We’re in a $2.5 Trillion Industry with Broken Creator Monetization
Before I dive deep into the creator game, I want to let you know I'm not just talking from the sidelines.
In 2023, I spent 12-14 hours a day (7 days a week) on content creation and tweeted 12,000 times on Altcoinist, averaging 32 daily tweets.
I even started taking Zyn this year to keep up the pace
So, as a creator deep in the trenches, I know firsthand how much blood, sweat, consistency, and late nights it takes to pump out valuable content and build a brand.
Going through the creator journey, I think it's high time we talk about the elephant in the room:
--- Creator Monetization ---
"We live in an attention economy led by creators, yet 79% of creators don't make enough money to make a living from content..."
Despite the massive boom in the crypto space, creators are getting the short end of the stick when it comes to monetizing their work effectively.
This has led to trust and authenticity getting compromised and creators struggling to sustain their efforts while relying on problematic and inconsistent revenue streams.
The Problem
So, here’s the deal—our industry is booming, but when it comes to creator monetization, it’s a mess.
This isn’t just a Web3 issue.
It’s just glaringly obvious here.
We have a broken system, and it’s killing trust in the very industry we’re trying to grow and onboard hundreds of millions of new users into...
Crypto projects are struggling to get their message out.
The default method?
Influencer marketing. (KOLkadot...)
Why?
Because the number one source of information for crypto users is social media.
Who generates the content and garners all the attention on social media?
Creators.
However, this reliance on influencer marketing leads to backdoor deals, where transparency and aligned incentives with the community are lacking, resulting in the erosion of trust within our "trustless" industry.
Most creators are stuck relying on brand deals.
About 68% of creators live off brand deals (Goldman Sachs), forcing many to take deals they don’t even want.
Ad revenue sharing?
Forget about it.
We’ve generated over 57 million impressions on X and have just made enough to partially fund my newfound Zyn addiction.
And affiliate links?
Unless you’re a famous trader with a high follower count, they’re not doing you any favors.
Consumers are the ones who suffer the most.
They lose trust because of these deals and lack of transparency.
With 420 million users in our industry (expected to hit 1 billion in the next five years), this trust issue is a ticking time bomb.
If we don’t fix this, our beloved industry’s growth will be in serious trouble.
When trust is broken, consumers become disillusioned and question the authenticity of the content and creators.
This skepticism leads to decreased engagement and slower industry growth.
The same thing happened in Web2 during the eCommerce era; people started moving away from influencers advertising low-quality products (the AliExpress era)
The Attention Economy and Broken Monetization
As we mentioned in our previous thread, your clicks, likes, and shares are gold in the attention economy.
Platforms are treating your attention as the ultimate commodity.
But while attention is the new currency, hardworking creators are still being paid peanuts.
Solutions: Fixing the Creator Economy
So, how do we fix this mess? Here are a few ideas to explore:
We need transparent payment systems and platforms where projects can partner with KOLs/Creators on-chain, bringing transparency into this supply/demand dynamic.
Two projects we know already working on this:
@Cookie3_com : Filip Wielanier, Cookie3's Co-Founder and CEO, puts it perfectly:
"The future of marketing lies in rewarding users who own and drive digital ecosystems. Only this way will digital marketing prove efficient and fair."
Cookie3 aims to redistribute marketing budgets directly to users and Key Opinion Leaders (KOLs) who genuinely engage with projects.
By using blockchain transparency and AI-driven analytics, Cookie3 ensures that marketing efforts reach quality users, fostering an ecosystem where everyone benefits.
Designed for both single projects and organizations (VCs, agencies, or KOL managers), ProtoKOLs aims to bring KOL marketing to the next level.
The team is working on a transparent deal-making feature to connect projects and KOLs, on-chain.
Side note: the coolest would be allowing KOLs to share the success from their deals with their followers and most loyal community members as well...
Creators need better tools for direct monetization.
Evolving beyond brand deals and affiliate links.
We need solutions to allow creators to monetize the attention they've garnered.
Rather than selling it.
Giving them total authority over what is presented to their loyal follower base.
Also, let them stay on platforms where the attention is.
Rather than trying to force them to a Web3 platform with no attention, making their life even harder.
This is how - by giving creators the right tools - the game can change.
Projects should support rising star KOLs with stellar content and hunt for creator interns to help grow their brands.
Creators like this can bring innovative ideas and authentic engagement, helping rebuild trust and drive growth within the attention economy game. "Retardio."
Living the creator journey and understanding creators' needs, our team has been working tirelessly to build a solution for our fellow creators.
We're revealing more this month...
Stay tuned..... and frosty