrepreneur. Whether they’re invested full-time in the creator life or have found a way to make bank online as a side gig, entrepreneurship is at the core of the creator economy.
How does the creator economy work?
There are three basic building blocks to the creator economy: the content creator, the social media platform, and the marketer. Each party has its own goals, and the interactions between them are what create the creator economy. Like any other economy, the movement of money is what builds it up. Each party has its own motivations where money is involved:
- Social media platforms want to generate income through advertising revenue by building audiences with free content.
- Content creators want to make money from creating and sharing content.
- Marketers want to bring more attention to their products (making them more money) by partnering with content creators and social platforms.
So, how do these three parties interact and build the creator economy together?
Content creators
- Create and share free content on social media platforms, which helps the platform build up its audience by being able to offer more content.
- Create branded content for marketers through paid partnerships.
Social media platforms
- Give visibility to free content from content creators (and offer creators a share of ad revenue in some cases).
- Sell visibility to marketers through ad space and access to content creators.
Marketers
- Pay content creators for branded content (like paid partnerships and sponsorships).
- Pay social media platforms for ads.
If you want to be a content creator, remember the creator economy hinges on the visibility social media platforms create and the money marketers put into these platforms for ads. Your key to success is to make great content, so the platform you create on is incentivized to give it more visibility, and you’re more likely to get paid by marketers.
What are the different types of creators?
So, who are considered creators? Writers, illustrators, photographers, podcasters, videographers, comedians, and the list goes on. What they all have in common is that they’re storytellers, creating either valuable or entertaining content that is shared via different digital mediums.
Not sure which creator type you want to be? Consider these two overarching categories:
1. Creator educators
Creator educators rely on their expertise and knowledge to generate revenue online. They develop content around a topic that they’re skilled at, and that their target audience wants to learn about. It can be anything from health and nutrition, to personal finance, to how to use Excel. Where there’s an interest from a community to learn, creator educators have an opportunity to teach and share.
The most successful approach is making the expertise accessible by keeping things digestible and within reach. For example, breaking up a complex subject into bite-sized pieces, speaking as a friend rather than an expert, and helping your audience set realistic milestones are a few ways to be a successful creator educator.
2. Creator entertainers
Creator entertainers often rely on their unique personality to attract viewers. They put out content that audiences enjoy viewing for entertainment’s sake. We live to be amused, making this type of content endlessly profitable so long as creators continue to find new ways to charm and delight.
Whether it’s children’s content on YouTube (surprisingly a wildly successful pocket of the creator-entertainer economy) or podcasting your stream of consciousness on anything from pop culture to beauty, if you’ve got the gift of gab — something interesting to say in an interesting way — you’re a creator entertainer.
How to join the creator economy: 6 steps
Here’s the thing: Anyone can become a content creator. There’s no job application. Your university degree doesn’t necessarily matter here (well, unless you’re selling your expertise as an infopreneur). But really, anyone with passion and motivation can become a creator!
It all comes down to creating content that people want while building a personal brand that people trust and believe in. That makes getting started as simple as grabbing your phone, opening the right app, and filming yourself.
But if you want to succeed in the creator economy, you’ll have to put a bit more thought into it.
No matter which route you take, there are a few fundamental pointers to keep top of mind as you begin to solidify your personal brand and claim your space in the creator economy:
- Find your niche
- Choose a platform
- Create consistently
- Do more of what works
- Experiment with content and platforms
- Monetize your content
Step 1: Find your niche
There’s a niche for every creator. Are you going to entertain your audience with wild stunts or comedic skits? Or are you going to share knowledge about something you’re an expert in? When picking a niche, make sure to identify:
- The kind of content you’ll create.
- The topics you’ll cover.
- The target audience you’ll create for (e.g. their age, their interests, their job).
Step 2: Choose a platform
While creating on multiple platforms is the best way to build your audience, it’s a lot to manage when you’re just starting out. Do a bit of research to see which platform fits your niche best. For example, book hauls and reviews are huge on TikTok. So, if your niche is book analysis and reviews, start by sharing content and growing an audience on TikTok.
Step 3: Create consistently
Whether you’re jumping in full-time or making content creation your side hustle, you need to create and publish content consistently to grow your audience. That can mean posting once a day, once a week, or even once a month. Just make sure to pick a schedule you can stick to in the long term.
Step 4: Do more of what works
When you’ve been creating content consistently for a while, you’ll start getting enough of an audience that you’ll get a precious resource for supercharging your growth: audience analytics and data. Look back through what you’ve created and see what brings in the most views and followers. Do more of that for as long as it works.
