This issue is presented by: Podcasting 101 – The Complete Guide to Podcasting Hi There! I consider myself to be a creator. Here are a few phrases that come to mind when thinking about the business of being a creator… “the rich get richer” “the best time to start was 10 years ago” “all it takes is one viral video to make it” “you have to have a big audience to make any money” “we should all make videos like mr. beast”
Note, I am also a speaker, author, coach/consultant, and course creator. Each of these identities is a business (each with their own problems), and most of these businesses are feast and famine when you are getting started. Let’s talk about what it’s really like to be a creator. The creator economy has been one of the most exciting developments in the digital age. With platforms like YouTube, Instagram, and TikTok, individual creators have gained unprecedented access to global audiences, allowing them to build brands, share their passions, and even make a living from their work. What was once considered a niche endeavor has now become a mainstream career path for millions. However, despite its rapid growth and the success stories of a few top-tier creators, the creator economy is fundamentally broken.
The promise of empowerment and financial independence has not been realized for the majority. Instead, creators find themselves facing significant challenges that prevent the economy from being sustainable, equitable, and truly liberating. The Glamour of the Creator Economy vs. Reality 😠For many, the allure of the creator economy lies in its apparent ease of access: anyone with a smartphone and an internet connection can create content and potentially reach millions. But the reality is far more complex. While platforms promote the idea that anyone can achieve fame and fortune, the data tells a different story. A very small percentage of creators earn the majority of income, while most struggle to make even a modest living. For every creator with millions of followers and lucrative sponsorships, there are thousands trying to break through the noise and earn enough to survive. The income disparity in the creator economy is striking. The top 1% of creators earn more than 90% of the revenue across platforms. This extreme inequality means that most creators are working tirelessly with little financial reward, leading to frustration and burnout. The Problem of Platform PowerOne of the core reasons the creator economy is broken is the power imbalance between platforms and creators. Platforms like YouTube, TikTok, and Instagram are not neutral playgrounds where creators can thrive purely based on talent and hard work. Instead, they are algorithm-driven ecosystems where success is often dictated by opaque and ever-changing rules. Creators are at the mercy of platform algorithms that determine who sees their content. A slight tweak in an algorithm can drastically reduce a creator’s reach, leaving them scrambling to adapt to new trends or content styles. This means creators are forced to constantly chase what the algorithm favors, often at the cost of their own creativity and well-being. Revenue sharing is another major issue. Platforms take significant cuts from the money creators generate. For instance, YouTube takes 45% of ad revenue, while Twitch takes as much as 50% of subscription revenue. This leaves creators with a fraction of the income they generate, further exacerbating financial instability. Moreover, creators don’t own their audience on these platforms. If a platform decides to change its policies or a creator’s account is suspended, they lose access to their followers overnight. This lack of control and direct access makes it hard for creators to build sustainable, long-term careers. Unsustainable Workload and BurnoutThe creator economy’s reliance on constant content output is another major flaw. In order to stay relevant and maintain audience engagement, creators are expected to post content regularly, often multiple times a day. This demand for quantity over quality leads to unsustainable workloads, with many creators working far beyond the hours of a traditional full-time job. The pressure to constantly create content not only leads to mental and physical burnout but also stifles creativity. Creators feel the need to produce what’s trending or algorithm-friendly rather than focusing on passion projects or more thoughtful, long-form content. As a result, many creators report feeling stuck, trapped in a cycle of creating content that doesn’t truly reflect their vision.
Content Saturation and CompetitionThe sheer volume of content being produced every day has led to oversaturation. With millions of creators across various platforms, standing out has become increasingly difficult. Audiences are bombarded with content from all directions, making it harder for creators to capture attention, let alone build a loyal following. This intense competition not only affects new creators trying to break through but also established creators who must continuously evolve to stay relevant. Niche creators, in particular, often feel trapped by the very thing that brought them success: the need to stick to a specific topic or style in order to please both the algorithm and their audience. The Attention Economy’s TollAt the heart of the creator economy lies the attention economy, where attention itself is the most valuable currency. Creators compete for limited viewer attention, and platforms reward engagement — likes, shares, and comments — above all else. This dynamic has led to a rise in sensationalized, clickbait content that prioritizes quick wins over meaningful connection or depth. For creators, the constant chase for engagement metrics can be exhausting. The focus on short-form, viral content leaves little room for thoughtful, high-quality work, while the emotional toll of seeking validation through views and likes can lead to feelings of inadequacy and anxiety. How We Can Start to Fix the Creator Economy 😀The broken state of the creator economy calls for significant changes. Here are a couple of ideas to help address the core issues: 1. Diversification of Revenue StreamsCreators need to move beyond relying solely on platform-dependent income like ad revenue and sponsorships. Building diversified income streams — such as memberships, merchandise, online courses, or premium content — can help creators gain more financial stability. Platforms should also lower their revenue cuts to give creators a larger share of the income they generate. 2. Build True Audience OwnershipOne of the most important steps toward fixing the creator economy is for creators to build direct relationships with their audience. This can be done by growing email lists, creating community platforms (like Discord or Substack), and investing in personal websites or apps. By owning their audience, creators can reduce their dependence on algorithms and platforms. 3. Support for Creator Mental HealthPlatforms and brands that rely on creators need to acknowledge the mental health toll of constant content production. Providing mental health resources, implementing tools to encourage work-life balance, and reducing the pressure to post frequently can create a healthier and more sustainable creator ecosystem. Wrap UpThe creator economy holds immense potential, but it is currently plagued by structural issues that limit its ability to provide fair and sustainable opportunities for all creators. By diversifying income streams, building true ownership of audiences, and advocating for healthier work dynamics, we can move toward a future where the creator economy is more equitable, empowering, and sustainable for everyone. 😝Thanks for reading! Do you have any questions you’d like answered? Email me at brandon@brandsonbrands.com and let me know! Talk soon, Brandon Birkmeyer Personal Branding Coach, Bestselling author of Front & Center Leadership |
