Producing Content At Low Costs Is The Key To Online Profitability

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If you can produce content cheaply, the internet offers an impressive distribution system where you can monetize it, almost instantly. Everyone knows this. There are tons of companies working endlessly to produce content cheaply, or better yet, to get users to produce it for them, free. That’s the type of thinking that leads Google to spend $1.6 Billion acquiring YouTube.

Google’s an interesting case, because they’re the content distribution system, and they also are becoming one of the largest companies in terms of user-generated content creation. They’ve invested heavily in user-content creation systems, like YouTube and Blogger before it. They know how quickly content devaluates, and just how limited of a time-frame you really have to exploit it.

It’s time for smaller content producers to also take a realistic look at content creation, and to decide where they’ll be in the overall system. It’s tougher than ever to be an independent creator of content. The window of opportunity to profit is smaller than ever. You need to get fairly wide distribution quickly in order to have any chance at making money.

Independent content creaters should still have an advantage in quality. You won’t be able to produce content as fast as your competitors (or as quickly as the user-generating masses), but you can make your quality better. In fact, you’ll have to, in order to have even a fair shake at a mass audience. Most likely you’ll also need to engage in some social networking in order to help distribute your content quickly. The longer your content goes unread, the less of a chance you have at really earning money from it. The quicker you can get it into circulation, and start generating Pageviews, the more money you can make. That’s why the emphasis has to be on owning websites that already have a lot of readers.

As an independent, you have the ability to keep your costs low, and this will be important. If you can maintain rigorous cost controls, you have a real shot at competing with the big boys.

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