Step 5: Experiment with content and platforms
While you’ll want to spend a good chunk of your time creating content you know works for your audience, set some time aside for experimentation, too. Try out a new format — like short-form video — or a new platform. When an experiment works, integrate it into your overall strategy. When it doesn’t, discard it and try something else.
Step 6: Monetize your content
Creating free content is a great way to fuel your creative spirit and build an audience of like-minded folks. But when you reach a certain size, you can start looking into different monetization options to turn your content creation hobby into an income stream.
11 Ways to make money online as a creator
This question pops up a lot: “How can you monetize your content as a creator?” Well, there are many ways!
The methods you choose will depend on the type of creator you want to be, the time investment you have, and where your strengths lie. Let’s break them down:
- Brand partnerships
- Earn ad revenue
- Start your own brand
- Create and sell digital products
- Offer your time (1:1 consultations)
- Memberships and subscriptions
- Affiliate marketing
- Create UGC for brands
- Creator funds
- Fan donations and tips
- Livestreaming
1. Brand partnerships
Ever heard of influencer marketing? Build an audience and a brand might ask you to promote their product via their platform, for a fee — as long as your audience overlaps with their customers. This can look like commission on all sales generated from the ad or leads acquired.
Partnering with brands that you would buy from yourself is more effective than taking just any deal that comes your way. It keeps your content authentic, and you don’t run the risk of associating with a brand with dubious practices.
2. Earn ad revenue
Programs like Google AdSense allow YouTube content creators (who have enrolled in the YouTube Partner Program) to earn money based on views from their content.
How does it work? Advertisers buy ad space on your content and you get a portion of that money. YouTube isn’t the only platform to do this. TikTok has Pulse, while Instagram is testing Ads on Reels.
3. Start your own brand
More creators are building their own brands to build income streams they have control over. If you have an engaged community and can gauge what type of product or service your audience wants (via polling and surveying them), it’s almost a no-brainer to start your own brand.
4. Create and sell digital products
The beauty of selling digital products is that you only have to create them once, then both sales and fulfillment are managed automatically by using a platform like The Leap. You can offer digital products in the form of templates, ebooks, mini-courses, and more, no matter what niche you belong to.
Not sure what to sell? Get 3 tips for picking a product that’s right for you with our free Digital Product Launch Checklist.
5. Offer your time (1:1 consultations)
When you’ve been creating content for a specific niche long enough, you’ll become something of an expert. That means there are people ready to pay to spend an hour with you asking questions and getting insights on your niche.
6. Memberships and subscriptions
Paid communities offer more direct access to creators for their expertise or simply their entertaining content. Whether it’s a paid newsletter with exclusive content or a paid podcast with uncut episodes, the secret sauce to a successful paid community is value and accessibility.
7. Affiliate marketing
Affiliate marketing refers to promoting someone else’s product or service to your audience on your own platform, and earning a commission on each sale. It can be a really lucrative way to earn money online, especially since platforms like TikTok and YouTube have launched built-in affiliate programs.
8. Create UGC for brands
UGC stands for user-generated content, and it’s more about being skilled at producing high-converting content rather than pure community-building.
A UGC creator gets paid to create content about a product that a brand can post on its own channels as a marketing tactic. It’s meant to mimic authentic video reviews that influencers post on their platforms. If you’re comfortable on camera, like acting, and are willing to nurture your content creation skills, this could be for you!
9. Creator funds
Creator funds from platforms like TikTok reward creators for bringing traffic and engagement. It’s more or less a way of giving creators a portion of the profits as a “thank you,” because these platforms need these creators to succeed.
That being said, some of these initiatives have proven to be insufficient, as many creators have complained about small payouts. So, don’t bank on this as a way to earn a living. It’s more of a nice-to-have.
10. Fan donations and tips
When you have a loyal fan base who are grateful for your content, they’ll sometimes want to pay it forward with donations or tips.
Check out platforms like Buy Me a Coffee (suitable for all sorts of creators), Patreon (a popular membership platform where fans can leave a donation or subscribe for exclusive content), and Ko-fi (essentially a digital tip jar for one-time tips or digital subscriptions).
11. Livestreaming
Livestreaming platforms also give fans ways to pay you directly for your content. TikTok LIVE and YouTube’s live streaming features both allow your followers to contribute directly to your income through gifts and donations.
When you put in the hard work to be a consistent source of knowledge or entertainment, leave it up to your community to say thanks.
