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Reputation Economy vs Creator Economy: Where do you sit, and why is it important?

If you are a content creator in the 'reputation economy', I would be looking at what's going on in the 'creator economy' and learning from who's doing well in that space.

Author

Trevor Young
October 03, 2024

G’day … Trevor here …

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Are you a ‘reputation creator’, or an independent content creator?

We hear a lot today about the ‘creator economy’, but sitting parallel with it is what's known the ‘reputation economy’. What’s the difference?

IN THE VIDEO BELOW 👇 I explain the differences between the two economies when it comes to creating content.

But first, let’s unpack each from a macro perspective so we get a better understanding of the nuances of each. I will also explain why this matters, and why it’s important for founders and solopreneurs to get a handle on when it comes to creating content (and content, as we know, fuels so much of what we do today to build our profile and reputation in the marketplace today).

Okay, let’s go …

The creator economy and the reputation economy are two related but somewhat distinct concepts.

While they both involve individuals leveraging their skills and online presence for economic opportunities, they tend to focus on different aspects of this phenomenon.

The creator economy

The creator economy refers to the ecosystem and marketplaces that have emerged to support and monetise the work of content creators, social media influencers, and independent artists.

It’s driven by the rise of online publishing platforms and social media, which have empowered individuals to create and distribute their own content, build an audience, and generate income through various means such as brand partnerships, sponsored content, merchandise sales, digital products and services, and crowdfunding.

The creator economy emphasises the value of creativity, personal brand, and the ability to attract and engage an audience. It revolves around the idea that anyone can become a content creator and derive economic benefits from their work, with platforms providing the infrastructure and tools to facilitate this process.

Here are some excellent examples of the creator economy at work:

The reputation economy

The reputation economy, on the other hand, focuses on the value of an individual's reputation and online presence in the broader context of their personal and professional life.

It encompasses the idea that a person's online reputation, as established through their digital interactions, contributions, content, speaking and feedback from others, can have significant real-world consequences for their business and professional life.

In the reputation economy, reputation acts as a form of currency, impacting opportunities for new business leads, employment, partnerships, collaborations, and social connections. It highlights the importance of trust, credibility, and the perception of one's expertise, integrity, and character in online spaces.

Here are some excellent examples of the reputation economy at work:

Summarising this bit:

So while the creator economy is primarily concerned with monetising creativity and content creation, the reputation economy emphasises the value of an individual's online reputation and its impact on personal and professional opportunities.

While closely related, these concepts approach the online landscape from different angles and highlight distinct aspects of the evolving digital economy.

Drilling into the two ‘economies’ from a content perspective

Now let’s dig a bit deeper into the two ‘economies’ from a content perspective.

While my focus, professionally-speaking, is mainly on the reputation economy, I also have a foot in the creator economy camp.

Why does it matter, you might ask. Content’s content, right?

Well, yes … sort of.

But understanding the nuances between the two will provide you with a clearer path ahead.

Let’s face it, there's a lot of noise and confusion when it comes to the whole content marketing space. I see this first-hand with my clients and others I speak to on a day-to-day basis.

Thus, getting clarity in terms of where you ‘fit’ in the world can be helpful when it comes to creating content.

At the end of the day, if you’re a business owner, a professional expert or an emerging thought leader - you’re going to need to create and publish content to raise your profile and enhance your reputation in the marketplace.

And of course, in the creator economy, the sole focus is on building a media platform, so content obviously is key here.

This is where the two worlds collide 💥

Creating content with a reputation economy ‘hat’ on …

What types of people operating in the reputation economy need to create content as part of their personal branding activities?

Let's for argument's sake lump into this category thought leaders - subject matter leaders - knowledge leaders, along with entrepreneurs and owners of service-based/expertise-based companies: essentially, anyone whose reputation is critical to their business or professional success.

When it comes to content, these people tend to publish long-form articles, podcasts, videos, newsletters etc for the benefit of their business (and/or their career). They probably also create short-form/micro content to post on their chosen social media channels.

Critically, they are already established, or in the throes of building their business.

By default, they tend to be client or customer focused, which means that when it comes to the content they create, they look at - and seek to understand - their audience from the client’s perspective, because that's who they deal with on a day-to-day basis.

Audience growth is important, obviously, but it's not necessarily the key metric for ‘reputation’ peeps. Yes, everyone wants to grow their audience, but really, in the reputation economy, it's more important to engage with the right audience.

