Many people want fame, but if you don’t have the right information, it can be hard to use that fame to make money on social media. In this episode, Dan reveals what you need to know about how to make money on social media. The answer is probably not what you think.
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How To Make Money On Social Media
How do you make money on social media? How do you make money with social media? If you think of social media, you have different platforms. You have YouTube, you have Facebook, you have Instagram, you have Snapchat and you have Twitter. I could go on and on and there are new platforms coming up every single month, every single day. If you look at social media as a platform, it’s a very limited way of looking at it. I simply look at social media as attention. It’s an eyeball. It’s where people nowadays spend the majority of their time hanging out. That’s where the attention goes. That’s where the eyeball is. A long time ago, the eyeballs could be on newspapers, it could be on TV but now it’s all on social media. That’s what social media is. How do you make money? The question is how to convert that attention into money? You could make money on selling something. If you have your own product or service, you’re using social media to get eyeballs, to get attention, to get views and then you will convert that attention into a lead.
When you get the lead, you may follow-up with them. You may get them on the phone. You may drive them to your website. You may drive them to your webinar. You’re actually selling your product and services. That’s one way to do it. Another way you could do it is you don’t have a product and service, but you have fame. You have a big following. You are doing what we call maybe a brand deal, an endorsement deal or a recommendation. Now, brands and companies are paying you to access that attention, those eyeballs. Let’s say you have a million subscribers on YouTube. Companies, if it’s the right audience, they’re willing to pay you a pretty large sum of money or even on Instagram to do a single post or to do a collaboration video or an endorsement video. That’s what they’re paying. They’re paying for that shortcut, they’re paying for that attention span. They’re paying for those deals. You can do that as well or a brand deal.
You can also do a collaboration where you are promoting maybe other people’s products and services. It could be an affiliate marketing deal that you got the attention and you’re promoting other people’s offers. You can make money that way too. When it comes to social media, there are many ways to make money. Nowadays, the line between social media and marketing is very blurry. It’s not so much like, “I do offline marketing. I do direct mail. I do TV marketing. I do Facebook marketing.” Social media is marketing. All these other channels, it can be offline channels, their attention is more difficult to get attention from the customers. How many hours most people spend on the phone? People are watching more YouTube videos than watching TV. People are reading more Facebook posts and news versus reading newspapers. You can’t sell to them if they’re not paying attention to you.Social media is where people nowadays spend the majority of their time hanging out. That's where the eyeball is. Click To Tweet
Before they can spend money with you, they need to know you. If they don’t even know you exist, they’re not even paying attention to you. It’s very difficult to do anything to make a sell. I think they think of social media as like, “As long as I get attention, I’ll make money. Let me build a following, then I will make money.” It is wrong. I always ask people. Let’s say you’re building your Instagram followers, if you’re not making money with 20,000 people, what makes you think you make money with 40,000 people or 60,000 followers because you cannot multiply zero? You don’t suddenly get to a point like, “I have not been making money through the whole journey,” and suddenly when you have 100,000 people, you’ll make money?
Think about it. It makes no sense. You need to have a solid business model. You need to have an offer that converts. You need product and services that people want to spend money on before you get that attention. If your stuff sucks, more attention to something that’s lousy, that is not going to make you rich. That’s not going to make you money. Assuming you’ve got something that’s really good, now you get more attention to it. You get more sales, you get more buyers, then you grow and you scale from there. Then you can scale your business very quickly because with social media, you can reach billions of people around the world like that. That’s what makes it good. You’re putting debt on steroids. You’re getting way more people paying attention to your stuff.
Another mistake I see people make especially young people, Millennials, “I just want to be famous on social media. Dan, how can I build a social media following like you?” I’d say, “You’re so young, you don’t have enough experience. You’ve got no substance yet.” You have no substance building that and getting more attention. That doesn’t do anything unless you want to be Justin Bieber or something in the entertainment industry. That’s a different story. In fact, you’re a young dude, you’re a young guy, a young girl. That’s not how you build a long-term business. You might make a little bit of money short-term, but you’re not going to have success long-term. You need to have depth, you need to have substance. It’s like, “Dan, I want to be a personal brand.” You are nineteen years old, a brand of what? You don’t know anything yet. Build a brand on what?
When you build a brand, you’d let the world know how stupid you are, how naive you are, how incompetent you are. More eyeballs do not help unless you’re a genius. If you are, good for you. I’m talking about most people. Fame for the sake of fame is stupid. You don’t just want to be famous. You want to be rich and famous. It’s fortune and fame. More fame should bring you more fortune when done properly. That’s my take. The downside when it comes to social media is there is a huge sacrifice you have to make. People don’t address that and I want to address that. When it comes to social media, when you’re creating a content, when you are an influencer, when you’re a thought leader, when you have so many people watching you and consuming your content, it is not easy. It is not easy to be prolific and to be creating content all the time.Fame for the sake of fame is stupid. Click To Tweet
Like now, besides running all my companies, I’m trying to squeeze in the time on my way somewhere to make a video to share what I know with you. Instagram, Facebook, YouTube, all these things that is not easy because you need to be creating all the time. It is very exhausting. It’s not easy and for most people, you need to put in the time, you need to put in the effort and you may not see a result in a while because social media is all about eyeballs. It’s also about building trust with your target market, with your followers. It’s not an overnight success. That is very difficult. The second thing about social media is once it’s on social media, it is on social media. Once you have chosen this path, like I did, there’s no turning back. Knowing that it would affect my privacy, knowing that I would get haters, knowing that I would get criticisms. Knowing that I need to sacrifice a lot of different areas of my life if you want to do this because there’s no going back.
What’s been seen, cannot be unseen. When you have tens of millions of people watching your videos and consuming your content, you can’t go back. It’s not like Men in Black, I can wave a magic thing where you erase the memory. They cannot. Once you’re out there, there is no turning back. You are out there. Your stuff is out there. Once you are that public figure, that’s it. You have to ask yourself, is that what you want? Because there are many ways to make money. This is not the only way to make money. There are many people who make a lot of money without being a public figure. This happens to be what I like to do. I like to teach. I like to share with what I know. I like to use my personal brand. That happens to be my strength and what I don’t mind doing so that I’m okay.
For most people, if you’re more introvert and maybe that’s not what you want to do, maybe you don’t want to be recognized on the street. When you’re having lunch or dinner, someone walked up to you and said, “Can I take a photo with you?” Maybe that’s not what you want. I don’t mind. I’m okay. I like meeting with people who consume my content, my fans, my followers. I’m okay with that. Maybe you’re not okay with that. I would say that’s the biggest downside. There’s no going back. Once you’re on the internet, you’re on the internet and this stuff doesn’t disappear. You have to consider that. I would say that’s it. You don’t mind that and say, “I’m willing to sacrifice. I’m willing to pay that price,” then by all means, go on in social media. Have a business model, have some substance, deliver value to people, promote something that’s good, a good product, a good service and then you can make a lot of money.