How to Create Luck and Navigate YouTube's Monetization Challenges

Glasp

Glasp

Aug 01, 20234 min read

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How to Create Luck and Navigate YouTube's Monetization Challenges

Introduction:

Luck is often seen as a random occurrence, something that happens by chance. However, there are ways to position ourselves in a manner that attracts more positive random events. In this article, we will explore the concept of luck and how to increase our luck surface area. Additionally, we will discuss the challenges faced by creators on YouTube and alternative monetization strategies that can help sustain their careers.

Creating Luck:

Luck Surface Area (LSA) is a term coined by Jason Roberts, expanded by Sean Murphy, and popularized by Patrick McKenzie. It refers to the idea that luck is still random, but by increasing our LSA, we can position ourselves in a way that captures more of it. How can we expand our luck surface area? By doing more things and telling more people about it. This embodies an active attitude towards life, similar to the concept of a growth mindset. Instead of waiting for luck to find us, we hustle and prepare our minds to be sensitive to opportunities that others might miss. Becoming the best at what we do refines our skills, and eventually, luck becomes our destiny.

Actionable Advice for Creating Luck:

  • 1. Embrace a Growth Mindset: Adopting a growth mindset allows us to see opportunities where others see obstacles. Instead of being passive, we actively seek out new experiences and challenges that can expand our LSA. By believing in our ability to grow and learn, we open ourselves up to more luck.
  • 2. Hustle and Prepare: Luck often comes when preparation meets opportunity. We shouldn't wait for luck to stumble upon us; instead, we should hustle and put in the effort to be ready when opportunities arise. By constantly refining our skills and being proactive, we increase the likelihood of luck finding us.
  • 3. Focus on Mastery: Becoming the best at what we do not only increases our expertise but also attracts opportunities. By dedicating ourselves to continuous improvement and refining our craft, we position ourselves as experts in our field. This expertise attracts luck as others seek out our skills and knowledge.

YouTube's Monetization Challenges:

Creators on YouTube have realized that relying solely on the platform's advertising model is not enough to sustain their careers. The unpredictability of ad revenue and the dominance of record labels and studios in revenue distribution pose significant challenges. Record labels take a staggering 70 percent of every dollar spent by YouTube Premium subscribers, leaving creators and the platform with only 30 percent.

Alternative Monetization Strategies:

To supplement their income from ads and diversify revenue streams, creators are increasingly exploring alternative monetization strategies. This includes building subscription models, offering exclusive content, merchandise drops, and membership tiers. By directly earning money from their fans, creators can insulate themselves from the uncertainties of ad revenue and take control of their financial future. While these strategies are a step in the right direction, they do not address the underlying issues with advertising revenue distribution.

Conclusion:

Creating luck is about actively positioning ourselves to capture more positive random events. By embracing a growth mindset, hustling, and focusing on mastery, we can increase our luck surface area. Similarly, creators on YouTube are finding ways to navigate the platform's monetization challenges by diversifying their revenue streams. While alternative strategies help supplement income, addressing the fundamental issues around advertising revenue distribution is crucial for a sustainable future for creators.

Actionable Advice:

  • 1. Diversify Revenue Streams: As a creator, relying solely on ad revenue is risky. Explore different monetization avenues such as subscriptions, merchandise, or exclusive content to create a more stable income.
  • 2. Educate Your Audience: Many viewers are unaware of the challenges creators face with ad revenue distribution. By educating your audience on the realities of the industry, you can garner support and potentially drive change.
  • 3. Collaborate and Advocate: Join forces with other creators to amplify your voice and advocate for fair revenue distribution. Together, you can push for a more equitable system that benefits creators and the platform as a whole.

Remember, luck is not solely a matter of chance. By taking an active approach and being open to opportunities, we can create our own luck and navigate the challenges of the digital landscape.

Resource:

  1. "How to Create Luck", https://www.swyx.io/create-luck/ (Glasp)
  2. "YouTube’s alternative monetization strategy is a good step, but it ignores bigger problems", https://www.theverge.com/2019/7/12/20690311/youtube-monetization-merch-stickers-superchat-record-labels-networks-umg (Glasp)

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