Creators Are Ditching Sponsors And Building Their Own Brands - Here’s Why

Posted by Elijah Pysyk • Dec 6, 2023 1:40:57 PM

More and more creators are starting their own businesses supporting their personal brands, such as lifestyle creator Ashley Alexander. Ashley recently revealed that she’s launching her own matcha brand, following in the footsteps of - among others - Mr Beast’s Feastable (chocolate company), and Logan Paul & KSI “Prime” (sports drink). This made me wonder why so many creators are creating their own businesses? Here’s what I uncovered:

1) Building a Sustainable Business

Sponsor deals may offer short-term gains, but creators are increasingly thinking about the long game. Building a sustainable business that can weather the ups and downs of the industry is a priority for many. By establishing their own brands, creators can create assets that endure beyond the life of a single sponsored video or campaign.

Sustainable creator businesses often involve the development of products or services that cater to the needs and interests of their dedicated fanbase. This not only generates ongoing revenue but also fosters a deeper connection between creators and their audience. By providing value through their brand offerings, creators can build lasting relationships that outlast fleeting sponsorships.

2) Leveraging Their Built-In Audience

One significant advantage creators have when launching their own businesses is the built-in audience they've cultivated over time. These dedicated followers trust and resonate with the creator's content, making them potential customers for products or services offered by the creator's brand.

Creators can leverage their existing audience to jumpstart their businesses, generating initial sales and feedback that can help refine their offerings. This built-in community acts as a valuable foundation upon which creators can build and expand their brand presence, often with a level of authenticity that traditional brands struggle to achieve.

3) Sponsor Deals Don't Pay as Much

One of the main motivations driving creators to build their own businesses is the realization that sponsor deals may not provide the financial stability they seek. While sponsorships can be lucrative, they often come with limitations and fluctuating income. Creators are beginning to recognize that relying solely on sponsorships for income can be unpredictable and unsustainable in the long run.

By launching their own brands, creators can control their revenue streams more effectively. They can diversify their income sources, which may include product sales, merchandising, subscription models, and more. This financial independence allows them to reduce their reliance on sporadic sponsor deals and create a more stable financial foundation.

4) Something That Can Live Off YouTube

Creating a business that exists beyond YouTube is a strategic move for many creators. YouTube's algorithms and policies can change, impacting a creator's reach and revenue potential. Diversifying by establishing their own brand ensures that creators have a source of income and influence that isn't solely dependent on the platform.

A creator business can extend into various avenues, such as e-commerce, content subscriptions, merchandise sales, and even collaborations with other creators. This multifaceted approach allows creators to build a brand ecosystem that thrives independently while still benefiting from their YouTube presence.

The shift from sponsorships to branded Creator Businesses is a testament to the influence Creators are gaining in messaging/creativity and to their entrepreneurial spirit. By taking control of their brand/image, financial destinies, and leveraging their audience creators are crafting a more secure future for themselves in an ever-evolving and distributed digital landscape. As this trend continues to grow, it's clear that creators are not only content producers but also savvy business owners who understand the value of independence and longevity.

Topics: Influencer Marketing, Brands, content creators