Starving Artists Newsletter, Vol. 9: The New Creator Economy
No More Free Money
Earlier this month, Facebook and Instagram pulled back on its Reels Play Bonus program. This is part of a larger re-shifting from parent company Meta Platforms, away from the MetaVerse and into (tech layoffs, sadly). Reels Play Bonus was a program that paid content creators directly for making Reels. Select users would receive a notice every month regarding the maximum earnings for that period; and users would reach that amount by publishing (and getting engagement on) content.
Meta launched it in 2021 to try to compete with TikTok's Creator Marketplace. Similarly, other companies like Snapchat and YouTube, who had similar incentives, have also cut back on creator incentive programs. The reason? Most likely it's that tech companies no longer have readily deployable access to cheap liquidity, and must prioritize growth and revenue centers (like, A.I. for example), over cost-generating measures. Some creators sometimes got to see payouts in the?tens of thousands of dollars. However, other creators reported shrinking payments and an increasingly harder time to make the payout amounts.
No More Blue Checks
As a corollary, Twitter is seeing some wholesale changes to its user dynamics. Most famously, all legacy blue checkmarks have been removed. Blue checks were a way for platforms to authenticate certain users' true identity, to avoid fraud or spam. Twitter granted these to journalists, celebrities and other public officials for free to help prevent impersonations.?However, upon Elon Musk's takeover of the site, he decided to "democratize" this authentication. Now, as part of his push to make his $44 billion investment worthwhile, he is looking to squeeze as much money out of the platform as he possibly can.
With the legacy checks gone, Twitter will offer?checkmarks?only for paid users and businesses, as well as government entities and officials. The problem for influencers is that these checks represented a value in terms of validation. With that mark, they were able to stand above the rest of creators, and show (to advertiser and brands) that they were a trusted and recognized partner. Now, with paid blue checks, anyone can obtain verification, potentially posing identity issues, as well as limiting creators ability to distinguish themselves from others, in an otherwise crowded competitive landscape.
Regardless, more Gen-Zers want to be influencers than ever before
Last year,?survey results from HigherVisibilty showed that over 1 in 4 Gen Z surveyed plan to become social media influencers, with only around 7% saying they wound not want to be one. With documented examples of famous celebrities making up to $1 million for posting a single? image?on Instagram (Kylie Jenner), most survey respondents estimated that the average yearly income of an influencer is between $75K–$100K.
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How do Influencers make Money?
You would think that it's as simple as turning on your cameraphone, recording a trending challenge, posting it and awaiting sweet, sweet "virality" (going viral), along with brand offers. That used to be the case for some creators, not anymore.
More and more, content creators are becoming media personalities, and turning into serious broadcasters. It is no longer viable to simply rely on your communities to show up to your Instagram Lives and clicking on a link to purchase the product of your paid sponsor. In order to break in, and grow as an influencer, you need to offer a range of content across different platforms, tailored to your users distinct consumption habits. You still need to post on TikTok and IG, of course; videos, reels, stories, carrousels, and yes, lives - this is the bare minimum.
Following that, you NEED to have a podcast; a space where you gather once a week (or more often), and discuss trending topics in your field, as well as host guests. But that's not enough either; the podcast will help you generate even more content in the form of clips and excerpts, to use as teasers and calling to action for your community to subscribe.
Once you have your daily content on automatic, and your podcast on a frequent basis, you begin to call in the revenue - by acquiring sponsors, signing to a network, and offering products and perks to your fan base.
And this is just the beginning. As your project grows, so do the opportunities and risks. No two projects are the same; so what worked for one person may not work for you. What is applicable to all creators, is that you cannot simply rely on one (1) single source of income.
What are some common sources of income for Influencers?
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