Expert Article

How Social Media Influencers Earn Their Money and How You Can Too


A Deep Dive Into the Creator Economy, Monetization, and User-Generated Content


Although I am very passionate about my career in influencer marketing, it never fails to humble me when I see influencers earning my entire salary—or sometimes even quadruple that—off a single TikTok video. If you tuned into The Secret Lives of Mormon Wives this month on Hulu, you may have been surprised to discover that influencer Whitney Leavitt was offered $20,000 for a single Instagram Story post promoting a sex toy brand. The opportunities are limitless, and with few FTC regulations in the evolving creator economy, influencers are always looking for the next revenue stream to tap into. As avid social media users, my peers and I deserve transparency—not just on how much creators are earning, but also on how we can tap into that flowing stream of income.


Outlining Money-Makers In the Creator Economy


According to data from Goldman Sachs, the creator economy could approach $480 billion by 2027 (Goldman Sachs). These billions of dollars boil down to a handful of strategic earning opportunities for creators, some more preferred or accessible than others. Research firm eMarketer outlined a creator earnings comparison between 2021 and 2024 with sponsored content, aka brand deals, as the top earner at $8.14 billion this year (Enberg). All top revenue streams for U.S. content creators in order of earnings are as follows:

  1. Sponsored Content, $8.14 billion

  2. Platform Payout, $3.23 billion

  3. Affiliate Marketing, $1.10 billion

  4. Merchandise, $0.45 billion

  5. “Other” Monetization Methods, $0.34 billion

  6. Subscriptions, $0.27 billion

  7. Tipping & Gifting, $0.16 billion


The Basic Cash-Grabs: Sponsored Content and Platform Payout


Sponsored Content and platform payouts are the baseline for most creators’ monthly incomes due to their almost effortless accessibility. Popular content creators have flooded email inboxes with countless collaboration offers from brands, some more reputable than others. Common brand deal structures include:

  1. Paid Collabs: Creators promote a brand's product or service in exchange for both the product and a flat fee, which varies based on their follower count and engagement rate. The more followers and higher engagement a creator has, the more they can charge.
  2. Gifted Collabs: Creators promote a brand's product or service in exchange for the product alone, with no additional fee. In my experience, gifted collaborations are most common among micro-influencers (5K-50K followers) as they build their media kits and establish relationships with brands.


You Buy, They Earn: Affiliate Marketing and Brand Ambassadorships


Affiliate marketing is on the rise thanks to platforms like TikTok Shop, where creators can share content featuring their favorite brands and earn commission from user purchases. Many creators promote products during larger seasonal sales, offering added value to their followers. Affiliate marketing can also involve Brand Ambassadors, who post content featuring products and share exclusive promo codes, often including their name and a discount. For example,


Use code MOMO at checkout on evryjewels.com for an additional 10% off your next 

purchase. Disclaimer: I may receive commission on purchases using my discount 

code, so thank you for your support! 💖


Such a caption illustrates the paid nature of ambassadorship or affiliate collaboration, maintaining trust between the creator and consumer. And if you were wondering, yes, you can really use my discount code.

 

The Big Bucks: Merchandise and Influencer-Founded Brands


Influencer brands and creator merchandise are making waves in both the creator economy and the global economy. Brands like PRIME by Logan Paul and KSI, Chamberlain Coffee by Emma Chamberlain, and Feastables by MrBeast are taking over major retailers in the US including Target and Walmart. According to Bloomberg, Logan Paul and KSI’s sports beverage brand, PRIME, earned over $1.2 billion in 2023 (Bhasin). “We never expected to be as big as it has become,” KSI told Bloomberg. “I know people who don’t know me or Logan. They just know Prime.” PRIME's ability to appeal beyond KSI and Logan Paul highlights its strength as an independent brand. Even if the creators retire, the brand can continue without risking a loss of its consumer base. Creator-led companies like PRIME generate millions annually by leveraging influencers' deep understanding of their audience. This insight allows influencers to curate products that best resonate with their followers, driving sales while staying true to their personal brand.


Subs, Tips, and Gifts: Are They Worth the Hype?

With subscriptions, creators can earn monthly, quarterly, or annual income from their followers in exchange for special access to exclusive content. For example, many podcasters like Trisha Paytas or Noel Miller offer bonus or extended episodes on their Patreon accounts where fans join in via paid subscription tiers. Tips and Gifts provide spontaneous revenue, especially during live streams. Fans on platforms like Twitch and YouTube can send monetary Tips or Gifts for recognition, such as highlighted comments in YouTube's Super Chat, based on their contribution amount.


So How Can I Earn Like a Creator?


According to YouTube’s 2024 Culture and Trends Report, more than 65% of Gen Z respondents self-identify as content creators, a 23% increase from 2023 (YouTube). If you’re interested in monetizing as an independent creator, here are three simple ways to get started.


  1. User-Generated Content: Reach out to your favorite brands on platforms like Skeepers to create UGC, such as product swatches, tutorials, or reviews, in exchange for payment or gifted products.

  2. Product Reviews: Share unbiased product reviews in exchange for free products on platforms like Influenster. This is a great way to kickstart a relationship with brands and work your way up to paid collaborations.

  3. Campus Ambassadorships: Top brands like Chegg, Hero Cosmetics, and White Fox currently collaborate with creators big and small to promote their products on campus at USC. Simply reach out to your favorite brands to ask about potential campus ambassadorship programs featuring gifted products and paid content opportunities.


Time to Observe and Learn

Now that you understand the basics of creator monetization, it’s time to take a fresh look at your feed and identify how your favorite creators are earning big. If you’re interested in learning more about the creator economy, tune into Spreading the Influence on LinkedIn and some of my top-ranked blogs on influencer-founded brands. Happy scrolling, and good luck monetizing your creative passions!

Works Cited


“Culture & Trends Report 2024: Fandom.” YouTube, YouTube, 27 June 2024, 

www.youtube.com/trends/report/fandom-2024/. Accessed 30 September 2024.

Enberg, Jasmine. “Creator Economy Revenues Forecast 2024.” EMARKETER, EMARKETER, 

20 May 2024, www.emarketer.com/content/creator-economy-revenues-forecast-2024. Accessed 24 September 2024.

Bhasin, Kim. “Prime Drinks from Logan Paul, KSI Set to Pass $1.2 Billion in Sales.” 

Bloomberg.Com, Bloomberg, 8 November 2023, www.bloomberg.com/news/articles/2023-11-08/prime-drinks-from-logan-paul-and-ksi-set-to-pass-1-2-billion-in-sales?leadSource=uverify+wall&embedded-checkout=true. Accessed 30 September 2024.

“The Creator Economy Could Approach Half-a-Trillion Dollars by 2027.” Goldman Sachs, 

Goldman Sachs, 19 April 2023, www.goldmansachs.com/insights/articles/the-creator-economy-could-approach-half-a-trillion-dollars-by-2027. Accessed 23 September 2024.


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