CEO and cofounder of Corite, a startup that allows fans to invest in their favorite artists and share in their success.
getty
The creator economy is worth $104.2 billion when combined with the influencer marketing market; it employs more than 50 million people and is still growing. In simple terms, this is a new ecosystem powered by social media, platforms and finance tools, all of which enable millions of content creators to monetize their work and turn their passions into profitable businesses.
That is why learning how to monetize art effectively is one of the most important tasks for a creator who wants to make content creation a career rather than a hobby. There are various approaches, but the five business models listed below are among the simplest and most understandable, as they are critical for the content consumer while working effectively for the creator.
1. Subscription
A content subscription is a popular business model, as it enables content creators to build recurring revenue streams with their fans via subscriptions.
Many creators believe that the subscription feature not only increases monetization but also gives them more freedom to create exclusive content for their audience without relying on advertisements. They are confident that by using a subscription model, they will be able to carve out their niche while also interacting with a larger audience.
Additionally, the subscription feature can encourage and motivate creators because it allows them to earn money passively.
2. Community Memberships
The online community business model is similar to the old membership business model.
In the past, communities like professional associations functioned similarly to online community businesses; someone would pay a recurring membership fee and receive the rights that come with access. The main thing that has changed with online communities is access and monetization strategies.
Traditionally, membership businesses sold access to a physical location or membership in a physical gathering of people. This has now become digital, so community memberships typically provide access to virtual space and relationships that are maintained through virtual platforms.
Because of the power of digital, people who run online community businesses have the potential for enormous scale. For example, 30 years ago, a membership community might have held a course for its members every two months. The same course can now be recorded and accessed on-demand by community members. As a result, there is more scale and more time for community hosts to focus on other things.
3. Ticket Sales
Some creators are taking advantage of this by adding new features like tokenized tickets or even rewards for participation.
The main justification for this is the function of nonfungible tokens (NFTs) as digital certificates of authenticity. Simply put, there cannot be two identical tokens representing the same project, hence the term “nonfungible” for them. The ticket itself could be used as a digital collectible, so this technology has the potential to both stop ticket fraud and generate extra revenue. NFTs can also be programmed to give a portion of revenues to an artist each time it is sold, even if it is being resold.
Linkin Park vocalist Mike Shinoda, for example, recently held an NFT auction of a music clip from his single Zora. He’s also sold NFTs featuring exclusive artwork from one of his other singles, “Happy Endings.” Another example is Shawn Mendes, who has released a collection of NFTs on Opensea inspired by his best-selling album, Wonder, as well as some digital wearables to be displayed on virtual avatars.
As a result, before you use this tool in the framework of your campaign, make sure it’s the right time to tokenize what you do. Don’t ignore market cycles, and don’t rely solely on NFTs for funding.
4. Crowdfunding
With crowdfunding, users can financially support artists in exchange for a portion of the streaming revenue generated by their songs. One way in which to achieve this, for example, is through tokens that are sent to the address of the user who backed the artist. These tokens are used to represent and track revenue shares. Artists receive money right away to help with production and marketing costs, but they retain ownership of their music.
Rewards do not have to be monetary, but they must be valuable for a creator to lead their next campaign as successfully as the first. To crowdfund, a creator can use popular traditional centralized platforms or new blockchain-based alternatives that focus on a specific niche.
5. Social Media Tipping
Many creators have recently discovered a tipping option on their social media accounts, allowing their fans to donate however much they want. While the income is not stable, the audience has more opportunities to support creators.
Almost every major social media platform has recently implemented tipping.
• Twitter now has a “Tip Jar” function. Journalists, creative professionals, writers and content creators are common users of the feature. Followers can contribute financially to creators by using a variety of payment methods.
• Facebook has a feature called “Stars.” Stars allow creators to make money from their video content. Viewers can purchase Stars and post them in the comments section. Every Star earned by a creator is worth one cent.
• Instagram also added “Badges” as a feature that allows users to show their support for creators during a live video. When a user purchases a badge during a live video, a heart icon appears in the comments next to their name.
• Finally, YouTube has expanded its “Super Thanks” tipping program. Tip amounts range from $2 to $50, and fans can include a personalized message when sending money to creators. The program is now open to creators from 68 different countries.
Conclusion
What was once a hobby is now a full-time, well-paid job for bloggers, artists and writers. In fact, the “creator economy” provides opportunities for millions of people worldwide. The five main ways to generate revenue in the new economy above should demonstrate how many options are available and even motivate you to get started. If you begin to explore, what you’re already doing could gain incredible fan power.
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