You’re Making Money as a Content Creator…Now What?

You’ve done it! You’ve turned your passion into profit. Whether it’s from sponsorships, ad revenue, or sales, you’re officially making money as a content creator. Congratulations! 

But now that the money’s rolling in, you might be wondering: what’s next? Here is our five-step plan to keep you moving forward.

Step 1: Celebrate Your Wins 

First things first: take a moment to appreciate your hard work. Making money from your creative pursuits is a big deal. Whether it’s your first $100 or your first $10,000, it’s proof that your effort and talent are paying off.

Step 2: Get Your Finances Organized 

Now that you’re earning, it’s time to get serious about your finances. Start by opening a separate bank account for your content creation income and expenses, if you haven’t already. This will make it easier to track your earnings and spending, and it’ll save you a ton of headaches when tax season rolls around.

Consider using financial tools or apps (we like QuickBooks Online) or a spreadsheet to monitor your cash flow. We’ve got an easy-to-use Income and Expenses tracker for you that helps you visualize your finances and see where the money comes from and where it goes. 

Tracking your finances not only helps with taxes but also gives you a clear picture of your content business’s health. 

Step 3: Budget for Business Growth

Now that you have income, think about reinvesting some of it back into your business. This might include upgrading your gear, hiring an editor or other pro to help out, or taking a course to improve your skills. A budget will help you allocate your earnings wisely, ensuring you’re both growing your business and preparing for the future. 

A good rule of thumb is to divide your income into three categories: 

1. Pay: This is the salary you pay yourself from your business each month. (If you’re using an S corp as your business structure, you may also have distributions of extra income in addition to your salary.)
2. Reinvest: Use this portion to grow your business through professional development, equipment upgrades, and professional help.
3. Save: Set aside money for taxes and capital savings. You can use this money to fund your salary and payment for contractors during slow periods and to budget for future equipment upgrades and learning opportunities. You can also use your business savings to set aside periodic contributions for the expenses you only pay a few times a year.

Step 4: Plan for the Future

It’s never too early to think about the long term. Consider setting up a retirement account. The sooner you start saving for retirement, the more time your money has to grow. Plus, contributions to certain retirement accounts may reduce your taxable income — a win-win!

You should also think about diversifying your income streams. Relying on one platform or revenue source can be risky. Explore new opportunities such as merch sales, subscriptions, or other ways to help keep your income steady. But make sure you’re not trying to do too many new things at once — spreading yourself too thin will mean you’re doing a lot of things not very well. It can also dampen the creativity that drives your content. 

Step 5: Stay Inspired 

With money coming in, you may start to focus on the business side and forget why you started creating in the first place. Take time to explore new ideas, connect with your audience, and keep your creativity flowing. This will help you continue to earn as a content creator for the long term.

Final Thoughts 

Making money as a content creator is an incredible achievement, but it’s just the beginning. By staying organized, planning for the future, and keeping your creative spark alive, you can turn your passion into a sustainable and rewarding career. 

Would taking away some of the burden of the financial side of your business help you be more creative so you can grow? If so, then book a call with us. Our team does the accounting, taxes, and bookkeeping exclusively for content creators just like you so you can free your attention for the parts of your business that are in your zone of genius.