{"id":79182,"date":"2026-11-03T15:11:21","date_gmt":"2026-11-03T20:11:21","guid":{"rendered":"https:\/\/digital.hec.ca\/?p=79182"},"modified":"2026-11-03T15:11:23","modified_gmt":"2026-11-03T20:11:23","slug":"creator-economy-monetization-from-likes-to-income","status":"publish","type":"post","link":"https:\/\/digital.hec.ca\/en\/blog\/creator-economy-monetization-from-likes-to-income\/","title":{"rendered":"Creator Economy Monetization: From Likes to Income"},"content":{"rendered":"\n

The creator economy is changing marketing<\/strong> – in more ways than one. Starting from what might have been seen as a trifling business, to something that keeps on growing tremendously year by year. According to Goldman Sachs Research, the market potential of the creator economy could reach $480 billion in 2027, which is almost double of what we saw in 2023. How is this reach possible, and how does the creator economy monetization actually work? <\/p>\n\n\n\n

This article explores the revenue models of the creator economy as well as explains how businesses and creators use UGC and affiliate marketing. This to show how both parties benefit from this branch of marketing, and to understand in which direction the business is developing.<\/p>\n\n\n\n

What is the creator economy?<\/strong><\/h2>\n\n\n\n

First and foremost we need to know what this phenomenon is all about. The creator economy can be explained as an ecosystem where digital platforms are used to monetize content. Creators produce and publish marketing for an audience in order to generate direct income. The estimate of the amount of creators in this area of business is more than 300 million, which can be compared to the entire population of the United States (around 340 million)! <\/p>\n\n\n\n

Not everyone needs endless amounts of followers to participate in the creator economy, it is a lot about skills and creativity – create the best content to get the best rewards. It is therefore an attractive market to get into as a creator, as well as for the brands. It offers opportunities for them to reach specific segments through engaging content. But how does this work in practice?<\/p>\n\n\n\n

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There is a need for creativity and originality in the creator economy.<\/figcaption><\/figure>\n\n\n\n

UGC vs influencer marketing. How do they differ?<\/strong><\/h2>\n\n\n\n

UGC stands for User Generated Content, meaning that the creation doesn\u2019t come from the brand and companies themselves, they are made by creators. The perk of using UGC creators for your brand\u2019s marketing is that the engagement from followers is mostly higher than through traditional marketing. According to Emplifi\u2019s \u201cQ3 2025 Social Media Benchmarks<\/em>\u201d report, social media posts through UGC featured 10x higher conversion rates than non-UGC content. This highlights that the authentic content published by creators who have a \u201csmaller\u201d and more intimate follower group can maximize a brand\u2019s social success. <\/p>\n\n\n\n

UGC may seem similar to the concept of influencer marketing, but the differences are many. As the main purpose of UGC is to create content for brand use, the key objective for influencers is instead to generate followers for their own brand and reach a large audience. Their relevancy matters since the distribution often goes through their own channels, while the UGC creators produce content for the brand\u2019s channels. <\/p>\n\n\n\n

<\/th>UGC<\/th>Influencer marketing<\/th><\/tr><\/thead>
Main purpose<\/strong><\/td>Create content for brands<\/td>Reach a large audience for their own brand<\/td><\/tr>
Distribution channel<\/strong><\/td>The brand’s channels<\/td>Their own channels<\/td><\/tr><\/tbody><\/table>
Table 1: Comparison UGC vs Influencer marketing. <\/figcaption><\/figure>\n\n\n\n

This is how it looks in general, but a creator can act as both an influencer and UGC creator.<\/em> <\/span><\/span><\/p>\n\n\n\n

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The possibility to make money from home.<\/figcaption><\/figure>\n\n\n\n

Let\u2019s say we use an example of an UGC creator who is responsible for promoting a newly opened makeup store. This person will then create content, publish it, and the expectation is for this to result in customers clicking the link and completing a purchase of their mascara. This is how the creator can make money, and it is called affiliate marketing.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

Affiliate marketing for content creators<\/strong><\/h2>\n\n\n\n

Affiliate marketing is where businesses pay creators a promotion, based on actions of the customers. Creators market products\/services through videos and reviews etc, and recommend them to an audience. In return they make money when a purchase is made without having to sell the product themselves, which is the basics of the creator economy monetization. The commission does not only have to happen when a purchase is made. Depending on the agreement, the creator may also generate revenue from other conversions like joining member clubs.\u00a0<\/p>\n\n\n\n

The entrepreneur and content creator Pat Flynn has shared three main types of affiliate marketing with the world. He breaks down the ways affiliates can earn money into the categories; unattached, related and involved.<\/p>\n\n\n\n

<\/th>Unattached<\/th>Related<\/th>Involved<\/th><\/tr><\/thead>
What it means<\/strong><\/td>The creator has no authority in the product\/service that is promoted.<\/td>The creator has an established presence online and the products are related to their content, but the product\/service is not what they actually use.<\/td>Promoting a product\/service that the creator actually personally recommends and believes in, since it’s something they benefit from in their life. <\/td><\/tr>
Consequences<\/strong><\/td>No major presence is needed which benefits the creators since building authority takes time. It is therefore an easy type of affiliate marketing which is accessible to many.<\/td>A strategy to make money, but there is no honesty in promoting something that you have never used.<\/td>Makes the offer attractive and is the most genuine towards the audience.<\/td><\/tr><\/tbody><\/table>
Table 2: Three different types of affiliate marketing according to Pat Flynn<\/figcaption><\/figure>\n\n\n\n

The major question: How does the creator economy monetization work?<\/strong><\/h2>\n\n\n\n

As mentioned, brands pay creators to produce content for them. This is often agreed upon in\u00a0specific deliverables like reels, pictures, or product reviews. The brands buy the creators content, not for their followers but for their skills in delivering marketing. The importance for the creators is to have an established agreement beforehand, so a brand can\u2019t run their video for months through ads without paying the creator more than a starting fee. A video that goes organic on one social media platform has a different worth than a video who acts as an ad with a budget behind it. Agreement before delivery!<\/p>\n\n\n\n

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The deliverables as well as the revenue agreement should always be decided on beforehand.<\/figcaption><\/figure>\n\n\n\n

Q&A: Get started!<\/strong><\/h2>\n\n\n\n

Is a large following needed to monetize content?<\/strong><\/h3>\n\n\n\n

No. In UGC-creation the focus is more on the creativity and the deliverable, rather than the reach of the creator’s followers. This area of marketing is quite beginner friendly since it focuses on quality over quantity. Influencer partnerships on the other hand look a bit different because they depend on relevance and size of the audience.\u00a0<\/p>\n\n\n\n

How do brands measure creator marketing success? <\/strong><\/h3>\n\n\n\n

The traditional way of measuring success is through engagement rate, reach, and impressions. The problem with that is that every action is treated as if it has the same effect on the brand, which is false. Actions that demand more engagement often give more rewards towards the brand and therefore the approach of measurement should be weighted. A scoring model can be created for each business where high-demand actions have higher value. <\/p>\n\n\n\n

Useful metrics: <\/p>\n\n\n\n