SocialFi can empower content creators out of brand partnerships

There’s an old-fashioned notion that if you do what you love, the money will follow. For some influencers, that’s proven to be the case; The rise of platforms like YouTube, Instagram, Twitch and TikTok has given advertisers the means to share what they love with millions of people and get paid for doing so.

Consider Critical Roles: by sharing their home games online, the six voice actors were able to transform Dungeons & Dragons from a niche hobby become a mainstream sensation. Even people with quirky tastes can make a living on social if they gain enough visibility – Netflix launched recently a show featuring baking influencers such as those who specialize in making surreal cake replicas of everyday objects.

Basic philosophy behind influence culture is that if your content is engaging enough, you should be able to make a living creating it. Per a MediaKix Report 2020up to 42 million influencers are currently active on TikTok, Instagram and YouTube. But while creators’ interests are virtually limitless, their chances of financial success are not.

Monetization offers limited income – and only for certain ads

There’s no doubt that influencers with established audiences can make a good living. According to an estimate from CNBC, YouTubers who have 1,000 subscribers and generate 24 million views per year can earned about 100,000 dollars. However, monetization is not for new creators; users need to have at least 1,000 subscribers and accumulate 4,000 “valid public watch hours” in a year just to qualification for the YouTube Partner Program (YPP).

Furthermore, creating the kind of high-quality content that attracts subscribers takes time and effort – and when an aspiring influencer chooses to create content full-time, they lose their safety net. finance that a nine- to five-year job could have provided. Those eligible for monetization may still need to supplement their income to stay afloat if their ad revenue doesn’t provide enough income.

Some creators may try to close the funding gap by offering monthly subscription options to their audience through platforms like Patreon. However, many mid-level influencers switch to a more lucrative, if risky, option: brand partnerships.

Brand partnerships can provide important financial support – and undermine authenticity

Today, influencer marketing is a $13.8 billion industry. In theory, it’s a perfect partnership – brands want to target audiences with specific interests, and influencers can provide a platform to reach them.

But sometimes, selling airtime can make viewers feel like selling outside.

“Using their own social media channels, influencers often give the impression that they have a personal rather than a commercial relationship with the brands and products they promote.” The researchers explain in a study published in Interactive Marketing Magazine this early year.

The study’s authors note that this trend could pose problems for smaller content creators because consumers don’t expect them to have the same corporate relationships as a major influencer. – such as a celebrity – may have.

“If nano-influencers reveal a paid relationship, consumers may feel cheated because they expect the post to be a personal recommendation,” they explain. “Consequently, consumer expectations are not confirmed negatively, which reduces the credibility of that post and subsequently creates a lower rating for both the brand and the influencer.”

Brand partnerships also have ethical implications. Renowned YouTube Mixer Greg Titian mentioned this issue last Decemberwhen he posted a video review of two vending machines.

“Bartesian has been contacting me to do something about sponsorship for a long time,” says Titian. “And I haven’t replied yet, like… I can’t use your machine in a sponsored facility because I have to review it and I can’t review it if you give it to me for free or for money. let me see again. I had to pay for this with my own money. ”

Undoubtedly, brand partnerships provide an invaluable funding option for full-time creators. However, using the wrong brand – or simply highlighting too much branding – can backfire if viewers start viewing content that is too commercial or doesn’t live up to the experience they expect.

But how can influencers maintain their authenticity without breaking in the process? Some lucky people are able to go viral and accumulate enough viewers to make a living through monetization; however, most will need to strike a balance between advertising and authentic content to maintain popularity. The risk of alienated audience is permanent and inevitable; A poorly handled post can lose valuable viewers.

But what if content creators not only had the means to capture authenticity, but also the opportunity to get paid to remain honest with their audience? SocialFi – the social media empowered by cryptocurrency – can give content creators just the opportunity they need to thrive without relying on brand partnerships.

SocialFi can empower creators to deliver authentic content

SocialFi puts a spin on DeFi in social interaction. On crypto-empowered social networks, users can earn tokens by creating or interacting with content; Over time, these social activities can translate into substantial real-world income if the creator is popular enough.

While SocialFi is a relatively new concept, it doesn’t feel out of place – if at all, the idea represents a natural next step in the development of the platform. Instead of asking consumers to learn new behaviors, the SocialFi app will simply monetize the activities users already engage in on a daily basis.

The movement has begun; Last fall, Twitter Start allowing Bitcoin limit for creators. Around the same time, Binance Smart Chain announced that SocialFi would be a significant area of ​​focus for its $500 million investment program. Solana Ventures, an incubator focused on developing innovative applications based on Solana, similarly shares the intention to award $100 million in funding to Solana. Web3 social entrepreneurship.

There’s no denying the importance of these advancements for content creators. If SocialFi achieves mass adoption, creators could leave behind ethically challenging corporate partnerships and rely on their audience for funding.

For their part, audiences can take a more active role in empowering their favorite ads to deliver authentic content. Consumers are undeniably willing to do the same – just look at Patreon’s latest number of participants. These days, the platform sponsors more hosting creators 6 million activities Subscribers have collectively distributed over $2 billion to creators.

Or, consider viral examples like Kickstarter 2022 by author Brandon Sanderson. In just 35 minutes, Sanderson’s campaign to fund four new books surpassed its $1 million goal. As of the time of this writing, the campaign has raised nearly $35 million.

The reality is, if people want specific content, they’ll do what they can to help creators produce it. SocialFi can provide digital ads with the means to deliver content without distracting audiences by relying on advertising and partnerships. This is the next step in the evolution of social media – SocialFi can ensure that, for creators who share their interests with the world, money will follow.

Sakina Arsiwala is the co-founder of Taki.