Content creators, subscription model, add supported model, or a mixture of both. Creators and corporations are now at an intersection. Do we need their help? Do we need their platforms? In the past, creators used to depend on content deals, record deals, and corporations to fund their projects. With independence on the rise and fans gaining direct access to their favorite artists, new opportunities continue to expand on both ends of the spectrum for the creator and the consumer. Add on the direct-to-consumer tools that are being created to deliver and receive content of all types. Optionality has become our new reality. As a creator, the priority is to get your content and art seen, heard, and in front of other people that you hope enjoy it. You can't charge an audience that doesn't yet exist. Getting feedback is crucial too. This part of the process comes before the financial side of your endeavor. Without doubt, exposure is important. This is where my analogy of the funnel enters the equation. I always look at the business of content and entertainment as a funnel. At the very top of the funnel is where you get as many potential fans introduced, interested, and aware of your creations. In order to do that, you have to have a way to distribute your product that will reach people that you can't reach on your own. This could be through one or many of the usual social media platforms that most of us use today. Instagram, Meta, X, TikTok, Twitch, YouTube, Apple, SoundCloud, Rumble, and so many more. This could help you reach people that have no clue who you are today, see your work, and fall in love with you by tomorrow. In order to do that, you have to have a distribution method that will help you distribute your product to people that you can't reach on your own. Once you figure out how to use these public platforms that are generally free, then you have to figure out a way to keep them around to see another creation of yours, which is truly a skill in itself and part of building any business from scratch. This is where you see if you can keep them in the funnel. When they are at phase one and all the way at the top of the funnel, they're unsure of their commitment to you. They have absolutely no loyalty, but if you can get them to watch, listen, laugh, or share something you create, the odds of you keeping them around have increased exponentially. Let's get into understanding different monetization models, starting with the subscription model. In this model, users pay a subscription fee, usually monthly or annually, to access content or services. Some subscription models are looking for some personal information and an email to contact you and don't have fees attached to them. Subscription business model. In this model type, users pay a recurring fee, usually monthly or annually, to access content or services. It offers a predictable revenue stream, but may require a strong value proposition from the publisher to attract subscribers and keep them there. Here's a good example. Some of us remember being introduced to a content subscription service all the way back to 1999 via Netflix to rent movies and TV shows. At the time, it was offered to us as a monthly membership via the internet for $15.95 a month. DVDs would physically be mailed to our residents with a prepackage envelope, so you could send back the DVDs for free when you finish watching. Genius. A move that would end up burying Blockbuster's video model and late fees. Now let's get into the ad supported distribution model. Also known as the free or ad supported model, content is distributed freely to a wide audience. Revenue is often generated through advertising, sponsorships, or other means. This model aims to maximize reach and engagement for the publisher and creator. However, in this model, the information about the fan is kept, used, and guarded by these platforms. This is where things get interesting. These platforms are some of our favorites to use on a day to day basis, and they provide the broad ability to reach millions of people. However, they don't share who these people are or their information that could be extremely valuable to you, the publisher. On YouTube, you may get a million views on your video, but you don't know the information that could solidify a connection to those viewers. But YouTube does. Unless someone who watches your video makes a comment on YouTube, there's literally no way to have a direct connection with that potential fan. On the flip side, ad supported platforms like YouTube can help you reach massive audiences that you have not already built yourself. Algorithms can detect when content has interesting qualities and fan feedback and continue to share it with more people than you ever imagined, adding incomputable value to you and your brand. Let's be honest, people usually don't start a subscription service for themselves because they're scared that only 10 people will show up and pay a subscription and becoming discouraged by the initial results. On the flip side of that theory, if 10 people pay $20 a month, that's $200 a month in income, or $2,400 a year. You would need more than 100,000 views to earn $200 off a single song or piece of content on streaming services. Do you know how difficult that is? Do you know how hard it is to earn $2,400 in streaming in one year as a musician or content creator? Or how hard it is to earn $200 on a YouTube video? You have to be able to put things in perspective to understand what you're getting yourself into. People fear asking consumers to pay for their creations. Subscription models may offer