Charting the Creator Economy: Brand Deals Dominate, But Opportunities Abound

A new chart illustrates the heavy reliance of creators on brand deals for their income, while highlighting the potential for alternative revenue sources, such as tips and online courses, to make gains.

According to a May survey of 2,000 creators by NeoReach and Influencer Marketing Hub, 77% of content creators rely on sponsorship deals with brands, which is triple the combined total of all other revenue sources. Typically, creators recommend products to their social media followers and disclose that they receive payment for doing so.

Ad revenue sharing, including YouTube’s model of allocating a portion of ad revenue to creators, constituted the second-largest category, accounting for 5.4% of total earnings. Tipping, affiliate links, and courses contributed to approximately 2–3% of revenue. The majority of respondents identified Instagram as their primary platform, where monetization through tips or ad revenue sharing is a relatively new development.

Building a profile on Instagram is often perceived as easier than on platforms like YouTube, which necessitate camera equipment and editing software, or even TikTok, where short videos are more challenging to create than photos. However, brand deals alone may not be sufficient for many online personalities. A separate Mavrck report surveying 718 creators revealed that nearly 80% feel the need to explore alternative revenue sources.

This explains the surge in startups offering diverse ways for creators to earn money, from teaching online courses on Thinkific to launching digital art as NFTs or utilizing platforms like NewNew for fans to pay for voting privileges in daily decision-making polls. Social media networks such as Facebook, Snap, and Twitch have also incorporated tipping and other monetization tools for creators.

Source: https://www.theinformation.com/articles/how-influencers-make-money-poparazzi-pops-to-the-top