What has been most important to our Beyond Lost venture is what we call "owning the process." Instead of outsourcing aspects or elements of our business to third parties or agencies, we own and operate ourselves. We all contribute to the designs, work directly with manufacturers, ensure quality control, manage relationships with our creator ambassadors, analyze all backend analytics and finances, and work with social platforms directly on best practices and optimizations (just to name a few). While it was challenging to build this infrastructure, it has been a blessing to understand the ins and outs of building a modern-day "creator-led business.”

The two Brians work with a handful of creators who have amassed millions of fans on TikTok, such as Alyssa McKay, IAmJordi, and Hannah Montoya. They prefer to keep their roster small, focusing on a few creators they believe can succeed in areas of entertainment beyond social media. "I just don't think that you can really break people into mainstream, globally, if you're working with too many people," Nelson said.

The Network Effect helps its creators tap into in-app monetization opportunities, such as TikTok's new creativity program that pays users for longer videos. The company also works with creators on non-social media projects, including co-launching a clothing brand with McKay and supporting her work on a scripted podcast called "The Royals of Malibu."

Together, The Network Effect and Alyssa are working in close partnership on what they define as the new 'true social shopping experience.' “We have taken the authentic approach to what is working on social and layered it into the retail experience,” explains Brian Mandler, co-founder of The Network Effect and Beyond Lost. “We have been fans of streetwear for years, and we noticed that there was room for evolution and change. After discussing with Alyssa at length how we would approach it, we knew we could create the right products—with direct feedback—and at the right price points. Alyssa emphasizes the importance of this connection. “We incorporate direct audience feedback in all of our designs, as well as the fit of our pieces,” she says. “Beyond Lost includes my audience in ways that have built a true connection. Via Snap, we truly talk with our audience, versus to them.

As an example of how text messaging can bolster creators' commerce businesses, take Alyssa McKay and her own clothing brand, Beyond Lost. The creator who has made more than $1 million from Snap's mid-roll ad program has signed up "tens of thousands" of people to her text messaging list, according to Brian Mandler, co-founder of The Network Effect, the talent management firm that represents McKay.

More to the point, though, is the text messaging list's down-funnel performance. Links shared to the messaging list have an 85% average clickthrough rate, and its returning customer rate is higher than 60%, according to The Network Effect co-founder Brian Mandler. "Our approach has been true social shopping: build a community on social and drive them into the shopping experience. It's a little bit different than generally creating content and tagging products that may or may not work," said Mandler.

Brian Mandler and Brian Nelson, co-founders of the Network Effect agency, which led the Shorts experiment with clients McKay, Feeney and Montoya, say building out a sizable YouTube subscriber base is the “gold standard” for creators aiming to make a living.

“Madison Avenue, at large, really understands the value of a YouTube following and understands the value of a YouTube view,” Mandler, a former Google and YouTube executive, says. “There is only benefit to having a really large YouTube following.”

“I’m on this Snapchat mid-roll [ad] program, which I’ve been part of since last May. I’ve made over a million dollars from Snapchat mid-roll,” McKay said in the second episode of the Digiday Podcast’s four-part series on short-form vertical video creators. She added, “Snapchat changed my life entirely.”

Last week, Snap expanded that mid-roll program to more creators who can receive a share of revenue from ads running against their Snapchat Stories. TikTok and YouTube Shorts have similarly stood up ad revenue-sharing programs for short-form video creators in the past year, but neither platform has yet had much to show for how much money creators can make directly from their platforms. With 2 million followers and an average of 2.5 billion monthly views on the platform, McKay is showing that the story may be different on Snapchat.

Few know the transformative power of purpose and resilience as intimately as Alyssa McKay, who lifted herself from a life spent in foster homes to a career as the co-founder of streetwear brand Beyond Lost and lifestyle creator with millions of followers.

“It’s all been rather surreal,” Alyssa noted as we retraced the path she had taken to where she is today. “I’ve never had a backup plan for entrepreneurship. I know that what covered my rent last month might not pay out another dime next week, and the way I play it safe is pushing myself by constantly taking risks and investing in myself and my business,” Alyssa explained.

What sets The Royals of Malibu apart isn’t just its success—it’s how that success happened. Unlike Hollywood’s big-budget audio dramas, this one soared to #1 on Spotify’s US Fiction Chart with no traditional advertising. Instead, it had McKay and her team at The Network Effect’s ability to mobilize millions. It’s proof that creator-led marketing is already redefining the entertainment landscape.

“Social media has truly become the catalyst for success,” she says. “I am very proud that I have been able to cultivate a global audience & community that connects with me. [The audience] is incredibly supportive. It’s #1 in over 100 countries around the world—mind-blowing. It truly shows the power of new media.”

The company, like Patreon, helps creators make money by charging fans for access to exclusive content, such as video chats, one-on-one calls, and direct messages. Creators typically keep about 90% of the money. As of February 2024, Guo said, Passes had paid out tens of millions of dollars to about 1,000 creators.

Alyssa McKay, a lifestyle influencer with more than 10 million followers on TikTok, uses Passes to connect directly with her fans and share exclusive content, such as a tour of her new house.

“It allows me to create a unique and specialized experience with my audience,” McKay said. “I was so surprised and moved by how many people subscribed just to see the first look of me being a first-time homeowner.”

NYC’s trendsetting content creator, Gianna Christine, is embracing her single era—going on dates, dancing with her girls, and focusing on herself. This Valentine’s Day, she’s proving that being single in the city is something to celebrate!

