The growth of the video market is something of which investors should take notice. Humans respond to visual stimulation.
According to a Wordstream survey, 51% of marketing professionals in the world say that video is the content that produces the best ROI. Marketers who use video grow revenue 49% faster than those who don’t, according to the same source. Just bear in mind that people spend on average 3 hours per day in video streaming apps like Netflix or Twitch and up to 12 hours users spend in Tik-Tok according to AppAnnie.
Without any doubt, almost any business needs video type of content or you even can make money on producing the video.
The most popular live-streaming app is probably YouTube, but there are many others that are competing in market space. If you want to build a live broadcast app, Android might be the way to go, or you can create one for iOS.
If you’re thinking about how to start a streaming service, this article will help.
Launch Your Own Platform
The best way to make money from your live streams is to create your own platform. If you’re thinking of how to start a streaming service like Netflix, then pay attention to their business model. These sorts of live video streaming sites have grown tremendously popular.
With a platform, you can:
- Host live streams
- Charge a monthly subscription fee
- Have control over marketing
- Keep 100% of what you earn
Live streamers that switch from a third-party streaming platform to their own platform can earn an average of $5,800 a month. It’s possible to make more in some circumstances. How to create a live streaming website income is not so challenging.
One example of a paid streaming service is HBO NOW. This is a service that was conceived and launched by HBO when Warner Media realized that there were individuals and families who would be willing to pay for original HBO programming as a separate service. HBO NOW costs $14.99 per month, and you can watch it through a Roku or a similar device. You get access to a library of movies and archival shows, as well as new ones like Last Week Tonight and Westworld.
Another example is Fite TV. It is the front-line digital network for global sports. You pay for a monthly subscription service, and you can watch boxing, MMA, and professional wrestling. Different price tiers get you access to their basic or premium programming. As you look at how to create live streaming website income, this would be a prime business model to follow.
This model can work for live streams in all niches, as long as product demand is there. Live streaming technology is now affordable if you have the team to create it.
If you have a stream that people want to watch, and enough fans to pay for it, this is a way to start getting paid for your live streams. You can give users paid subscriptions, paid access to special content, or donations through a payment gateway. The payment processor you use should accept debit and credit cards, PayPal, and Apple Pay.
If you’d like to learn how you can make $5,800 a month through running your own live streaming service, you probably should think about your own video streaming platform development.
Create Your Own Products
Hence, as I said before, creating your own products is another way to get paid for live streaming. The following are some examples.
- Merchandise: T-shirts, mugs, or hats
- Books: eBooks, print-on-demand books, or physical guides
- Digital Products: tutorials, courses, downloadable guides, etc.
- Industry-Specific Items: signed copies, gaming controllers, vinyl, etc.
The products you offer will depend on your niche. It will need to be relevant to your audience and brand. Products will also be dictated by the amount of capital or time you have for investing.
Digital products are high-value, low-cost options. You can expand into informational products, such as:
- Membership sites
These require a minimum investment in the overall design and time to create them. Self-sourced physical products require a higher cash investment. However, they can result in a higher profit margin, with you keeping 100% of what you earn.
One instance of this model in action would be Benefit Cosmetics. The company is extremely active on Facebook Live. They have a weekly stream called “Tipsy Tricks with Benefit.” There, a couple of hosts enjoy some adult beverages while giving beauty advice centered around specific products. Analytics show that products that appear on the show get a significant bump in sales.
Another example would be individuals who play games on Twitch. Many have been able to monetize the popular videos of them playing games. They accept donations from fans, and will often have inexpensive merchandise they’ll send to those who contribute. If you want to get paid to live stream app interactions, then you should know that the competition is fierce.
Find A Stream Sponsor
Sponsorships can be a lucrative way to make money with live streaming as well. Sponsorships made the mainstream news in 2019 when Ninja, a prominent video game live streamer, was paid $1 million to play Apex Legends. If you want to get paid to broadcast online, this should definitely impress you.
This business model isn’t your standard type of sponsorship. These sorts of live streamers make money in the following ways:
- They mention the sponsor
- They introduce their new products
- They share a short personal testimonial
Sponsors might pay between $15 and $50 per 1000 views. In the industry, this is called CPM. If your streams are regularly getting upwards of 5000 views, you can earn a respectable income. Sponsors are usually only interested in high-profile streamers who can guarantee thousands of views of each video.
You should also be aware of the following:
- Sponsors will want to influence the content you create
- Having the wrong sponsor can cost you subscribers
- It’s best to partner with brands offering relevant products that pay high CPMs
Ask for Patreon Pledges
One simple way to make money through live streams is to use the service called Patreon. This is a framework through which you can ask watchers for monthly “pledges.” In return, subscribers get premium benefits. With every tier, you get access to different content. As you are ruminating about how to make money live streaming, you can look toward Patreon as a possibility.
One example of a company making money on Patreon is 2-Minute Table Top. According to Gaps list of the biggest Patreon earners, this outfit designs printable maps for board games, like Dungeons and Dragons. Created in the 80s, D and D still has its ardent supporters. Many of them are willing to pay for these printable maps, each one custom-designed. According to the list, 2-Minute Table Top rakes in an average of $1,869 per month. That’s not too shabby as a secondary income source.
Hoodied is another example. This is a company on Patreon that makes customized hoodies that have comic book themes, or others with characters or scenes from games or cartoons. The creator makes the hoodies that are most in-demand, but only those who pay for the highest tiered subscription service, which is $150 per month, get the physical hoodies. If you are thinking about how to make money streaming, a business model where you only send physical goods to top contributors makes sense.
You can set up Patreon pledge tiers to make money live streaming. If you have a large enough following, you could start earning that way within hours. However, reports show that fewer than 2% of users earn more than $1,160 a month through Patreon. Their CEO estimates that just 4,300 people make more than $1,000 a month there.
Monetization through ads is when an individual earns money from uploaded content by enabling advertisements that are featured on or around it. Video streaming services such as Twitch and YouTube would be places to see this model in action. If you want to get paid to live stream, ads would certainly be a place to look.
Users have also suggested the monetization of Instagram Live. It has been confirmed that Vishal is already considering this concept. If you want to make money live streaming, this is something to think about going forward.
Here is a set of ads formats on Twitch:
Join an Affiliate Scheme
Affiliates are individuals who promote a product or service. They typically do this through a link or referral code, and then they receive a commission. Usually, that will be between 5% and 30% of the sale.
Affiliate programs are a great place to start earning because they are low risk. As long as the products are relevant to your subscribers, they should also be happy to hear about them. You can find affiliate opportunities by:
- Using Amazon’s Associate program
- Contacting brands within your niche
- Googling a brand name, followed by “+ affiliate”
Many businesses use affiliates. It is a smart strategy for video business owners looking to promote their platform. Keep in mind that profits will be lower if you use this method, and it’s not a predictable income stream. However, it can be a fun way to try and earn money from your live streams, and eventually, if you become popular enough, you might be able to use this as a significant source of supplemental income.
If you want to get paid to live stream and have creative freedom, building your own platform is the only way to ensure that your business will stand the test of time
Slava Vaniukov, Co-Founder and CEO at Softermii, software, and app development agency. He has over 9-years of experience in the web and mobile development industry. After getting extensive experience as a Senior Tech Lead, Slava started his own company. Besides that, he is one of the authors for the Softermii blog and tech blogger featured at a wide range of other web resources.