Hey Creatorverse readers,
A lot of digital ink has been spilled about the money you can make in the creator space. But while social media monetization and brand deals get a lot of love, less is written about highly profitable subscription-based universe of the creator ecosystem.
“[Social media platforms] are constantly going to tweak the algorithm to make sure that the way they make money is optimized. But if you’re a creator and you’re used to certain rules of the game and that changes, your business can go upside down overnight,” Ahad Khan, CEO of Kajabi, told me.
For a monthly fee, Kajabi allows creators to build assets like digital shops, email newsletters, courses and podcasts. Instead of floating around in YouTube or TikTok’s algorithm hoping the right person clicks on the right link, platforms like Kajabi give creators a way to build a more direct connection to their fans.
And the company has emerged as a sustainable option for many creators. Since the company’s launch in 2010, creators have collectively earned $10 billion through Kajabi, according to the company. Overall, 1,800 Kajabi creators have reached millionaire status, more than 70 have crossed the $10 million threshold and at least one has surpassed $100 million.
According to Khan, creators only need to make about $8,300 a month in order to build a six-figure business. “It’s a very sustainable way to make a living, if you do it right,” he said.
And Kajabi is far from alone when it comes to profitable platforms that directly connect creators to their fans. Here’s what companies are saying about how much creators are making on their platforms:
- Since Patreon’s founding in 2013, the company has paid creators more than $10 billion
- The newsletter platform Ghost has paid creators $100 million since its launch in 2013
- More than 50 Substack creators make more than $1 million a year through the platform
Creators who use platforms like these don’t have to post as often since offering pay-walled content gives them a way to make passive income. Not only does that help eliminate burnout, but it also gives creators more control over their businesses. Entrepreneurs who use these platforms are also much more likely to use social media to promote their paid offerings than rely largely on social monetization.
Of course, this isn’t a strategy that works for everyone. The biggest categories under Kajabi’s umbrella are health, fitness, business and finance — topics that have an evergreen quality to them and that people are always anxious to learn more about. But it just shows there is at least some sort of tried-and-true strategy for the 15% of creators who are making over $100,000 a year.
Now onto what you may have missed the rest of the week.
Kayla Cobb
Senior Reporter
kayla.cobb@thewrap.com
P.S. You don’t want to miss a livestream roundtable I’ll be moderating, “Creator Power: The Business of Influence,” at noon PT on Aug. 14. Sign up today here.
Clarification: A previous version of this story mistakenly classified Raptive as a subscription based company. It is actually a creator media company with open web creators and has been removed from the list.
What’s New
Regal is hoping Dude Perfect will do for it what Taylor Swift did for AMC
The theater chain struck a deal with the five-person duo known for trick shots. Starting in September, the “Dude Perfect: The Hero Tour” documentary will play on more than 800 screens across the U.S., U.K., Western Europe and Australia. The original deal will run for two weeks with an option for extension. Though more creators have been heading to theaters lately (“House of Eden” anyone?), this move is more about Regal trying to fill the 25%-drop-in-ticket-sales hole in its heart. But even for a group that has over 61 million subscribers on YouTube, Dude Perfect probably won’t bring in the crowds Taylor Swift brought to AMC.
Amazon’s betting more on creator podcasts, and Nielsen is getting into the podcast tracking game
Wondery CEO Jen Sargent is leaving the Amazon-owned podcasting company in the midst of a restructuring move that will impact roughly 110 jobs. Basically, Amazon is folding Wondery’s narrative podcasts into Audible and focusing more on creator-led talk shows like Jason and Travis Kelce’s “New Heights” and Dax Shepard’s “Armchair Expert.” Also this week, Nielsen announced it will be collaborating with Edison Research to launch a podcast dataset as part of the company’s media planning tool. Two big news stories, one big bet on podcasts.
WGA is starting to seriously talk about creators ahead of 2026 negotiations
As the elections for the WGA West board heat up, YouTube creators are becoming a source of discussion. Board candidate Dahéli Hall said that the guild needs to find a “nuanced way” to protect creators, and incumbent board member Adam Conover agreed that creators were the “future.” It’s still early days,and it’s very possible this idea will be dropped. But the tides, they are a-turnin’.
Earnings Updates
Meta, YouTube and Reddit are up
All three companies were winners this quarter, owed in large part to the rise of AI. YouTube’s ad revenue hit almost $10 billion for the quarter, a 13% year-over-year increase. As for Reddit, the influx of AI chatbots worked in the company’s favor, increasing its revenue by 78% to hit just under $500 million in its second quarter — the best growth the company has seen since 2022. But the big winner was Instagram and Facebook’s parent company Meta. The company’s $48 billion revenue caused its shares to jump 11%.
Roblox surpasses 100 million daily active users
You know who else did well? Roblox. The online game platform averages 111 million daily active users during the quarter — a 41% increase — and secured $1.44 billion in net bookings. Roblox continues to be a massive deal, especially among Gen Z and Gen Alpha gamers. In fact, videos related to Roblox have surpassed 1 trillion views on YouTube, an achievement the company celebrated with the YouTube’s Roblox Museum.
Snap and Spotify are down
You know who didn’t have a great quarter? Snap. After its reported $1.34 billion in revenue missed Wall Street’s expectations, shares for the company dropped 15%. CEO Evan Spiegel blamed a bungled update and Trump’s trading policies for the weak quarter. Spotify also had a hard August with its shares dropping 11% after earnings — the biggest decline the company has ever seen. But fear not. The music streamer’s stock has already bounced back 7% after the announcement of its price hike.
Who to Watch
Katie Feeney
Introducing the newest commentator for ESPN’s College Gameday, Sunday NFL Countdown and Monday Night Countdown. Feeney, a recent Penn State University graduate who has 14 million subscribers across platforms, will be creating daily content for ESPN’s social and digital channels. And considering the NFL’s 10% stake in ESPN, chances are high that coverage is really going to go behind the scenes.
A former social media correspondent for the White House and the Washington Commanders, Feeney is used to creating content on the corporate dime. But her hiring continues the trend of sports leaders like NBCUniversal and Fox Sports looking to the creator space for their next generation of talent.
Bonus Content
- This Is the News From TikTok (via The Atlantic)
- YouTube Channels Are Being Sold and Repurposed to Spread Scams and Disinformation, Says New Research (via Fast Company)
- Online Creators, Led By MrBeast and Mark Rober, Want to Raise $40 Million for Clean Water Access (via AP News)
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This report provides a weekly deep dive into the creator economy. It highlights key trends, political and technological developments, data points and industry leaders all with the goal of making you smarter about this constantly evolving space.
