London, UK – New independent research by global creator agency, Billion Dollar Boy, reveals a rise in creator entrepreneurs fuelled by growing consumer demand with two thirds (65%) of consumers buying creator-founded products and services.
The research, which canvassed the opinions of more than 4,000 consumers, 500 marketers and 500 content creators across the US and UK, found that the vast majority of creators (88%) had already launched a product or service, with even more (93%) considering a launch within the next 12 months.
The findings show how the popularity of creator entrepreneurs is distorting the market, with consumers more likely (27%) to buy creator-founded products and services than those of traditional brands (24%).
Why are you more likely to buy a creator-founded product or service over those of a traditional brand?
| Because I like supporting small and emerging businesses | 35% |
| Because the quality of the creator brand/product/service is superior | 31% |
| Because the creator’s brand/product/service is popular or trending | 31% |
| Because I trust the influencer over traditional brands | 30% |
| Because it makes me feel part of a community | 29% |
| Because I’m a loyal follower of the creator | 26% |
US consumers are particularly likely (71%) to have bought a creator founded product or service, compared to UK consumers (58%). While consumption of creator-founded products and services also increases among younger consumers – rising to 91% of 16-24 year olds, 84% of 25-34 year olds and 74% of 35-44 year olds.
Rising brand interest in creator entrepreneurs
The growing popularity of creator-founded products and services has fuelled brand interest, with almost every marketer (93%) having launched a co-created product or service with a creator – rising to 98% of US marketers compared with 86% of UK marketers.
The research highlights the most lucrative sectors for marketers and creators to launch a co-created product or service in. With one in five consumers (21%) having purchased a creator-founded product or service in Food & Drink, it is the most popular category, followed by: Fashion (17%); Skincare (12%), Make-up (14%), Haircare (14%), Technology (12%); Accessories (12%); Sports and Fitness (12%); Healthcare (11%); Alcohol (9%); Digital Products or Services (8%); Finance (8%); Homeware (8%); Literature (6%).
FiveTwoNine officially launches to support creators with challenges of launching products and services
Despite the popularity of creator entrepreneurs, the research reveals the obstacles creators face when launching their own product or service:
What, if anything, do you believe is/are the biggest challenges to creators launching their own product or service?
| Lack of available budget | 38% |
| Lack of experience | 31% |
| Risk/fear | 29% |
| Lack of business knowledge | 27% |
| Lack of support network | 27% |
| Lack of original business idea | 19% |
| Lack of sufficient facilities | 17% |
| Lack of access to an adequate supply network | 15% |
| Lack of human resource to deliver | 12% |
The research follows the launch of new membership community, FiveTwoNine, by Billion Dollar Boy in April 2024. FiveTwoNine operates as a global platform providing educational resources and as physical spaces for key stakeholders in the creator economy to network and collaborate – all designed to accelerate the growth of emerging creators’ careers and enhance brand partnerships. You can find more information here.
Becky Owen, Global Head of FiveTwoNine and Global CMO of Billion Dollar Boy, comments:
“As we shift increasingly towards digital and, in particular, social media platforms, our changing behaviours are democratising influence. Power is increasingly transferring from mainstream brands that have enjoyed a monopoly on industries for years to individuals who are powered by growing online fanbases.
“Brands simply cannot capture what creators have: the ability to build trust and connect with communities on a human level. That’s a compelling prospect for many consumers who, at the same time, have become increasingly accustomed to online shopping and social commerce. It’s empowering creators to launch their own products and services, transforming the creator economy into a breeding ground for the next-generation of SMBs.
“Yet despite the huge consumer demand, becoming a creator entrepreneur isn’t straightforward. Creators already have to wear many hats – acting effectively as a business owner and content production house. Launching your own product or service on top of those responsibilities can be a daunting prospect.
“FiveTwoNine is our answer to supporting creators through those challenges with tailored advice making successful entrepreneurialism a more accessible reality for a wider range of creators. If we can successfully nurture and support these new and potential creator entrepreneurs, there are huge growth opportunities for brands and the UK economy, with benefits also for consumers to enjoy more choice and connect on a deeper level with their favourite creators.”
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