For the Likes

Did you catch the Streamys this weekend? The annual YouTube award show named MrBeast as the Creator of the Year for the second year in a row. Next year could be a hat trick or maybe it’ll be someone else—who would you like to see dethrone MrBeast for the creator of the year award?-Hannah Doyle

In Today’s Issue 💬

→ A decade-old creator brand reaches a $2 billion valuation

→ Why Matt D’Avella left Patreon

→ How TikTok’s new rules affect creators with brand deals

Creator-Lead Shopping Platform Dominates Ecommerce

We’ve been able to shop Instagram posts for nearly a decade (even when the app looked like this) thanks to brands like LTK. 

Last month, the ecommerce platform became the most valuable brand ever started by a creator, notching a $2 billion valuation after raising $300 million in capital from SoftBanks’ Vision Fund. 

Blogger Amber Venz Box started LTK (formerly known as RewardStyle and Liketoknow.it) ten years ago as a way for creators to make a commission off the products they recommended. In its earlier form, users could hit “like” on an enabled LTK post and then they would receive shopping details via email.

By the Numbers

7 years → how long it took for LTK to drive $1 billion in retail sales over the course of one year. Now it’s driving more than $3 billion sales annually.

150,000 → creators use LTK to recommend products to their followers.

4.1 billion → amount forecasted to be spent on influencer marketing in the U.S. in 2022.

Now users browse shoppable posts on their website and app, where creators have their own profile and feeds. Brands can also use the platform to connect with creator partners for upcoming marketing campaigns.

Creators earn between 10% and 25% of sales—the brands on the platform set their own commission rate. LTK earns a transaction fee from these sales.

Last year, the business saw more than $3 billion in sales, with consumers purchasing fashion, beauty, fitness, home and lifestyle products recommended by its community.

Our Take

Creators can function as digital retailers, with an audience that trusts their voice and recommendations. Not all will launch their own product line and brands, but through platforms like LTK they can generate revenue by curating products.

Film YouTuber Quits Selling Subscriptions

In 2018 creator Matt D’Avella used Patreon as his first monetization source—before sponsorships, classes, and merch. Last week the filmmaker took to Twitter to explain why he’s leaving the membership-like platform to focus more on online courses.

“From extra vlogs to podcasts and behind-the-scenes content, I always felt stretched thin,” D’Avella said of his time creating for Patreon subscribers. Instead he’ll devote that time to promote Slow Growth Academy, his series of online courses. 

D’Avella has nearly 4 million followers across YouTube, Twitter, and Instagram, and has two documentaries on Netflix. He has incorporated sponsorships into his content since his Patreon-backed early days, and last year he launched Slow Growth Academy, which offers courses on filmmaking, becoming a creator, and living a minimalist lifestyle.

Our Take

The indefinite nature of membership can be overwhelming for both audiences and creators, while courses, cohorts and live events only require a single purchase from the audience and allow the creator to adjust and improve the product from event to event. Expect to see an increase in direct-to-consumer content offerings, and likely ones that have definitive start and end dates.

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Bang Goes TikTok’s Branded Content Policy

The update bans the promotion of energy drinks and virtual currencies (aka crypto), largely affecting creators in the gaming and streaming space. You can check out the full-list here, which slightly differs depending on your country of residence.  

If a creator posts about anything on the prohibited list, they run the risk of their post being removed and their account being on bad terms with the platform. Though we don’t know how heavily this will be enforced, creators may want to avoid those categories for now.

TikTok is countering restrictions like these with new monetization options through programs like Creator Next.

Our Take

Changes in content policy align with an ongoing effort among platforms to increase user protection—with YouTube and Instagram implementing similar restrictions like not promoting vape pens and unedited video game violence. Do you think TikTok is overstepping? Let us know by replying to this email.

 🔥 In Other News

• Justin Kan debuts a marketplace for gaming NFTs.

• Lilly Singh announces a new book, “Be A Triangle”.

• BTS’ V breaks the world record for the fastest time to gain 10 million Instagram followers.

• Craft YouTuber Moriah Elizabeth launches a nail polish line.

• Escape2021 replaces YouTube Rewind.