3 Reasons Why the Creator Economy is the New B2B While Treating Creators as Business
In the past couple of weeks, we have had the chance to talk to a couple of investors to share Paak’s vision and discuss opportunities about the Creator Economy. One of the interesting topics that…
In the past couple of weeks, we have had the chance to talk to a couple of investors to share Paak’s vision and discuss opportunities about the Creator Economy. One of the interesting topics that we discussed was creating a middle class of creators through empowering them to operate as businesses. Hence, am sharing them through this weeks’ blog about some of the discussions over here.
Let’s Talk About Creators as Businesses
#1 They have built a great community
We position ourselves as a B2B model (the second B is the creators as small businesses). In the traditional B2B or B2B2C model, when you can convince a decision-maker (CXO) to purchase the software for his/her company, then the software company can receive a recurring revenue hence with a huge user base (based on the company size). That’s the power of the network effect. Creators are great at building amazing communities and a strong relationship that goes beyond the content, to the conversion itself. In essence when you onboard a content creator, you immediately gain access to their communities and reach. Imagine a creator with a reach of 100k views a month, 1.2 million people consumed his/her/their content throughout a year (typical viewership of mid-tier creators). There is a huge user base of viewers for the creator to manage them as leads, continue with their engagements and even convert them to paying customers of the creator’s branded products. These activities provide a lot of business opportunities for creators to maintain and sustain as businesses.
#2 They are the trusted experts in their field
Creators have built their communities based on a particular niche. For example, MKBHD specializes in tech product reviews that harness 46M views per month, Murad Osmann specializes in travel with 4M followers. Through spending numerous hours and experience in the field, each of them themselves has become the expert of their field with this niche. Because of this, their words have weight and are able to guide their audience to make decisions on certain purchases. Tech brands can send some products to MKBHD for comprehensive reviews on the product about usability and designs. Hotels and destinations can invite Murad Osmann to visit to let him share a thorough experience about travel and share with their viewers. I once talked to a creator from our platform, he is a content creator posting his life with dogs. He told me he always received inquiries from his followers about dog-friendly recommendations when traveling. This shows that his words make a difference in impacting and guiding decisions for their audiences. If you are a content creator passionate about what you do and what we are building, be sure to head to our platform 👉paak.io .
#3 They spend a lot of time and effort to build their brand
In addition to their trusted expertise and community of audiences, creators essentially have created a brand of their own. With the goal of expanding their brand image, they experiment with various content ideas, working with relevant brands, providing giveaways to their audiences, etc. This brand image then becomes a unique competitive advantage and defensible IP for each creator which opens up doors for additional monetization revenues. In the content creator space, we have observed that more creators are extending their online presence into creator branded merchandise and experiences. For example, Peter Mckinnon (a well-known Youtuber know for spectacular photography) created a co-branded camera bag as merchandise, Shelby Church (Lifestyle Vlogger) created her own Airbnb to share her lifestyle experiences with her audience, etc. We observed that with the brand they have created, creators are shifting to sell more than just swags. They want to create experiences that can also be consumed by their audience as an ecosystem of the experiences that they have created.
At Paak we enable content creators to earn commissions via curated travel experiences they can share alongside their content in all social media channels. Our goal is to build tools that empower creators by providing them with new revenue opportunities. If you are a content creator in travel and lifestyle and are looking into new monetization alternatives, apply and join today