The Great Rotation

The next act for the creator economy will be about building new institutions from the ground up.

AuthorAuthor

Scott Van Den Berg & Jordan Wolfe
November 19, 2024

Happy Tuesday Friends,

In today’s piece we discuss:

  • independent media’s recent checkmate

  • the demand for truth

  • embedded incentive structures in our institutions

  • scientific fraud in academia

  • the great rotation into creator economy 2.0.

Independent Media’s Check Mate ♟️ 

The recent U.S. presidential election marked a watershed moment where independent media firmly called checkmate over legacy media. President Trump, along with Vice President J.D. Vance, took to popular long-form podcasts, connecting with audiences in an unfiltered, direct way that traditional media couldn't match. Some eye-opening statistics from Trump’s three-hour interview on the Joe Rogan podcast:

Kamala Harris appeared on a few podcasts during the campaign trail, but largely shied away from long-form, unfiltered conversations. She did go on, "Call Her Daddy," one of the top podcasts in the US, where she discussed topics like reproductive rights and women's empowerment. However, her engagement fell way short of Trump’s with a reported 800,000+ views.

Trump’s strategy of connecting directly with audiences through this medium, particularly young male voters, shows that alternative media is now significantly shaping public opinion and greatly influencing political outcomes. While it's an oversimplification to attribute Trump's election victory solely to independent media, its impact, especially among younger demographics, is undeniable. This significance was highlighted during Trump's acceptance speech, where both he and UFC President Dana White acknowledged several podcasters as instrumental to their success. White specifically thanked personalities such as the Nelk Boys, Adin Ross, Theo Von, "Bussin' With The Boys," and "the mighty and powerful Joe Rogan," emphasizing their critical role in the campaign's outreach and engagement strategy.

Dana White, CEO of UFC, gives a shout-out to podcast hosts as part of Donald Trump’s acceptance speech.

The Trump campaign's decision to focus on this medium will forever change campaign engagement.

The Real Story: Seeking the Truth 💡 

This newsletter isn’t about the election—it’s about something much deeper: seeking the truth. People no longer trust our institutions and are craving reliable sources that deliver truthful information in an open and transparent way. One of the greatest advantages of the Internet is its ability to make information more accessible. This has created a better-informed public that is demanding more accountability from their governments, institutions, and corporations.

But, the challenge for large organizations is they are often weighed down by deeply embedded incentive structures. At its core, an institution is just a collection of people, and people tend to act in predictable ways, driven by incentives. They operate within systems that prioritize personal gain and continuity over honesty and transparency. And, the strongest incentive is the good ‘ole 💵 . If we play this out, it goes something like this:

Traditional media companies are beholden to their advertisers.
The consequence: media companies are required to follow guidelines and rules advertisers may impose on their reporting and editorial coverage.

Corporations are required to maximize returns for their investors and shareholders.
The result: management is incentivized to take a grow at all costs mentality.

Academic institutions rely on government funding for their research dollars.
The result: researchers and universities are incentivized to show ground-breaking results to get more funding.

Now, the bright side of this is that the great rotation has begun. The 2024 U.S. presidential election was just the culmination of what has been building over the past 15+ years. People are rotating towards individuals and small teams delivering independent, honest, and objective information in pursuit of the truth. 

We believe that over the next 20 years the creator economy will educate us, entertain us, and influence us on who to trust and what products to buy in every aspect of our lives. Media is just the beginning. Our institutions are crumbling in front of our eyes and completely new ones are forming. If you don’t believe us, read on.

Fraud Culture in Academia 🙈 

We've all heard occasional mentions of “research fraud” in academia, but a recent article we read highlighted just how widespread the issue has become, and it was truly eye-opening. Fraud has emerged as a significant concern, especially across scientific disciplines where prominent figures and so-called "experts" have been implicated in such misconduct.

The article Academic Culture of Fraud sheds light on the alarming issue of research fraud in scientific studies, with a particular focus on Alzheimer’s disease. It highlights a case of fraud that redirected massive amounts of funding and research efforts based on false information, potentially delaying progress toward a cure. The article also examines other researchers accused of similar misconduct and critiques the inability of institutions like universities and scientific journals to effectively identify or address these issues. Consequently, some argue that genuine truth-seeking may increasingly shift away from traditional academic systems toward more independent and online communities. This trend is already evident, as a growing segment of the intellectual elite have moved away from established institutions in favor of self-publishing on the internet.

Here is a excerpt from the article that captured our attention:

“From the 1500s through the early 1700s, most of the world’s best scientific work was done by individual natural philosophers in their private capacity. They were in dialogue not through formal academic institutions but through loose informal networks of peers, like the “Invisible College” and the “Republic of Letters.” It was in these distributed conversations that modern science was developed and codified, and made its first major discoveries, establishing the intellectual authority of its practitioners. Over time these networks were gradually folded into the university system and to institutions like Britain’s Royal Society, which enshrined their intellectual legitimacy and preserved their epistemic virtues for centuries.”

Source: Palladium Magazine, Academic Culture of Fraud.

This eye-opening piece reveals how deeply ingrained the culture of fraud has become across nearly every aspect of society that now even top academic researchers at leading universities are turning a blind eye to protect their careers and reputations.

Conclusion 👊 

The recent U.S. presidential election and the article titled, “Academic Culture of Fraud” exemplify why we are going to experience a, “great rotation” towards the creator economy over the next decade. This shift isn’t about TikTok dances or viral cat videos—it’s about constructing new institutions from the ground up, all driven by humanity’s universal pursuit: the truth. As consumers increasingly demand transparency and integrity, creators are poised to reshape every aspect of our economy and society, extending even into critical fields like scientific research.

❝

Yet, a major hurdle persists. There is a lack of infrastructure and channels to make this transformative work accessible and understandable to the wider public. Without these support systems, the creator economy’s potential to form new institutions and drive large-scale change will remain limited.

As markets and capital simply follow consumer demand, the great rotation will be inevitable. It marks the beginning of an era that promises greater transparency and truth for society. Welcome to the creator economy 2.0. 

Have a great week and remember to Go Direct!

Jordan & Scott

We are putting this newsletter out for free every two weeks. Hit the subscribe button below and get it straight to your inbox!


Reply

or to participate.