Quite a few people have grown tired of their 9-5s and decided to pursue their dreams by creating various types of content online.
What is the creator economy?
The creator economy is composed of artists spanning a myriad of industries who record videos, craft articles, and shoot photographs to the tune of millions of dollars in some cases.
Some might venture to say that the creator economy is a microcosm of American society at large: a few succeed — earning millions — and the majority scrape by on little to no income, attempting to make a living in an industry that is notoriously competitive.
How does the creator economy operate? The 2022 statistic
It's fair to say that nearly everyone and their dog wants to make a name for themselves as a creator. More people want to be YouTube stars than astronauts these days, for better or for worse!
- 50 million joined the creator economy.
- 46.7 million creators consider themselves amateurs.
- 2 Million global creators earn six figures annually.
- Sponsored influencers are now worth a staggering $8 billion today!
- Over one million creators are on only fans.
- 97.5% of YouTubers do not earn enough to reach America's poverty line!
- Ad revenue declined for content creators by 33% during the COVID-19 pandemic.
- 50% of consumers use ad-blocking technology.
- 29% of kids in America want to be a YouTube star.
- 22,000 YouTubers have over 1 million subscribers.
In short, the picture is not nearly as rosy as it may seem to some 9-5ers: the hustle is real, and only a small percentage of creators succeed in a very crowded space. Unfortunately, these folks usually work 16 hours a day and are often completely burned out by the end of the week.
Graham Stephan earned $6 million in 2021 from his YouTube channels. He focuses primarily on personal finance. It's worth noting that the man also sells online courses: $3 million of his income actually comes from his classes, sponsorships, and ad revenue.
Tim Denning earns around $100,000 per year from Medium and online courses.
Grant Cardone sells books and courses online. He also hosts multiple events each year. He is one of the most successful entrepreneurs on the planet, and his net worth is a staggering $2.6 billion!
It just goes to show that, if you are persistent in your efforts, and you're a savvy investor, the sky is the limit.
The most profitable niches in the world of content creation
If you are searching for a niche and hoping to narrow your focus, you'll want to look for a subject you're passionate about first and foremost, but making a lot of dough never hurts.
1. PERSONAL FINANCE
Pretty much everyone and their dog wants to learn about saving, investing, and building wealth, making this an incredibly lucrative niche.
If you love all things beauty, this is a very profitable industry to be a part of.
Fashion influencers can express their creativity through their clothing and help people keep up with the latest trends!
Travel Instagrammers get to live the good life: exploring exotic locations and documenting their adventures to share with the world!
This niche is particularly profitable for incredibly talented videographers and photographers.
5. HEALTH AND FITNESS
The COVID-19 pandemic has made nearly everyone more aware when it comes to their health: You can make some good money teaching people how to eat well and work out, especially if you're posting videos on YouTube.
The average annual earnings vary depending on what type of content you produce, but the amount floats around $50,000 for talented freelance writers and YouTubers in these niches.
2022 trends in content creation
The world of content creation is a competitive one, but it is incredible for the few who can break into it: all it takes is a healthy dose of conviction, persistence, passion, and (perhaps most importantly!) patience.
1. CREATOR FUNDS WILL CONTINUE BUT THEY WON'T BE RELIED ON
There are plenty of platforms that pay creators based on views: the disadvantage is that this metric is often unpredictable, so earnings can drastically vary. Because algorithms are unreliable, most successful content creators will continue posting on sites like YouTube and Medium.com, but they'll almost always have additional sources of income.
2. WEB 3.0 IS EMERGING
"For those who don't know, Web 3.0 simply means a new version of the internet built on top of blockchain that is decentralized and owned by the users, not billionaire pimply-faced knobs with yachts."
There are plenty of platforms paying creators in Ethereum and bitcoin, but only a small number of creators have joined. If you get in early, you'll have an edge on the competition!
3. BRANDS WILL REACH OUT TO MORE CREATORS
Companies will continue reaching out to creators: they tend to increase their sales by doing so because viewers feel like they're doing business with their best friend!
4. MORE CELEBRITIES WILL BECOME CONTENT CREATORS
There are already plenty of actors and bestselling authors posting on sites like Medium.com and YouTube.
This number will only increase in the future, stiffening the competition.
5. BURNOUT WILL NEED TO BE ADDRESSED
The brutal reality is that most successful entrepreneurs work 16-hour days, and sometimes they don't even take nights or weekends off—Many can't afford to!
In the future, this will likely be addressed because too many creatives are feeling overworked, burned out, and underpaid considering the seemingly superhuman efforts they pour into their projects.
The creator economy is booming, and a small percentage of the population is scoring big!
For better or for worse, consistency is key, and persistence will likely pay off, but it usually takes anywhere from 3-10 years before your business reaches profitability.
If you've just started creating, don't give up!
If you've reached your financial goals, congratulations!
The creator economy will only continue to grow: There will likely be even stiffer competition.
That being said, there could potentially be more benefits (in every sense of the word) for those who manage to succeed in the near future.