There are four levels for how creators monetize their content and followings. Here they are, as analogized through Star Wars.
Level 1 - Padawan - Ad Revenue
You monetize with ad revenue. This is typically the least lucrative way to monetize. Out of all the ways on this list, this will make you the least money.
Level 2 - Young Apprentice - Sponsorships
Brands pay you to advertise them. You may also have ad revenue.
This is the second least lucrative strategy, and it is where most creators stop.
It’s very typical for a creator to go from Padawan to Young Apprentice and then not go further.
Level 3 - Advanced Apprentice - Affiliate
You monetize by promoting a product that has product-market fit and then taking a large cut of the revenue generated by the customers you refer.
The product can be a physical product, a services company, or my favorite – a software product.
Software products give you a recurring cut of the monthly revenue generated by each customer, which is why it is my favorite affiliate model.
Here’s an example from me:
@build_in_public Pretty sure I fell into the illegal zone of social media with this one. #buildinpublic #marketing #startuptips #newtech ♬ original sound - Build in Public
I bought a memorable domain (reusevideo.com), redirected it to my affiliate link, and shared this memorable domain in my video that went viral.
As a result of this, I get money every month from the customers I referred.
This is the third most lucrative way to monetize content, and if you find the right deals and products, it can work extremely well.
This is also great because you don’t need to deal with the many headaches that come with having your own company.
If you go the physical product affiliate route, here’s an example of a creator who does it well:
@key_stasher Best spend of money ✌️ #secret #rave #festival #secretcompartment #tiktokmademebuyit #pillbox #hidden #fyp #foryou ♬ Push Up (Original Mix) - Creeds
Level 4 - Jedi - You Have Your Own Product
The final model of creator monetization is to have your own product, especially a product with which your company can be acquired at a high multiple of annual revenue.
Software companies can raise money at and get acquired at large multiples, oftentimes around 10 times the annual revenue the company generates.
CPG (consumer packaged goods) is less, but can still be lucrative.
Services have the lowest multiples of annual revenue.
Having your own offering is the most advanced form of creator monetization because it is the most lucrative but also the most difficult, as it comes with all the challenges of creating a startup.
However, for those who can use their followings to make substantial sales, the money made from this is far greater than all the other levels.
My Advice
My advice is to utilize all of these!
Mr. Beast is a great example. He has branded CPG items, a burger delivery service, and more. He does sponsorships in his videos. He uses codes to give himself affiliate revenue. Finally, he takes ad revenue.
If you’re a creator (video, podcaster, blogger, IG, Twitter, & more), don’t stop at level two! Find a company that is in demand, and do affiliate content for it.
If you think you can have a good product made, try that. But don’t stop at level two. You’ll make it to the Jedi Council, I promise.
