Is your next job in the $480BN Creator Economy?

Much more than social media influencers but much less than new cars

Introduction

1. According to Goldman Sachs Research, the creator economy was valued at $104.2 billion in mid-2022 and is expected to nearly double in market size by 2027, reaching $480 billion
2. However, the word creator is misleading. ? In fact, the creator economy is a large multi-tier distribution system of creators, managers and resellers.
3. In this essay, I’ll show you how to choose the best fit for you.

Do you create, resell or manage?

1. The growth of the creator economy is attributed to factors such as the increase in digital media consumption, the emergence of new platforms, and the development of technology that has lowered barriers to content creation. The industry is? supported by a large and diverse global user base, effective monetization tools, and inline selling options like TikTok Shops.
2. The Goldman-Sachs research talks about brands on platforms.? That sort of sounds like DTC but it is not.? Brands sell via multi-tier distribution channels. Even though LVMH owns Lancome, Lancome Direct is an independent channel owned by LVMH.? ? When we take a closer look at the creator economy, we can see that there are 3 kinds of players: content creators (writing like X, video like Youtube and TikTok), resellers (both independent influencers and channels like Lancome Direct) and a third kind of player - managers.? Managers divide into tiers.? Tier 1 is the platforms themselves as they control access to the content and the membership.? Tier 2 managers? is a fast-growing industry of agencies and solopreneurs who manage content for creators.? Managers may also provide? marketing, product distribution and back-office services for billing, advertising? management and revenue optimization.? A relatively new, yet still small competitor to social platforms are newsletter platforms like substack that enable writers to own their own membership. As substack grows, we’ll start seeing managers who manage other people's newsletters, integrating marketing, monetization, advertising and distribution.
3. The question for you: Where do you fit into the creator, reseller, manager ecosystem?? How do you decide what is the best fit for your personal talents?? ? You can determine where you best fit in by analyzing your personality:?? If you are a power person who likes to control and orchestrate other people then you are a manager. ?? If your creative side is the strongest - then you should go into the creator niche and let someone else manage branding, marketing and distribution.? If you are a social person - the kind that prefers talking to? people, then you fit into the reseller niche - reselling other products from other people and brands. Resellers and managers are rarely good creators also. ? Successful tech entrepreneurs are often strong in all 3: selling, management and creation. Bill Gates, Elon Musk and Paul Graham are notable exceptions.

Summary

1. We’ve seen that the creator economy growing rapidly and is expected to nearly double in market size by 2027, reaching $480 billion
2. There are 3 kinds of places for you in the creator ecosystem - creator, reseller or manager.
3. You can determine where you fit in by examining the strongest part of your personality - if power is the strongest axis of your personality? then you can be a good manager, if creative then creator, if social then reseller. ?