Eric Siu explains why creators with millions of followers often make less money than they should. Many rely on sponsorships instead of building real businesses. MrBeast and others are now partnering with e-commerce operators and private equity to actually monetize their audiences.
Creators, I believe that a lot of them are heavily under-monetized right now 'cause they rely so much on sponsorships. They don't know how to build businesses, right? And this is a trend I got from doing the podcast in the last, I don't know, 8 months or whatever. A lot of these creators that have millions of subscribers, millions of views per month, they all resort to sponsorships. And when I start to talk to them about business, it's like deer in headlights kind of. I think that's going to change. I mean, when you look at like, you know, MrBeast, his manager raised money from this private equity firm and they're just looking to partner up e-commerce operators with these creators, these influencers. That's the model. It's distribution at the end of the day.
