If you’re interested in creator coins, you’ve likely been hearing about the creator economy a lot lately.
It used to be “influencers” and “thought leaders.”
And before that, they just called Exit Mobile Phone Numbers us bloggers, podcasters, and YouTubers.
In other words, it’s people who build an audience to build a digital business. And that’s what we’re all about around here.
You may prefer the term “content entrepreneur.” (I do.)
But it looks like the term “creator” may stick for the type of audience-first businesses we build. And while the mainstream media likes to treat the creator economy as something new, it’s been developing over the last 15 years (at least).
While “creators” build audiences, the popular conception is that it’s on social media platforms exclusively. That makes them reliant on advertising revenue and beholden to the platforms themselves.
We’re smart enough to not put ourselves in that position. While the emergence of “creator coins” may be a lifeline to those who rely on social media exclusively, they also have benefits for those of us who have online business ideas to create products, services, events, and affiliate offers.
What Exactly Are Creator Coins?
Creator coins are a custom-branded form of digital currency. Effectively, this means you can create your own cryptocurrency and develop a virtual economy around your digital business.
Why would you want to do this? Well, for very good reasons that you may not immediately realize.
Here are three main ways to use creator coins:
- Spend: Your audience members buy Exit Mobile Phone Numbers and transfer coins to you directly in the form of a tip or donation. Or your community uses your coins to purchase a product, service, or event ticket.
- Hold: Like other forms of cryptocurrency, people can hold your coins as a digital asset that has the intrinsic benefit of gaining them access to products, services, events, coaching, and consulting according to criteria you establish.
- Earn: Your audience members and fans can earn your coins in exchange for referrals and repeat purchases. You can also do coin giveaways to those who hold a certain amount of coin, or for any other reason you think is appropriate.
At the most familiar level, a creator coin can a reward for your audience and loyal customers, much like airline miles or credit card points. Combined with referral-tracking software like Sparkloop (disclosure: I’m an investor), you can award coins to people who send you new email subscribers, and they, in turn, can use those coins for merchandise, access to special bonuses or events, and product discounts.
Know When to Hold ‘Em
Let’s focus on the “hold” option for a bit. Because this is the approach to creator coins that brings the most benefit to both creators and their audiences, yet it may not be immediately apparent.
Let’s say you create a coin and launch it with 100,000 coins, 50,000 of which you reserve for yourself. When people buy the coin, it’s just like Bitcoin, Ethereum, or any number of other cryptocurrencies — the value of the coin in USD (for example) goes up. Of course, when people sell the coin in large quantities, the value in USD goes down.
So, your strategy may not be to get people to simply spend or earn your coin (at least not initially). You want people to buy and hold your currency so that your coin reserve goes up in value. That also means you have an incentive to offer access to products, services, and even you at relatively attractive rates for people who buy and hold your coin.