Joshua D'Costa
Growth & Marketing
Mar 19, 2025
|
5
min
Digital creators like YouTubers, podcasters, online educators and digital artists are at the forefront of the creator economy, shaping how we consume content and learn, redefining what it means to build a career online. The global creator economy is valued at over $191 billion, and by 2030, it is expected to surpass $525 billion.
The nature of this industry is that it removes all the barriers, and you can grow your audience and business globally
However, with great opportunities come great challenges, as this expansion can bring various challenges. Handling local tax obligations, complying with VAT regulations, and safeguarding against fraud can make the process more complex.
This is where a Merchant of Record (MoR) comes in. An MoR handles the complexities of running an online business, allowing creators to focus on creating and selling.
In this blog, we’ll explore how digital creators can benefit from an MoR and why Dodo Payments is the perfect partner for your creative journey.
What is a Digital Creator?
A digital creator (or digital content creator) is someone who produces and shares content online, often building a community around their work. These creators come in many forms:
Content creators: Bloggers, YouTubers, podcasters, and social media influencers.
Artists and designers: Digital illustrators, graphic designers, and photographers.
Educators: Online course creators, coaches, and tutors.
The diversity of digital creators is what makes the creator economy so vibrant. Whether it’s through storytelling, art, education, or entertainment, these creators are driving innovation and engagement in the digital space.
How Digital Creators Make Money
The creator economy offers a variety of revenue streams for digital creators:
Creators mostly generate income by selling digital products such as e-books, online courses, and digital art directly to their audience. This allows them to maintain full control over pricing and distribution.
Additionally, subscription-based platforms like Patreon enable creators to offer exclusive content to paying members, ensuring a steady revenue stream.
Another common monetization method is collaborating with brands through sponsorships and promotional deals, where creators get paid to showcase products or services.
Affiliate marketing is also a lucrative option, allowing creators to earn commissions by recommending third-party products to their audience.
While these opportunities are lucrative, they come with challenges. Managing payments, handling taxes, and ensuring compliance with global regulations can be daunting. Many creators turn to platforms like Gumroad to simplify the process, but these platforms have limitations.
The Limitations of Platforms Like Gumroad
Platforms like Gumroad are a great starting point for selling digital products, providing access to an existing audience and handling sales tax.
Creators can focus on producing content such as courses, e-books, music, and subscriptions without worrying about administrative tasks.
In the early stages, this setup helps sellers test their ideas and build their business with minimal hassle.
As sales grow, many users seek alternatives for greater customization, branding flexibility, and a fee structure that favors high-volume sellers.
Gumroad charges a steep 10% to 30% per transaction, plus additional card processing fees, which can significantly reduce profits, especially for businesses selling at scale.
These limitations highlight the need for a better solution, one that empowers creators to take control of their business while handling the complexities of payments and compliance.
Why a Merchant of Record (MoR) is the Best Option
For digital creators, an MoR offers several key benefits:
It handles global regulations and tax laws, ensuring creators stay on the right side of the law.
It reduces disputes and protects revenue by managing chargebacks effectively.
The MoR uses advanced tools to detect and prevent fraudulent transactions.
It automates tax calculations and filings, saving creators time and effort.
Billing and invoicing are handled professionally, providing customers with accurate and compliant receipts.
Flexible payment options and automated billing cycles improve cash flow and customer retention.
A Merchant of Record gives creators greater control and flexibility while providing comprehensive support for global operations.
Dodo Payments: The MoR for Digital Creators
Dodo Payments ensures adherence to international regulations, so creators can sell to a global audience with confidence.
Easy to use with existing platforms and websites.
Supports 25+ local payment methods, ensuring seamless transactions for customers worldwide.
Advanced security measures to protect against fraudulent transactions.
Automates tax calculations and filings, reducing the burden on creators.
With Dodo Payments, creators can take control of their business while leaving the complexities of payments and compliance to us.
Conclusion
A Merchant of Record (MoR) like Dodo Payments offers a comprehensive solution, empowering creators to focus on their craft while we handle the complexities of running an online business.
Don’t let compliance and payments hold you back. Choose Dodo Payments as your Merchant of Record and take your creative business to the next level.
