Why The Creator Economy Ended Up Being A Dumpster Fire #2506

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.6 • 1.3K Ratings

🗓️ 9 July 2023

⏱️ 7 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode #2506, we dive deep into the challenges and shortcomings of the creator economy. Join us as we uncover the complexities of the creator economy and offer insights into the factors that have contributed to its less-than-desirable outcomes. We discuss the challenges in the space, returns from content creation, essential aspects content creators should consider, and much more! Join us for this eye-opening episode to gain a deeper understanding of the challenges faced by the creator economy and gain valuable insights into its complexities. Tune in now! TIME-STAMPED SHOW NOTES: [00:00] Today’s topic: Why The Creator Economy Ended Up Being A Dumpster Fire. [00:20] An interesting market projection regarding creative startups. [00:55] We define the creator economy and provide examples. [02:06] Reasons why the creator economy is struggling. [02:37] Examples of successful businesses within the creator economy. [03:03] We unpack reported returns for content creation. [03:25] Important aspects that content creators should consider. [04:10] How to be successful at monetizing content. [04:42] Common misconceptions about content creation. [04:55] An example of a ‘lucrative niche’ in the market. [05:37] That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more! This podcast is on our Youtube Channel. Watch it here: https://youtu.be/q11zGjZ467M Links Mentioned in Today’s Episode: Don’t forget to help us grow by subscribing and liking on YouTube! Leave Some Feedback: What should we talk about next? Please let us know in the comments below Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency Twitter @neilpatel Twitter @ericosiu

Transcript

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0:00.0	We're going to talk about why the creator economy ended up being a dumpster fire.
0:04.5	So a couple of years ago, maybe in 2021 or so, there was a lot of VC activity going to
0:10.8	these creator startups, right? So a lot of money was being poured into Patreon, Substack.
0:15.6	I think for Andreessen Horowitz, they put like, I don't know how many millions into Substack.
0:20.3	First, we need to define what the creator economy is, but our first I'm going to share this,
0:23.6	first before the first. I'm going to share this chart over here. So check this out.
0:27.2	Projected US fundraising for creator startups is down more than 90% this quarter compared to
0:31.6	the same period two years ago. So Q2 of 2021, boom, 2.5 billion, right? Then it drops, it drops,
0:39.1	it gets lower and lower and lower, you can see the screen. And it's, you can see here, here,
0:43.3	all the layoffs, Patreon, laid off 70% of staff, link tree, they stack 17% of staff,
0:48.1	and then cameo cut 160 people or so, Substack cut 14% and this is just the beginning, right?
0:54.5	So Neil, coming back to it, just to define the creator economy, what is the creator economy as I go
0:59.3	through this? We got a special message from our sponsor. If you want to rank higher on Google,
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1:10.9	With Google's Corvital update, that makes it super, super important to optimize your site
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1:29.5	Just a quick note from our sponsor, SingleGrain. So SingleGrain is an ad agency that is owned by
1:35.0	yours truly. And we mainly focus on helping companies grow their traffic and revenue. So
1:40.9	if you need ad agency help, you can go there. And also if you're looking for a marketing job,
1:44.4	you can check out our careers page. There's just SingleGrain.com. And without further ado,
1:49.5	over to the episode. Yeah, sure. So the creator economy is people who are just there's a lot of
	...

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