How to start a UGC creator business

Starting a UGC (User-Generated Content) creator business involves creating authentic content brands can use to connect with their audience. Here's a quick guide to get you started:

Understand UGC: It's content made by users rather than brands, valued for its authenticity.
Identify Your Niche: Focus on what you love and know well.
Set Up Your Business: Deal with the legal and financial aspects.
Create Quality Content: Plan, produce, and edit content that resonates.
Build Your Presence: Choose the right platforms and promote your content.
Monetize: Explore options like sponsored content, affiliate marketing, and consulting.
Network: Connect with other creators and your community.
Analyze and Scale: Use insights to grow your business.

Regardless of the number of followers, creating engaging UGC can open doors to collaborations with brands, offering a pathway to monetization. Considering forming an LLC can provide legal protection and tax benefits as your business grows.

What is UGC?

UGC means "user-generated content." It's all about the stuff people make and share online for fun, not money - like videos, pictures, reviews, or posts on social media. Here's what makes UGC special:

Everyday folks make it, not paid pros
Real and personal stories and opinions
Shared everywhere on the internet, from social media to blogs
Popular because lots of people like and share it

Basically, UGC is when regular people share their own experiences and ideas online, which feels more real than official brand messages.

UGC vs Traditional Content

Here's how UGC is different from the usual brand stuff:

Realness: People trust UGC more because it's coming from real folks, not companies.
Cost: Making UGC is cheap because you're not paying for it. Brands might pay to show it off, though.
How it's made: UGC is just what people feel like sharing. Brand content has a whole plan behind it.
Connecting: UGC makes a better bond with people because it's relatable.

In short, UGC is cheaper, feels more real, and connects better with folks than brand-made stuff.

Benefits of UGC

Why UGC is awesome:

Feels real: People believe UGC more because it's from real users.
More attention: UGC gets more likes and shares on social media.
Saves money: Brands save on making content since users do it for free.
Feedback: Brands learn what people really think from UGC.

UGC that looks like it's made by regular folks works better for getting people interested.

The Influence of UGC

UGC is a big deal because:

86% of people think UGC is more convincing than what brands say.
92% trust other regular folks more than brand ads.
49% look at UGC to learn about stuff before they buy.

More and more, people are listening to UGC to decide what to buy, making it super important for brands to get into UGC.

Identifying Your Niche

Choosing what you're really good at and what you like to talk about is the first step for UGC creators. It's about finding a specific area you can focus on and make content that really hits home with people. Here's how to find your sweet spot:

Start with Your Interests

Think about what you love doing or know a lot about. Could be anything from cooking to video games.
Ask yourself: Can I make cool videos or write interesting stuff about these topics?
Pick areas you're excited about and know inside out.

Evaluate Market Potential

Look into how many people are into the same things and what kind of stuff they like watching or reading.
Keep an eye out for trends or topics that are getting popular.
Find a niche that doesn't have a lot of people doing what you want to do but still has folks interested in it.

Competitor Analysis

Check out who's already making content in your field on places like Instagram or YouTube.
See what they're doing and how people are reacting to it.
Think about what you can do differently or better.

Picking what you're passionate about and good at is the start. Then, look at what's out there and how you can stand out. This way, you're all set to make an impact with your UGC.

Setting Up Your UGC Business

Registration and Taxes

When you start making UGC content for a living, there are a few boring but important things to sort out first:

What's your business type? You can work on your own, with a partner, or set up something more official like an LLC. Each choice affects how much you pay in taxes and how much paperwork you have. Most UGC folks start on their own or with an LLC.
Licenses and permits: Check if your city or state wants you to have any special permits or licenses to do your business. Often, you just need a basic business license.
Taxes: Remember, now you're the boss, so you've got to handle your taxes. This includes paying income tax, self-employment tax, possibly sales tax, and sending in tax payments four times a year. Keep track of all your expenses because they can lower your tax bill.
EIN: If you plan to hire people or want a business bank account, you'll need an EIN from the IRS. It's like a social security number for your business.

Talking to a tax pro or lawyer can help you make the best choices for your UGC business.

Permissions and Copyrights

When you show off products in your videos or posts, make sure you're allowed to:

Trademark: Don't slap a brand's logo or name in your content without asking them first. If you want to talk about a product, reach out to the brand for permission.
Copyright: If you're using someone else's stuff, like a part of a song or a clip from a movie, be careful. You can usually use a bit under "fair use," but don't take whole pieces.
Model releases: If your video shows people's faces, get their OK in writing to use their image for your stuff.

It's best to play it safe and either show products without brand names or get the OK from the brand first. Always give credit where it's due.

Monetization Models

Here's how you can make money from your UGC:

Sponsored content: Work with brands to make special posts or videos. They pay you a set amount.
Affiliate marketing: Talk about products and get a cut if people buy them using your link.
Consulting: Help brands figure out how to get people to make and share content about them.
Premium content: Charge fans for special content only they can see.
Ad revenue sharing: If you put ads in your videos, like on YouTube, you get a piece of what the ads earn.

Mixing different ways to make money can help you earn more while keeping your content real and interesting for your audience.