20 Creator economy startups you need to know
As the creator economy continues to skyrocket, a crop of tech startups have emerged with the intent of helping creators grow and monetize. From subscription and e-commerce platforms to generative AI tools, there’s a huge opportunity for companies to capitalize on the many, many needs of content creators.
These new creator economy startups provide the resources that creators need to simplify their day-to-day, and build more lucrative businesses all around. We don’t doubt that more startups will continue to pop up, so keep an eye out for the new creator tech on the horizon.
In the meantime, check out this list of popular creator tools:
Link-in-bio tools
| Tool | About |
| The Leap | Designed to help creators monetize, The Leap enables you to create, market, and sell digital products through your link-in-bio storefront quickly and easily — and all for free! |
| Linktree | A simple platform to generate one link to help you share everything you create and sell from all social media profiles. |
| Beacons | A link in bio tool, a media creator, and an invoicing tool — all in one to help you keep everything centralized. |
| Komi | A fully personalized hub that spans all your social channels as the link-in-bio. |
| Linkin.bio by Later | Create a customizable link in bio page to drive traffic from Instagram and TikTok, track clicks, and more. |
Fan monetization and membership platforms
| Tool | About |
| Patreon | A community-based membership platform allowing creators to provide access to exclusive content with multiple integrations. |
| Substack | A platform for writers and podcasters who want to publish directly to their audience and get paid through subscriptions. |
| Ko-fi | Build a membership community, sell products, or use this platform as a simple tip jar. Ideal for writers, podcasters, artists and all other types of creators. |
| Memberful | A membership software for publishers, creators, podcastors, educators and more. This tool promises to offer your members a best-in-class membership experience. |
| Thinkific | An intuitive space to create and sell online courses, build dynamic communities, and monetize memberships – all on a single, scalable platform. |
E-commerce tools
| Tool | About |
| Gumroad | A simple e-commerce platform with a wide selection of tools that lets creators sell physical and digital products right to their audience. |
| Pietra | An all-in-one membership for creators to start and grow their e-commerce business at a lower cost. Everything from brand ideation to sourcing and setup! |
| Off Script | A platform for creators to build curated marketplaces and sell products from multiple brands. |
| Spring | Create a custom store, design products, connect your social accounts, promote your launch and start earning profits while Spring handles everything from shipping to customer support. |
| Payhip | An easy-to-use platform to sell anything from digital downloads, online coaching, courses, memberships, and physical products |
Generative AI tools
| Tool | About |
| Copy.ai | An AI-based written content generator that delivers premium results in just seconds. |
| Synthesia | An AI video creation platform to help creators generate professional videos in 15 minutes (no equipment or video editing skills required!) |
| Stable Diffusion | An open-source AI model for artists to generate AI art inside Photoshop and to improve the quality of their photos. |
| Runway | A suite of generative AI tools lets you create and perfect videos, images, and more in a fraction of the time it would take you otherwise. |
| Midjourney | A tool for creatives, this independent research lab is developing an AI application that generates visuals from text descriptions. |
6 Creator economy trends to watch in 2024
2024 will be an interesting year for the creator economy. While it is growing, it’s branching into a different direction as we collectively experience some shakeups from long-standing platforms and trends in influencer marketing. Let’s cover a few so you’re prepared for what’s next:
- Short-form video will be part of every creator’s strategy
- More people will become part-time creators
- The rise of generative AI tools
- The in-app shopping storm is coming
- Social media platforms will need to better reward creators
- Your impact will matter more than your follower count
1. Short-form video will be part of every creator’s strategy
When short-form video first started getting popular — thanks to TikTok’s skyrocketing popularity — many creators experimented with the format. Now? Short-form needs to be part of a creator’s broader strategy. YouTube Shorts help creators get more visibility, TikTok is still one of the best platforms for building a massive audience, and Instagram Reels are quickly becoming a powerful engine for growth.
If you’re starting your content creator career today, you’ll want to find ways to pair short-form video with other types of content.
2. More people will become part-time creators
2024 will see a shift for some from working full-time as a creator to part-time, in order to diversify income streams and earn a stable enough income to traverse the recession.
People need to feel secure in their finances today, and that means mitigating risk by enjoying the creator life as a side hustle, without putting all your eggs in that basket. It might not be the right time to leave your 9-5, but that doesn’t mean you can’t put your creativity to work on your off-hours. Where there’s a will, there’s a way.
In fact, the extra revenue earned from your digital products, for example, will go a long way. So while we’d typically say “think big,” we think now is the time to “think smart” and look for low-budget ways to automate your income online.
