In an age where influencers, streamers, and professional e-sport gamers can sometimes dominate social media and headlines, it’s easy for teens to romanticize about these careers. In fact, there are some Generation Z’s who think they can easily make a career as an online influencer (1) and would rather be an influencer than a doctor. (2) They see glamorous lifestyles, high-profile collaborations, and seemingly effortless success being an online influencer. However, recent data paints a different picture – 96% of online creators earn less than $100,000 annually (3), and only 1% of gamers make it to the professional level, with even fewer achieving financial stability. (4)
These statistics underscore the need for parents and caregivers to help their teens develop realistic expectations about these paths.
The pull and influence of platforms like YouTube, TikTok, and Instagram, as Darth Vader might say, “is strong.” Teens see creators amassing millions of followers and assume that virality equals wealth – and in some rare cases it does. But, most creators earn modest amounts of money, often supplementing their income with brand deals, part-time jobs, or freelance work. Unknown to many teens, platforms also take significant cuts of ad revenue, making it even harder to rely solely on content creation for a living.
The percentage that platforms take from online influencers varies widely depending on the platform and the monetization model (ad revenue, subscription, tips, or merchandise sales). Here’s a breakdown of common practices that many teens and even adults are often unaware of:
Ad Revenue
- YouTube: Takes 45% of ad revenue from creators through the YouTube Partner Program, leaving creators with 55%.
- Instagram and Facebook (Meta): For ad revenue-sharing features like in-stream ads, Meta takes up to 30% of the revenue.
Subscription Revenue
- Twitch: For subscriptions, Twitch generally takes 50% of the revenue from streamers, though some high-profile streamers have negotiated a 70/30 split in their favor.
- Patreon: Takes a commission of 5% to 12% of subscription revenue, depending on the tier chosen by the creator.
- YouTube Memberships: YouTube takes 30% of membership revenue.
Tips and Donations
- TikTok: Takes a 50% cut of gifts and tips sent during live streams.
- YouTube (Super Chats & Stickers): Takes a 30% cut of all Super Chat and Super Sticker earnings.
Premium Content and Exclusive Deals
- OnlyFans: Takes a 20% cut of all subscription and tip revenue.
- Substack: Charges a 10% cut of subscription revenue.
The reality – influencers can typically lose 30-50% of earnings to platforms across various monetization methods.
Also, many successful creators report working long hours, and experience mental health challenges due to the pressure to constantly produce engaging content to meet audience expectations. (5) Parents and caregivers can highlight these behind-the-scenes realities to help their children see the actual challenges of being a successful online influencer.
Gaming is another field where a teen’s passion often overshadows practicality. While the global gaming industry is worth billions, the odds of earning a living as a professional gamer are incredibly slim. According to industry analyses, less than 1% of gamers make it to professional e-sports tournaments, where prize pools are often divided among teams and taxed heavily. Most professional gamers also face short career spans, with intense competition and burnout being common.
Here’s a great YouTube video from a gaming insider that talks about the reality of becoming a professional online gamer.
Parents and caregivers can help their teens understand that loving gaming doesn’t mean they have to turn it into a career. Instead, they can explore related fields, such as game development, programming, or graphic design, which offer more sustainable and attainable opportunities in the gaming industry. (6)
Having said this, currently, there are more than 200 colleges and universities in North America offering esports or online gaming scholarships that are easier to attain than being a professional e-gamer. These institutions often integrate esports programs into their academic and extracurricular offerings, and scholarships can range from a few hundred dollars to several thousand annually, depending on the school and program. These scholarships can help when it comes the ever-increasing costs of attaining a university degree. Two examples of institutions offering these opportunities include:
- University of California, Irvine (UCI) – UCI offers competitive esports scholarships for games like League of Legends and Overwatch.
- Boise State University – With an established esports team, Boise State provides scholarships for various games, including Rocket League and Hearthstone.
Content creation and gaming can still be meaningful and rewarding hobbies. They teach valuable skills like creativity, problem-solving, and digital literacy. However, it’s important to encourage teens to balance these pursuits with academic and career goals that offer more stability.
Open conversations about financial realities can help teens make informed decisions. For example, parents and caregivers can explain the importance of:
- Understanding taxes, expenses, and savings as they relate to entrepreneurial ventures.
- Developing skills like coding, video editing, blogging, or website design can open doors to stable and lucrative careers beyond the online world of influencing or professional gaming (7)
- Recognizing the pressures of online fame and learning coping strategies.
While it’s important not to dismiss a teen’s dreams, guiding them to view content creation or gaming as supplementary to a stable career path can foster a balanced approach. Discussing backup plans, such as pursuing higher education or vocational training, ensures they have options if their initial ambitions don’t pan out.
Parents and caregivers can encourage their children to explore these passions without becoming overly reliant on them for financial success. For example:
- Suggest part-time content creation while pursuing education.
- Help them find internships or courses in related fields, like marketing or game design.
- Encourage networking with professionals who can provide insights into these industries.
While digital careers in content creation and gaming may seem glamorous and promising, the realities often differ significantly from the perceptions. With 96% of online creators earning less than $100,000 annually and only 1% of gamers reaching the professional level, these paths are not the guaranteed roads to success they might appear to be. Instead, they often involve intense competition, significant time commitments, and financial uncertainty.
Parents and caregivers play a critical role in helping teens understand the challenges and opportunities of these fields. Encouraging a balanced approach, where gaming and content creation are treated as hobbies or supplementary pursuits rather than primary career goals, can help teens develop a realistic perspective. By promoting education, financial literacy, and skill diversification, parents and caregivers can prepare their children for a fulfilling future, whether or not it includes a career online.
Ultimately, supporting teens in exploring their passions while fostering resilience and adaptability ensures they are equipped to navigate an ever-changing career landscape with confidence.
By fostering these discussions, parents and caregivers can provide essential guidance that aligns with the realities of today’s job market. Encouraging teens to explore alternative careers within related industries, such as video production, game design, coding, or digital marketing, not only leverages their interests but also increases their chances of finding stable, fulfilling employment.
It’s also important to emphasize the value of transferable skills. Many of the abilities honed through content creation and gaming such as problem-solving, teamwork, strategic thinking, and creativity, are valuable across a wide range of professions. Highlighting these can help teens see how their passions can fit into broader career goals.
In addition, parents and caregivers can remind teens that pursuing multiple pathways does not mean abandoning their dreams. By treating content creation or gaming as complementary to education or other pursuits, teens can build a foundation of financial stability while exploring their creative passions.
Ultimately, supporting teens in these endeavors means striking a balance: encouraging their aspirations without inflating their expectations. By fostering open communication, setting realistic goals, and preparing for alternative career options, parents and caregivers can empower their children to dream big while staying grounded in the realities of a competitive and uncertain digital landscape.
Related Article:
Digital Food For Thought
The White Hatter
Enlighten Not Frighten, Facts Not Fear, Enlighten Not Frighten, Know Tech Not No Tech
References:
4/ https://pmc.ncbi.nlm.nih.gov/articles/PMC7438909/
5/ https://techcouver.com/2023/05/06/later-report-mental-health-challenges-faced-by-creators/
6/ https://www.youtube.com/watch?v=5tipgAicNOc
7/ https://thewhitehatter.ca/blog/four-skills-to-help-develop-teen-digital-creators/
