Our previous article delved into an exciting topic: leveraging the Internet’s potential to propel business growth. Among the four leverages we explored, we dedicated a significant section to the pivotal role of the audience in this revolution.
If you’d like to revisit that enlightening article, click the link to access it here
Now, let’s embark on a deeper exploration of audience monetization. Picture it as a ladder with six levels, each representing a pathway to transform your audiences into profitable assets. At each level, you’ll discover unique opportunities to maximize your earnings, with profit percentages varying based on the stage you’ve reached. It’s an exciting journey that can take your business to new heights. So let’s dive in and uncover the secrets of audience monetization together!
It’s important to acknowledge that some creators may find themselves stuck at one level, or they may transition to another level but struggle to progress further. However, it’s crucial to maintain a clear vision of what is truly possible and what we aim to achieve on this journey. That’s precisely why I crafted this article: to inspire a long-term vision by presenting the vast array of possibilities that exist out there.
Level 1: AdSense and Platform Passive Ads
I’m sure most of you are already familiar with this awesome opportunity. It’s all about partnering with platforms like YouTube or Google and getting paid for featuring their customers’ ads alongside your own products, videos, or creations.
This level brings with it a bunch of advantages, and the best part is that you don’t need to be a business whiz. Simply create videos and share them on platforms like YouTube. Once you reach a certain number of views, you become eligible for monetization. YouTube and Instagram are just a couple of platforms that will compensate you based on the number of ads views your content generates.
What’s great is that you don’t necessarily need a fan base that directly pays you to enjoy a stable income. Of course, having dedicated fans is a huge plus, but it’s not a requirement. You also don’t have to worry about selling products or being a master creator. There’s no need for complex infrastructure or building a big team either; it’s a straightforward business model that allows you to earn without the extra hassle.
Now, you may wonder, “Why is this Level 1? Well, let’s set realistic expectations.
While Level 1 of audience monetization may not catapult you to millionaire status, it has the potential to generate a significant income in the thousands. Consider it a starting point, a foundation upon which you can build your empire.
Level 1 represents a low-level audience monetization approach where you can embark on a one-person business venture. It’s a perfect starting point for aspiring creators and entrepreneurs who are ready to unleash their creativity and begin generating revenue from their audience.
Level 2: Sponsors and custom ads
This is the exciting phase where you can start collaborating with other businesses. Imagine having the opportunity to say, “Hey, I have a dedicated audience with a significant number of monthly visits. By advertising your product on my channel, you can greatly boost your chances of making sales. Plus, my audience is highly targeted, and the best part is, my prices are much more affordable than running traditional Google ads or other alternatives.”
Not only that, but you can also explore affiliate partnerships with established businesses. This opens up even more avenues for monetizing your audience. By promoting their products or services, you have the potential to bring in additional income streams using the power of your loyal following.
In contrast to Level 1, Level 2 of audience monetization requires a certain level of business knowledge. However, numerous advantages make this level worth exploring. For starters, you don’t need a dedicated fan base that directly pays you to generate a stable income. This opens up possibilities for earning revenue from a wider audience base.
Another advantage is that you don’t necessarily need the ability to create your products or have a fully established business infrastructure in place. With just one or two personal assistants, you can successfully operate at this level. Scaling your business doesn’t require a massive team; it can be achieved with strategic delegation and support.
Now, you might be curious as to why Level 2 is classified as such.
Well, let’s dive into the reasons. At this level, there’s immense potential to make millions, although it’s important to note that you may not always receive the full value of what you deliver. It’s a trade-off in the dynamic world of audience monetization.
As you navigate Level 2, it’s essential to recognize that trends and preferences can shift and that audiences may change their interests over time. There may come a point when your relevance diminishes or you find yourself off-trend. When this occurs, brands might no longer be willing to pay you for your time and promotional efforts.
Keep in mind that the digital landscape is ever-evolving, and it’s crucial to adapt and stay ahead of the curve. Continuously reinventing yourself, exploring new avenues, and engaging with your audience will help maintain your relevance and sustain long-term success.
Level 3: Information Products
At this level of audience monetization, you have the opportunity to leverage your audience’s trust and connection with you to sell your very own products. It’s a powerful way to capitalize on the tribe you’ve built and provide valuable solutions to their fears, frustrations, and areas where they need assistance.
By deeply understanding your audience’s needs, you can develop information-based products that cater specifically to their desires and challenges. These products can take the form of ebooks, online courses, guides, or any other knowledge-packed resources that offer practical advice and actionable insights.
The beauty of information products is that they allow you to share your expertise and make a meaningful impact on your audience’s lives. You become their go-to source for valuable information, and they are more than willing to invest in your offerings.
Not only does this level provide an avenue for generating additional revenue, but it also solidifies your position as an authority figure within your niche. Your audience will recognize your expertise and turn to you for guidance, further strengthening the relationship you’ve cultivated.
Level 3 takes us into a whole new realm of audience monetization. Unlike Levels 1 and 2, this level requires a solid foundation of business knowledge, infrastructure, and even a team to support your endeavours. It’s an exciting phase that brings unique opportunities and challenges.
Now you might ask, what makes this level 3?
Well, welcome to the higher-level game! In Level 3, you have the incredible opportunity to build something once and sell it many times over. This is the realm of recurring revenue, where your products continue to generate income even while you sleep. It’s a balanced approach that offers moderate work with a moderate return on investment.
