MAY 28, 2025
Andrew Chen's deep dive into Creator Economy 2.0 perfectly captures the challenges that have made this space both incredibly promising and notoriously difficult to crack. As someone building in this space with GYST, I found myself nodding along to most insights, particularly his identification of the four core dynamics that make or break creator economy startups.
But here's what excites me: the very problems Chen identifies aren't insurmountable barriers. They're design constraints that, when properly understood, reveal the blueprint for building something truly defensible. At GYST, we've used these insights as our north star, and I want to share how we're tackling each challenge head-on.
Chen's analysis of the creator power law is spot-on: a small concentration of creators commands the vast majority of audience and earnings. But here's where I think the conventional wisdom gets it wrong: this isn't a bug, it's a feature you can build around.
The conventional approach: Start with the long tail and hope to climb up to bigger creators.
The GYST approach: Start at the top and work systematically through the power curve.
We're targeting the top 20% of creators from day one, using talent managers as our primary distribution channel. Why? Because talent managers already aggregate this concentrated value: they represent the creators who actually move the needle. And here's the kicker: by delivering 20%+ savings in their operational headcount, we're not just asking talent managers to recommend us; we're making their businesses more profitable.
Chen mentions that the "small group" at the top makes creator economy startups fragile. But when that "small group" represents 40 million creators globally, we're not talking about a niche market; we're talking about a massive, addressable audience that's finally large enough to build a sustainable business around.
Chen identifies the graduation problem as perhaps the most existential threat to creator economy platforms: "They start to think, they're doing all this work, what gives you the right to charge XX%?"
His prescription is powerful: "If an AI-enabled creator economy company develops a very good foundational model that allows creators to monetize 10x more than before, it's unlikely the creator will ever leave."
This is exactly what we're building with our AI Chief Revenue Officer.
The old model: Take a percentage of transactions and hope creators don't notice.
The GYST model: Become so valuable at driving revenue that our fee becomes irrelevant compared to the lift we provide.
Our AI doesn't just process payments or manage basic admin; it actively identifies monetization opportunities, optimizes pricing strategies, and uncovers revenue streams that creators didn't even know existed. But here's the real magic: the more creators we have on the platform, the more data flows into our models, making our AI smarter and more valuable for everyone.
This creates a flywheel that solves the graduation problem:
More creators → More data → Better AI insights → Higher monetization → Happier creators → Network effects → More creators
When creators are making significantly more money because of your platform, the conversation shifts from "why should I pay you?" to "how do I make sure I never lose access to this?"
Chen's analysis of the "battle for the bio link" reveals why so many creator economy startups feel like they're fighting over scraps. When your entire distribution strategy depends on convincing creators to replace one link with another, you're playing a zero-sum game.
The successful creator economy companies of the future won't be fighting for the bio link; they'll be creating destinations that make bio links irrelevant.
At GYST, we're building network effects that go beyond individual creator profiles. When creators use our platform, they're not just managing their own revenue; they're contributing to an ecosystem that benefits everyone. Our AI learns from collective creator behavior, identifying patterns and opportunities that no individual creator could spot on their own.
This is how you move from being a service provider to being infrastructure.
The Technology-First Approach Chen Predicts
In his conclusion, Chen outlines what the next generation of creator economy companies will look like:
"startups are building full-blown products — supporting multiple platforms, new forms of interaction, and providing new functionality for creators to interact with their followers. These products will have network effects of their own, sometimes becoming destinations of their own. And instead of launching a product anchored by one celebrity and expecting it to succeed, instead, startups are building real technology — often involving AI — combined with a broad go-to-market strategy."
This reads like a description of what we're building at GYST.
We're not a tip jar with better UI. We're not dependent on a single celebrity endorsement. We're building foundational AI technology that gets more valuable as it scales, combined with a go-to-market strategy that aligns incentives across the entire creator ecosystem.
Chen is right that the creator economy continues to be incredibly promising. The underlying trends (mobile adoption, social media growth, the shift away from traditional media )all point in the same direction.
But the companies that win won't be the ones that build better versions of what already exists. They'll be the ones that solve the hard problems Chen identifies: the power law dynamics, the graduation problem, the algorithmic dependence, and the battle for attention.
At GYST, we're not just building another creator economy tool. We're building the infrastructure that makes the entire ecosystem more valuable for everyone involved: creators, talent managers, and platforms alike.
The future of the creator economy isn't about taking a smaller slice of a bigger pie. It's about making the pie so much bigger that everyone wins.
We are looking for a select group of 100 creators to join our alpha program in July.
If you'd like to help shape how the next generation of creators will build their businesses, this is for you.
Besides first access to the platform, you'll have a few exclusive perks going your way.
Stay tuned!
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