Why Do New Online Content Creators Lose All Their Money/Time And Fail?

According to the US Bureau of Statistics 20% of new businesses fail within the first year, 30% within the second year, and 50% within the third year. At the same time it is reported that it takes up to three years for the average new business to become profitable.

These are very daunting odds against small business owners. But this is the reality of business: most fail and only a few survive. This is probably the reason why there are more employees than business owners.

But unlike capital intensive businesses that sell physical products, online businesses seems immune to losing all their money. Afterall, online businesses can be started with little capital and even with no capital.

All you need for example to be an online content creator is a mobile phone and an internet connection and you’re ready to go, you can already start being an online content creator and start making money.

This saying is all so true. Why do employees spend their time working for someone else? To earn money. Employees give up their time in exchange for money while business owners hire employees to save them time in running their business.

In hindsight, everyone sells their time. A farmer for example spends their time growing food and in return they get money in exchange for their time. Time is perhaps more important to online content creators as against other careers or occupations.

This is because almost all online content creators begin with not much capital or none to begin with but have plenty of time in their hands. It is no wonder that many online content creators today are young people who are barely out of school.

These young people are usually unburdened yet with normal jobs that take up most of their time. They are free to explore what life has to offer that are mostly free and in the present time today, something that could make them money and even make them famous.

This is the reason why new online businesses shouldn’t waste their time, because as an online creator gets older without succeeding in the online content creation business, the more they would be pushed to normal jobs which in many instances cheapens the worth of their time.

Ryan Kaji is just eight years old as of 2022 but earn millions each year being a YouTuber. Just last 2021, he earned an eye watering US$ 27 million by just being a YouTuber. His YouTube channel is called Ryan’s World where he features child toys.

While most people would have struggled even earning a million dollars all their life at best, Ryan’s life is already set. Let’s say that Ryan only spends a million a year, this means that his earnings from 2021 would be enough for him to live comfortably without working for 27 years.

And we should take note that he has been earning millions of dollars for each of the six years his channel has been up in YouTube, we could already say that Ryan, if he had lived off a million a year budget would live a very comfortable life throughout his entire life.

This means he would live comfortably even if he doesn’t go to college and look for a job afterwards. He is an example of how time when used properly and with a bit of luck can result in a lot of money.

If he and his family had started their online content creation business a little bit later, then their chances of success and profitability would have been not so great. This is because it takes time to be a success as a content creator. The younger you start, the better are your chances.

Whether you’re creating YouTube videos, have a blog, writing e-books and so on, there is the great pressure to try to give your online content product a bit of a leg up by spending money on advertising.

This is especially true if you are a new online content creator and listening to such online marketing gurus such as Gary Vaynerchuk. If you’re not familiar yet with Gary, then you’re not really in too deep yet with online content creation.

He is a very popular influencer in the online content marketing industry. If you’ve ever listened, watched or read some of his online content, then you would know that he especially emphasizes using online ads to drive sales of your products no matter what they are.

But he also emphasizes that if you don’t have a budget yet for online ads, then you should do your own promotion/advertising in social media especially utilizing such platforms as Twitter, Instagram, and TikTok.

Spending on online advertising even before you become profitable is a very dangerous strategy to implement especially if you really have no budget. This especially applies to online content creators in poor and developing countries where the US dollar works negatively against them. This is because online ad placements are paid in US dollars.

Although professional video editors, freelance blog writers and so on can significantly increase the quality of your online content and free up your time, they do come at a significant cost especially if you’re not an online content creator from a developed country.

It’s no big secret that many online content creators outsource their online content creation tasks to job freelancers from poor and developing countries. This is because for example, a typical freelance American writer is just paid two US cents per word they write.

This same freelance American writer can then just outsource his task to a freelance writer from a poor and developing country for significantly less than two US cents per word. This is a widespread practice already and have been happening for decades.

This happens in blog and e-book writing, video editing and so on. This setup might be beneficial for an online content creator from a developed country but is very expensive for an online content creator from a poor or developing country.

As has been said, most new online content creators have a lot of time in their hands. They shouldn’t spend money on tasks they can do themselves. This not only saves them time but it also improves their skills as online content creators.

Most newbie online content creators think that for example, TikTok videos are just random or spur of the moment generated online content. What many newbie online content creators fail to realize is that this trending and successful short TikTok video took hours to study and plan.

Of course, when you’re a beginner online content creator you’re just basically trying to see if your online content will generate enough traction for you to make it profitable and you a famous content creator.

What usually happens next is a period of experimentation and study for you to know which of your online content is profitable or popular. After some time, you then decide if you continue creating the same online content or choose another one.

But many newbie online content creators fail to realize this. They keep generating content after content in the hopes that they would finally gain traction. But content creators who want to make content creation a business must first think as a businessperson before a content creator.

If you’re enjoying creating online content but you are not making money off it, then its not a business but just a hobby. I’m sure that most content creators are not only making online content as a hobby but have the desire to also make a lot of money and become famous.

There are still more reasons why newbie content creators lose all their money and time. But hesitating to start creating online content, being too dependent on online advertisement agencies, not doing your own tasks, and having no business plan are the major reasons.

In hindsight, there is no minimum or maximum age limit to have success in the online content creation industry. You can begin creating online content by yourself and just begin spending on talent and tools when you already have a budget for it.

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