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- Cancel the Brand Deal. Take the Fan Deal.
Cancel the Brand Deal. Take the Fan Deal.
Advertising might not pay the bills, but it looks like your fans will.
Patreon just hit a staggering $4b valuation, Substack is now valued at $650m, and Cameo at a billion. The one thing these platforms have in common? They allow fans to pay their favorite creators directly. As Patreon CEO Jack Conte said, weāre entering a āSecond Renaissanceā.
IN TODAYāS ISSUE:
YouTube Wants You To Pay
Clubhouse Adds Monetization
Why Patreonās $4 Billion Valuation Matters
YouTube Wants You To Pay
Viewers spent more money on YouTube than any other app.
Image via Android Authority
In the first three months of 2021, consumers spent more money on YouTube than any other app, according to a report by AppAnnie. Let that sink in.
When we think YouTube, we donāt go looking for our credit cards.
So what is everyone paying for?
YouTube Premium ā Ad-free viewing (~$12 / month and unknown percentage of subscription fees shared with creators).
Channel Memberships ā Exclusive content and other creator-defined perks (Tiered pricing starts at $4.99 and YouTube takes 30%).
Super Chat & Stickers ā Allows fans to pin their comment or custom animated sticker at the top of a live chat. (Creators set the price and YouTube takes 30%)
YouTube Service Subscriptions ā YouTube TV, YouTube Music, etc. (Revenue not shared with creators).
KEY TAKEAWAYS
From a creatorās perspective, more time and money spent on YouTube is a good thing. The only downside is the sizable 30% cut that YouTube takes.
Clubhouse Adds Monetization
And creators keep 100% of it.
Source: Clubhouse
Clubhouse has made its first entrance into creator monetization by rolling out ātipsā. Fans can now send creators direct payments with 100% going directly to the creator and a small processing fee charged to the fan. As far as we know this type of platform-creator split is a one of its kind.
Live audio could prove to be the lowest lift storytelling format with the highest margins. No cameras, no editing, just a phone and your voice.
Here are some ways creators could use the new feature :
Comedy ā It wonāt be long before comedians host live shows where fans pay to be in the hot seat and get roasted live.
Education ā Top creators can open up live show Q&Aās and prioritize questions based on tips.
Non-profit ā Creators and charities can band together to raise money through the app.
Before rolling out ātips,ā Clubhouse began courting creators with their Creator Accelerator, a program that will support 20 promising creators with guidance and financial aid to supercharge their growth.
KEY TAKEAWAYS
Clubhouse is fighting to defend its lead in the live-audio space against tech giants like Facebook and Twitter. Theyāll win by continuing to invest in creators like they are now. A 100-0 split in favor of the creator will be hard to beat. If youāre an audio creator, or someone who can hold court in a Zoom conference call, it might be a good time to start a show on Clubhouse. The bidding war for the best programming on the internet is coming to live audio.
Why Patreonās $4 Billion Valuation Matters
You can make a living as a creator with subscriptions
Patreon, the platform that allows fans to pay creators directly in exchange for exclusive content, just raised $155 million dollars valuing them at $4 Billion.
The numbers are proof that the Creator Economy is booming. CEO Jack Conte explained on his YouTube channel that weāre in a āSecond Renaissanceā. The first time around a few wealthy patrons funded the worldās most prolific art that hangs in museums to this day. Now in 2021, Patreon is proving that instead of a select few, there are millions of patrons ready to support their favorite artists and creators.
If youāre a creator who relies on advertising and thinks your audience wonāt pay, this valuation from Patreon should make you think again.
Here are two numbers to consider:
$82,000 / month ā How much Cody Ko and Noel Miller earn from their 17k patrons of the TMG Podcast.
1,500 ā The number of people paying $5 - $10 / month to support Andrew Callaghanās new project after he mistakenly sold the rights to his hit YouTube show All Gas No Brakes and had to start again from scratch.
KEY TAKEAWAYS
Advertising will always be important for creators, but fan-to-creator payments are an increasingly appetizing option. They allow creators to have a more intimate relationship with their fans and diversifying their revenue streams.
