The State of the Creator Economy in 2025

With an increasingly crowded market and brand partnerships drying up, creators and athletes must take ownership and build sustainable businesses to secure their future.

The creator economy has burgeoned into a $250 billion industry in 2023 and is projected to reach $480 billion by 2027. Creators and athletes now have platforms to reach millions, offering unprecedented opportunities to monetize.

Evolving Challenges in the Creator Economy

Despite their vast influence, many creators and athletes face significant challenges with consistent revenue:

• Only 12% of full-time creators earn more than $50,000 per year.

• Over 70% of creators earn less than 10% of their income from brand partnerships.

• The competition for attention is fierce, with millions of creators vying for visibility in an oversaturated market.

• Only 2% have more than 100,000 followers.

Why Do These Challenges Exist? Many creators depend heavily on external platforms and short-term partnerships for income:

• Platform Dependency: Social media platforms like TikTok, Instagram, and YouTube control visibility through algorithms. A single change can drastically reduce a creator's reach. This year, for example, TikTok adjusted its algorithm to favor original content, impacting creators who repurpose content across platforms and relied on monetization through TikTok.

• Unstable Income: Finding and managing brand deals is a significant challenge for 55% of creators, with earnings from these deals being highly unpredictable.

• Industry Changes: We predict an increase in affiliate models, as seen with TikTok's shop feature, where anyone can influence. This model favors ongoing engagement from smaller, dedicated follower bases over one-time endorsements from mega-influencers. Larger deals will still exist, but will take on another form (more on this later).

Creators are now owning their own businesses

The future of the creator economy will belong to those who transition from being mere promoters to becoming owners, advisors, and investors:

1. Creator > Entrepreneur Creators can develop brands around their unique expertise and audience needs, from fashion lines to wellness products. For instance, Hailey Bieber’s skincare brand, Rhode Skin, exemplifies leveraging personal expertise into a thriving business.

2. Creator > Investor More creators are labeling themselves as investors in their bios, signaling a shift towards more significant business involvement. Creators don’t just endorse; they invest and have a say in business operations. Grace Beverly, for example, has not only founded fitness and wellness brands but actively invests in others, using her platform to boost visibility and sales.

3. Creator > Co-Founder Many creators lack the time or expertise to manage all business operations. Co-founding with skilled operators lets them focus on their strengths while experienced teams handle the business's day-to-day operations.

Why Ownership Matters

Owning a business provides financial stability, scalability, and long-term value. It means creators are no longer at the mercy of fleeting trends and platform algorithms but are building enduring brands.

Many creator-led businesses stumble due to:

Lack of Clear Strategy & Long-term vision

• Something Navy
  Arielle Charnas's fashion brand, Something Navy, experienced rapid growth with about $12million in its first six months and achieving about $32 million in revenue in its very first year. but encountered significant issues, including cash flow problems, paying suppliers late, allegedly copied design and poor product quality. Additionally, controversies involving the founder tarnished the brand's image. These challenges highlight the necessity of a clear, well-researched strategy and the potential risks when a brand's identity is closely tied to its creator without adequate planning and infrastructure.

• Skaines The Label
  Australian influencer Tahlia Skaines launched Skaines The Label, a clothing brand that initially garnered attention. However, due to her inability to manage the time required for the business alongside other commitments, such as buying a new houseshe announced the closure of the brand.

Inefficient Operations

• Djerf Avenue
  Founded by influencer Matilda Djerf, Djerf Avenue faced serious allegations of creating a toxic workplace environment. Reports from employees highlighted issues such as psychological abuse and discrimination, leading to public backlash and calls for boycotts. Though she apologized citing that the company grew so fast, that she wasn’t able to keep up when it came to HR processes

• Jaclyn Hill Cosmetics
  Beauty influencer Jaclyn Hill launched her cosmetics line with high expectations from her substantial follower base. However, the initial product launch was marred by complaints about defective products, including reports of contamination in lipsticks.

Short-Sighted Goals

• Brittany Dawn Fitness
  Fitness influencer Brittany Dawn faced significant backlash for allegedly deceiving her followers into purchasing non-personalized fitness and nutrition plans, contrary to her promises of customized services. This led to a $400,000 state settlement and highlighted the ethical responsibilities influencers have toward their audiences.

Poor Sales Despite High Following

• Tana By Tana Mongeau
  Tana Mongeau, a popular influencer with millions of followers, launched her perfume line, Tana By Tana. Despite her massive reach and ability to create buzz, the product struggled to convert interest into sustained sales. Critics pointed to unclear branding, lack of trust in her audience, and minimal differentiation in a crowded market. This is a classic case of high engagement not translating to purchases.

Final Thoughts: Rome wasn’t built in a day.

The creator economy is booming, but its future belongs to those who own their platforms and build sustainable businesses. Whether you’re starting your own brand, investing in a business, or partnering with entrepreneurs, the opportunity to create something lasting is yours.

If you have a business idea or are running a business, we’d love to hear your story and help you take it to the next level.

At RNDR, we help creators and athletes transform their ideas into thriving businesses with clear strategies, scalable systems, and impactful branding.

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