3. The rise of generative AI tools
AI is shaking up nearly all industries right now. The rise of platforms like ChatGPT have changed the face of content creation overnight. Writers can whip together articles much faster, while video creators can now upload their content into any language in their own voice, granting them the opportunity to reach tons of new audiences.
Business Insider explains that “the biggest impacts on this segment will be in expediting the content creation process, facilitating brand-creator sponsorships, driving investment growth, and acting as the catalyst for more creative tools from social platforms.” For some, it’s a dream come true, while others do fear that AI might replace their jobs. Consider it a catch-22 with pros and cons on both sides of the coin, though it’s not going anywhere.
4. The in-app shopping storm is coming
There was a time when social media influencers primarily entertained their audience, occasionally partnering with brands to promote relevant products. Now that both YouTube and TikTok have built-in shopping features that let creators both promote their own products and become affiliates with less effort, the landscape’s going to change.
As a creator, you’ll have to be careful not to overwhelm your audience with brand partnerships just to make a buck. But getting those partnerships will be easier than ever when you need them.
5. Social media platforms will need to better reward creators
The concept of creator funds was great in theory, but it bombed in action. Creator funds on TikTok, Instagram, and Snapchat were generally unsuccessful. And though platforms like YouTube Shorts have started sharing ad revenue with creators recently, long-term results remain to be seen.
Regardless of their effectiveness, these rewards are meant to be a way for these apps to show their appreciation for the creators who bring so much action to their platforms. We’re hoping that 2024 will bring forth more intentional monetization programs that actually make a difference for creators.
6. Your impact will matter more than your follower count
Content creation is full of vanity metrics, those numbers that make you feel good — think followers, likes, and shares. But while these numbers can definitely impact your career as a creator, you’ll want to focus on impact in 2024.
People are much more savvy when it comes to browsing through social media than they were years ago. They’re looking for authenticity, for creators that make them feel better about themselves and the world, and content that contributes to positive change.
Want to see what else is coming down the pipe in 2024? Influencer marketing experts share their predictions here.
Don’t sleep on the creator economy
So that’s the lowdown on the creator economy. As you can see, there’s a lot going on, including potential for entry and success. As a reminder for those who are hesitant: you don’t need to have millions of followers, or put in thousands of hours or dollars to start making money online as a creator. Build a personal brand that people trust, with an offer that brings value and a voice that resonates. It’s time to make the leap!
Want to start making money as a creator? You can with The Leap.
The Leap is an all-in-one platform that makes it easy for creators to build and sell their first digital products quickly. It features an AI-powered digital product builder, a mobile-optimized link-in-bio storefront, and built-in email marketing tools which let you create, sell, and market your products from one place.
The Leap enables you to create the most engaging (and profitable) digital products, like mini-courses, challenges, and tutorials, in just minutes. Because it’s so easy to use, The Leap’s product builder empowers you to transform your digital products into lead magnets, which helps you grow your email list fast.
The best part? The Leap is totally free to use.
Want to start monetizing your audience by selling digital products? Try The Leap for free today.
Start monetizing your audience with The Leap, your free link-in-bio store.
Creator economy FAQ
What is the creator economy, and how big is it?
The creator economy refers to a vast group of people with unique skills and personalities who use digital platforms to build revenue streams. There are currently more than 200 million creators in the worldwide creator economy.
How big is the creator economy?
The creator economy is currently worth approximately $250 billion, with more than 200 creators contributing to it.
Which creator economy platforms are most popular?
Here’s a breakdown of the preferred social media platforms derived from a 2023 survey:
- TikTok (28%)
- Youtube (23%)
- Facebook (17%)
- Instagram (16%)
- Twitter (8%)
- Other (8%)
According to the same report, TikTok and YouTube are currently the platforms that generate the most revenue for creators.
How can you make money in the creator economy?
There are many ways to make money in the creator economy. Some ways include:
- Brand deals and partnerships
- Earning ad revenue
- Starting your own brand
- Selling digital products
- Offering your time for consultations
- Memberships and subscriptions
- Affiliate marketing
- Creating UGC for brands
- Creator funds
- Fan donations and tips
Follow The Leap on TikTok, Instagram, and YouTube for more creator economy news. We also make a newsletter.
Further reading
- 40 Creator Economy Statistics You Need To Know
- 12 Essential Newsletters for Keeping up With the Creator Economy
- 12 of the Best Ways To Make Money Online as a Creator
- 23 Top Creator Economy Platforms You Need to Know
- 8 Benefits of Selling Digital Products
- How To Sell Digital Products Online: A 6-Step Launch Checklist
This article was originally published in March 2022, and updated in August 2024 with additional information.
