What Does Monetize Mean?
The term monetize can mean many different things, depending on how you use it. For instance, governments monetize debt to control interest rates on borrowed money. Treasury departments monetize precious metals by minting coins. Lawyers monetize environmental damage to represent the devastation defendants have caused in a particular area.
From a personal finance point of view, it simply means converting goods and services into money. This process is crucial to your financial success as an entrepreneur or employee. Nowadays, individuals often refer to monetizing activities as digital income streams.
Monetization in Personal Finance
Recent developments in the digital marketing industry gave rise to the concept of online monetization. There are many possible ways to earn money virtually, from developing content to creating an ebook to advertising affiliate products.
As a modern-day consumer, you can now take the things you love doing and learn how to earn revenue through them. Monetizing your life helps you enjoy extra money without the need for massive time and financial investments. If you do it right, you can subsidize part of your living expenses by learning how to monetize.
Example of Monetization
Nikkie de Jager — more popularly known by her screen name NikkieTutorials — is a Dutch makeup artist and beauty blogger who has taken the digital world by storm. Since her first YouTube makeup tutorial video in 2008, she has grown her following into 13.9 million subscribers and is now worth $6 million.
Like many other content creators, she succeeded in taking her hobby of transforming her looks into a world-renowned brand. Aside from millions of YouTube subscribers, she also boasts millions of followers on other platforms like Facebook, Instagram, and Twitter. Recently, she became the first-ever Marc Jacobs Beauty Global Beauty Advisor.
Nikkie has enjoyed collaborations with various beauty brands and celebrities like Adele, Lady Gaga, and Kim Kardashian. She proves how being passionate about doing what you love can help you make money out of it.
Frequently Asked Questions
How Do You Monetize a Hobby?
One of the best things about digitization is that it lets people showcase their hobbies on various platforms and earn from them, like Nikkie de Jager. There are many ways to monetize a hobby, from turning into a full-fledged business to getting extra spending money to enjoying free items.
Some of the most in-demand hobbies today include photography, gardening, design, music, and DIY crafts. You can either create products to sell, become a content creator, or rent out your skills to generate profits off of these pastimes.
No matter how you want to monetize your hobby, it pays to test your concept, write a business plan, and build your brand. With a lot of dedication and a little bit of luck, you could turn it into a profitable venture.
How Do You Monetize a Blog?
Bloggers typically make money in five ways:
- Ads: You can join an ad network for advertisers to use your site as a communication platform. Find one that will fit your monthly page views. Ad networks generally pay based on impressions or clicks, or both. Ezoic is an example of an ad network that you can use to monetize a blog. They have no minimum monthly traffic requirement to get set up.
- Affiliate marketing: With affiliate marketing, you have to establish connections with various companies to let you promote their products and services. The organizations you work with will provide you with a unique link to their website. Every time a site visitor clicks on the link, you will receive a commission. ShareASale is a popular affiliate marketing network where you can find brands to work with.
- Sponsored posts: Institutions can also pay you to develop content about a specific brand, product line, or product. You must disclose that you wrote paid content, and you should still write an honest article about the company or product you're reviewing. If a company wants to work with you, it trusts your influence, voice, and authority over your target audience.
- Products: Apart from ads, your blog can also help you make impressive income by selling products. You can sell retail products, digital products, subscriptions, and so on. As much as possible, stick to selling products relevant to your audience.
- Services: Most people go online for a reason — to find solutions to their problems. You can sell various services online, from coaching to consulting to courses. With this method, you can use your blog to attract new clientele.
How Do You Monetize a YouTube Channel?
Did you know that ten-year-old Ryan Kaji of Ryan’s World earned a whopping $29.5 million in 2020 from his nine YouTube channels? His net worth is now about $80 million. With over two million active users, it’s hard to ignore this platform to grow your business.
Below is a step-by-step guide to monetizing a YouTube channel:
- Create your channel. Develop content for a niche audience and add keywords to help potential viewers find you.
- Add content. Your material should be valuable to your target market. Before you add content, make sure it addresses educational or entertainment needs.
- Build an audience. Growing your subscriptions is one of the core components in boosting your monetization. To earn from YouTube, viewers should watch the ads on your videos.
- Enable monetization. Go to My Channel on YouTube, click Video Manager, and click Enable on monetization. Before you start generating income, you will need at least 1,000 subscribers and 4,000 watch hours.
- Set up Google Adsense. This app will help you track your revenue and oversee analytics. You must be at least 18 years old and link a PayPal or bank account to activate your income.
Once you set all this up, feel free to advertise your video on other platforms.