The $250 Billion "Creator Economy" and How it is Revolutionizing Digital Entrepreneurship
Box Cutter Co. Free Issue No. 51
Do you know how big the “creator economy” is?
Rough estimates suggest, that in this past year, it’s worth about $250 billion US.
There are now approximately 4.2 billion people around the world using social media. And within that, further estimates point to about 200 million Creators around the world — all using skills, expertise, and creativity to grow audiences, incomes and businesses.
“Of these creators, only about 2% (or 4 million of them) have more than 100,000 followers, while most creators (about 140 million of them globally) have between 1,000 and 10,000 followers.” - Linktree creator report.
When I read this, I found it very encouraging. This translates to approximately 70% of creators in a similar audience range as me. I have:
~5,500 on Medium,
~4,100 on LinkedIn,
~1,000 on X (Twitter)
~100 across Facebook and Instagram
~400 Subscribers here on Box Cutter Co.
One of the most fascinating and encouraging aspects of the creator economy?
It’s projected to almost double in size over the next 3 to 4 years — to almost $500 billion.
How big is this?
The gaming industry is approximately the same size ($250 billion US annually) and the online education field at approximately $200 billion.
In comparison, the commercial banking industry in the US is suggested to be about $700 billion, supermarkets and groceries about $750 billion, and pharmaceuticals about $870 billion.
This week in Box Cutter Co. Free Issue #51
What is the “Creator Economy”
Digital Diversity over Ecosystem Niches?
Evolving Digital Ecosystems
Navigating the Creator Economy with a Multi-Faceted Approach
A Multi-platform Multi-interest approach
What is the “Creator Economy”?
The creator economy is a vast network of people using creativity, talents and ideas to make content and grow income and/or businesses online. It includes all kinds – writers, bloggers, video makers, influencers, people who make digital courses, podcasters, and more.
It’s as much a digital ecosystem as it is an ‘economy’.
Each creator contributes to the ecosystem by sharing unique perspectives, knowledge, content, and creativity (to name a few).
And, yes, sure there is a lot of Crap in the digital world — but there is in any natural ecosystem too.
One of the biggest plusses for me—when I was preparing to walk from a good salary and steady employment—was the super-low investment to get started.
It’s truly as simple as a device that can access the Internet and a connection to the web. That’s it.
Many traditional industries and businesses require substantial initial investment and often pretty rigid structures. However, the creator economy is accessible, creative, and flexible.
Barriers to entry — and potentially thriving— are considerably lower than many entrepreneurial ventures. This enables a wide array of individuals to participate and thrive. For example, over this past year, I met a young guy Kunal Shah, who’s based in Kenya.
He has established a very profitable business creating theme pages on Instagram. He started on an old borrowed laptop. He’s evolved his business into tens of thousands of $ per month.
It wasn’t simple or easy. He went through a few failures and iterations but then landed something that worked very well.
This creative creator economy isn’t confined to just content creation— it’s a new wave of entrepreneurship in the digital world. One that’s not just about producing content. It’s also about building communities, creative engagement, and monetizing one’s mind (and hopefully not losing one’s soul).
Expansion and proliferation of the creator economy are fueled by all sorts of digital skills— however all with writing at their core. From graphic design and video editing to writing and social media strategy, these diverse skills are the foundation of this digital economy.
This ‘new world’ of content creation, entrepreneurship, and especially Solopreneurship has shifted how many people view work and creativity. It’s certainly shifted mine — and quite fascinatingly, close to 30% of creators in this economy are in my generation (Gen X).
Millennials make up about 40%. Gen Z is only about 13% and maybe the most fascinating is that Baby Boomer are close to 15%.
Adobe did a Global survey of Creators in the Creator Economy They reported the average age of male creators is 43, and female creators is 38. (They didn’t provide any number for non-binary folks).
In that same study by Adobe, they found a positive correlation between content creation and mental health.
“Creators who post frequently and spend more time developing content report higher positivity.”
The digital creator economy and ecosystem are pretty darn diverse. Estimates suggest slightly more men than women, but not by much (a few % points). It symbolizes a fundamental paradigm shift in work, creativity, and how value is generated and shared in this expanding digital age.
Digital Diversity over Ecosystem Niches?
There is some debate over the well-trodden recommendation for digital creators to “niche down”. There is solid logic to back it up.
Yet, in a flourishing ecosystem, the digital landscape could undergo some rapid changes and one strategy that worked well last month could shift next month.
It would not be a Box Cutter philosophy if we simply accepted the commonly expressed arguments in any realm— the digital creator economy is no different.
Two very influential and successful digital creators take opposing views on this front. Even in the past week, I saw Nicolas Cole (of Ship 30 for 30 and Premium Ghostwriting Academy) publish posts warning creators about not niching down — as well as criticize an idea that Dan Koe promotes an anti-niche approach.
For example, Koe promotes the idea that your niche is you. Cole suggested this is dangerous.
In Koe’s most recent letter, published yesterday, he promotes an Anti-niche approach: “The Anti-Niche (Why Being Nicheless Makes You Irreplaceable)”
I respect the work that both these young creators and digital entrepreneurs have done. Truly remarkable. And…
I agree with both of them. Yet… for me, I tend to lean much more towards Koe’s perspective.
“When you are the niche, and who you are is constantly changing, you are niche-less.
