🧠 A $6K/month UGC Agency Side Hustle
and How To Get to $1 Million a Year !
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Todays’s estimated read time: 3 minutes 12 seconds
1. Business idea of the Week: UGC Content Agency
You know those videos where people show themselves using a product on Instagram or Tiktok, and it makes you want to buy product?
That’s user generated content (UGC).
User-generated content (UGC) is any content—text, videos, images, reviews, etc.—created by people, rather than brands. - hootsuite
UGC works so well because 84% of consumers say they trust peer recommendations above all other sources of advertising.
But if UGC works so well, why do only 16% of brands have a strategy for UGC? Because it can be a hard task to find UGC creators that continuously create quality content at a reasonable price.
The Idea: Create a user generated content agency that supplies brands with UGC. This is not a new idea, and has been done successfully by other entrepreneurs, but like most businesses, there’s plenty of room for others.
Check out The Social Savannah - Savannah works with top ecommerce brands to supply them with UGC on a weekly basis.
How to get started: You can get started by filming your own UGC right now! All you need is your phone, a product of your choice, and some creativity. You can start building your portfolio and posting the videos on TikTok. Learn TikTok trends, what works, and what will gets the most views.
Once you have a few successful videos, and a portfolio to share, it’s time to start reaching out to brands. You can reach out to brands via DM or email and include the following:
Who you are and what you do.
Why you think you would be a good fit for their brand/product.
Other brands you’ve worked with (if any).
Your website or link to your portfolio of work.
At $150 per video and 10 videos per week, you can get this agency to $6,000/ month fairly quickly. Once you are able to sign on a few brands for recurring videos, you can start outsourcing the videos to other creators.
Things I like about this business:
Low start up costs! Just your phone, a product, and Tiktok to start. 🎥
Can be scaled by using other creators and your revenue is only limited by the number of brands you can sign on. 📈
Start out as a one person side hustle, and use freelancers to grow. 🥷
Let me know what you think!
2. How To Get to $1 Million a Year
Many people dream of making $1 million a year. In the United States, it is estimated that 236,883 people make over $1 million a year.
So let’s break down what it takes to get to $1 million / year.
$1 million / year =
$83,333.33 / month
$19,230.77 / week
$2,739.73 / day
Now let’s explore 5 different ways to get there:
At a normal 9-5 (Mon-Fri, 40 hours per week)
You will need to make $481 per hour.
Owning a subscription business that does $83,333 / month:
100 customers at $833 / month
500 customers at $167 / month
1,000 customers at $84 / month
2,500 customers at $34 / month
5,000 customers at $16 / month
10,000 customers at $8.33 / month
Property management business charging 10% management fees:
You will need to manage a portfolio of properties bringing in $10 million / year in rent.
Real Estate agent with a 5% commission
You will need to sell $20 million of real estate / year.
Dividend stock portfolio with average of 3% yield.
You will need a portfolio worth roughly $33.5 million
There’s a lot of different ways to get to $1 million per year. Which is your favorite?
3. Quick Look at Inflation
This past week, inflation in the US was reported to be at 8.6%.
This is the highest year-over-year growth we have seen in >40 years and very concerning.
Check out these price increases over the last year…
Unfortunately inflation is hitting lower income family’s the hardest, as their normal expenses are getting higher, their wages are unchanged, and they don’t have extra income to invest.
So what can you do to combat inflation? There are two areas that are key to focus on.
Find ways to make more money. The more you earn, the less these price hikes will affect you. Sounds simple, but we know it’s not.
Invest as much as you can. Making money from your money is one of the best ways to combat inflation. As the markets are crashing from all time high’s, there are great opportunities to invest at a discount. But don’t go all in at once. Remember, the market can always go lower.
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