Collective Content Revenue Models to Support Digital Nomads and Passport Bros
As many of you know we are elevating our Dream and Hustle content platform to a new format to support multiple creatives who will receive proper payment for their work. There will be a new name and Dream and Hustle will be the publisher of this new name, the new platform. The important thing is not the writing and the content direction; the most important factor is how to pay folks who put in work to create content and get their due. We all got to eat and keep a roof over our heads and that’s why we work.
There is almost zero effort to accomplish this because it all was built years ago into our View the Vista model, which we are going to implement once we establish the new Toshikiso platform that View the Vista runs on. What many people are beginning to realize and what we always know is The Manufactured Solution has created opportunities and tools for digital nomads to support their journey anywhere in this world from their laptops.
People can create digital enterprises, manage their ledgers, manage their media and digitized assets, and manage their contents from our web portals and software to create Fourth Industrial Revolution solutions anywhere in the globe. Meanwhile, we got basic folks who thought they figured out me and my money and my scale and scope when they didn’t know, plain and simple.
Yep, over here having a serious range, and serious scalability from digital nomad microentrepreneurs to city-nation states to leverage our platforms at my firm. Move big, but move in silence on these jealous folks in your hood, at your job, and in your family – remember that.
Digital nomads, they can build and operate against our platform anywhere in the world which is why I kept explaining our data distribution model of hubs and edge centers around the world via the cloud and our own data center premises established. Digital nomads and passports bros who want to establish a presence in a foreign country can bring their laptop and their other equipment and create low-code solutions to run workflows such as offering platform solutions for their clients.
This is why I have been giving examples of running global club promotions, global newsletters, and global scheduling software like that sista on YouTube who built a house in Bali and moved to Dubai recently – see, she figured out how to hustle as a digital nomad and handle her stuff right.
Now for the content platform that we are talking about in this article, the real question is how do we create a revenue model to support content creators for our new content platform? As I said, digital nomads and passport bro folks need their $300/month rent in Pattaya paid and got to eat the food from the night market to maintain their lifestyle in Thailand.
If you going to create a collective content model or what is known as a user-generated model like YouTube, then you have to figure out to pay folks who contribute content. The good thing is this is an organic business model if you do it right. When you set this model, things work just in time where you get paid as the house, the contributor gets paid and as the customers scale up, the size of the revenue pool increase – this is the preferred global business model for a smart digital nomad or even someone looking to retire early or if they are retired and want to draw more money than their social security and their 401k.
There are two main revenue models for a collective content creative model. The first model is a royalty model where creatives are paid per consumption of their content. The second model is a revenue pool distribution where the revenue generation is distributed on a relative scale of the creative contribution to the overall revenue.
Customers Want a Fixed-Rate Pricing
There is one constant that has to be accepted – the customer will want to pay a fixed rate per month instead of a variable payment. That means the customer wants to pay either $4.99/month or $24.99/month to a card on file. The customer wants to consume as much content as they want.
This is the condition that we have seen make or break content platforms where some go out of business or remain unprofitable because there is an imbalance of what customers pay per month versus the cost of each media that has to be paid to the creative. Someone can play thousands of songs per month when the $20/month can only cover hundreds of songs per month to be profitable – this is a revenue problem with most streaming platforms.
Then you have Black media companies that act like BET Comic View which was paying comedians like Earthquake $150 to perform in Atlanta while streaming the show all around their cable audience and making more money, exploiting the creatives. Most Black media operate this way and still operate this way as their revenue to screw over Black creatives because they assume no one else will support Black creatives, and leverage industry racism to screw over content creators. We going to put an end to that exploitation nonsense as well with this new approach.
Royalty Model
The royalty model is what Dream and Hustle have been using and we learned from this model. This is where every time a paid user requests content, we deducted the price of that content from the customer account balance and distribute the revenue between the house fee and the creative as a royalty payout. It sounds straightforward but it is not.
The problem as we indicated earlier, this creates either a pre-paid or post-paid situation on low-cost content and the customer does not prefer this model. The customer wants a fixed amount for unlimited consumption. So if we implement this model, we have to pay the creative properly every time their content is requested but if the amount requested cost us more than the $20/month, then we start losing money as an operation. What streaming companies bank on is hoping the person that only requested 2 items a month makes up for another user that requested 40 items a month, a big gamble strategy at best.
