From its humble beginnings in the 1990s, the creative economy has now grown into a huge industry. The early creators were part of the “new economy,” including authors, journalists, actors, musicians, artists, and others. But without an available market infrastructure to monetize their knowledge and talents, many struggled to gain a significant following. This made it a huge challenge to be an independent creator, with most having to have a day job or two to support their passion.
Then came platforms like Blogger, YouTube, MySpace and Soundcloud. Suddenly, ordinary people accumulated millions of followers and a lot of money by sharing their talents in the newly created open markets. And thanks to these early pioneers, the creative economy is now worth a combined $104 billion.
The knowledge economy makes its debut
In 2010, a new player stepped into the creator scene and opened a new monetization channel. Kajabi has changed the creator game by allowing people to monetize their knowledge. Before that, the creative economy revolved around selling one’s skills and talents. But thanks to Kajabi, knowledge about almost everything also became a salable commodity.
“Kajabi is an innovative all-in-one platform that enables knowledge entrepreneurs and creators to share and monetize their skills, talents and knowledge,” said Ahad Khan, CEO of Kajabi. “With Kajabi’s robust product features, users have a single ecosystem where they can publish, market and sell knowledge products such as online courses, live coaching, products, newsletters, membership sites and communities. It is the platform of choice for more than 55 million dynamic solopreneurs, teams and companies.”
The State of the Creator Economy Report
Kajabi is now the leading platform for creators and entrepreneurs to create, grow and manage their content, products and services, providing the best way to turn knowledge into revenue. And recently, the company unveiled its inaugural State of the Creator Economy Report. The report reveals some of the biggest trends shaping the growing creative economy.
For the report, researchers used both quantitative and qualitative data gathered from industry sources and the more than 50,000 creators who run their businesses on Kajabi’s platform. Insights include the impact of the pandemic on creators’ economies, key monetization trends, and the most popular and successful marketing tactics creators are using. When asked about the kind of knowledge people share most, Khan suggested that the list is almost endless.
“There are literally millions of amazing and imaginative use cases,” he said. We have a maker teaching people how to make pot pies, dog grooming experts, DJs, Scottish pipe drummers, knitting experts, alternative medicine practitioners and much more.”
Makers who make a lot of money
According to the State of the Creator Economy report, Kajabi customers earn an average of $30,000 per year. And as of March 2022, total lifetime revenue from Kajabi customers was over $3.5 billion, a 350% increase since 2020. Current revenue projections for all Kajabi users in 2022 alone are estimated to be just under $2 billion. .
“Kajabi’s intuitive platform makes it easy for people to create, grow and manage courses, podcasts, memberships, 1-on-1 coaching and training sessions, and more,” said Khan. “In short, we offer the best way to convert your knowledge into income. We have an extensive knowledge base that customers can use for best practices. And our team of experts even help onboard new customers. Regardless of experience, anyone can do it. Lawyers, artists, chefs… you name it! Anyone who has knowledge to share can make money with Kajabi. And best of all, unlike other technologies on the market, entrepreneurs keep all the revenue they make on the Kajabi platform.”
How makers make their money
When it came to the topics creators promoted the most, personal development and health and fitness were the top two. Sales for those topics alone grew 94% and 101% respectively between 2020 and 2021. In addition, Kajabi clients in academia increased their revenues by 45% from 2020 to 2021 and by 253% in January 2022 compared to January 2020.
The most popular and lucrative products for knowledge makers on Kajabi in 2021 were online courses and membership sites. And creators who include podcasts in their services earned 26% more than those who don’t.
More than 50 million people participate in the creative economy, according to CB Insights. And that huge market size means that investors are betting a lot on platforms that are aimed at creators. Membership platform Patreon recently raised a $155 million Series F. But the big money seems to be betting on Kajabi. To date, the company has raised $550 million at a valuation of $2 billion.
When asked what the future would hold for Kajabi, Khan replied, “Our goal as a company is to reduce the burden of creating and monetizing compelling content for our customers. All our development and innovation support that goal and we will continue to focus on delivering a seamless customer experience.”
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