1/ One of the biggest misconceptions about the creator economy is that it’s just a consumer trend. But if creators are the new businesses, they need the same B2B infrastructure. @GetJuice is building it.

Short thread on fintech + the creator economy👇
digitalnative.substack.com/p/the-intersec…
2/ The term "creator economy" became more popular recently, but the phenomenon isn't new. It traces its roots to YouTube.

YouTube transformed culture by letting anyone produce and distribute online video. The floodgates were open, and a new creative class seized the opportunity.
3/ YouTubers were actually first called “YouTube Stars”, but that rang hollow. YouTubers weren’t just the talent on screen; they were the director, writer, producer. They weren’t the vessel through which art was delivered, but the creator manifesting it.
4/ By the mid-2010s, "creator" was a career. In 2015, Steven Johnson wrote:

“It's never been easier to make money from creative work, for your passion to undertake that leap from pure hobby to part-time income source...[this] means more people earn income doing what they love.”
5/ But traditional businesses have access to a suite of tools that help them understand their metrics, take out loans, and effectively scale their businesses. Creators don’t.

Enter @GetJuice
6/ At Index, we've worked with companies digitizing workflows for massive industries—Shopmonkey for mechanics, ServiceTitan for home services workers like plumbers & electricians, Boulevard for salons & spas.

One way to think about Creative Juice is doing the same for creators. Image
7/ Just like repairmen & hairstylists have existed for thousands of years, so have creators—as entertainers, teachers, comedians, actors, filmmakers.

The internet has just made being a creator more accessible, unlocking a Renaissance of talent & creativity.
8/ And just as many repair shops run on pen-and-paper workflows, many creators stitch together payments from brands & internet platforms with Gmail, Excel, PayPal, & the Notes section on their phone.

Juice becomes the one-stop-shop for creators to run and grow their businesses. Image
9/ Over time, @GetJuice will layer in more financial tools for creators. One of my favorites is Juicetimate:

Similar to how Zillow’s Zestimate lets you know the value of your home, Juicestimate lets creators know the value of their platform. Image
10/ This knowledge is key as creators take out loans, make financial decisions, & invest in their futures.

It's exciting to see the formalization of a new form of work, & the collision of fintech + creators, Silicon Valley + Hollywood.

Full piece here: digitalnative.substack.com/p/the-intersec…

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More from @rex_woodbury

9 Apr
1/ In 1957, Walt Disney drew his company's strategy (sketch below). It centered around content: good content fueled parks, merchandising, film & TV etc, all powering Disney's flywheel.

Disney has stuck to this strategy for 64 years, while also evolving to fit a changing world 👇 Image
2/ I'm fascinated by how deeply Disney is embedded in culture (all around the world) & by the emotional reaction to the Disney brand. It all comes down to its characters & stories.

Disney's beating heart is its content—for example, *all* of these characters are owned by Disney: Image
3/ Disney is at its best when it's producing high-quality IP. Its 90s resurgence was driven by fresh stories:

1989: Little Mermaid
1991: Beauty & the Beast
1992: Aladdin
1994: The Lion King
1995: Pocahontas
1997: Hercules
1998: Mulan
1999: Tarzan
Read 8 tweets
2 Apr
1/ Costco has always fascinated me.

Costco makes essentially $0 in profit from product sales, since it basically sells goods at cost. Instead, it charges a membership fee that is almost 100% margin.

Here are some of my favorite slides from a great overview by @minesafety 👇
2/ At a time when physical retail is struggling, Costco is thriving. It keeps opening more and more new stores.
3/ But Costco makes virtually $0 on merchandise. It sells products for dirt cheap, guaranteeing lowest prices.

*But* Costco charges $60/year to be a "member". Membership revenue is almost *pure profit*.

Costco has 50 million members & 25% of US households have a Costco card.
Read 14 tweets
31 Mar
1) One passage from the excellent Bloomberg profile of Ryan Kaji, the highest-paid YouTuber in the world, stood out to me (highlighted below).

Ryan now makes more of his money from commerce than from advertising. This embodies a broader shift that's happening for creators. Image
2) Ad revenue often isn’t enough to support creators, who are the lifeblood of the internet. One study found that reaching the top 3.5% of YouTube channels—which means about 1M views each month—only gets you $12,000 to $16,000 a year. That’s right around the federal poverty line.
3) ~97% of YouTube creators aren’t making minimum wage on YouTube.

One popular YouTuber, Shelby Church, wrote a blog post about how getting 3,907,000 views on a video only made her $1,276.
Read 4 tweets
11 Mar
Business model innovation is the most interesting & important trend in consumer internet right now.

The last generation of internet giants made money with ads. The next generation will make money in more diversified & innovative ways.

👇👇👇👇👇👇👇👇
1) When the internet started out, people weren’t yet comfortable transacting online; ads let internet sites remain free & accessible to anyone.

This coincided with a post-9/11 erosion of privacy. We’re seeing the effects today in the invasiveness of Google & Facebook ads.
2) Our renewed focus on privacy is in part fueling a backlash to ad-based models.

But even if consumers wanted ads, ad-based models are less & less attractive. The Google / Facebook duopoly gobbles up 77 cents of every $1 spent on digital advertising.
Read 9 tweets
9 Mar
Oprah's interview with Meghan & Harry feels like a good time to point out how extraordinary Oprah is.

Short thread on the "Queen of All Media"👇 Image
1) Oprah was born into poverty in rural Mississippi to a single teen mom. At 14, Oprah was molested & got pregnant. Her son was born prematurely & died as an infant.

Oprah re-enrolled in school set on forging a new life. "I'm gonna be famous," she told anyone who would listen.
2) Oprah rose through the ranks of radio & then TV. Her relatability was obvious. Here's a conversation between Oprah & her first producer:

Oprah: You know I’m black?

Producer: Yeah, I can see that.

Oprah: You know I’m overweight?

Producer: So are many Americans.
Read 9 tweets
9 Feb
Education is the sector that will change most fundamentally post-COVID.

Five trends I'm finding interesting are:

1️⃣ Tutoring Marketplaces
2️⃣ Edutainment
3️⃣ Business-in-a-Box Platforms
4️⃣ Reskilling Workers
5️⃣ Unbundling College

👇👇👇👇👇👇👇👇👇
1) Of the 5 most-valuable education startups in the world, 4 are tutoring businesses. All 4 are in China & India.

Only 2% of U.S. household income is spent on supplemental education vs. 40% in China.

COVID will drive a meaningful uptick in U.S. spend & P2P tutoring models.
2) The lines between education and entertainment will continue to blur.

This accelerated during the pandemic, with more kids watching YouTube & playing Roblox & Minecraft.

Established startups like @duolingo & newer startups like @playhellosaurus will continue this trend.
Read 7 tweets

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