Creating Quality UGC

Pre-Production Planning

Before you start making your UGC, it's smart to plan everything out. Here's what you should do first:

Think of cool ideas: Come up with fun and original ideas that fit what the brand wants to say. Think about making videos like unboxing, how-to guides, or your first reaction to a product.
Write down your plan: Jot down what you want to say and show in your video. Make sure it's easy to follow and talks about the product well. Keep it short and sweet.
Get your equipment ready: Make sure you have everything you need to take good pictures or videos. This includes things like tripods, microphones, and lights. You can borrow equipment if you don't have it.
Check the brand's rules: Look at the brand's guide on how they want things to look and what words to use. Stick to their rules closely.

Optimizing Production

When you're recording your UGC:

Make it look good: Shoot in high quality, like 1080p or 4K. Use good lighting and a simple background. Keep the camera steady.
Sound matters: Try to cut down on background noise. A clip-on mic can help your voice sound clear. Make sure the sound is loud enough but not too loud.
Stay legal: If you're filming people, get their permission first. Don't use brand logos without asking. And always say where you got your music or clips from.
Vary your shots: Keep your clips short so you can choose the best ones later. Get extra footage and try different angles.

Post-Production

After you've recorded your UGC:

Edit: Put your clips together in a video editing program. Make sure it flows well and sounds good. You can add text or graphics if you need to.
Make a catchy thumbnail: Create a thumbnail that will make people want to click. Use big text and bright colors.
Get it ready to share: Add tags, a good title, and a description. Follow the platform's tips to help more people see your video.

Building Your Presence

Choosing Platforms

When you're starting as a UGC creator, it's a smart move to be active on platforms where your audience hangs out. Here are some good places to start:

YouTube

Great for videos that are a bit longer
Has a huge audience, with over 2 billion people using it every month
You can make money through ads
How-to videos, reviews, and gaming content do really well here

Instagram

Perfect for photos and short videos
Has over 1 billion people using it every month
You can work with brands on ads
Using the right hashtags can help more people find your posts

TikTok

Short, fun videos are the way to go
Also has over 1 billion monthly users
Your videos can quickly get a lot of views
It's all about being creative and joining in on trends

Think about what kind of videos you want to make and where your audience likes to spend their time. Being on more than one platform can help you reach more people.

Promoting Your Content

To get more people to see your stuff:

Use keywords - Put important words in your video titles, descriptions, and hashtags so people can find your content when they search.
Post regularly - Have a schedule for when you post new content and talk to your followers to keep them interested.
Team up - Find other creators who make similar content and work together. This can introduce your content to their followers.
Join groups - Share your videos in online groups that care about your topics. Be active and helpful so people see you as someone who knows their stuff.

Using these tips can help more people find and like your content.

Analytics and Optimization

Looking at your video stats can tell you what your audience likes:

Check your numbers - Keep an eye on how many views, likes, and comments you get to see what works best.
Watch when people stop watching - If there's a spot where lots of people stop watching your video, you might want to change something there.
Find out where viewers come from - Knowing where your views are coming from can help you focus your efforts better.
Try new things - Don't be afraid to experiment with different types of videos to see what your audience likes the most.

Keep looking at what the data tells you so you can keep making content that people want to see.

Monetizing UGC Content

Working with Brand Partners

To make money with your content, teaming up with brands for sponsored posts is a good move. Here's how to do it:

Find brands that fit what you talk about. Make a list of ones you'd like to work with.
Put together a media kit. This should have info about who watches your stuff, how many people you reach, and how much you charge. It makes you look professional.
Reach out nicely with an email or a direct message. Explain why your content is a good match for them and attach your media kit.
Offer some content ideas that would work well for both of you. Be creative but make sure it fits the brand.
Talk about the details like how much you'll get paid, what you'll make, and when everything needs to be done. If you're just starting, you might need to accept lower payments.
Make sure everything's clear with a written agreement. This should cover who gets to say yes to the content, how and when you'll be paid, and who can use the content later.

Sticking with it and being professional can help you make good money with sponsored content.

Affiliate Marketing

With affiliate marketing, you make money by suggesting products you like. Here's how:

Look for affiliate programs that match what you talk about. You can find these on websites like CJ Affiliate or by asking brands directly.
Pick products that people actually buy from your recommendations. This way, you can earn more.
Tell your viewers about affiliate links. Let them know you make money if they buy through your link. This keeps their trust.
Try different ways to share your links and see what gets more clicks and buys.

Affiliate money might start small but can grow big over time as you make more content.

Premium Content and Consulting

You can also make money by offering special content or your expertise.

Give a sneak peek of special content to get people interested in paying for more. This could be videos or posts that only paying fans can see.
Create different levels of special access. People can pay more for extra cool stuff.
Think about offering direct chat access for those who really want to connect with you. Fans might pay for this.
Help others with your know-how. If you're good at making UGC, you can charge others for advice or help making their content.

Just make sure you still share plenty of free content so everyone can enjoy what you do. But, your biggest fans might be happy to pay for extras.

