The Surprising Way NFTs Will Fix the Internet’s Biggest Problem, The Magical Power of Merch and, er, Break Up Google??
Jim Louderback
Creator Economy Sherpa | Award Winning Curator, Moderator & Speaker | "Inside the Creator Economy" Newsletter | Board of Director | Geek
6/6/2022 - ?Here’s what’s new and what caught my eye this week:
Revshare, Subscriptions, Merch or Something Else: What’s the best way to build a creator first business today? Recently posts by Evan Armstrong and Michael Booth (Rockwater) have made the case that revshare is the once and future king. ?Subscription models will tank, funding will dry up, and a coming nuclear winter for new SAAS based startups is nigh. While I’m definitely a believer in revshare, it’s not going to be the one-ring to rule us all. First off, creators are very wary of anyone asking for a piece of their hard-earned revenue. Beyond that, merch could well eclipse all other business models – and that one runs on COGS, transaction fees and storefront rental. Check out this eyepopping list of the top 25 biggest grossing entertainment franchises. Notice anything in common?
The Surprising Way NFTs Will Fix the Internet’s Biggest Problem: If you are at all interested in where Crypto will go over the next five years, you must read this longish article from Tina He and Packy McCormick. It’s focused on the emerging art of token design, explores whether tokens are mo - re similar to countries or corporations (spoiler, it’s both – but not at the same time). But the biggest aha moment for me comes about 3/4s in, when the story turns to NFTs. McCormick and He postulate that NFTs are poised to fix the biggest problem of the internet today – identity is not baked into the underlying TCP-IP protocol. They explore the SoulBound Token (SBT), from the creator of Ethereum and share how it will use programmable blocks to give everyone a unique and trusted and immutable identity token. I want to expand that to everything plugged into the internet, from our cars to lightbulbs and more. As we search for the big opportunities as crypto climbs the “Slope of Enlightenment”, I believe this will be a winner. What’s the creator angle? Imagine if a verifiable, immutable identity token were required to join a Discord, post a YouTube comment or snark on Twitch. It’s like a Roach Motel for trolls.
Fast Company Advises Brands to Exploit Creators: At first glance, the advice is good. With inflation running rampant, brands should lean into creators and influencers to make their budget stretch further. But the underlying theme makes me furious. At its core, this story advances the narrative that creators and influencers can be exploited to shill for a fraction of what they’re true worth. So yes, creators are absolutely right for brands. But they aren’t an off-price, low-cost, cheap way to get your message out there – even in a downturn.
“Break Up Google” Drumbeats Get Louder: I never thought this would happen. But a new bill recently introduced to the US congress – along with a host of actions internationally – make it not only possibly but increasingly likely that Google will have to spin off its ad business. That would mean tectonic shakes throughout the ad industry, for sure, but the creator economy fallout will likely be severe as well. Imagine if YouTube couldn’t sell ads. Or if third parties were given equal access to inventory without the current imbalances that exist. A thousand startups would bloom – but also creator revenue would dip. Perhaps not permanently, but this one’s worth watching closely.
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VIDCON Programming Spotlight: It’s the age of the multiformat creator! Hear from YouTube's new Vice President of Americas, Tara Walpert Levy, and YouTubers Rosanna Pansino and Ian Boggs on Fri 6/24 at 12:05 PM (PT) as they talk through the benefits of multiformat and the unique ways you can build only-on-YouTube businesses. Check out the session details here and buy tickets now so you don’t miss it!
Tip of the Week: This week’s tip comes from Zack Honarvar, CEO at Creator Now and founder at One Day Entertainment:
?Digital creators know their audience better than anyone else. Trust that they know how to cater to them and present them with content that they'll find entertaining. If structured correctly, they will know best on how to integrate your brand or campaign into their video without making it cheesy.
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What We’re Watching:?
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