Content vs Ads: The ROI Breakdown Every Entrepreneur Needs to See

Darren shows how a video with 100 qualified viewers can generate 50 sales, proving niche content beats viral reach. He breaks down monetization beyond ads: sponsorships, affiliate deals, merchandise, and proprietary products. His strategy: post daily on platforms where your audience lives, embed CTAs, create lead magnets, and funnel viewers into customers.
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One of the biggest questions that we get as content creators, as a consulting company, is what is the true ROI that content and social media brings? How do you track it? What is it? How do you monetize if you don't have a ton of followers or a massive audience? Well, let's break it down, and I'm gonna break some myths here. The very first thing that I want you to realize and understand is any channel, no matter the size, can monetize off of content. Now, if you have a million subscribers and you get 50,000 people to watch a video, but none of them are clients, or your content that you're making doesn't make sense whenever you're trying to sell a specific product to this certain type of person, you're not reaching the right people. You can make $0 off of a video that goes viral, but then you can turn around and make a video that makes $20,000 if you get 1,000 views, because the way that you're going about it is you're making very targeted pieces of content for very specific people. But the key point of this is you have to have a business in place in order to monetize at all using this content. And so it's not just for celebrities anymore. You can make thousands of dollars. And I know personally people who use content as their biggest lead generator for their business. And so here are a few different ways you can make money on content besides just getting views and Google AdSense on YouTube. First thing, we have is sponsorships. If you have even a small, small audience but it's a very specific and niche audience, brands will pay money to get in front of that type of person. So if you're a mom teaching about how to declutter your home and there is a company who has a new product that wants to specifically reach people who are wanting to declutter their home, they're willing to pay lots of money to get in front of your audience even though it's small. Because if they get 1,000 sales out of it, then it's worth it to them. So that can go one of two ways. They can pay you to put an ad in your video, or you can become an affiliate and basically earn commission on anything that they buy through the link that they give you. Next way to do this is to sell merch. Now, this is probably not going to be your biggest moneymaker if you have a small audience, but the bigger your audience gets, the more fans you have, the more merch they're going to want to buy, especially if you wear it in videos. And the most important thing out of all of this, and you'll see biggest creators do this exact thing, like MrBeast, Logan Paul. They all treat their content as a top funnel awareness for the rest of their businesses. They started with content and figured out content creation early, and they learned how to build an audience. Now, once they did that, they were like, okay, I can't sustain this. So what are some business models that I can feed all of these views into other than just sponsorships? And so what did they do? They went and founded clothing brands. They founded a chocolate candy bar brands, all of these things to get their viewers to buy what they have to offer. And so let's scale back again. Just like you and I, we have smaller audiences, but if you're talking to very specific pain points in people, the conversion rate goes way up. If you were to post a video on YouTube and it gets 100 views, let's just say those 100 views are very high quality qualified leads and you get 50 of them to sign up and buy your product, I would say that is worth your while. Who cares if 100 people watch your video? If you get 50 of them to convert into a client, that is a win and you're going to make way more money than you would trying to go viral every single day. And so that's what I'm doing exactly right now. I wanted to shout out our new community that's coming up here in the next few months. We're opening a waitlist to a community called Brand Builders, and this community is full full of entrepreneurs and creators just like you, if you're watching this video, who know the leverage of social media but don't necessarily know how to get from point A to point B. In this community, there's going to be coaches, not just me. There's going to be influencers, content creators, business owners, CEOs, all of the things and people that you'll have access to. You'll get to talk directly to— we're going to have weekly live master classes, courses, Q&A sessions, coaching and accountability, as well as just a solid network of people who understand the of content creation and social media. So if you're interested in that, uh, the first 50 people who join the waitlist, which it's already almost full, you're gonna get free access for a lifetime. If you don't join the waitlist before we've launched the actual community, you are going to have to pay a monthly subscription to get in. So make sure to sign up today. All right, so you're saying, Darren, how do you actually create this content in a way that attracts people. So you do multiple different things. First of all, you want to treat it as your top of funnel for all of your leads. Like, get ads out of your mind, get billboards out of your mind. No more newspaper ads, no more magazines, only content. Because guess what? There are 5 billion people on YouTube every single month. You're not going to reach that many people on a newspaper ad, let's just face it. And so you are going to pump out as much content as you possibly can, specifically on platforms where your target audience is. YouTube is going to be a good place to start because it has the highest percentage of six-figure annual household income earners, um, in 2024. Depending on what it is exactly that you're selling, if you're selling a B2B product, which is business to business, then you're going to want to push hard on YouTube and LinkedIn. LinkedIn includes all of the people, all the CEOs and business owners who are every day involved in a business trying to grow their profit, grow their sales. And so if you have something to sell directly to them, LinkedIn is going to be the spot to probably start. So everybody that sees your content every single day, you need to be posting at least once a day on these short-form platforms, on YouTube as much as you possibly can, because the more that you're out there, the better your SEO gets, the more opportunities you give people to find you. And then within your content, once you make this intriguing content in this video, you're going to then include calls to action in every single piece of content you put out. So include links, include like some way to make them think about taking that next step in working with you. So if you show somebody, hey, I can do this within 5 days, all our competitors are doing this in 5 months, This is what it looks like to work with us. We've done it 20,000 times already. If you're interested in this, book a chat, click the link in the description, do whatever it is they got to do to take the next action, the next action. Because the majority of the time, people forget to even ask. So you want to make videos about frequent— frequently asked questions. You want to make story videos, like a brand story video on you to build trust. You want to put out what's called lead magnets, which is free value in exchange for email addresses. Where then you can follow up and nurture that lead and turn them into a warm lead instead of a cold lead. You want to talk about controversial topics going on within your industry, in your space. All of this is going to attract views and people to click on your videos to see what you have to say about it. So create awareness and funnel them down and lead them to your product or your service every single time, and you're going to see your conversion rates go significantly up. If this helped you at all today, make sure to hit the subscribe button. Leave a comment. Where are you guys watching from and what business are you a part of? Again, if you want to be a part of this Brand Builders community, there's going to be a link in the description to join the waitlist. 50— the first 50 get a free lifetime access to this community. So make sure to do it now. Thanks for watching and we'll see you guys in the next one. Peace.
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