Economics of Influencers: Why Do They Make Millions? - Video

The video opens with dramatic music and a collage of high earners: a toy-reviewing kid, a mumble rapper, a Twitch streamer, and an OnlyFans creator.

Why do some people make millions reviewing toys, being a mumble rapper, or selling feet pics? Are they working harder than a cleaner on a 15-hour shift? Are they more talented than a scientist conducting cutting-edge research? Maybe they contribute more to society than a pediatric surgeon.

Back in the 1970s, philosopher Robert Nozick used Wilt Chamberlain to explain why wealth inequalities might not be as unfair as they seem. Imagine a million people each paying 25 cents to watch Wilt Chamberlain play basketball. By the end of the season, Wilt walks away with $250,000, and everyone who paid was happy with that exchange. Nozick argued that as long as wealth is acquired through voluntary exchanges where both sides are satisfied, there's nothing unjust about it, even if it results in significant wealth inequalities.

This scenario unfolds every day. Take Ryan Kaji, the kid behind Ryan’s World, with an estimated net worth of about $100 million. Ryan’s viewers willingly watch his toy reviews, driving their parents to buy the products he features. There’s no coercion here; millions of kids are entertained, and companies value that audience enough to spend big bucks on advertising. Ryan’s success is the result of a free exchange—his viewers want to watch, and advertisers want their products seen. Viewers pay with their attention, and a fraction of a cent from each view adds up when you have hundreds of millions of views.

Next, let's explore the world of Twitch streaming. Streamers like Ninja make over a million dollars a month by playing video games, chatting with their audience, and building communities. Fans choose to donate money, subscribe, or give their attention because they enjoy the content. Whether learning new gaming strategies or simply enjoying the streamer’s personality, the transaction is voluntary, and the streamer earns an income that reflects their popularity. Just as people chose to pay to watch Wilt, today’s fans choose to support their favorite Twitch streamers.

Finally, we turn to OnlyFans creators. Bhad Bhabie, known for her “cash me outside” fame, earned over $57 million since 2021. Many have strong opinions about this platform, but the principle remains the same. Subscribers willingly pay for content they value, whether for entertainment, connection, or other reasons. These voluntary exchanges reflect supply and demand. Like Wilt Chamberlain’s basketball skills, these creators offer something people are willing to pay for.

These examples highlight influencers, a category many aspire to join due to financial incentives. Influencer success requires marketing skills, attractiveness, or talent, but the barrier to entry is low, and only a small fraction make significant money. However, the pursuit is often driven by the allure of potentially going viral and achieving financial success.

Optimizing for maximum views can lead to unintended consequences, such as rage baiting to elicit outrage, fake content to manipulate emotions, or pandering to misinformation. These tactics exploit viewers and trick them into paying with their time and attention. While voluntary exchanges are the foundation, manipulation can make them feel less so. For example, is there still social value if someone willingly pays $30 for a gamer girl’s bath water?

The question is: are we okay with that? Is that a just society? Do we value the freedom to choose, even if it creates vast inequalities and resultant social harms?