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The economics of UGC marketplaces

The economics of UGC marketplaces

(2 min read) How Cheddar Chez built a lucrative business creating UGC content for over 700 brands - with under 10k followers.

Avi Gandhi
January 02, 2025

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Happy New Year!

Last January, Sanchez Zehcnas opened my eyes to one of the best ways for Creators with small audiences but big talent to monetize - UGC.

I break down the economics, tactics, and platforms he uses to monetize through UGC below.

2025 is your year to make $100,000!

If you’re looking to transition from making content to making money, UGC is one of many options.

It’s a challenging road to $100,000 in annual income - the threshold I use to define the Creator Middle Class - and much harder if you travel it alone.

I made $254,334 this year with just 60,000 followers, but would not have without a strong community who did things for me like

Introducing me to a $137,000 client (!!!)
Getting me a panel at a major conference
Offering a perspective that grew this newsletter 300%

You deserve the same.

That’s why I’m launching The $100k Creators Club.

If you’re early on the journey from making content to making money, and want resources, peer support, and opportunity-sharing - maybe The $100k Creators Club is right for you.

Cheddar Chez

Over the last two years, Cheddar Chez has built a lucrative business creating UGC content for over 700 brands - and he has less than 10,000 followers.

How?

Marketplaces!

These websites connect brands looking for UGC content to use in their ads with Creators who are interested in making that content.

There was one particular third party app called Billo that I got started with…They do the marketing to bring people who want my services to me. I just went and applied to whatever brand that I wanted to work for, and then from there, I think the first month I made like $1,200. I was trying to make $500, but I ended up making double that.

Then from there, it was just like 40 videos a month, 50 videos a month, back to back to back to back to back.

If you sign up for Billo, use Chez’s referral code - KK1YS - to get some extra cash on your first video (and to get him paid as well).

Billo was just Chez’s entry point - a place to establish himself as a quality UGC Creator and learn how the UGC business works. Eventually, he discovered the next level.

I came across another platform called Insense, and that platform paid way more than what I was making on Billo.

Here’s how the economics break down:

On Billo, when you get started, you make $25-$40 for a short video, until you become a “Premium Creator”. That increases the price per video by ~2-3x.

If you’re getting, say, $70 per short video and can make 3 a day, your annualized income is over $50k…but that’s a lot of videos (~60 a month) and it’s hard to get that many.

InSense takes per-video revenue to the next level.

$300 for a video, $500 for a video, $800 for a video, where, like, on Billo, you're getting $70 as a Premium Creator. I'm on Insense and I'm like, “Man, this is crazy!”

The other benefit of being a UGC Creator in these marketplaces is that you receive a ton of product that you can keep or resell.

My front door looked like an Amazon warehouse. I had packages at my front door every single day!

Unlike a brand sponsorship for a social page, where success is often determined based on direct sales or content views/engagement, the success of UGC is determined based on the quality of the content (which drives sales and viewership indirectly, through the brand’s social or ad-based distribution).

Practically speaking, that means UGC Creators need to focus on producing high-quality content, rather than high-reach content. The marketplaces’ Creator discovery process reflects this.

You start off with a pitch video: You pitch yourself for 15 seconds, and then you grab a product and pitch it.

So let's say I have this Rick and Morty Pop doll right here. I say, “Hey, if you like Pop dolls, you gotta go check out this Rick and Morty one. If you're a Rick and Morty fan, it's one of my favorite shows…you just go down the list and talk about why it's important to you, then send them the video.

If you get approved, then when brands find you, they'll see that pitch video. If you already have examples of videos that you've done with other brands, they can see those too.

That’s how they're able to determine if they want to work with you or not.

Poll

Have you made UGC video for money?

Important links for you

Go from making content to making money - Learn more about The $100k Creators Club
Get well-priced, corporate-quality health insurance from essentL Creator (I’m an advisor)
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