a more direct revenue stream per user, but wide distribution models may offer a wider audience, increasing overall revenue from ads and other sponsorships. Let's talk earning potential. Subscription models usually offer higher earning potential per user, especially if the content is highly valued and the user base grows. However, wide distribution models can also generate substantial revenue through ad impressions or sponsorships with large audience. The goal is to build an ecosystem, not compete with the person to your left and right. Now let's talk about audience engagement and value. Subscription models often provide a more detailed set of audience data since users are registered and engaged. This data could be priceless for understanding your audience preferences and for tailoring future content. It's common to hear a debate between larger audiences or engaged audiences. What's the difference? What's more valuable? What should you be shooting for? All important factors if you're a content creator or a musician. Larger audience versus engaged audience. While a larger audience may attract more advertisers in a wide distribution model, an engaged audience in a subscription model may be more willing to pay for premium content, live shows, and merchandise. Risks and rewards. Let's talk gains and losses. Subscription models may offer you a direct connection to your fans and supporters and a more stable revenue stream but may limit audience. Wide distribution models can provide a broader exposure but can be reliant on volatile advertising revenue, reliant on volatile advertising revenue, reliant on volatile advertising revenue. Sustainability. Both models have their risks including subscription fatigue on the subscription side and reliance on advertising on the wide model. Creators must consider long-term sustainability platforms and business practices. Let's go over a few examples of the wide distribution platforms that exist today. YouTube, X, Spotify, SoundCloud, TikTok. Let's go over some of the subscription-based platforms that exist today. Patreon, OnlyFans, Fanbase, Twitch, YouTube subscriptions. YouTube's unique in that it's both a wide model and can be used as a subscription model. That's similar with Twitch which has an ad-supported free model and a subscription model based on creators you want to follow and subscribe to. Let's go over revenue sharing for each model. Wide distribution models typically offer ad revenue sharing programs. While subscription-based platforms typically take a percentage of subscription fees or tiered-based options. In closing, there is no right or wrong. I've never set out to tell people to do one or the other. I think what we're all trying to do here is build a sustainable ecosystem. I don't think anyone should just have a subscription platform and I don't think anyone should just have a wide distribution model. I think the beautiful intersection is where you could incorporate all of the different models into a business that works for you, the creator, musician, or entertainer. The goal should be to choose a path that gets you in front of the most people at the top of the funnel that keeps the most people interested in the content or music or creation you make and that helps you monetize and make the most money you can for the creations you put out to the world. As a publisher, this isn't just a hobby, it's a profession. Earning money is a big part of your business. Whether it's through Google AdSense on a wide distribution model via YouTube or TikTok or Facebook or if it's on a subscription based model via Patreon or Twitch or any other subscription based platform that exists today, you should be exploring all options to help create a sustainable business that takes you into the future. People's insecurity usually veers them away from taking risks that can help them create a business that's successful in the long run. But the truth is, there is no reward without risk. Explore all your options. Don't be afraid to start somewhere. Five subscribers today could be 100 next month, could be a thousand next year, could be 10,000 in years from now, but you have to get started in order to see what you're capable of accomplishing. Relying on exclusive deals, DSPs and other corporations to fund your dreams is short-lived and usually ends up in failure. Taking the risks you need today could land you where you want to be tomorrow. The content creation business is the wild west right now. Options are endless. Tools and resources are plentiful and the only thing you need to do is your research and execution. Nothing's going to come easy, but anything is possible. The biggest wins come from calculated chances that you measure out before you take them. If you don't believe your creation is worth anything, why should anyone else? Sponsorships are great when they're there. Passive ad revenue is amazing when the streams are good, but building a sustainable business is the goal. Today we discussed subscription-based models versus wide distribution and ad-supported models for content creators and musicians. Now that we've reached an intersection, we have to decide what we're going to do. If you could join only fans, if you could join ESPN Plus, if you could pay for Netflix, you're capable of paying for content that you enjoy digesting. Don't be afraid to charge people for the time, energy, and resources that you put into something you believe in. Stay focused, keep exploring, and take chances that make sense. If you enjoyed the conversation, please leave a comment below. I'm looking forward to the next topic.