Business of Creators 💬

Stay ahead of the curve in the creator economy...

Congrats! You’ve made it to February. One more month until we’re out of the winter misery. In this week’s edition, we’re reflecting on grind culture and the AI storm heading for creators. 

Opinion: Dreaming of becoming the next literary sensation or music maestro?...

Well, obviously, just start a TikTok. It's the pinnacle of sophisticated artistic endeavors.

So, get this: Rachael Kay Albers had this killer book proposal, but the ‘Big Five’ publishing house had a gripe. Turns out, they loved the idea but didn't love her follower count. Yeah, they wanted her to have a fan base ready to drop $27 on her book. The irony? Her book was about the impact of the "personal brand" era on our humanity, calling out online hucksters and even her mom's company pushing LinkedIn posts for ‘brand building’.

The internet, my friends, has turned us all into personal brand handmaids. Whether you're a 9-to-5 manager, an astronaut, or a house cleaner, you're stuck in the clutches of personal branding. Want to publish a bestseller? Release a hit record? Well, then you better start "building a platform" – because in this age of algorithmic tyranny, even artists have to be entrepreneurs. What they don't tell you is that the grind of self-promotion, platform-building, and audience-growing is about as thrilling as watching paint dry. Nobody really wants to "build a platform;" we just want to have one. But unless you're incredibly lucky, you're stuck playing the algorithm game.

Now, let's talk about money. In publishing, only five major companies control 80% of the book trade. More competition, fewer booksellers, and Amazon's chokehold mean authors aren't raking in what they deserve. The music scene is no better – everyone's listening, but artists can't make a living off royalties. Thanks, Spotify. Oh, and the culture critics? Traditional gatekeepers are losing ground to influencers and YouTubers who thrive on ‘flop era’ commentary instead of thoughtful criticism.

And artists? Well, now they're not just creatives; they're business managers too. You'll catch them in those "day in my life" videos, romanticizing the solitary genius lifestyle. Spoiler alert: it's a façade. They're just packaging themselves for the attention economy, doing the awkward dance of algorithmic appeasement. But is all this self-promotion making art worse? It's a tricky question. The internet exploded with art, but now it's more formulaic, user-friendly, and eager to please. We're stuck in a cycle where artists, drowning in self-promotion, become great marketers for products that are less and less good. And that, my friends, is the harsh reality of the "creator economy." So, do we fight it or embrace it? Well, the system may be broken, but maybe, just maybe, there's a better way forward than screaming into the digital void.

@DavidsBeenHere leveraged Breeze capital to grow his channel 6x in revenue

David Hoffmann’s food travel channel was getting good views and engagement, but his AdSense was consistent which made it hard to invest in bigger plans for his channel.

That’s where ​Breeze​ came in.

Leveraging ​creator-friendly funding from Breeze​ was the start of a brand-new era for David’s channel. He was able to plan and pay for a year of production expenses, including travel, team and editing, with a simple cash advance - without having to take on active investors, license content or get into long-term partnerships.

Since investing in his channel with Breeze funding, David’s channel has seen incredible growth:

• Monthly AdSense revenue grew 6x in 2 years 💸

• Jumped from 3 million monthly views to nearly 7 million 📈

Best of all: since Breeze only charges a fixed fee, there was no risk of losing the upside to the channel’s growth. David’s investment was such a success he has re-upped his funding 5 times to continue to invest in his channel’s growth.

Ready to take your YouTube channel to the next level? Discover what you could do with funding from Breeze!

Calculate your offer today →

Rise of theft by AI spills into creator economy

In the tumultuous world of the Creator Economy, a storm is brewing, and it's not of the meteorological kind. Creators like Emmy Award-winning videographer Brandon Clement are grappling with a perfect storm of issues – greed, technology, and indifference – threatening their livelihoods. The menace? Shadowy operations employing generative AI to pirate and repurpose copyrighted content into clickbait across various languages and cutout accounts. For Clement, whose videos have been stolen and disseminated across countless pages, the scale of AI-generated content threatens to drown out genuine creators, leading to stress and ruined content due to overexposure.

The heart of the matter lies in the rapid generation and theft of content by scammers who exploit platforms like YouTube for ad revenue before legitimate creators can track down and claim their stolen work. Science YouTuber Kyle Hill shares these concerns, pointing out that bad actors are gaining ground, flooding platforms with AI-generated content, making it challenging for audiences to discern quality amidst the noise. The surge in generative AI tools turbocharges content theft, inundating platforms with misleading or incoherent material derived from automated processes.

While not all AI-generated content is problematic, YouTube recently updated its terms to address "responsible AI innovation." The move includes requiring creators to disclose AI-generated elements in content, but critics argue that the policy falls short. Ordinary creators, like Clement, find the platform's tools inadequate and accuse major production houses and music labels of having preferential access. Despite provisions for takedowns based on decency standards or privacy violations, creators remain skeptical, calling for more robust measures to combat the swift and damaging impact of AI-generated content.

In the absence of concrete solutions, creators are taking matters into their own hands, organizing initiatives like ViralDRM to advocate for legal actions. However, the legal and regulatory landscape struggles to keep pace with the nimbleness of AI technology. Creators and conscious consumers are exploring alternative support mechanisms, such as direct contributions through platforms like Patreon and merchandise sales. As the battle between genuine creators and AI-generated content rages on, concerns grow about the potential long-term consequences for the informational ecosystem, including increased spam, misinformation, and divisiveness. The Creator Economy faces a reckoning as it navigates the uncharted waters of AI-generated turbulence.

Micro does best…most creators making six figures have less than 1M followers

The creator economy is getting a reality check as a new "State of Creators" study, focused on influencers earning over $100,000 annually, reveals key insights for 2024. 

The findings challenge the notion that follower count directly correlates with income, with 95% of top earners having less than 1 million followers. It seems diversification is the name of the game, as 75% of creators stress the importance of multiple income streams, ranging from online courses and digital downloads to subscriptions and online coaching. Interestingly, 46% of high-earning creators express interest in joining a union, highlighting concerns about inflation impacts and platform volatility in the ever-changing digital landscape.

Artificial intelligence emerges as a game-changer, with top creators utilizing AI twice as much as their counterparts. For 29% of creators, AI is a daily companion, offering potential time savings of over 26 hours a week, according to 73% of respondents. The study, conducted by Kajabi, underscores the evolving dynamics of the creator economy, emphasizing income diversification, the non-linear relationship between followers and earnings, and the increasing role of AI in content creation.

Platform round-up

Leverage the latest updates and features across digital platforms to help you get ahead of the game…

🖼️Instagram is currently testing a new option with some users that enables you to view how your feed posts will look on your profile grid before you publish, so you can ensure that each update fits into your overall IG aesthetic.

⛔With the use of generative AI on the rise, Meta’s working to establish new rules around AI disclosure in its apps.