9 ways to monetize short videos, how many do you know?

Creators often encounter similar problems when making short videos. How can we make a profit if we can’t produce in large quantities? Should I increase followers first or design monetization first?

Let us first briefly understand the two underlying logics of the Internet.

The first underlying logic is that traffic equals money. For short video platforms, traffic refers to the number of user downloads, daily active users, etc., which can increase the platform's market value, valuation and profit margins; for creators, traffic is not just the number of fans. Most short video platforms are now using algorithms and AI intelligence to distribute traffic. The core of creators in obtaining traffic is content, and content is traffic.

The second underlying logic is that trust equals transaction. For short video platforms, strong brand effect and good user experience can attract a large number of users. Balancing the interests and experience of creators, manufacturers, platforms, and users can maintain the continued following of manufacturers and creators and the stickiness of users. For creators who rely on platforms, it is important to have a deep understanding of the game rules and gameplay of each platform and gain the trust of the platform. Use content value output to gain the trust of fan users, people are the product.

Let’s talk about 9 ways to monetize short videos . We have previously talked about seven ways to play in the short video field.

The first is official subsidies

In order to attract high-quality creators and motivate them to continue producing content, major short video platforms have launched corresponding official subsidy activities. For example, Xigua Video's 10,000-million-yuan support, search for rural craftsmen, Golden Second Award and other plans, Douyin's various national tasks, Baijiahao's Golden Mango Plan, Dynamic Incentive Plan and other plans, Dayuhao's Foodie Festival, Kuake Knowledge and other plans, Penguin's Spring Rain, Stars and other plans, iQiyi's New Leaf, Spring Rain, Qizhishi and other plans, Bilibili's New Star, Knowledge Sharing Officer and other plans.

For these officially subsidized activities, creators produce content based on the activity requirements and their own abilities and specialties. Not only can they receive cash rewards and traffic support, but they also have priority in certification from various platforms. This is also a very direct way to monetize.

The second type is traffic sharing

Traffic sharing on short video platforms is also one of the most direct ways to monetize, but there is still a certain threshold for novice creators. Most short video platforms have certain assessment levels for creators in terms of traffic sharing, requiring creators to pass the novice trial operation period or even pass the original certification before they can participate in the platform's traffic sharing plan. Different platforms have different requirements. For example, Xigua Video, Penguin Account, Dayu Account, and Baijia Account need to pass the novice trial operation period before they can share in the platform traffic. Obtaining the platform's original certification can obtain more traffic share.

The third method is advertising monetization

When creators have a certain number of fans and playback volume, they can connect with manufacturers’ advertising sponsors to place advertisements through official advertising platforms or third-party advertising platforms. The threshold is relatively higher, and platforms and advertisers generally have different rigid requirements for creators in terms of number of fans, playback volume, and accuracy. Advertising monetization is also a relatively common monetization method for some top creators, which can basically be divided into four categories.

Category 1: brand advertising. This type of advertising sponsor has the greatest demand, mainly for the publicity and promotion of advertisers' brands and products. According to data from third-party advertising platforms, the starting advertising fee for a single video for some small-time creators is more than RMB 10,000. The starting advertising fee for a single video for million-level influencers is more than RMB 50,000. The starting advertising fee for a single video for tens of millions-level influencers ranges from hundreds of thousands.

Category 2: Product placement. Product placement is the process of inserting the advertiser's brand or product into the plot of a short video, allowing fan users to unconsciously form memories during the viewing process and learn about the advertiser's products or services. The revenue from this type of embedded advertising is also very considerable, and the fan users are more accepting of it, so it is not easy to affect the fan users’ experience.

Category 3: patch advertising. This form of advertising is to add patches to the playback of short videos, usually at the beginning or end of the video. It has a high reach and relatively low revenue, and generally requires orders to be received through major official platforms. In-stream ads generally do not have much direct connection with the short video content itself, and can easily cause a bad viewing experience for fan users.

Category 4: Sponsored advertising. This form of advertising is commonly seen in various television programs. It refers to adding the brand of the sponsor or advertiser to the program for advertising. The cost of this type of advertising is generally very high and the income is considerable. However, this type of advertising is suitable for top creators in vertical fields with certain IPs, and has high requirements for the creators to continuously output high-quality content.

