#22 - Creator Economy
Decentralization and the adoption of internet payments has made it possible to earn an income as an online creator 🧑🎨
People can choose alternative routes to their careers. Instead of going to a university and getting a 9-to-5 job: they now can write a newsletter, record a podcast, host cohort courses, develop micro-SaaS, become an influencer... the possibilities are endless.
This allows more people to build their ideal work life 🏝️
Flexible schedules - work from 8 to 80 hours a week.
Live anywhere - no need to live close to an office anymore.
Low barrier-to-entry - only a laptop is needed to start creating.
Async working style - more productive output, less time spent in meetings.
How to launch
Start with something that’s meaningful to you ❤️ An intersection of what you like, know how to do, others need and are willing to pay for. See the Purpose Venn Diagram.
Follow these steps: pick a niche, find a problem, build something that solves that problem, launch, sell and iterate. See Signals Pro #11 for a more detailed framework.
How to get to ramen profitability? 🍜 Let’s define that as reaching $2k/mo or $24k/year:
Just ads - Find 4,000 free subscribers
Average sponsorship price is ~5% of subscriber count or $200 for 4,000 subs
Average classifieds price is ~2% of subscriber count
1 x main sponsor per issue and 2 x classified ads
$200 for main sponsor ad and $80 for classifieds
(1 x $200 + 2x $80) = $360 revenue per issue
Release ~6 issues a month to get to $2,000/month
Just paid subscriptions - 130 paid subscribers
Typical free-to-paid conversion rates ranges between 2-10%
Political newsletters charge $5-10/month
Business newsletters charge $10-50/month
Culture newsletters charge $5-7/month
Charge $15/month for premium content with 130 paid subscribers (total subs would range from 1300-6500) to get to $2,000/month
2 more case studies (YouTube, Podcasts) in the Pro-version of this report.
$800 million in VC capital has been invested into creator economy startups since late 2020.
Total creator economy market size is estimated to be around $104.2 billion.
78% of full-time creators make over $23k annually.
Money flowing into the creator space comes from mainly 3 different avenues 💵:
Sponsorships and ads from brands.
Direct/subscription payments from fans to creators.
Investments from VCs.
Your side projects and building in public stats will become your new resume 📝
Creators will move their best fans away from social networks and sell direct-to-consumer ➡️
Curators are the New Creators - More creators means more content. Help others to filter signal from the noise 📡
1,000 True Fans? Try 100 - How to earn meaningful income with a small tribe of super fans ⭐
Join 2,500+ founders finding new trends and opportunities:
Thanks for reading. See you next week!