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Me Passions

How Social Media Influencers Make Cash – Rolling Stone

by golfinger007
29th April 2023
in Lifestyle
0
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In the early days of social media, people scoffed at the idea that posting content could be a way to make a living. Today, the creator economy has exploded, with YouTube, TikTok, and OnlyFans stars earning as much money as bankers, doctors, and lawyers. “[The industry] is at the point where there are more road maps, there’s more credibility,” says Samir Chaudry, one half of Colin and Samir, whose YouTube channel features creators going deep on their craft. “It’s an honest, real career.” So how, exactly, does it work? Chaudry and his partner, Colin Rosenblum, break it down.

ADVERTISING
Who It’s For
To join a platform’s “partnership program,” which allows it to play ads against your content, you’ll need an established channel — on YouTube, that’s at least 1,000 subscribers and 4,000 hours of content viewed in the past 12 months. 

How It Works
Ads run before, during, or after content. The platform handles the negotiation with advertisers — what content their ads will run next to, how much money they’ll pay, etc. The creator simply gets a check at the end of the month.  

Pros
Because the platform handles the client, you won’t have to sit through pitch meetings with advertisers, take any feedback from them, or be bound by their sensibilities. And if you’re getting a lot of views, “the money just rolls in,” Chaudry says. 

Cons
It works best with a lot of views, and “getting to that scale can be difficult for creators,” Chaudry says. On YouTube, you’re pulling in anywhere from $3 to $20 per 1,000 views, but on TikTok, even a million watches will only earn you a measly $20 to $40. 

Verdict 
Great if you’re a megacreator like MrBeast — who reportedly can get more than a billion views in a single month — or good for a smaller one just trying to bring in a few bucks a month. If you’re looking to make this a career, you’ll want to diversify. 

SPONSORSHIPS
Who It’s For
While it’s a no-brainer for a creator with a niche audience (say, a culinary influencer pairing with a cookware company), sponsorship is good for anyone because it guarantees income and proves brands are willing to pay for your work.

How It Works
Brands find a creator who is known and respected among their target demographic, and pay them for a certain number of videos or posts. For an influencer with around 100,000 followers, that might be a couple thousand dollars per post.

Pros
If the partnership makes sense, product integration can be seamless. “When [a creator] has a natural, fitting sponsorship, it feels like a part of the video I want to watch, not one I want to skip,” says Chaudry. Recurring deals can provide financial stability.

Cons 
You now have a paying client to answer to — as well as contracts to sign and obligations to fulfill. Also, you’ve hitched your wagon to another entity, so if a brand ends up in hot water (see BetterHelp or FTX), you may end up taking some heat.

Verdict 
Hard to come by but worth it. Earlier in their career, Colin and Samir had to juggle several contracts, but now, Rosenblum says, “instead of working with 10 different advertisers, we’re down to three or four really significant partnerships.”

SUBSCRIPTIONS
Who It’s For
Creators with a dedicated following. Chaudry compares its growing success to the unbundling happening in streaming: “We pay for HBO to watch Succession. We pay for Apple TV+ to watch Ted Lasso. We’re seeing audiences are willing to pay.”

How It Works
Fans follow their favorite creators to platforms like Substack, Patreon, or OnlyFans and pay a monthly fee to unlock content. Each platform has a slightly different setup and will generally take a fee, anywhere from five to 50 percent.

Pros
Income security. “If you have 1,000 subscribers paying you $10 a month, you can make a good living, and if one subscriber cancels, it’s not a huge impact on revenue,” explains Chaudry — while losing one sponsor could upend your income. 

Cons
It takes time, dedication, and talent to develop an audience that is willing to pay for your work. You also have to strike a balance — offering enough premium content while producing enough free tidbits to always be enticing. 

Verdict 
If your audience is passionate enough, subscriptions give you independence. Rosenblum points to comedian Andrew Schulz, who has about 17,500 patrons and makes about $82,000 a month. “[It’s] a diehard audience,” he says.

PRODUCTS
Who It’s For
A mid- to high-level creator with devoted fans and a product that’s natural for them to promote. “Emma Chamberlain was drinking coffee in every vlog,” says Chaudry. “When you swap [in] Chamberlain Coffee, the content has not changed.”

How It Works
To do this right, you’ve got to approach an established brand and harness its infrastructure, or poach C-suite execs who know what they’re doing. MrBeast, for example, hired a former president of a protein-bar brand to run his snack line Feastables. 

Related

Pros
When it comes to apparel, not only are you directly monetizing your brand as a creator, you’re also getting free advertising space. As for products like food and drink, they’re easy for fans to  “share with a friend,” says Chaudry.

Cons
Launching a company that sells physical products requires, well, a huge investment of resources. “You have to recognize that is a separate company,” says Chaudry. “It’s a whole new thing, And you need someone to be in charge of that.”

Verdict 
It’s a huge undertaking, but creators are “winning” by partnering with traditional industries, says Chaudry: “Apparel was first, because those companies could take on that workload.” Consumer packaged goods are next.

Editor’s picks

CATALOGS
Who It’s For
Creators (YouTubers, primarily) who have a large library of public content that they’ve built over their career — and that they’re willing to part with for cash. Dude Perfect and Donut Media are two of the bigger names to strike these deals. 

How It Works
YouTubers sell the advertising rights of their previous videos to a company, and the company delivers a check to invest in their business. Colin and Samir point to their sponsor Spotter, which right now is the leading company focused on catalogs.

Pros
A quick influx of capital can allow a creator to hire support staff, get a bigger studio, or buy new equipment. Spotter’s average deal is around $1.5 million, which can mean a lot of improvement to content production in a short period of time.

Trending

Cons
You need to have enough completed videos to make an acquisition worth it to the company. Not only that, but you need to be confident that your new videos will make up for any cash you lose from the ads that run against the old ones.

Verdict 
A great way for an already big creator to take a huge step forward into the next phase of their career. But for those getting started, this should be the end goal — and there are plenty of ways to make money in the meantime. 





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