Why Most Influencers Will Fail by 2028 — And How the Smart Ones Are Turning Founders

For the past decade, the creator economy has been celebrated as one of the fastest-growing segments of the digital world. Social media gave rise to a new generation of celebrities — influencers — who built massive audiences and monetized their reach through brand partnerships. But the ecosystem that once promised limitless growth is now undergoing a dramatic transformation.

According to recent industry data, brand collaborations have dropped by nearly 45% in 2024, signaling a slowdown that few saw coming. At the same time, investors have shifted their focus, channeling over $63 million globally into a new class of creators who are not just influencers, but entrepreneurs. This evolution reflects a broader shift in the digital economy — from visibility-driven influence to value-driven entrepreneurship.

What's the Future of Creator Economy?

The shift began around 2019, when top global creators started realizing the limitations of depending solely on brand deals. YouTube and Instagram stars who once thrived on sponsored content began using their online influence to launch businesses of their own. American YouTuber MrBeast turned his content empire into Feastables, a multimillion-dollar snack brand. Emma Chamberlain built Chamberlain Coffee into a lifestyle business, and Logan Paul co-founded Prime, a beverage company now competing with legacy energy drink giants.

In India, too, this trend is increasingly visible. Ranveer Allahbadia, popularly known as BeerBiceps, transitioned from a fitness YouTuber to the founder of Level, a self-improvement platform. Raj Shamani, who began his career as a motivational speaker and creator, now runs House of X, a venture designed to help other creators launch and scale their own brands. Even fashion influencer Masoom Minawala has diversified into fashion entrepreneurship, capitalizing on her brand equity and loyal audience.

This marks a distinct departure from the earlier influencer model that relied heavily on sponsored posts and affiliate marketing. The message is clear: creators are no longer content to endorse products—they want to own them.

The Cracks in the Influencer Economy

The influencer economy’s early success was built on a simple premise — attention equals revenue. However, as the digital advertising landscape matured, that equation began to change. Brands have become more selective, moving from one-off collaborations to long-term partnerships that emphasize authenticity and measurable impact.

According to the Influencer Marketing Hub’s 2024 Report, 68% of brands now prefer niche creators with smaller but more engaged audiences, rather than large influencers with millions of disengaged followers. This has left many traditional influencers struggling to maintain relevance as brands increasingly prioritize performance metrics and conversion rates over vanity metrics such as likes and follower counts.

Moreover, audience behavior has evolved. Consumers today are far more discerning, often skeptical of overtly promotional content. The rise of AI-generated media and oversaturation of influencer content has further eroded trust, creating a fatigue that’s hard to reverse.

As a result, the industry is moving from what experts describe as the “era of reach” to the “era of relevance.”

Enter the Creator-Entrepreneur

The creators who are thriving in this new environment share a common trait — they think and act like entrepreneurs. They build businesses around their expertise, leverage data-driven insights, and focus on building long-term community relationships rather than chasing viral trends.

This new playbook revolves around three pillars: niche communities, high-margin products, and owned distribution.

Creators who cultivate niche audiences are better positioned to monetize through products, courses, or memberships that align with their expertise. Those who develop high-margin businesses — such as D2C brands, subscription platforms, or consulting models — can generate recurring revenue independent of social media algorithms. And creators who invest in owning their distribution, through newsletters, private communities, or proprietary apps, are no longer at the mercy of fluctuating platform policies or algorithmic visibility.

In India, this trend is reinforced by the emergence of creator-focused startups like Monk Entertainment and One Impression, which are helping creators move beyond brand collaborations into intellectual property creation, content licensing, and venture building. The evolution is transforming creators from individual talent into scalable media and business entities.

Relevance, Not Reach, Drives the Future

The metrics of success in the creator economy are shifting. Where once a million followers guaranteed influence, today it guarantees very little without a trusted relationship with the audience. A creator with 50,000 dedicated followers can often drive more meaningful engagement and sales than one with a million passive viewers.

This shift towards relevance is also being noticed by investors. Venture capital firms and creator funds are increasingly backing “creator-led brands”, betting on authenticity and community-driven commerce as the next frontier of digital business. The idea is simple — audiences that trust a creator are far more likely to buy from them than from a faceless corporate brand.

Going Deep, Not Wide

The earlier influencer model thrived on scale — more followers, more views, more deals. But that strategy is showing diminishing returns. The new wave of successful creators are focusing on depth: deeper engagement, deeper trust, and deeper integration between content and commerce.

This transformation reflects the broader maturity of the digital ecosystem. The market no longer rewards creators who appeal to everyone; it rewards those who understand someone deeply. From edtech mentors and finance educators to niche tech reviewers and sustainability advocates, the most successful creators are the ones who have found — and owned — their niche.

The creator economy is entering its second phase — one defined by ownership, innovation, and entrepreneurial thinking. The creators who survive and thrive in the next three years will be those who evolve from being influencers to becoming founders.

They will build businesses that leverage their personal brand but do not depend entirely on it. They will invest in data, technology, and scalable products rather than short-term endorsements. They will measure success not by the number of views but by the sustainability of their ventures.

This transformation is not the end of the influencer era but its natural progression. The same platforms that once fueled the rise of influencers are now empowering them to build companies, not just content.

The next three years will define who adapts and who fades. As brand collaborations decline and audiences demand more value, one thing is certain — the future of the creator economy belongs to those who think like entrepreneurs.