Greg Smith is the founder and CEO of Thinkific, a leading platform for creating and selling online courses.
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When you think of the creator economy, do you picture Mr. Beast or Miss Excel? In fact, both are wildly successful creators making waves in the $100 billion creator economy, despite their dramatically different approaches (entertaining versus educating) and distinct audience types.
While the exclusive, top-tier creators capture most of the headlines, many creators make less than $100,000 a year. In recent years, we’ve seen the emergence of a new class of creators, with many in this cohort turning to careers in content creation to reach and teach local communities. These purpose-driven creators aren’t just meeting a growing demand for informative content and online learning opportunities; they’re also leveraging diverse ways to monetize their work and charting a new course for career sustainability.
I’ve worked with thousands of creators, giving me a front-row seat to this evolution. Here are three trends transforming the creator economy in 2023 (and how purpose-driven creators are making the most of them).
The Rise Of The Creator-Educator
With so many people using content creation to share their expertise, it’s worth giving them a unique moniker: creator-educators. This growing cohort shares many similarities with the household name creators who have amassed gigantic followings and earnings from ad revenues and affiliate relationships. But in some crucial ways, they are distinct.
While both groups use similar platforms and strategies to reach the internet’s potentially limitless audience, creator-educators are eager to share (and monetize) their unique passion, expertise or knowledge. Where creator-performers might captivate viewers with amazing dance moves, risky stunts or gaming prowess, savvy experts in fields from financial planning to the art of clowning are learning that they don’t need a million followers to make a living. Instead, they are getting results by building small, loyal audiences and offering products and services aligned with their needs.
In 2023, these pathways for success within the creator economy will become more defined while continuing to influence the other. Many creator-educators will continue to seek to inform and entertain while building world-renowned brands backed by millions of followers. Conversely, creator-performers will continue tapping into the demand for informative content to expand their online empires.
Microlearning Is Here To Stay
Audiences have long turned to online tutorials to learn everything from fixing a toilet to creating the perfect smokey eye. But until recently, many would have scoffed at the thought that the education revolution would take place over social media.
Yet our company's research shows that two out of three people commit time each month to learn or study a new subject. For Gen-Z and millennials, the number was even higher. Nearly two-thirds said they turned to social platforms like YouTube, Instagram or TikTok. Some might call this a byproduct of our diminished attention spans or the fact we're on our phones 24/7, but there's a reason why we prefer these microlessons.
Turns out, it’s difficult for most people to retain much when you spray them with a fire hose of information. Researchers call it the “curve of forgetting.” Unless it serves an immediate practical purpose, our brains naturally discard most of the information we take in. Instead, it’s much easier to absorb information delivered in 3 to 5-minute lessons when you need the information.
In 2023, creators will tap into the demand for microlearning by providing snackable, informative and easy-to-digest content. And for those who do, there will be many benefits. Short, free lessons are excellent calling cards for more robust course offerings or services. Delivering content in small chunks also allows creators to easily update and modify their material based on audience feedback, ensuring their content remains relevant and engaging.
That’s not to say there isn’t a market for the larger courses, communities, memberships and other learning products that take more time and offer greater transformation for the learner—but even within those products, we’ll see increased use of microlearning moments—breaking up large segments into smaller more consumable ones as part of a bigger journey to transformation.
Diverse, Consistent Revenues Become The Norm
In 2023, revenue diversification will become the norm, or in many cases, the necessity. That means we’ll see the ascendance of a creator middle class earning decent, sustainable revenues from various sources, adding paid newsletters, tips, online courses, ebooks, merchandise, coaching calls, memberships, access to paid communities or other revenue streams to traditional sources like advertising and sponsored content.
This trend isn’t new, but it is growing; based on what I've seen in the industry and on my company's data, more than 8 out of 10 top creator-educators are already offering multiple services and products.
And make no mistake, while creator-educators can—and will—still win big, many more will also be able to succeed with 1,000 or fewer loyal followers. That means the creator class will become more diverse as part-timers and new business owners learn that content creation can be a reliable way to earn additional income by leveraging their expertise. That’s welcome news for the more than 70% of people in our survey, who said they were considering supplementary sources of income to weather the recession and runaway inflation.
There’s no denying the year ahead will be full of changes and challenges. But as economic conditions strain personal and household budgets and many continue to evaluate their place in the workforce, more people from all walks of life will try their hand at content creation. They'll do it to stay afloat, insulate themselves from the instability of the times or bring their passions to the forefront of their career.
In the long run, these trends signal a catalyst for a new creator economy that is more inclusive and attractive to new kinds of audiences. The rise of purpose-driven creator-educators will be a boon for all.
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