Creators Choose Equity

Jeremy Giffon shares his perspective on the evolution of content creator monetization, suggesting that equity ownership in businesses will become the dominant revenue stream for creators, far surpassing traditional advertising income.

Key Points:

• Current State of Creator Monetization:

  • Most creators primarily monetize through ad reads and sponsorships
  • This model is similar to old Hollywood where stars got paid to hold up products
  • The industry is in its "toddler stage" of business development

• Future of Creator Business Models:

  • Money made from equity ownership will "massively dwarf" advertising revenue
  • Every person with an audience will eventually have tightly integrated organic products to sell
  • This transition is inevitable but still in early stages

• Key Challenges:

  • Content creators typically don't want to buy or run businesses
  • Most creators excel at content creation, not business operations
  • Running a business requires different skills than building an audience

• Opportunity Structure:

  • Find content creators with engaged audiences
  • Build or buy the perfect product for their audience
  • Split equity while handling operations
  • Can lead to 9-figure exits over 4-5 years

• Success Examples:

  • Joe Rogan with Onnit
  • Doug DeMuro with Cars and Bids
  • Huberman with Matina (Yerba Mate)
  • James Clear with habits app
  • Logan Paul and KSI with Prime

• Implementation Strategy:

  • Partner with creators as "audience cofounders"
  • Offer around 30% equity
  • Focus on products they can organically promote
  • Works even with niche creators selling premium products