In the world of the Creator Economy, legitimacy has played a crucial role in the rise and fall of platforms. Two key moments in the history of this economy stand out: the introduction of revenue sharing on YouTube in 2007 and the emergence of the "Adpocalypse" in 2017. These moments have raised questions about the legitimacy of the platform economy and sparked a collective demand for better terms.

In the world of the Creator Economy, legitimacy has played a crucial role in the rise and fall of platforms. Two key moments in the history of this economy stand out: the introduction of revenue sharing on YouTube in 2007 and the emergence of the "Adpocalypse" in 2017. These moments have raised questions about the legitimacy of the platform economy and sparked a collective demand for better terms.

Legitimacy, as defined by sociologist Max Weber, can come from three sources: traditional, charismatic, and rational-legal. Traditional legitimacy is based on the status quo, while charismatic legitimacy relies on the cult of personality. Rational-legal legitimacy is derived from a system of rules and laws that are objectively beneficial to society. Ultimately, legitimacy is built on trust in the governing order and its agents.

Platforms initially gained legitimacy by emphasizing rational-legal means, relying on clear rules and laws. However, over time, flaws in the social contract between platforms and creators became apparent. Policy changes during Adpocalypse revealed that platforms prioritize their own interests over those of creators. As a result, the legitimacy of platforms now rests on traditional justifications, which are more fragile and susceptible to misuse.

To resolve the legitimacy crisis in the creator economy, there are two possible outcomes. The first is for platforms to realign their rule with the interests and norms of the community, as factories did during the Industrial era by implementing fairer work policies. However, the efforts made by platforms to regain legitimacy through increased monetization avenues have shown their unwillingness to truly change the terms of their relationship with creators.

The second outcome is the emergence of alternative platforms that offer a more democratic and decentralized approach to the platform economy. These challengers provide a means to overthrow the current system and establish a new one that better aligns values and incentives between people and the nexus of power.

One major source of conflict in the platform economy is the control and mediation of data. To realign the social contract, it is crucial to change this dynamic and give creators ownership and control over their business data. Next-generation platforms have already started adopting more data-portable models, enabling creators to own and transfer their data more easily.

Another important aspect of a creator-focused platform economy is participatory decision-making and cooperative business models. In an ideal scenario, creators would own the platforms themselves. Crypto tokens have emerged as a promising innovation in enabling distributed ownership on the internet, similar to how information is shared.

Currently, the platform economy is highly centralized and mediated, with critical decisions made by a select few. This replication of traditional economic problems, such as burnout, financial instability, and erosion of workers' rights, hinders the true empowerment of creators.

In the wider context of the curation economy, social communities, and online learning, monetization opportunities abound. Building a transformative company requires the same amount of effort as building a mediocre one. Therefore, it is wise to focus on bigger ideas that can have a significant impact.

"Niche" social products that cater to specific interests, audiences, or use cases are gaining popularity. These platforms prioritize community-first approaches, curated discovery, shared activities, and unique social experiences. As the task of finding valuable content becomes outsourced, curators are emerging as the new creators. Helping others curate resources can be a profitable venture in this evolving landscape.

In conclusion, the legitimacy of the creator economy has been both gained and lost throughout its history. Platforms initially relied on rational-legal means to establish legitimacy but eventually revealed their true priorities, eroding trust in their practices. Resolving the legitimacy crisis requires either a realignment of platforms' rule with community interests or the emergence of alternative platforms that prioritize transparency, ownership, and participatory decision-making. The curation economy, social communities, and online learning present new opportunities for monetization, where curators can play a vital role in connecting users with valuable resources. To navigate this evolving landscape successfully, it is crucial to embrace innovative models, such as decentralized ownership and cooperative business structures.

Three actionable pieces of advice:

• 1. Embrace decentralized ownership and cooperative business models in the platform economy to empower creators and ensure a fair distribution of power and control.

• 2. Champion data ownership and portability to give creators more agency over their business and enable them to make informed decisions about their content.

• 3. Explore the emerging opportunities in the curation economy, social communities, and online learning by becoming a curator and helping others navigate the vast sea of information.