February 1
According to a new report from Kajabi, the majority of content creators earning six figures have fewer than one million followers. The study of more than 2,000 creators revealed some interesting trends and data points.
It's important to note, of course, that Kajabi is a platform designed to help creators monetize things like digital products, courses, and podcasts. It's probably no surprise, then, that the company's "State of Creators '24 Report" found that the best way for content creators to build reliable income is to diversify their revenue streams and offer more products.
As with all studies, it's important to think about the source and what the purpose of the study might be. Since it's coming from Kajabi, it's safe to say any results that suggest using their platform leads to content creators earning more is obviously going to get the star treatment. So, you know, keep the context in mind. But there are still some really fascinating findings from a decent sample size of creators.
Let's look at some of the findings from the study.
According to the study, 66 percent of creators made the majority of their income from one specific revenue stream in 2022: brand deals. These types of deals range from typical social media plugs to creating custom content to sponsored YouTube videos and livestreams and more.
The study also claims that 96 percent of content creators earn less than $100,000 per year, thanks largely to a reliance on brand deals. However, Kajabi's own first-party data shows a significant increase in creators selling digital products and community memberships.
As a result, the study found that the average creator earning six figures or more leverages at least five revenue streams. Content creators crossing the $150,000 annual threshold utilize seven or more, while the average number of revenue streams for creators earning less than $100,000 is only two.
According to Kajabi, the leading revenue stream for the creators it surveyed is digital products. When you break that down even further, the top products are as follows: online courses, digital downloads (like eBooks, video files, or music), subscriptions/memberships, online coaching/consulting.
While online courses were the leading product, it wasn't that big of a difference between the first and the fourth. It also makes sense for Kajabi, too, since the platform definitely focuses on helping creators sell courses, and many content creators who develop a following on social media turn to a platform like Kajabi to offer these products.
The second leading revenue stream for content creators is payouts directly from platforms. These include things like Spotify streams, YouTube ad revenue, TikTok Creator Fund revenue, and more. After that is physical products, following by in-person consulting/coaching and online consulting/coaching.
Of all the main social media platforms, 42 percent say they would lose at least $50,000 if they lost access to YouTube. But once again, the variation wasn't that high for the rest of the platforms: Instagram (38 percent), TikTok (37 percent), and Facebook (36 percent). This also means many of these creators are likely earning at least $50,000 annually from multiple platforms.
Perhaps the biggest takeaway from Kajabi's study, very few of the content creators earning over $100,000 annually have more than one million followers on social media platforms. In fact, of the surveyed creators, only 5 percent have more than million followers.
A little more than one third of creators say they have between 10,000 and 99,999 followers, while 33 percent say they have between 100,000 and 999,999 followers, and a surprising 25 percent of creators earning six figures have fewer than 10,000 followers.
It just goes to show you — it's not about vanity metrics, it's about an engaged community.
In terms of overall revenue, 58 percent of those surveyed make between $100,000 and $499,999 per year, while 27 percent make between $500,000 and $999,999, and 17 percent make over $1 million per year.
Oh, and 46 percent say they would definitely unionize to achieve fair pay and practices from platforms, while another 37 percent said they would consider. Only 16 percent said they wouldn't.
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