How the Creator Economy Can Help Business Owners Make Social Media Content

Not too long ago, when small-business owners wanted creative marketing assistance such as infographics and branded videos for social media, they had to spend a substantial amount of money. Thanks to the creator economy – a growing platform of creatives working on a freelance basis – it’s now possible to obtain affordable creative assistance.

According to the Freelance Forward 2020, The U.S. Independent Workforce Report, 59 million Americans representing 36% of the U.S. workforce freelanced in the past year, contributing more than a trillion dollars to the U.S. economy in annual earnings. This is a 22% increase in contributed earnings since 2019. Commissioned by the freelance platform Upwork in 2020, the survey features responses from 6,001 working adults in the U.S.

In this creator economy boom, an increasing number of creatives work through freelance platforms like Upwork, Fivver, and PeoplePerHour. According to the December 2021 11th Annual State of Independence, The Great Realization survey of 6,240 U.S. residents by MBO Partners, a job platform connecting independent professionals and micro-business owners, “in 2011, only 3% of independents reported using an online talent platform in the previous 12 months. As recently as 2017, only 20% did. But in 2021, an impressive 40% said they had done so in the past year.”

In addition to helping small business owners, such platforms can be a boon for freelancers, giving them ready access to valid and potentially profitable freelance work. This makes it possible for independent creatives to run their own businesses and supplement income.

Benefits of the Creator Economy

Increasingly, small-business owners are using the creator economy to obtain a wide variety of creative services. Christian Thurston, COO and co-founder of SearchEye, a link building content and SEO services company, often hires from the creator economy.

“There is substantial cost savings when you work with the creator economy, as well as the ability to leverage time zones,” he says. “I can give someone overseas a project at night knowing it will be ready when I wake up the next morning.”

Google ad consultant John Cammidge has also had good results hiring creators. “The process is quite cost-effective once you've found a trusted group of freelancers to work with,” he says.

Leveraging the creator economy also allows bootstrapped businesses to reduce financial risk and increase cash-flow flexibility, believes Calloway Cook, president of Illuminate Labs, a supplements company. “If I shut off spending on graphic design for a month, I don't need to pay employee salaries,” says Cook. “Working with independent creators increases the chances that your small business will stay afloat financially while you work towards profitability.”

Sufficient time spent in the screening phase will save you the most time in the long run. Hire based on evidence, not on hope.

—Christian Thurston, COO and co-founder, SearchEye

How to Take Advantage of the Creator Economy

Benefitting from the use of freelance creator services takes keeping some best practices in mind.

1. Be selective.

Look for proof that creatives have completed high-quality work before hiring them. “Use the available filters in the freelance platforms,” advises Luke Lee, CEO and founder of Pala Leather, which makes leather outerwear. His company has recently focused on improving and boosting marketing strategies and campaigns using freelance talent. “Choose only high-rated employees and those who have earned a certain amount of money from the platform.”

Also speak with the creator prior to beginning a working relationship—preferably through video conference.

Be prepared to screen and review a lot of applicants, advises Thurston. “Sufficient time spent in the screening phase will save you the most time in the long run. Hire based on evidence, not on hope.”

2. Protect your investment.

Pay creators on platforms like Upwork or PayPal where you can recoup your costs if they don't complete the work, suggests Cook.

Additionally, keep the creative motivated and on schedule by releasing funds over the course of the project. “Be sure to set appropriate milestones and release funds based on successful completion of those milestones,” says Tasneem Manjra, CEO and co-founder of Caravan, a vendor management company.

3. Consider more than price.

“Cost is far from the only factor,” says Thurston. “If the person is amazing, then their price is usually a bargain, but if the person is not great, then any price feels expensive. I tend to hire freelancers and contractors on the higher end of the hourly pay scale to help ensure expertise.”

4. Provide clear deliverables.

Succinctly outline your goals and expectations for each project so there is no ambiguity.

“Garbage in, garbage out applies here,” says Thurston. “Some folks want creators to read their minds. Or they may think they're being helpful by giving creative folks no constraints. Too many constraints are stifling, but the worst thing to give a creative in a client relationship is a blank page and no goal/success criteria. Create a thorough brief and note where you are and aren't flexible.”

Working with the creator economy is not “set it and forget it,” adds Nick Whitmore, managing director at Vouchers.co.uk, which provides discount vouchers. “Give clear, concise briefs and brand guidelines and then let the freelancer digest the brief, afterward jumping on a call to iron out wrinkles before they get started. It’s also important to make yourself available throughout the project.”

5. Start small.

Rather than farming out a major project, limit your scope and be specific. “I learned the hard way that it’s always best to first build your minimal viable product (MVP) with your basic needs and then gradually grow the scope,” says Graham Beck, co-founder and CEO of DropDesk, an independent workforce management platform. “Doing this helps you conserve money and get your project completed on an earlier timeline. Starting small also allows you to test the waters before committing to a longer-term engagement."

6. Focus on developing relationships.

“It’s imperative to maintain good relationships with creators,” says Paco Suro, general manager global partner payments at Tipalti, an accounting software financial technology business. “Creators seek stability. Increasing the number of long-term projects with a creator can help you establish an authentic relationship, while also helping the creator to feel more motivated to help your brand succeed. Along these lines, prompt payment is also critical.”

Cammidge agrees. “Work to balance the transactional nature of the creator economy against the reality that it's made up of entrepreneurs just like you. Develop real relationships with the people you're working with. I tell freelancers how they’ve helped my business. You'd be surprised how far showing a bit of gratitude goes. It has led to me forming real partnerships with creators based on trust and mutual benefit.”