Web2 vs Web3 Creator Economy

The creator economy of the future

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There are a lot of things in Web3 to be excited about. An open Internet, the end of surveillance capitalism, secure financial tech so Equifax doesn’t leak all our info.

But there’s one thing people overlook.

The Web3 Creator Economy.

But what exactly is the difference? How are things going to change in favor of creators?

Photo by Jenny Ueberberg on Unsplash

Who Captures Value?

Value is created anytime an exchange happens. This can even happen with information. Hell, social media sites are worth billions. There is value there.

But one of the big questions is who gets to capture the value?

In Web2, most or all of it goes to the corporation. This happens through spamming users with ads and harvesting their data.

Some creators make bank on Web2 platforms. But it’s a shockingly low percentage of them. Let’s look at some of the numbers.

• 0.33% of YouTube creators earn a full-time income

• 94% of Medium writers earn under $100 a month

• Of the top-earning Medium writers, the majority spent years to earn that much

• 0.3% of Patreon creators have over 2,000 patrons

• 96.3% of freelancers on Fiverr make less than $500 a month

• 70% on Fiverr make less than $100 a month

• Only the top 1% of authors on Amazon earn $1,000 in a single month

Do you know why the numbers are so bleak? Because the vast majority of the wealth goes directly to the top. 

These platforms are good at one thing. Enabling creators to create. And then extracting all the value.

The billions of dollars that pump up these stock prices belong to the creators. We created the value. And yet, the vampires stand to profit the most.

It works like this:

Creator -> company -> user

So long as creators need a middleman, we’ll never capture the full value of our creations. 

The Liberated Creator Economy

In Web3, creators capture a fair value for their creations. This happens through the network. Whether it’s running on Ethereum, Polygon, or something else.

And the best part? 

If the value goes up a lot, and the fan resells it, the original creator will earn royalties.

Crypto removes the need for a parasitic middleman.

But it’s also a big win for fans.

• Investment - you can invest in the creators you love. You’ll not only support a creator, but you’ll be able to profit from their success.

• Data ownership - no more surveillance capitalism. The incentive structure that props up surveillance capitalism will be broken. Corporations will have to find a new way to sell you shit you don’t need.

Growing as a Creator

We know how the web2 creator economy works. It’s been around long enough. This is how most creators do it.

• Hobby - you start creating content for fun. It’s a topic you’re passionate about. 

• Slow growth - it typically takes a year or two to find true fans. And even then, the numbers go up slowly and painfully. Most people give up by this point.

• Creator Market Fit - you’ve been creating long enough to know what works and what doesn’t. You’ve refined your craft, got good equipment, and started making real money.

• Explosive full-time - you’ve become one of the top creators in your niche. You make enough money to quit your job and pursue this full-time. You become something of a minor celebrity on the Internet. It feels like explosive growth. But you’ve been putting in the work for years. And it’s paying off.

Discovery

Big tech has one advantage over Web3:

Recommendation algorithms.

The reason YouTube, Twitter, and TikTok are so addictive is because of the algorithm. It knows what you want to see. It can give you more of the content you love.

The reason it works is because they harvest your data. Average users and creators alike. Every second you spend on social media is feeding their algorithm. 

Ever wonder why these platforms regularly shaft their creators? Because the creators are, ironically, expendable. If you decide not to pursue your creative passion as a YouTuber, there are 1,000 other people that will take your place.

Basically, they don’t need you. You need them.

and with their discovery algorithms, they will inevitably find content that is good enough to keep people coming back.

Sure, big tech has a Notes user experience. And that plays a part. But their weapon of mass destruction is recommendation algorithms.

It’s the one thing Web3 might not have for a while.

Discovery in Web3

Anyone making money as a creator in Web3 already has an existing relationship with their audience.

There is no central creator platform in Web3. At least, yet.

This means people have to find out about you somewhere else. If your contact can only be found on Etherscan, you’re doomed.

Possible Impact

One of the most overlooked aspects is the possibility of changing the world.

In Web2, you’re extremely limited. 

For the most part, you’re limited to entertaining people and selling stuff. Best case scenario, you make a lot of money and donate to charity. You become a MrBeast of some kind.

The only other option is starting a company or advising companies in your niche. But again, it just comes down to selling more shit.

Even if you have high hopes for changing the world, you probably won’t. That’s not how Web2 works.

Web3 Revolution

The beauty of Web3 is the power to create new incentive structures and organizations. If done correctly, you can change the world.

Here are just a few tools at your disposal.

• Tokens - create a native currency for your mission. This can be used to create financial incentives for doing things.

• DAOs - create an inclusive organization that empowers anyone who believes in the mission to participate.

• NFTs - turn any digital item into something that can be stored, collected, and traded.

Countless Web3 projects have already made serious impacts. UkraineDAO, EcoDAO, DeveloperDAO.

This technology creates a lot of power. You can single-handedly change the world.

Final Thoughts 

The creator economy has always been a scam. A trick by big tech to fool you into feeding their platform for nothing in return.

And even the few that find success see most of the value go directly into the pockets of corporate executives.

Let’s imagine a brighter future. One where creators and users come first. A future where you can pursue your natural urge to create something beautiful. And the value of that creation goes to you, the creator.