What is the Creator Economy Middle Class?
A new generation of entrepreneurs who escaped corporate life to pursue content creation - minus the millions of followers.
Photo Source: Hello Partner
Introducing the creator economy “middle class” - a term used to describe a new generation of entrepreneurs who escaped corporate life to pursue content creation - minus the millions of followers.
Don’t get that twisted, these creators are still successful, but fame isn’t their goal. As long as they’ve built a loyal audience and make a full-time income from content creation, they’ve done their job.
What qualifies as “middle class” in the creator economy?
“Middle class” is a tricky term to use when discussing the creator economy. Creators don’t work a 9 a.m. to 5 p.m. job, and usually, there isn’t a cap on how much money they can make. In Simon Owens’ Substack article, he refers to creators as small business owners, and we agree.
According to data collected by Owens, there are between 50 million and 120 million creators today generating between $60 billion and $250 billion annually. However, only four percent of creators generate more than $100,000 per year while the average YouTube creator generates $150 a year.
Therefore, creators generating below $100,000 per year are categorized as “middle class” in the creator economy. There is no set amount of followers you need to generate this revenue. These profits are normally generated through loyal audiences, business deals, affiliate marketing and creator funds on platforms. Because of this, there is no cap on the revenue a creator is able to make. Also, the top percent of creators often source out help for their content creation, which may include editors, copywriters and photographers.
Another factor to consider are the entry barriers to becoming a creator, which are extremely low. Anyone can post a weekly video on YouTube, but what qualifies them to be labeled a creator? We believe that if you are generating a full-time income from content creation, then you can be considered a creator. But we don’t make the rules, and we want to hear your thoughts! Whether you think it depends on income, the number of followers or the quality of content, comment below what you think qualifies someone to be a creator.
What is the goal of a “middle class” creator?
The “middle class” creator is not mega famous, and that’s not always their goal. These creators want to build a community and profit enough so that they don’t need to work a corporate job and can pursue what they are passionate about. They add value to their audience by producing content such as photography, music, writing, design and more.
“Meaningful monetization was once reserved for the elite few who reaped six- and seven-figure revenues and scored big brand deals. But today’s creators are finding that building a business that serves their loyal audience is a more reliable source of revenue than chasing viral views,” according to Forbes.
By doing this, “Middle class” creators have been able to grow sustainable careers from content creation.
According to The Washington Post, “With a rising middle class of creators, content platforms like YouTube have even more to offer to both brands and audiences. According to Oxford Economics, in 2021, YouTube’s creative ecosystem contributed more than $25 billion to the U.S. gross domestic product and supported more than 425,000 full-time equivalent jobs in the United States alone.”
Artificial Intelligence Helping Creators
While big businesses can help creators, the introduction of artificial intelligence might give creators an advantage over big business.
With the ability to adapt new technologies into their work, creators will have an advantage using AI to gain deeper consumer insights and respond to their communities. Additionally, AI tools can be used to help creators improve their work and decrease the amount of time it takes to create content. More importantly, it can be leveraged to help compete with other creators.
Therefore, innovations in AI may help break barriers between classes for creators. Will “middle class” creators be able to move up the ranks? Or will top creators leverage AI to raise the stakes?
Best,
Ariana for the Don’t Count Us Out Yet Team