The Creator Economy Needs a Middle Class. Launching a new platform, he said, was like starting a new country: Getting users to move from an established network that had an ossified economy and social classes to a new network requires the possibility of success the new social network had to create upward mobility for all users, to “make sure there’s a middle class coming up. The current creator landscape more closely resembles an economy in which wealth is concentrated at the top. The sustainability of nations and the defensibility of platforms is better when wealth isn’t concentrated in the top 1%.

The Creator Economy Needs a Middle Class. Launching a new platform, he said, was like starting a new country: Getting users to move from an established network that had an ossified economy and social classes to a new network requires the possibility of success the new social network had to create upward mobility for all users, to “make sure there’s a middle class coming up. The current creator landscape more closely resembles an economy in which wealth is concentrated at the top. The sustainability of nations and the defensibility of platforms is better when wealth isn’t concentrated in the top 1%.

In the real world, a healthy middle class is critical for promoting societal trust, providing a stable source of demand for products and services, and driving innovation. Google has revealed that on a daily basis, 15% of all queries have never been searched before, a figure that has remained stable since 2013. The lack of an upper limit for engagement in games, and the social nature of games leading to winner-take-all network effects. Rosen argued that in markets with heterogeneous providers, like most creator economies, success accrues disproportionately to those on top the best performers in a given field are freed from physical constraints like the size of concert halls — and can address an unlimited market and reap a greater share of revenue.

Creator platforms flourish when they provide opportunity for anyone to grow and succeed. When the American Dream is just a dream, the fate of platforms becomes precarious. It’s vital for creator platforms to provide paths for upward mobility and democratize opportunities to succeed. The middle class in America didn’t just happen naturally, but was born of 20th-century policies that created widespread prosperity: Roosevelt’s New Deal; the Fair Labor Standards Act, which established the minimum wage, overtime pay, and prohibition of employment of minors; a rise in unionism; the passage of the GI Bill; and the creation of the Federal Housing Administration.

To achieve a more equitable creator ecosystem, platforms can focus on content types with lower replay value. Categories with high replay value — like music and game platforms — are most susceptible to concentration among a few mega-hits. By serving heterogeneity in user preferences and empowering niche content, platforms can create a space where a diverse array of creators can succeed. Recommendation algorithms can play a role in this by incorporating an element of randomness. When algorithms do the searching for users, there are more opportunities for niches to thrive. Bringing a diversity of videos into your For You feed gives you additional opportunities to stumble upon new content categories, discover new creators, and experience new perspectives and ideas as you scroll through your feed.

Additionally, platforms can facilitate collaborations and community-building among creators. By enabling creators to connect with one another for emotional support, collaboration, and education, platforms can foster a sense of belonging and empowerment. Capital investment can also play a role in supporting up-and-coming creators, particularly in creator verticals that require upfront investment. Lowering the barriers to entry through funding can help level the playing field.

Furthermore, decoupling creator payouts from audience demographics is important to create a more even playing field. Deliberately designing systems that don’t just financially reward more affluent creators is important because the playing field for content creation is already uneven. Platforms can also explore ways for creators to capitalize on superfans, as customers are often willing to spend more to gain closer access to a creator. This can help creators generate additional income streams and create a more sustainable career.

Creating passive or almost-passive income opportunities for creators is another strategy to support their financial stability. When income is incremental, creators are able to dedicate time to other sources of earnings and create a portfolio of various income streams. This diversification can provide financial security and stability.

In addition, offering a form of Universal Creative Income (UCI) can help address the barriers to self-employment that many creators face. The worry about inconsistent income, lack of cash to invest, and fear of earning less are top concerns for self-employed individuals. A UCI program could provide creators with a safety net and enable them to pursue their creative endeavors without the fear of financial instability.

Lastly, providing creator education and training can help bridge the gap between skilled and low-skill workers in the creator economy. Rapid technological progress has led to a wage premium for skilled workers, while low-skill workers struggle to find opportunities. By offering educational resources and training programs, platforms can empower creators with the skills they need to succeed and thrive in the digital age.

In conclusion, the creator economy needs a middle class to ensure its sustainability and growth. By implementing actionable strategies such as focusing on content types with lower replay value, serving heterogeneity in user preferences, recommending content algorithmically with an element of randomness, facilitating collaborations and community-building, providing capital investment, decoupling creator payouts from audience demographics, capitalizing on superfans, creating passive income opportunities, offering a form of Universal Creative Income, and providing creator education and training, platforms can create a more equitable and prosperous creator ecosystem. Societies and platforms flourish when there is a path for everyone to have upward mobility, achieve financial security, and learn and grow.