Unleashing the Potential: Overcoming Cognitive Bottlenecks and Thriving in the Creator Economy


Hatched by Glasp

Aug 29, 2023

3 min read


Unleashing the Potential: Overcoming Cognitive Bottlenecks and Thriving in the Creator Economy


In an ever-evolving world, our cognitive abilities often act as bottlenecks that limit our thinking capacity and decision-making abilities. These limitations become even more apparent when we explore the realm of the creator economy, where startups face challenges in generating revenue and gaining traction. This article delves into the cognitive bottlenecks we face and provides actionable advice for startups to navigate the creator economy winter successfully.

Understanding Cognitive Bottlenecks:

Our thinking mind is inherently limited by two significant bottlenecks: attention and working memory. We often overestimate our ability to multitask or process multiple streams of information simultaneously. However, research suggests that our attention and working memory have finite capacities. Dividing our attention between tasks becomes challenging, and our working memory acts as a bottleneck that restricts the transfer of new information to long-term memory.

Embracing Cognitive Bottlenecks:

While cognitive bottlenecks can seem restrictive, they are not inherently bad. By acknowledging these limitations, we can plan our work and interactions more efficiently. Instead of attempting to multitask, we should focus on offloading some of our thinking. Delegating tasks, using productivity tools, and prioritizing essential information allow us to work within our cognitive limits effectively.

Surviving the Creator Economy Winter:

Startups in the creator economy face a unique set of challenges, primarily revolving around revenue generation. With a significant portion of gains accumulating with the top 1% of creators, startups must find ways to answer the crucial question of how they can earn a revenue share. The most challenging aspect for creators is the hunt for new fans and the conversion of audiences into sustainable revenue streams.

Actionable Advice for Startups:

  • 1. Provide Value and Foster Discovery: Startups must focus on offering more than just software tools to creators. Platforms that can funnel new fans towards creators have a distinct advantage. By prioritizing organic discovery and incentivizing content sharing, startups can help creators grow their fanbase.
  • 2. Understand the Creator Economy Landscape: Recognize the differences between power creators and long-tail hobbyists. Power creators make a substantial income, while the majority of creators earn very little. Startups need to develop pricing strategies that cater to the price sensitivity of creators while ensuring sustainability for their own business models.
  • 3. Embrace Revenue Sharing: Revenue sharing has become a crucial aspect of the creator economy. By capturing a percentage of revenue, startups can create viable and lucrative business models. Platforms like YouTube have successfully implemented revenue sharing, aggregating both demand and advertiser supply. Startups can consider implementing revenue sharing models, offering a fair take rate while providing value-added services to creators.

Expanding Opportunities for Startups:

In addition to revenue sharing, startups can explore various avenues to support creators and scale their businesses:

  • 1. Host and Spice Up Content: Platforms like OnlyFans have excelled in providing content hosting services while maintaining a reasonable take rate. By offering creators a space to showcase their work and handling the intricacies, startups can add value to the ecosystem.
  • 2. Become a Creative or Financial Partner: Startups can position themselves as partners rather than mere service providers. By offering comprehensive support and handling various aspects of creators' businesses, startups can foster long-term relationships and build trust.
  • 3. Form Ad Networks or Expand Horizontally: If revenue sharing proves challenging, startups can pivot their vertical software models towards a more horizontal platform. By serving businesses generally, startups can tap into new revenue streams and scale their operations beyond the creator economy.


Navigating the cognitive bottlenecks and challenges of the creator economy requires a deep understanding of our limitations and the needs of creators. By embracing these limitations, startups can develop innovative solutions and provide value-added services to creators. By incorporating revenue sharing models, offering comprehensive support, and exploring new opportunities, startups can not only survive but thrive in the creator economy winter.

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