By Isabelle Shee, CFO at GROW and 1/2 of @sheesisters, digital creators specializing in golf and lifestyle.
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Two-thirds of economists expect that there will be a recession this year, according to a recent study from the World Economic Forum. The Federal Reserve recently raised interest rates, giant companies like Amazon are conducting layoffs and the Fed (via the New York Times) projects that the unemployment rate will hit 4.6% by the end of this year. All of that is to say that consumer spending could go down. So how is that going to affect the creator economy?
For me, there’s no doubt that creator marketing is the future. In 2021 alone, The Information (via the New York Times) estimated that venture capitalists invested $2 billion into 50 creator-focused startups. Marketing teams around the world are investing in influencer marketing. Video content is still king, as TikTok’s projected user growth suggests. But just exactly how is that future looking in the face of an economic downturn?
As a Mashable article explains, many believe the creator economy will actually be recession-proof, as it’s “driven by direct financial support from audiences, and creators’ ability to connect with fans, which is typically less affected by economic fluctuations.”
According to SignalFire (via Influencer Marketing Hub), there are 2 million or more professional creators and more than 46 million amateur creators. And ZipRecruiter data shows that social media influencers are fighting to make less than $60,000 a year on average nationwide, so it’s safe to say that a downturn in consumer spending could affect their lifestyles. At the end of the day, creators can’t just churn out content without getting paid—and a loyal audience alone won’t be able to cover rent or grocery bills. Creators need new ways to make money and lower their expenses in the wake of an economic downturn. From someone who deals with both brands and creators, I’ve got four tips for survival this year.
1. Create Content For Other Pages
As content creators, we know all too well about the necessary evil that is organic social media. But it’s the reason you have an audience to begin with, so it’s important to keep them engaged with authentic unpaid content. Brands are the same. They need consistent content for audience engagement while slotting in paid ads and ROI-driven promotions. As companies look at cutting costs, they could lean heavier on organic content. As the content-creating expert, you’re exactly what brands need right now. Take this opportunity to reach out to brands you want to build a relationship with (or already have) and offer to create fun, exciting content that only goes on their page for a lower price.
As creators, we usually sway away from taking lower posting rates because they saturate our profile and can lead to lower engagement. But by creating content for other brands, you position yourself to make as many posts as your schedule allows without ruining your own branding. That’s a true win-win, if you ask me.
2. Whitelist
Whitelisting can be a powerful marketing tool for influencers, as well. Sometimes also known as creator licensing, whitelisting allows a brand to put ad spend behind your posts, so even though they are likely to look organic and are hitting your audience, the brand you’re working with is actually funding them. You can pitch this to brands by letting them know that with this method, they get the opportunity to retarget your audience and close more sales, but your posts are likely to look more authentic than traditional ads and are already hitting their desired audience. This is also a win-win for you because your advert will likely now have higher engagement than normal with the brand putting ad spend behind it.
3. Become A Social Media Freelancer
Freelance work is huge right now. In fact, a 2022 report from Upwork showed that 60 million Americans, or 39% of the U.S. workforce, had performed freelance work in the past year—which was an increase from the previous year. It went on to say that freelancing contributed $1.35 trillion to the U.S. economy in 2022, a growth of $50 billion over the year before. As companies look to cut costs (remember those layoffs we were talking about?), they may turn to contract workers to produce good content at a cheaper cost.
As a content creator, you’re in a unique position to use your qualifications for a little extra cash. We know all too well that running a social media account is a full-time job, and many brands are willing to pay for it. But why not go further? In the new era of TikToks and Instagram reels, brands may be looking for someone to be the face of their social media. If you use your time wisely, you can take on multiple roles, from freelancing to ambassadorship, while still having the time to grow your own social media accounts.
4. Make The Most Of In-Kind Partnerships
Okay, so we’re back to the idea of having to pay rent and bills with real money—not just that ugly chair a brand partner gave you for free. But hear me out. There is such a thing as a valuable in-kind partnership. Mainly, when a company approaches you asking for exposure without cash, you have to ask yourself, “Will I use this payment?” For example, a plane ticket for a trip you were going to take anyway would be a total “yes.”
The savviest creators will figure out how to utilize in-kind partnerships with their monthly expenses to cut costs. Do you have grocery bills? Try to partner with a grocery chain. Are you going to the gym? Reach out to one about a partnership. There are different levels of companies you can approach based on your own influence, but this strategy can be a great way to cut your recurring costs while also establishing relationships with brands you respect.
Overall, I’m a firm believer that creator marketing is here to stay and will continue to thrive—no matter what the economy is like. However, it doesn’t hurt to be a little more frugal as we navigate some uncertain times. Will the creator economy prove to be recession-proof? Only time will tell. But with these helpful tips, you’re going to make it through.