You don’t box yourself into skills or interests that you will outgrow because you are human.” — Dan Koe
Yup. A Box Cutter philosophy questions most things. Koe compares some of the ‘niche down’ messages to similar socialized pressures that suggest one should go to school, get a job, and settle in until 65.
Koe outlines the following Problems with Traditional Niching:
One may lack enough personal interest and connection with chosen niches.
Absence of personal experience with the problems of those niches.
Overemphasis on finding customers rather than attracting them or becoming an expert.
Related to these, some points Koe raised in his recent newsletter that resonated loudly with me including:
Encouraging the concept of niche as an evolving personal worldview.
Emphasizing self-generated goals, understanding personal problems, and developing potential paths — and sharing these with a broader audience
Additionally, on content creation strategies:
Focus on educating, understanding, and emphasizing the importance of personal beliefs and experiences.
Post content on various interests to engage a wider audience.
Differentiate between content and product – content is for education, entertainment, and inspiration, while products and landing pages should focus on sales.
Encouragement to solve personal problems and sell those solutions continuously.
Evolving Digital Ecosystems
Success in the constantly evolving digital ecosystem is increasingly about harnessing a broad spectrum of interests and skills, rather than confining oneself to a narrow field.
This shift reflects the dynamic and evolving nature of the creator economy, where diversity and adaptability are pivotal — especially if we consider the possibility that it could double in size in 3-4 years.
In my 20 months or so of fully engaging in this game, I recommend adopting, engaging, and learning a wide range of talents and perspectives. This type of approach enables creators to reach and resonate with a more extensive audience.
3 Key Observations and Recommendations:
1. Broad Interests, Broader Appeal
Diving into a variety of subjects allows creators to forge connections with a more diverse and wide-reaching audience. This approach can amplify creativity and open opportunities for unanticipated collaborations and community-building.
By exploring multiple interests, digital creators can appeal to a broader demographic, enhancing their reach and impact in the digital space.
2. Personal Growth as a “Niche”
In the creator economy, your journey—encompassing your unique experiences, skills, and insights—becomes your niche. This type of digital strategy will be, as well as land more authentically with audiences.
This in turn can support deeper connections and longer term relationships. I’ve been finding, it's more about turning one’s evolution and experiences into a more compelling narrative.
3. Continuous Evolution (just like ecosystems)
Much like the ever-changing world of technology, or natural ecosystems, the creator economy is in perpetual flux — “dynamic equilibrium” its called in natural systems.
Staying attuned to emerging trends, shifts and changes and adapting content accordingly will ensure it remains fresh, relevant, authentic, and engaging. This constant evolution is not just about staying relevant— it’s also about growing and thriving in a space which requires constant innovation and forward-thinking.
As a digital creator, your ability to evolve within this dynamic equilibrium is a key driver of long-term success and sustainability.
Navigating the Creator Economy with a Multi-Faceted Approach
The creator economy is thriving and expanding rapidly. However, it’s also not a simple feat to just begin and make overnight riches. It can be even tougher to build in a way that remains true to who you are and in arenas in which you may want to be in over the long haul.
A Box Cutter approach is not only for cubicled and bureaucratic workplaces—it’s also just as relevant in the digital creator economy.
There is no shortage of online gurus shouting the importance of each creator “niching down”. Yet, some can do very well by not niching down.
The way I see it, the gaming industry (at about the same size as the creator economy), for example, and the online education economy (slightly smaller, and in some cases probably part of the creator economy) — are very diverse ecosystems.
Yes, some companies and products will definitely be ‘niched down’ — and, yet others won’t. Added to this is the impressive generational diversity participating in the digital creator economy.
My approach to this economy is a multi-faceted one. I like to approach things and create content utilizing a variety of skills and insights. This way I can craft and publish content with some level of freshness and authenticity. If I’m not engaged, then my content is definitely not going to be engaging for others to read.
I’ve also found remaining diverse has facilitated connections with a more diverse crew of readers and collaborators.
The digital world is in constant motion, with trends and audience preferences shifting rapidly. Just think of the immense impact of ChatGPT (and other AI and ML tools) in the past year alone.
A multifaceted approach is nicely aligned with the fluid nature of the digital creator economy, where being versatile, adaptable and fluid is crucial for staying relevant and engaged. People change, platforms change — regularly.
By aligning your interests with these changes, you position yourself to meet the diverse needs and desires of your potential and actual audiences.
Later this week in The Solopreneur Series ————— Some Paths to Monetization in a Diverse Economy.
3 Reflective Prompts:
Are you leveraging your diverse interests and creativity to build a unique presence in the rapidly expanding creator economy?
In what ways can your personal journeys and experiences influence and shape your content and potentially attract a wider audience?
How can you balance your broad range of interests with strategic monetization to ensure sustainable growth in your creative endeavours?
That’s it for this week for Box Cutter Co.
What are you seeing, experiencing, and working on in the digital creator economy?
What do you think of the niche-down versus anti-niche discussions?
Later in the week The Solopreneur Series comes out with Free Issue #4.
Please send along any questions or comments. Re-post or re-share, send me feedback, and steal at will.
Great article!
I'm team vision vs niche. I don't like the idea of being confined to a specific topic. That said, I understand it works extremely well in the marketing/ personal brand space where you want to be known for something.
I also like the idea of diversifying platforms and my channels are very similar to yours.
Interesting to see how the digital landscape will evolve in the next few years!