“I always celebrate Valentine’s Day, whether I’m single or in a relationship! I’ll take any excuse to get dressed up and go out in the city. My best friend and I share our “want to try” restaurant lists, so we are treating ourselves to a nice steakhouse we’ve been dying to try. Then we’ll see where the night takes us!”

“I love being single! I think it’s so much more fun to get to know people without any pressure, and you can figure out what you’re looking for. When I’m single, I have more free time, so I feel like I’m accomplishing more, too!”

McKay now makes “millions” of dollars posting content across various media platforms. She has 10 million followers on TikTok; her YouTube channel has 1.4 million subscribers. Her Snapchat account — where she’s her most authentic self, not a carefully crafted character — attracts a staggering 2.5 billion views a month. There, she chronicles basically every waking moment on her page, posting between 150 and 250 verité videos a day, with ads spliced in between.

Her stardom has blazed beyond social media, too. McKay voices the main character in the fiction podcast “The Royals of Malibu,” based on the 2016 YA romance “Paper Princess.” (She’s also an executive producer on the series.)

If you’ve seen Hannah Montoya‘s videos, you probably know her as fast-talking, quick-witted, wined-up New Jersey aunt Jackie. Jackie–with her hallmark Jersey accent–is Montoya’s flagship character. The one that sent Montoya viral overnight, and in the past three years, has helped her build an audience of 5 million followers across TikTok and YouTube.

We know 5 million makes us a little late marking Montoya as a millionaire, but we’re making up for that a bit by celebrating her achievement with a different kind of millionaire. The sort that lives in Malibu.

Montoya and McKay are both repped by The Network Effect, and became fast friends. McKay ended up coaching Montoya for a Malibu audition, and she was cast in a part for Season 2.

Last week Snap expanded that mid-roll program to more creators who can receive a share of revenue from ads running against their Snapchat Stories. TikTok and YouTube Shorts have similarly stood up ad revenue-sharing programs for short-form video creators in the past year, but neither platform has yet had much to show for how much money creators can make directly from their platforms. With 2 million followers and an average 2.5 billion monthly views on the platform, McKay is showing the story may be different on Snapchat.

“I definitely make the most on Snapchat. There’s revenue streams of course from YouTube and the TikTok Creator Fund, but Snapchat definitely has been the lion’s share of my revenue this past year,” she said.

Alyssa McKay, 22, is a creator who believes in staying in touch with her fans often. Say, multiple times an hour. 

Her TikTok account now has 10 million followers, but she’s mostly focused on posting disappearing Snapchat Stories about her daily life, such as her morning routine. McKay posts about 100 times per day on Snapchat, where she’s racked up 2 million subscribers and about 2.5 billion (with a b) views per month. 

“I never miss a day. A lot of people on Snapchat still aren’t vlogging. It’s mostly selfies or whatever. But I really talk with my audience and engage with them. It’s different from what they typically see,” McKay said. “I’ve been posting so much. Some days I post like 150 times and I have to slow down.” 

All creators don't like TikTok's branded mission money. They can negotiate and ensure that they are compensated for their work if they have amassed millions of followers.

Brian Mandler, co- founder of The Network Effect, said that they wouldn't allow their people to do that.

The program requires talent to create content for a campaign without a guarantee of being selected or paid. Charley Button is a talent manager at Select Management Group. Top creators who are in high demand get offers without having to apply. It's hard for branded missions to compete with a standard branded content deal.

The 23-year-old doesn't just post on the app to connect with her roughly 2 million subscribers. Uploading Snapchat stories can be lucrative for influencers like McKay since Snap Inc., the app's owner, began in early 2022 sharing revenue from mid-roll ads on stories with users. McKay said that since joining the program — available to verified users called Snap Stars — she's earned "well over a million dollars," a figure confirmed by a source familiar with the matter. Compared to YouTube videos, or even content for short-video platforms like TikTok, Snapchat stories require less effort to produce.

Alyssa McKay used to work part-time at a frozen yogurt store in Portland, Oregon, making minimum wage to cover her college tuition. Now the 22-year-old earns more than US$100,000 (RM440,450) a year on the short-video platform TikTok.

Brands like Coach, Netflix and Amazon Prime Video pay up to reach her nine million followers, mostly teenage and pre-teen girls who wouldn’t dream of visiting Facebook.

“TikTok definitely 100% changed my life,” says McKay, who recently moved into her first apartment with her wiener dog.

"We've done the due diligence," Mandler said. "We always joke and say we are likely some of the only adults in the room when it comes to this world of short-form."

"It's really like part-life coach, part-business advisor, and part-friend," Nelson added of their approach. "Every day we chip away at our clients' long-term goals while we're managing them on the day-to-day, cultivating relationships at the platforms, and helping them hone their crafts."

“There is this new generation of creators that are now starting to see success on YouTube … there is an insatiable appetite to build audiences. This new creator ecosystem, there is a long-term safety with YouTube that not only keeps them coming back, but also excites them in building an audience,” Mandler says.

“They did a great job to make sure that the creator community understood what was going on and their position, that they were full-steam ahead,” Brian Mandler, the co-founder of The Network Effect agency, said. The agency’s other co-founder, Brian Nelson, said that if anything, the company continued to grow despite the uncertainty of its future in the U.S. “If you really look at what was happening, then and now, they have not skipped a beat,” Nelson said. “They just kept developing; they kept moving on.”