Beyond the Creator Economy's Downfall

The creator economy, once celebrated as the future, faltered by confining its scope to digital-first creators and neglecting the global shift in consumer purchasing behavior. This narrow vision led to the inefficient use of venture capital and missed opportunities. Reputation-based company building and commerce, a more comprehensive and effective alternative, leverages trust and influence to drive sales and company growth in today's digital age.

Reputation-based commerce capitalizes on an individual's online reputation, influence, and trust with their audience to sway purchasing decisions and facilitate company building. By acknowledging the critical role of trust and personal connections, reputation-based commerce taps into one-sided friendships—the relationships consumers form with online personalities. A Nielsen study highlights that an astounding 92% of consumers trust recommendations from friends and family over any other form of advertising, emphasizing trust's crucial role in consumer behavior. In fact, another survey found that 49% of consumers depend on influencer recommendations when making a purchase decision.

Numerous individuals and companies have recognized the importance of building a solid online reputation and reaped the benefits in company building. For example:

1. Sam Parr: The founder of The Hustle, Parr built a strong online presence through authentic content and opinionated writing, ultimately turning his newsletter into a thriving media company that was acquired by HubSpot for around $27 million in 2021.

2. Kim Kardashian: Kardashian leveraged her reputation and massive following to build a successful business empire, including her beauty brand KKW Beauty, which was valued at $1 billion in 2020, and her shapewear line SKIMS, which reached a valuation of $1.6 billion in 2021.

3. Logan Paul: Paul used his online reputation as an entertainer to develop a successful podcast, venture into boxing (earning millions per fight), and launch one of the fastest growing beverage companies in the world, Prime.

4. Kayla Itsines: The creator of the Sweat App, Itsines built her fitness empire by cultivating a strong online reputation and community of loyal followers who trusted her fitness advice and programs. The Sweat App was valued at around $400 million in 2020.

5. David Portnoy: The founder of Barstool Sports, Portnoy built a successful media company through his reputation as a controversial and opinionated sports commentator. Barstool Sports was valued at around $450 million in 2020 after a significant investment from Penn National Gaming.

6. Michael Jordan: The legendary basketball player, Jordan's reputation as a sports icon helped him build a successful business empire that includes lucrative endorsement deals, the ownership of the Charlotte Hornets, and the billion-dollar Air Jordan brand in partnership with Nike.

7. Nick Bare: The founder of Bare Performance Nutrition, Nick Bare built his fitness and supplement business by leveraging his reputation as a dedicated athlete and former U.S. Army Infantry Officer. His online presence and relatable content attracted a loyal following, contributing to his business success.

8. Sahil Bloom: A finance expert and entrepreneur, Bloom gained recognition for his insightful and educational content on Twitter, which helped him build a reputation as a trusted thought leader in the financial space. His success led to partnerships, speaking engagements, and other business opportunities.

9. Rick Shiels: A professional golf coach and YouTuber, Shiels used his reputation for providing informative and entertaining golf content to build a successful online brand that includes coaching, equipment reviews, and various sponsorship deals.

10. Lauren Ireland: A fashion and lifestyle influencer, Ireland leveraged her online reputation for style and authenticity to create successful brand partnerships and launch her own e-commerce business, selling a curated selection of clothing and accessories.

11. Kygo: The Norwegian DJ and music producer, Kygo built his reputation on creating unique remixes and original tracks. His success led to collaborations with top artists, sold-out world tours, and the launch of his own lifestyle brand and headphone line.

12. Jimmy Buffett: The singer-songwriter and businessman, Buffett used his reputation as a laid-back, beach-loving musician to build a successful business empire that includes restaurants, hotels, merchandise, and his own record label.

13. MrBeast (Jimmy Donaldson): A prominent YouTuber known for his philanthropy and extreme stunts, MrBeast leveraged his reputation for generosity and creativity to build a successful brand that includes merchandise, a burger chain, and various sponsorship deals.

Reputation plays a significant role in company building, as individuals and businesses can leverage their trust and influence to create and grow successful ventures. This approach allows creators to contribute to a company's success by leveraging their reputation and fostering belief in the brand.

To summarize, creator economy was a failure to address the TAM and the global shift in consumer purchasing behavior.