Thus, content is used primarily to build marketplace visibility, influence and trust in a way that’s strategic and sustainable. That’s the goal anyway :)

These are, of course, key levers of enhancing one's business and personal brand reputation, which in turn is becomes critical to achieving positive commercial outcomes.

Creating content with a creator economy ‘hat’ on …

Now, in terms of the creator economy, this is the domain of what I call the ‘independent content creator’.

What these content creators are essentially doing is developing an independent mini-media platform, whether it's a podcast, a YouTube channel, an email newsletter, a live-streamed show, or a combination thereof.

Importantly, they're after growth in readership, viewership, listenership - that's mission critical. The focus is on building an engaged audience first, then they can start working out ways and means to monetise that audience.

We’re currently seeing the rise and rise of independent content creators; people are seeing it as a genuine way to build a thriving personal brand-based enterprise.

In years gone by, it was usually people who were just doing it for fun, because it was their passion. It was something something they were really interested in doing, and money wasn’t so much of a consideration. I saw this first-hand when blogging started to emerge in the early-to-mid 2000s.

Of course, once the creator built a large audience, they discovered many and varied options in terms of generating an income from their media platform, whether that was straight out of the advertising model playbook (Google Ads, sponsorships) right through to creating digital products that solved a particular need or pain-point their audience might be having.

If we swing back to the reputation economy for comparison: content creators operating in this space already run established businesses (or have professional careers) and thus they don’t necessarily need to bother with the aforementioned monetisation models.

Mind you, the ‘doors of revenue’ swing both ways …

Nothing like cross-pollination of both economies to spice things up and give proponents additional options for audience engagement and revenue growth!

For instance, I now see independent content creators starting to build more ‘traditional’ businesses often associated with the reputation economy i.e. coaching, consulting, professional speaking … the running of a marketing agency, for example.

And it flips the other way too …

I’m also seeing reputation creators - i.e. those who have been publishing content to build their reputation and grow their business - starting to expand their product and service offerings.

For example, some entrepreneurs who run consulting businesses are now offering online courses, building membership communities, running paid-for events etc. Some are even becoming ambassadors for other like-minded brands (now we’re veering into ‘social influencer’ territory!).

In other words, established founders and solopreneurs are evolving their business model, from simply trading time for money, to scaling their revenue through digital products and services, which up until now has been a mainstay of the entrepreneurial independent content creator.

And there are revenue models are emerging all the time!

Rounding up …

So there you have the key differences between the two different types of ‘content creator’, well, as I see it anyway 😉

Personally, I a bit partial to the ‘sweet spot’ in the middle.

I spend more time working with established business owners and emerging thought leaders, helping them to create content that advances their cause. They've firmly got their virtual feet in the reputation economy.

BUT … I research, and often take my lead from (and become inspired by) those who operate in the creator economy: the independent content creators.

Why? Because they are at the forefront of what’s going on in the world of content creation, distribution and promotion.

So, if you are a content creator in the reputation economy, I would be looking at what's happening in the creator economy and learning from, and being inspired by, what’s going on there (while at the same time bearing in mind that indie creators are probably running a different type of business to you).

Who knows? Employing some up-to-the-minute ‘creator economy’ strategies and tactics might help you get the jump on your ‘reputation economy’ competitors when it comes to PR, content and digital communications.

Exciting times ahead!

A QUICK WORD OF WARNING: While it’s smart to learn from the indie content creators, please be aware they’re often plugging away at their content in a full-time capacity, so they’re probably going to be a lot more prolific. Indeed, some of the bigger creators we see in the media employ large teams to help them produce and promote their content.

Also, please remember: Indie creators are running mini-media companies, and thus they will have different goals to you i.e. build as large an audience as possible so they can then monetise this asset, versus the business owner who is only after the right audience to support their business ambitions.

Please bear this in mind, otherwise ‘comparisonitis’ will do your head in!

I’ll leave you with this quote from Hamish McKenzie, co-founder of Substack:

❝

"We’re moving out of the era of platforms owning people and into an era of people owning platforms—an era in which creators will rightfully demand more ownership, and more say over their relationships with their communities."

In case we haven’t met yet …

Hi, I’m Trevor. I help purpose-led business owners become clear and confident in how they leverage PR, content and digital communications for profit, impact and legacy.

Discover more at trevor.world

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