Content creators are building some of the fastest-growing profitable businesses in the world today.
Take Mr. Beast for example. His Chocolate Bar snack Feastable has reportedly made over $10 million in revenue, and Beast Burgers has shared over $100 million in revenue with restaurants across America.
Or Logan Paul's Prime energy drink that's already tuning in over $250 million in annual sales.
There's also Gym Shark, a multi-billion-dollar clothing brand built by YouTuber Ben Francis.
This shows that content creation is moving from being a hobby for unemployed youths to a business strategy for savvy entrepreneurs.
Any individual or organization that wants to scoop gold from the deep layers of the creator's economy has to pay attention to Creator-led businesses.
WHAT ARE CREATOR-LED BUSINESSES?
Creator-led businesses are small businesses run by independent content creators. These creators are usually people like social media influencers, streamers, internet personalities, and online instructors.
These businesses often prioritize the vision and creative input of the individuals driving the creative process.
I can see this approach in various industries, including entertainment, technology, and design, where the emphasis is on leveraging the influence and popularity of the creators to drive customers and sales.
WHY ARE CREATOR-LED BUSINESSES SUCCESSFUL?
1. Customer base
Creator-led businesses are successful because creators have the most fundamental element of a viable business, customers.
The raving fans, followers, and large communities are potential buyers for whatever products these creators bring to market.
So no matter what a creator sells, there are always customers to make purchases. That's why influencer marketing is one of the more profitable marketing channels.
2. Authenticity and trust
Content creators share their relationships and trust with their followers, building creator-led businesses.
Creators are like tribal chiefs online. They serve as trusted authorities for advice and recommendations.
Their unique ability to establish personal connections with their audience distinguishes their brands from that of competitors.
This authenticity and trust form the cornerstone for actively cultivating a dedicated customer base, essential for sustainable business growth.
3. Strong Community
Successful content creators build strong communities with their fans and followers across multiple social media platforms.
This enables them to remain in direct and constant communication where they can answer questions, address concerns, and get feedback from their audience about their products or services.
4. Lower customer acquisition cost
The cost of acquiring customers (CAC) is all time higher than ever.
Inflation and a high level of competition amongst top brands force the continuous spike in the cost of advertising.
While other brands are spending heavily on advertising and marketing, creator-led businesses incur zero or minimal marketing costs because they are built on an army of loyal fans and followers who are always eager to hear from their favs.
A typical example is the famous YouTuber, Mr.Beast.
With over 100 million YouTube subscribers, his brands, Feastables and Beast Burger, have ready customers willing to throw dollars at them.
When Mr Beast launched the physical restaurant for Beast Burger over 10,000 customers showed up at the front door, waiting to through dollars at him.
5. Feedback-driven Product Development
Content creators are known for building customer-centric businesses.
Customers-centric businesses are businesses where customers are involved in the development of the products or services they want from a brand.
Creators build products that are inspired by their audience's demands and demographics.
They iterate on them based on real-time feedback from their community who are also their ideal buyers creating a co-creation cycle that enhances customer satisfaction.
Feedback is an essential part of building lasting business-customer relationships.
Most traditional businesses struggle to have a wind of what the customers are saying and sometimes spend millions in market surveys to get nothing solid to work with.
Creators gather real-time feedback and gain customer insight for free.
Content creators collaborate and partner with their colleagues to promote their businesses without spending a dime.
Tim Demming promotes Dan Koe to his 100,000 readers on his blog. Mr Beast features Logan Paul's Prime Energy Drink in his videos.
This is one benefit creator-led businesses get that most business out there never gets unless they pay top dollars for advertising spots or write up multimillion-dollar brand ambassadorship deals.
FROM CREATOR TO ENTREPRENEUR.
Starting a business is difficult.
As a content creator, you already have what it takes to start and grow a successful business -- an army of loyal followers.
Becoming a business owner would be a workover for you when you follow these simple steps.
1. Find a problem your audience has
As a content creator, you have to know your audience's problems and what they are willing to pay for.
For example, if you are a tech content creator like Kagantech. A typical problem your target audience might be facing could be how to find the right computer gadget within a particular price range.
2. Find A Solution To That Problem
Building a successful business is about solving your customer's problems.
Since you are already the go-to guy for tech recommendations, starting a business that sells laptops, phones, and accessories would be natural for your audience.
3. Sell the solution to your audience
Selling is how you make money from your audience.
It is not enough to have a business, you must actively engage and present your audience with your offers.
Mr. Beast talks about the Feastables in all of his videos. He promotes his brand far more than any of his sponsors.
Most creators make the mistake of having a brand and keeping silent about it -- they are trying not to be "intrusive" with their audiences.
There is nothing like non-intrusive advertising, you have to carry your market on your head like a bread seller in Agege traffic. Speak about it, teach about it, and call your audience tro action.
There is space for everybody in the creator's economy. All you have to do is to build an army of loyal audiences through content creation.
As a content creator, you have what it takes to build a successful business. So this is a wake-up call to all content creators out there. Start building businesses.