Creator Economy Boom: $480 Billion by 2027, but Why Are Most Creators Still Struggling?

Creating content online sounds like an awesome way to make a living, right? You follow your passions, share your work, and build a fanbase that pays you. But here's the fact – most creators aren't making much money.

A recent report from Kajabi, a platform for creators, found that a whopping 96% of creators earn less than $100,000 a year. Not a shocker, really. Another study in 2022/2023 showed that less than 5% of creators make more than $100k annually, almost the same result.

So, even though the idea of making money from your hobbies is cool, the reality is that most creators can't quit their traditional 9to5 work role, and only a tiny group is making money through online ventures. While MrBeast is out there making big bucks, thousands of creators are barely making anything.

According to the Kajabi's report, the creator economy is supposed to hit $480 billion by 2027, with 50 million enthusiasts in the online creator world. And here comes the secret to success – 66% of creators in 2022 heavily relied on partnering with brands. Great for established creators, but for most, it's a journey with unexpected twists, as "they are unpredictable and [super] competitive" when it comes to small creates.

Successful influencers, the ones making substantial earnings, figured out that instead of just chasing followers or brand deals, they succeed by diversifying. They have income streams beyond social media, like digital products, teaching, and consulting.
YouTube is still the go-to platform for most creators, with 4 in 10 (42 percent to be exact) saying they'd lose over $50,000 annually without it. But here's the hard statistic – 88% of YouTube videos don't even hit 1,000 views.

In a gist, the report confirms what we already know, i.e. getting your content in front of people is one thing, but turning it into cash is a whole other challenge. Becoming a successful creator needs hard work, research, and years of dedication. It's not just about posting videos and waiting for money. If you're committed, there are more chances now, but it might take more effort than you think.

Read next: Your Smartphone Might Be Giving You ADHD, Here’s What You Need to Know
Previous Post Next Post