“Unveiling the Hidden Costs: How Writers Are Being Shortchanged by Major Platforms”
We’re often told that the internet has democratized publishing, offering writers the chance to connect directly with their readers and break free from the so-called gatekeepers. But is that really the case? Or have we merely exchanged one set of middlemen for another—only this time, they’re more powerful and less accountable? In this thought-provoking article, we delve into the ramifications of investor-driven demand for exorbitant returns, and how those demands can create a ripple effect that ultimately impacts the creators. From the poignant journey of author Joe Simpson to the cold, hard realities faced by today’s writers on platforms like Medium, we’ll explore the hidden costs of the creator economy—and why it may not be as glamorous as it seems. Buckle up, because you’re in for an eye-opening ride! LEARN MORE.
When investors demand massive returns, guess who pays the price
In 1988, first-time author Joe Simpson landed a contract with Random House. He was ecstatic — until the book performed so poorly everyone soon forgot about it.
Ten years later, Simpson received an urgent call from his agent. Touching the Void was not only back in print, but Random House wanted a second edition immediately. Channel Four had just bought the rights for a film adaptation, rocketing this previously obscure title onto the New York Times bestseller list, where it remained in the #1 position for over three months.
Long after Simpson lost all hope, everything changed. The newly-founded Amazon.com promoted Touching the Void to a handful of readers, and these people ended up writing rave reviews. Gradually, sales increased until the book happened to land on the desk of a television producer.
As this algorithm-driven success story made headlines, tech journals began making predictions about how the Internet would usher in a golden era for writers. At least, that’s what everyone thought.
Caught in a trap of our own making
Remember when the creator economy was supposed to eliminate middlemen? Thanks to the democratization of publishing, you can now cut out traditional gatekeepers and connect directly with your audience!
But twenty years after Simpson’s resurrection story, we’ve simply replaced old middlemen with new, more powerful intermediaries. These platforms position themselves as neutral infrastructure, but they’re anything but neutral. They control the algorithms that determine who sees your work. They own the relationship with your readers. They set and change the terms of monetization.
I’ll never forget the day when Medium quietly reported a $31 million investment to the SEC, bringing their total funding to $163 million. Almost simultaneously, they began defunding publications. Rather than rewarding the writers who had built the platform’s value, they used the funds to inflate share prices by purchasing three companies.
This pattern isn’t accidental. It’s the predictable outcome of venture capital’s influence on…
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