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A business relies on cash flow. In order for a business to survive, there has to be some source of income.
This can look like product sales, services, donations, investors, or other means of financing. The common denominator is that there is income coming in (see what I did there?).
The internet has brought about a lot of opportunities for businesses to thrive online, but it has challenges of its own. Hosting your business on someone else’s platform or building your income streams solely off of someone else’s business model is easy, but comes at a cost.
For example, many creators on YouTube have attempted to build businesses on the platform through ad revenue. A viewer sees an ad, the ad counts toward an impression, and the creator gets paid after a certain amount of impressions.
Yet over the last year, this type of monetization has become inconsistent at best. Creators blame the “adpocalypse” and that YouTube is to blame for their decrease in income from ad revenue. Is it really YouTube’s fault, though?
Today’s show will touch on the YouTube and platform controversies but we’ll also be talking about different ways to build toward having multiple sources of income, separating your various “income eggs” into different baskets, and keeping the future of your business in your own hands.
Highlights, Takeaways, Quick Wins
- When you base your business on someone else’s platform, they are completely within their right to change the rules.
- A business needs cash flow to survive, a marketable opportunity for people to buy into.
- If your business is completely dependent on ad revenue, it may be time to look into more sustainable forms of monetization.
- Evaluate your business and acknowledge what would happen if you lost your primary source of income.
- The market changes rapidly, and you can either prepare for it, adapt with it, or be ignored by it.
- Diversifying your income streams as a business isn’t simple, but allows you to build a safety net in case one source of income falls away.