What some companies do is provide advertising as a revenue model on top of the monthly charge to subsidize against any losses from a customer over-consuming than their cost. The problem is the content is usually disrupted by advertising like video streaming platforms and customers don’t want the bad experience of paying to be interrupted by commercials like regular television.
So this did not look like a model that will work well for Dream and Hustle's experiment with a straight just-in-time royalty revenue model.
Distribution of Revenue Pool Model
Do you remember playing Grand Theft Auto 5 or Red Dead Redemption 2 where you perform heists and the money is first taken by the house and the remaining broken up and you get a share split up between all members? This is the distribution pool model and also the “fair share” model for collective content platforms.
In this model, the focus is on the real, actual revenue generated by the customers. So whether it is 100 customers or 100,000 customers paying $20/month then the distribution pool is created by the real numbers of revenue. Then that revenue is distributed first to the house, then the remaining revenue is split up based on the percentage of each contributor value.
This means if a contributor's content is consumed 80% of all views for the month while the other lame creatives only comprise 20%, then the one valuable contributor gets 80% of the revenue pool and the other ones get their relative percentage of the pool distribution. This is a fair share because obviously, the one contributor making up 80% of the views is carrying the water for the platform.
Organically, this is the realistic maturity model where one or two people are going to make up the majority of the money such as 80% of the revenue. But as more good creatives enter the platform, the revenue distribution pool is going to even out between all the good creatives. But the good creative is going to be a little salty that their 80% got reduced to 20% over time. However, there is one thing people are not considering before they act all salty.
The distribution revenue pools grow bigger as more customers join the platform. If the customer boarding rate grows 100% or double, then someone getting 20% before will get the equivalent of double or 40% of their revenue from the increase if their percentage is consistent. So creatives will get paid more when the customer base increase, a rising tide floats all boats.
Which Model to Adopt? It is Obvious.
There is no need to play games and try to do pros and cons. The only proper revenue model is a distribution pool. This is a fair share model that grows with the customer base and rewards those who contribute the most value and does not treat high-value and low-value folks equally, which is a major problem with most business model setups.
With the royalty model, there is a gamble of hoping the customer consumption rate is below the break-even point of their monthly charges to generate a profit. If more customers join a royalty revenue model and all of them just consume 10% more content than the break-even, that content firm is going broke really fast. Most of the content sites using this model are subsidized by advertising or agenda-based billionaires who want to pay for a platform to channel their propaganda.
If Dream and Hustle scaled with the royalty model, we would have to grovel to the military-industrial complex and write positive articles about sending US-made weapons to a conflict zone on the taxpayer dime. Or become a vassal to the Democrat Party to encourage our Black audience to vote for liberals who not going to do anything for the Black community except try to gentrify our neighborhoods – many of your favorite Black media platforms are doing precisely what I just described and I think you realize this.
With the distribution pool, we can implement advertising better where advertisers can bid for placement on the best content contributors in terms of views and context. This allows the contributor to receive the best revenue potential that is split between the creative and the house. Again, true value creators are creating value for the platform and the revenue is distributed in a fair share manner. Eventually, the losers who are not contributing significant value to the platform are cut like big tech employees in 2023.
Opportunities for Digital Nomads and Passport Bros
For digital nomads and passport bros, this model approach can be used digitally or physically. In the early days, people would create “digital communes” in Thailand and Costa Rica where they create a content farm that spams the Internet and social media on topics they swagger-jacked from other media outlets. Today, you can create a physical content farm out of a co-working space with other ex-pats and you all work to get an even distribution or fair share of the revenue pool as a co-op model.
Digitally, you can just run a platform model where anybody around the world contributes content and you pay them from the revenue pool. As a platform owner, you collect the house fees to support yourself and the operation to maintain your ex-pat digital nomad life. So either way, this model supports digital nomads and passport bros as a revenue model to maintain overseas.
Our new platform is using this revenue pool model and we have already set up where we can distribute payments via ACH or debit card loading, send out 1099s, and use our settlement distribution that is now transitioned into our upcoming Stony|Ellis platform as Operating Agreement.
Do you know the great part? The Dream and Hustle Early Adopters will have indefinite access to this feature will no billing cost and will get access early before we publicly release because they supported Dream and Hustle while the rest of these other folks were supporting charlatans. That’s the nice part about all of this, so they can declutter, downsize and start packing to be a digital nomad or a passport bro or create their own platform to work with creatives, their choice.