Creator Business Monetization 2.0
What’s the point of having an audience? Like actually, what is the point? For generations — our answer has been to make money (predominantly through advertising). But I would argue this is just a 1.0 monetization model for the creator economy.
It’s the lazy, short-term version of value creation and extraction based in the traditional media model. The truest value of a creator business is in the community they find, attract, or build and all of the latent human and social capital that sits inside.
Think of it this way: creator content acts as a top-of-funnel filter for worldview and interests. In the 1.0 old-media version, we take that information and spin it up into partnerships, businesses, and investment strategies. Then maybe, we might use this info to source employees and executable ideas. Regardless, 90% of the value is rolled back up into the creator business, rather than being re-invested in the community.
The monetization 2.0 model is about asking the question — what if we also leveraged these communities to connect dots, build great companies, and solve big problems?
Let’s use the All In Podcast as an example. The Besties have started releasing episodes more frequently — because the show creates deal and opportunity flow. Some of that value is passed back onto the community in the form of announcing SPACs and making investment disclosures. But what would a next step in value creation and extraction for the community look like?
What if the Besties submitted a challenge to all of the listeners — pointing them towards a really hard problem, say in climate change? They say — if you solve it, we’ll wire you $50M, or we’ll lead your seed round, or we’ll become partners. Whatever value transfer and compensation mechanisms they choose.
This idea leverages the brilliance of X Prize with the natural filtration of creator communities. It takes a bunch of people from all over the planet — with different backgrounds, experiences, and skills — that all roughly care about the same things and deploys them to solve a big problem in an area that matters to them. Connections are made, big problems get investment and attention, and the value and IP is shared between the Besties and their community.
There are a infinite paths to executing the 2.0 model. Anything that can leverage the massive amounts of social and human capital inside creator communities, and emphasize community action and collaboration over passive consumption. This is the unlock to the exponential economic potential of the industry as a whole.