The fourth type: e-commerce sales

Short video e-commerce and content e-commerce are also a common way of monetization, and the threshold for creators is relatively low. On most of the current short video platforms, as long as the creator has undergone real-name authentication, passed the novice trial operation period, and has a small fan base, they can open the store display function. E-commerce sales can be basically divided into two categories, using the transaction volume of goods to obtain commissions or profits.

Category 1: Distribution e-commerce. This type of e-commerce distribution method is very suitable for individuals or small teams of creators. They only need to find high-frequency popular products with the right fans, and produce content by recommending good products and promoting products. They do not need to bear the investment costs of heavy assets such as survival, inventory, and logistics.

Category 2: self-operated e-commerce. This self-operated e-commerce method is more suitable for enterprises and large teams to operate. Based on the analysis of fan user needs and self-brand appeal, production, management, introduction and other methods are carried out to realize the monetization of single or multiple categories of goods. The advantage of self-operated e-commerce is that it can not only amplify the value of its own brand, but also have relatively higher profit margins.

Fifth, live broadcast rewards

Short videos + live streaming have become a monetization trend after 2020. Short videos are used for publicity, traffic generation, and single-point value output. Major short video platforms have also launched a reward function for creators in the graphic and text era, and fan users reward creators based on their recognition of the value of the content. Live streaming requires creators to have higher performance capabilities, and there are correspondingly more channels for monetization, such as live streaming rewards and live streaming sales. It also allows for more direct communication with fan users, which is a stronger way to build trust.

The sixth type: platform signing

Creators contracted by the platform can be divided into two categories.

Category 1: Platform signing. Now, major short video platforms have launched a series of signing opportunities for high-quality creators. Creators who become signed by the platform will have more traffic, more points in the profit sharing ratio, and more titles in certification. It can be said that they can gain both fame and fortune, but there are high requirements for the comprehensive and professional abilities of the creators.

Category 2: MCN signing. In addition to signing contracts with major short video platforms, there will also be some MCN service agencies that rely on the platforms. They will sign contracts with potential creators and provide more support and guidance to creators in content creation, operation, shooting and other aspects. According to incomplete statistics, there are about 20,000 MCN agencies of all sizes. When creators sign contracts with MCN agencies, they still need to be cautious. The current levels and strengths of MCN agencies vary.

The seventh type: knowledge payment

Paying for knowledge is not a strange term and has been gradually recognized by the public in recent years. Behind the high-quality content produced by creators, the content of short videos can be deeply mined and turned into products or services. Content is the product. Organize your own knowledge system and various skills into a systematic video course. For example, teaching fitness, teaching English, teaching food, teaching photography, etc., all kinds of knowledge and skills can be designed and packaged into knowledge-based paid products for sale.

The eighth type: IP derivatives

Creators should think more about how to turn themselves or short video content into IP. The biggest benefit of building IP is that it can bring a series of monetization methods in the future.

Category 1: offline training consultation. After having a certain media influence in your own field, you can receive invitations from companies, institutions and other organizations to give offline training lectures and project consultations. You can also organize offline training courses on your own, which is also a way to monetize.

Category 2: Copyright output. Creators can license or transfer their copyrighted content to others to monetize it. They can also monetize their copyrighted content by publishing books or seeking investment in TV series.

Category 3: paid communities. After creators have a certain number of fans and influence, they can create paid communities, build communities and recruit members, impart knowledge, and pay for value.

Category 4: crowdfunding cooperation. Creators can use the influence of their own IP, rely on fan users and the public to crowdfund projects. For example, crowdfunding for content projects allows fan users to participate in content projects and can also solve the problem of continuous content output; crowdfunding for industrial projects can be transformed into offline industries such as food and fitness.

Category 5: Derivative products. Creators can extend some products through unique IPs. For example, Monk Yichan will later launch a series of derivative products based on the image of Monk Yichan.

Ninth, sell your account to cash in

In the early days of self-media dominated by pictures and texts, the market for selling accounts had already been formed. The only difference was in the direction of creation and efficiency. There are also some creators who, after operating original content for a period of time, may choose to sell their accounts for cash due to time and energy issues or encountering bottlenecks. However, for creators whose purpose is to maintain and sell accounts, they generally hope for short, quick and efficient content, and the quality of the content is relatively rough, which is not encouraged by the current major short video platforms.