However, it’s important to be aware of a few challenges at this level. Information products, while lucrative, can have their downsides. Over time, they may degrade or become outdated. Very few courses or communities can stand the test of decades without requiring updates or adjustments. Additionally, there’s always the risk of others copying your ideas or content, and you may find yourself labelled as the dreaded “guru.”
Now, we’re entering the exciting realm of higher levels. Anyone with even a modest audience must pay close attention and start contemplating how they can elevate their business to these upper echelons of success.
You might initially believe that reaching these higher levels is out of reach for your business, but rest assured, there are always possibilities and partnerships waiting to be discovered. These opportunities can be leveraged to scale your business and propel it to new heights.
It’s important to maintain an open mind and explore innovative ways to expand your reach and impact. Seek out collaborations, strategic alliances, and joint ventures that can help you amplify your efforts and accelerate your growth. By aligning yourself with the right partners, you can tap into their resources, expertise, and audience to achieve remarkable results.
Level 4: Real Products
Welcome to the realm where you can leverage your content and audience to sell tangible, real products. The beauty of venturing into this space is that it holds immense potential for generating substantial revenue, with the possibility of reaching hundreds of millions of dollars. Unlike information products, real products do not degrade over time, making them a solid investment for long-term success. These ventures are not just jobs but actual businesses that can be sold or transferred.
The exciting part is that you have the opportunity to build a robust business with tangible assets that can be valued and sold multiple times your initial investment. This means that as your business grows, you can position it for a lucrative exit, reaping substantial profits.
The best part? You won’t be tied to your business all the time. You can detach yourself from the day-to-day operations, allowing the business to thrive independently even without your constant presence.
But why is it still considered Level 4?
It’s because even though the multiples may not soar to astronomical heights, the financial success you can achieve is still truly remarkable. Level 4 opens doors to unimaginable possibilities and serves as a gateway to substantial wealth.
Creating an ancillary brand and product set allows you to expand your business horizons and tap into new markets. By diversifying your offerings, you can cater to a wider range of customer needs and preferences, leading to multiple streams of revenue. This multifaceted approach provides an avenue for substantial growth and profit.
Level 5: SaaS or Tech Products
At this level, you’ll find people who are making serious moves. They’re involved in various activities like running AdSense, creating information products, building massive audiences, and even launching their own tech companies worth millions of dollars.
These savvy players understood early on that if they played their cards right, they could outshine their competitors and rake in a fortune. They realized that by investing in other creators’ audiences, they could grow their businesses exponentially. Essentially, they used influencers to promote their products or company.
They strategically partnered with both small and large accounts that had established audiences to generate leads. They discovered a powerful method to build a mega lead funnel, directing all the attention and traffic towards their products or company.
Why do we call it Level 5?
Because in the future, some of the most prominent tech companies will be founded by creators themselves. It’s a next-level game that demands a combination of capital, intelligence, talent, and expertise, but the rewards are incredibly lucrative.
Imagine being part of this sophisticated game where creators are not just influencers but also visionary entrepreneurs. They harness their creative skills and combine them with business acumen to build tech companies that revolutionize industries and shape the future. It’s a challenging yet thrilling endeavour that holds immense potential for success and financial prosperity.
Level 6: Licensing, Royalties, and Investments
Level 6 takes creators to a whole new level of success as they form exclusive alliances and establish their exclusive clubs. Let’s imagine this scenario: a bestselling author starts a book club and offers their latest book to millions of enthusiastic readers. Now, picture them approaching someone like John with an exciting proposition: “I want to promote your new book in my club, and I’ll receive a commission for every copy you sell.” By paying a small fee, they gain complete rights to the product. As the books gain popularity and potentially even get adapted into movies, the clever creator retains the rights, sitting back and collecting continuous royalties.
But this strategy isn’t limited to books alone; it can be applied to a wide range of products, for example, beauty products. The key lies in smart creators identifying promising products or content and securing the rights to them. They can then leverage their audience and network to promote and sell these products, generating ongoing profits. By establishing strategic partnerships and investing in the potential success of these products, creators can secure a steady stream of revenue and leave their mark in the industry.
Essentially, creators can form a collective of fellow creators, acquire their products at a low cost, advertise them to sell at a higher price, and collect commissions. They can even buy entire product lines and resell them without paying commissions. The beauty of this approach is that there’s no need for product inventory or a large employee base. It’s like having money floating in the air, all thanks to licensing, royalties, and rights.
Level 6 stands as the pinnacle because it attracts the next wave of top-tier creators who are ready to dominate the scene. It’s no wonder that even Kim Kardashian herself ventured into this realm by launching a private equity fund—an exclusive collective investment scheme.
Why?
Because this level offers unparalleled opportunities for generating substantial returns on investment.
Creating investment portfolios, securing royalties, and negotiating licensing deals become the name of the game at Level 6. The potential for financial success is immense, making it an enticing space for ingenious creators. Private equity companies have been known to outshine even venture capitalists when it comes to generating massive profits.
At this level, creators have the power to diversify their investments, strategically allocate funds, and tap into lucrative opportunities. By carefully curating their investment portfolios, they can unlock multiple streams of revenue and build long-term wealth. The allure of royalties and licensing deals lies in their ability to generate ongoing income without the need for constant active participation.
It’s a way to secure a continuous flow of money while creators focus on other creative endeavours.
