Revenues are concentrated among a few megastars, with a yawning gap where a mid-level decent income might be

This is a followup to the last post did on the GoldMan Sachs Insights report on the topic of Influencer Economy growth.

FT (Leo Lewis) has an difference interesting opinion analysis angle on the GoldMan Sachs and Citibank reports on the growth of the influencer economy. (I have not seen the Citi report)

Gen-X bankers warn Gen-Z content creators: don’t give up the day job

For the purposes of Goldman, Citi and any other brokers selling this story to investors, these ratios are not a problem: they militate towards potentially fabulous growth for the platform providers.

Leo makes the point that 4% of influencers make most of the money. In the influencer economy influencers are paid by brands. He makes the further point that average revenue will reduce over time as the participants increase and the demand from Brands can meet revenue projections more easily.

As both reports conclude (though from different angles), a creator’s average net income is inversely proportional to the number of creators using each platform. A writer for rarefied Substack generates an average of $25,000 per year, but the average for a content producer on behemoth YouTube is $150

Tags #influencer-economy #TikTok #digital-economy