The importance of diversifying your income streams.
Medium – Story of the Day.
It is with gratitude and a desire to spread financial knowledge, that I appraise and share the following story by Chris Stokel-Walker, published on 13 April 2020, titled:
‘As YouTube Traffic Soars, YouTubers Say Pay Is Plummeting.’
I consider this to be our Goldsmith Money – ‘Medium Story of the Day!’.
Thank you Chris.
Story Link Here.
Please see our ‘Medium Story of the Day’ YouTube video presentation below.
Whether you are an employee or in business for yourself, diversification through multiple income streams is an important risk management tool.
For his story, Chris gathered together the latest in YouTube financial data, painting a bleak picture on current YouTuber income.
Supporting the data was commentary by a range of social media industry experts, expressing concerns about the financial impact Covid19 was having on YouTube video creators. Of particular focus, was the impact the virus lockdowns were having on the advertising and marketing budgets of large corporations.
So despite rising YouTube usership, revenues for creators have fallen dramatically. Those who have fared the best are those who managed to diversify their income stream prior to the pandemic.
- Coronavirus lockdowns have increased traffic to YouTube by 15%. However, YouTubers are reporting revenue declines of 30%-50%.
- It is a combination of lower ad spending and increased content creation is putting downward pressure on YouTuber Costs per Mille – meaning less money in the pot to be shared among more creators.
- Digital advertising spending is presently down 33%, with large corporations slashing their marketing budgets. All indications are that budgets will not be returning to pre-pandemic levels anytime soon.
- YouTubers operating in the restaurant, aviation and tourism industries have been the most impacted by the pandemic, with most industry participants putting a halt to advertising altogether.
- YouTubers who had diversified their income streams through merchandise, sponsorship and through other social media platforms are faring the best.
With respect to your Financial Awakening, Chris’s story provides a valuable lesson –
Diversify your income!
Whether you are an employee or in business for yourself, diversified income streams are an important risk management tools. Not only against pandemics, but against all types of risks such as cashflow and supply chain disruptions; along with debtor, creditor and business failures and bankruptcies.
For an employed individual – diversify income streams through rental income, dividend income, interest income, royalty income or maybe even a second job.
For the small business person – you want to strive to service multiple clients and customers. Servicing one major customer makes you dependent upon the financial wellbeing of that customer. Servicing say 7 or 8 large clients or customers is a more prudent business model.
Thank you to Medium for providing this platform for knowledge sharing and thanks to you for reading and watching.