Creator Science Podcast Episode #227 Summary

Title: Are memberships still viable in 2025? Creators vs. AI, creator economy pyramid schemes, and more [Ask Creator Science]
Host: Jay Clouse
Release Date: November 19, 2024

Introduction

In Episode #227 of Creator Science, host Jay Clouse delves deep into pressing questions from creators navigating the evolving digital landscape. This episode addresses the viability of membership models in 2025, the looming competition between creators and AI, the ethics surrounding the creator economy, and strategies for sustainable growth. Through candid discussions and actionable insights, Clouse provides a comprehensive guide for creators aiming to thrive amidst increasing challenges and opportunities.

Sponsorship and the Fame Threshold

Question: Is there a specific fame threshold where sponsors or major brands take creators more seriously when pitching?
Asks: Gavin Berry

Jay acknowledges the existence of such thresholds but remains non-committal about specific numbers, stating, “I don't know what those thresholds are that sponsors look for” (04:30). He emphasizes prioritizing audience trust over sponsorship revenue, advising creators to build strong audience relationships before seeking brand partnerships.

“If a sponsor is going to sponsor your content, the idea is there is value for them from your audience and if that is true, there's value for you from your audience as well.” — Jay Clouse (04:45)

The Future of Membership Communities

Question: Is it still worth it to build a membership community in 2024 or even 2025?
Asks: Henry Paca

Jay explores the saturated landscape of membership communities, forecasting a potential "reckoning" as scarcity turns to abundance. He advises creators to differentiate their communities with clear purposes and easy-to-extract value to ensure retention.

“You need to make it very clear how to extract value from the community. And ideally you do it in a way that is not difficult.” — Jay Clouse (08:50)

Imitation vs. Innovation for New Creators

Question: Are new creators better off copying what works or trying to come up with their own unique series?
Asks: Cyberinvention

Jay advocates for imitation as a learning tool for newcomers, transitioning to innovation once creators develop confidence and unique perspectives. He emphasizes that unique success often stems from minor, strategic changes to proven models.

“First we imitate, then we innovate. So if you haven't gotten to the point where you have confidence and style and taste and you really understand how this creator thing works, then you should imitate other creators.” — Jay Clouse (12:15)

Balancing Business and Fatherhood

Question: What has been the most rewarding yet challenging aspect of balancing your business with your journey into fatherhood?
Asks: Gina Realtalk

Jay shares his personal journey, highlighting the shift in priorities post-fatherhood. He discusses the challenges of maintaining business growth while fostering a meaningful family life, ultimately recognizing the importance of family over business.

“The business carries less weight with me. What bums me out is either someone is so good at doing basically what I do...” — Jay Clouse (17:30)

Overthinking in Content Creation

Question: Is overthinking content creation a common struggle, and how do you address it?
Asks: Delaydance

Jay acknowledges the pervasive nature of overthinking among creators. He distinguishes between creators and artists, stressing the importance of balancing commercial goals with personal expression to mitigate overanalysis.

“If you make content that you're proud of, that you're happy with, that is to your standard and says what you wanted to say, then I think you can be satisfied with the effort.” — Jay Clouse (20:45)

Creator Economy and Pyramid Schemes

Question: Are online course building and membership offerings in the creator economy resembling pyramid schemes?
Asks: You, me, and Coffee

Jay addresses concerns about the saturation of creators selling to creators. He advises new creators to target broader or different audiences to avoid the highly competitive and often limited online business spaces dominated by creator-centric products.

“Most creators are not creating for creators. You can choose to serve a different audience and I really recommend you do.” — Jay Clouse (25:10)

Revenue Streams and Business Sustainability

Question: How much revenue do you make from various streams like podcasts, courses, and YouTube?
Asks: Tyler Reid

Jay breaks down his revenue streams, highlighting digital products, affiliates, memberships, services, royalties, and sponsorships. He emphasizes the importance of diversified income sources for business resilience.

“Digital products have brought in about $166,000. Affiliates a little less than 20 memberships $320,000... total $665,000 up to this point.” — Jay Clouse (30:20)

AI Competition and the Future of Creators

Question: Are creators destined to be competed with by AI that creates its own channels and launches them?
Asks: Oliver Gilpin

Jay discusses the potential impact of AI on the creator landscape, noting that while AI-driven content might threaten faceless channels, authentic human connection remains a significant value driver that AI cannot easily replicate.

“Humans want to have shared experiences both with the person who made the video or is in the video and other people who consume the video.” — Jay Clouse (35:45)

Ethics in Business Practices

Question: How does ethics show up in your business?
Asks: Heather Burns

Jay underscores the paramount importance of integrity, especially in sponsorships and brand deals. He maintains strict criteria for endorsements, ensuring alignment with his values to build and maintain audience trust.

“I want you as a consumer of my content, to know if I'm recommending something. If something is being sponsored by me, I am willing to endorse this product.” — Jay Clouse (40:10)

Red Flags in Online Creators

Question: What are red flags when evaluating online creators?
Asks: Will

Jay advises assessing the alignment between a creator's words and actions and evaluating the discernment of their audience. Discrepancies in messaging and misaligned audience responses often signal potential issues.

“I look for alignment between what do they say and what do they do. If there's not alignment there, then that's a red flag.” — Jay Clouse (43:30)

Consumer Engagement with Digital Products

Question: How many people actually take action after purchasing a digital product?
Asks: Chris3d

Jay candidly shares completion rates for his courses, acknowledging that while his metrics (28-47% completion) outperform industry benchmarks, there is still significant room for improvement. He emphasizes the importance of delivering genuine value over employing tactics like scarcity and urgency.

“I would be careful about constant scarcity. Or urgency as a lever trying to be moved to make you purchase.” — Jay Clouse (48:50)

Conclusion

Episode #227 of Creator Science offers a wealth of insights for content creators grappling with modern challenges. Jay Clouse emphasizes the importance of authentic audience relationships, ethical business practices, and sustainable growth strategies. By addressing concerns around AI competition, membership models, and the pitfalls of the creator economy, Clouse provides actionable advice to help creators navigate and succeed in an increasingly complex digital ecosystem.

For those interested in more detailed discussions and exclusive behind-the-scenes content, joining Jay's membership community, the Lab, is recommended.