Networking and Community

Finding Your People

It's important to connect with other people who create content like you do. This can help you grow your business. Here are some good places to meet these folks online and in person:

Facebook groups: Look for groups about your topic and join in. Share your tips and help others.
Subreddits: Find Reddit communities about your interests. Be friendly and helpful.
Discord servers: Discord is a place with groups for almost anything. Say hi and start making friends.
Industry forums: Find forums about your area of interest. Help answer questions and show you know your stuff.
Local meetups: Use Meetup.com to find local groups that get together to talk about your interests. Go to these meetups to meet people.
Conferences and events: Going to big meetings for people in your field is a great way to meet others. You can talk to them in person, share contact info, and learn from each other.

Collaboration Opportunities

Working with other creators can help you both get more viewers and share the workload:

Write guest posts for each other's blogs or channels.
Host a live stream or podcast episode together.
Make a series of videos featuring each other.
Share each other's work and products.

Make sure to team up with people who care about the same things as you and have followers who would like your content.

Events and Conferences

Going to events is a great way to meet important people in your field:

Industry conferences like VidCon or BeautyCon. These events draw in big brands and other creators.
Fan conventions for things like gaming or comics. Brands often sponsor these events.
Meetup groups in your city about your interests. These are good for making local connections.

Meeting people in person at these events can help you find others to work with or brands that might want to sponsor you. Be ready with your business card and something to talk about.

Analyzing and Scaling

Key Performance Indicators

To see if your UGC content is doing well, look at these important numbers:

Views: Keep track of how many people watch your videos or look at your posts. See if this number goes up over time.
Click-through rate (CTR): This is the percentage of people who click on a link after watching your video or seeing your post. A higher CTR means more people are taking action because of your content.
Revenue: Count all the money you make from things like sponsored posts, affiliate links, and consulting. Then, see if you're making more money than what you're spending.
Return on investment (ROI): This tells you if you're earning more money than you spend on making content. To find this out, divide the money you made by the money you spent.

Watch these numbers to figure out what's working and what's not. Try new things based on what these numbers tell you.

Using Insights Strategically

Use the information from your numbers and what your viewers say to make your business better:

Invest in better equipment if better gear gets you more views or if your viewers suggest it.
Consider hiring help if you're getting too much work to do by yourself. You might need people for editing, taking pictures, or managing social media.
Start a podcast or blog if your viewers want more ways to hear from you. This can help you reach more people in different ways.
Expand to new platforms if you see a chance to reach more people. Make sure to change your content to fit each platform's style.

Let what you learn from your data and your fans guide you on where to spend your money and effort.

Conclusion

Starting a business where you create content based on what people like and share online (UGC) is a smart move right now. There's a big need for real, honest content, and if you're good at making stuff like videos or posts, you could do well.

Here's a quick recap of what we talked about to help you get going:

Find what you're good at. Think about what you like and know a lot about, and see if there's an audience for it.
Get the boring stuff sorted. This means setting up your business officially, dealing with taxes, and figuring out how you'll make money.
Make stuff people want to watch or read. Plan your content, shoot it well, and edit it so it looks and sounds great.
Show your work to the world. Pick the best places to share your content and use smart ways to get more people to see it.
Earn money from your content. You can do this through ads, working with brands, selling special content, and more.
Meet other creators. Join groups and events to connect with people who do what you do.
See what's working. Keep an eye on how your content is doing and use what you learn to make it even better.

Making UGC can give you the freedom to be creative and connect with people in a real way. If you plan well and keep learning, you can turn your hobby into a successful business.

Start small. Pick a topic, make some content, and share it. Little by little, you'll find your way. It's an exciting time to be a creator, so why not jump in?

How much does a UGC creator make?

On average, a UGC creator can earn about $116,615 a year, with some making up to $128,000. Every month, they might bring in between $10,250 and $10,666. But, how much you earn can really vary based on things like how many people follow you, the quality of your content, if you have sponsorships, and how you make money from your work. A lot of creators start off small but can grow their earnings over time.

How do you become a UGC creator?

To become a UGC creator, follow these steps:

Look into brands and ideas for content
Buy or get some filming gear ready
Practice making good UGC content
Figure out your special area and who you want to reach
Create a portfolio showing off your work
Start offering your services to brands
Use UGC creator platforms to find brands to work with

The main things are to keep making content that grabs people's attention, connect with brands, and show them why your work is worth their investment.

How many followers do you need to be a UGC creator?

You don't need a ton of followers to start making UGC, but having more can catch a brand's eye. First, focus on creating great content. As your content gets seen more on search engines and social media, and as you engage your audience, you'll find more opportunities to work with brands. Listening to what your viewers say can also help make your content better. Stay determined and keep improving your work while reaching out to brands.

Do I need a LLC for UGC content?

Having an LLC isn't a must, but it comes with perks like legal protection and tax benefits. Think about things like how much money you're making, your costs, if you plan to hire anyone, and what risks you might face. An LLC separates your personal stuff from your business, which can be safer for your money. But, setting up an LLC means dealing with fees and paperwork, so it's up to your situation. Talking to someone who knows about taxes or law can help you decide if an LLC is right for your UGC work.