Despite being widely attributed to Mark Twain, there's no evidence he said: "history doesn't repeat itself, but it often rhymes." But it sure sounds like him.
And, in our opinion, this aphorism nicely describes how the recent surge of excitement about the creator economy "rhymes" with what happened with the sharing and gig economies back in 2012-2015.
Here are the key ways we see them rhyming:
1. The Dream
Both the creator economy and the gig economy are based on "the dream".
In the case of the gig economy, it's the entrepreneurial dream of being self-employed and having the flexibility, freedom, and ability to pursue a passion that comes with it.
The creator economy shares the entrepreneurial dream but adds the potential of the fame, glory, and vast riches that come with being a highly successful artist/creator.
2. The Role of Platforms
The initial excitement around the gig economy happened in part because of the rise of platforms, specifically Uber, Task Rabbit, and Airbnb. These platforms claimed they made entrepreneurship easy, including providing decent pay, flexible work, and the ability to be your own boss.
The creator economy platforms like YouTube, TikTok, and Instagram have made it possible for anyone to be a star and make lots of money. More recently, a new wave of platforms, like Substack, Patreon, and others, provides new ways to monetize being a creator.
And like the gig platforms in 2012-2015, the creator economy platforms are generating and getting lots of hype and media coverage.
3. Changing the world
Much of what we now call the gig economy used to be called the sharing economy. And according to its adherents, sharing/gig work would change the world by decentralizing economic power, democratizing and globalizing economic opportunity, and enabling more people to be entrepreneurs.
Creator economy adherents say similar things and add that the creator economy will change things by allowing more artists to earn a decent living.
4. Reality versus hype
The initial hype and excitement about the sharing and gig economies have worn off to a large degree.
And cracks are already forming around the creator economy. There are discussions about creator burnout, the stresses and challenges of being self-employed, the control exerted by the platforms, and how difficult it is for most creators to earn a living.
Expect the hype around the creator economy to wear off in a few years (or sooner) as it did for the sharing and gig economies.
5. The Yin and Yang of independent work
Most creators are independent workers. Because of this, they share what we've long called the yin and yang of independent work.
Independents like the autonomy, freedom and control independent work provides. They also like that it lets them pursue their passions and work in a manner that reflects their values.
But in n exchange, independent workers have to deal with the stress, hard work, and financial uncertainty that comes with independence.
Despite these downsides, research consistently shows that most independent workers prefer being independent over having a traditional job.
We recently completed some research on digital creators and, not surprisingly, it shows they too face the Yin and Yang - and, like independent workers, most prefer being independent.
We'll have more on this research in the future.
