I want to be a streamer – 2022 Edition – Opinion
Disclaimer: It is a personal opinion and they are free to choose what to be. They are of legal age and we will simply analyze a specific context and its challenges.
They can take it as an economic "advice", but not a general rule that applies to all cases.
in inbox I was asked a question that I will simplify to the following.
“I have capital (on loan) and I want to become a streamer to diversify my income. It is profitable?".
We will see the fallacies that occurred during that conversation and the reality of “become a streamer” who collects and earns enough to pay for his "Lifestyle".
I'm young and I want to take risks, I like games and being a streamer is a monetization option
Being young is a perfect age to take risks, how it is also true that all risk has a cost. Many gamers and PC lovers have taken up the venture and have achieved impressive results and display a stunning lifestyle, which manages to catch the attention of boys and girls.
The first question is, What percentage of the entire population that is actively streamer gamer really lives from that?
The top 1%?
We will be benevolent and I will put that it is the top 5%… There is a 5% chance that one enters that place to that succulent place… and can afford their expenses that way.
And the rest?
Well, I think you have your answer.
"I could, so you can too"
The nature of this phrase is motivational, but it is personal opinion, which is a very dangerous generalization. In extreme cases, a person may end up taking unnecessary risks for not "keep your feet on the ground".
A perfect example is the people who have invested the last few weeks in cryptocurrencies., not knowing well the risk of what an equity investment is and do not know about “fundamentals in a fixed or variable income investment".
Returning to today's case, “I want to be a streamer to diversify my income” the focus of the “investor” is wrong from the beginning because…
A Gaming PC is not an investment, it is a luxury, but not a necessity
High Xanxo, but Istav Nile? The one with USB disconnections with AMD Ryzen?
He is not a streamer and the PC is his WORK TOOL, because it does audio visual works. His work that brings him daily bread deserves to have a PC that pays for itself and at the same time, he plays in his spare time.
This also applies to anyone who is exercising a career that generates a monthly income and their indispensable tool is a PC (or laptop).
For the rest of mortals, a GAMER PC should never be considered as an investment, if not as a depreciable good.
becomes profitable IF YOU GET TO MONETIZE with it with a high ROI.
A PC o gaming laptop it's a luxury, since unlike food and clothes (among others) It is not a basic necessity.
Is this article anti consumerist?
At all. Everyone is of legal age to spend on what they want, as well as being aware that one can live eternally in debt and that is your responsibility.
A bit of recent history (COVID-19) and the reality of the gamer streamer in 2022
If you weren't aware, the great rise of PCs and laptops occurred during the confinement of people due to COVID-19. Being in lockdown, people demanded more PC components, as well as digital content.
One lucky group was the game streamers, who saw a boom in numbers, especially if they were there before the start of the pandemic (they already had a pre-existing audience).
Several tried to ride the wave (fashion) and everything digital grew exponentially, but as the restrictions were disappearingalso the numbers.
The reality of the gamer streamer is tied to your content generation, to his charisma, among others.
Those that monetize and can subsist or justify "the investment" are:
"The 1%, sorry, 5%".
It does not mean that a personI can't do it” but the odds are very low by themselves.
REAL economic reasons behind this currently are:
-World economic depression.
-World inflation and increased cost of living in general.
Everything is related and job expectations are currently very bad in general (especially for young people internationally). #1.
Be young. Zero or little income… where does the money come from? The “influencer effect”
You have to be fair. Being young and having just turned 18 years of age means that the income of a person around this age is usually zero in our society. This means that depend on what their parents give them.
According to the culture of each country, parents stop giving money to children 18 years old and have to get a job. (#2).
In our society, many still live with parents and any investment money, they come from dad or mom.
The other option is that they found a job, what has given the person certain criteria of what has to be done to receive income.
Hard hours of honest work since, at that age, the type of work they offer is not specialized (basic labor in a nutshell).
Effect "Influencer" or social networks, shows the top 1/5% living a “luxury” life. "free" products, trips, objects that sell the illusion that being a streamer, influencer or gamer pays you for a lifestyle.
The same thing happens with actors, musicians among others, but those who live that reality and have already spent several years trying to achieve that "quick success" they will tell you that It is not like this. Some are talented and lucky. They manage to obtain that desired quick income, while others spend their entire lives without reaching the goal and give up, getting for something more realistic.
The difference between have a dream and what is possible, are different realities.
Having social networks as a reference should be taken for what it simply is, SOCIAL NETWORKS (FB, Instagram, TikTok, etc.). On a personal basis, see it as a standard of living, it really is self-sabotage and one projects life plans sometimes to impossible goals.
It does not mean that some person cannot achieve such success, but to simplify and say that the chances of one (the individual) reach it, it's very different.
There is no easy road to success.
It was not with cryptocurrencies, nor is it for a streamer or influencer. That's why several public images never publish their stories of all the bad things that have happened, for maintaining an "image of success", because of that they "live"system. (There are exceptions).
Specific case - I have a loan and I still want to be a streamer and play
Well, the first thing that comes to mind is… How much interest are you paying on that loan?
To recover that loan, one would have to recover the principal y also pay interest.
Once that's paid, The profits for "that investment" would just come.
If any advice could give, is to start small.
The person who originally asked the question obtained a loan of 15K soles.
The standards that were setto start” are unreal:
-Sony S7III camera.
-High-end PC and GeForce RTX 3090.
The loan doesn't cover the cost of that super PC with a professional camera, but let's say it does.
How many months or years would one recover those 20K nuevos soles?
If you recover it in a month and the income will be constant, at a good time... but for someone who starts, the story is very different.
“Still, I want to spend and differentiate myself.”
Calculation tool, example of 20K soles in this case. Good Comparison
So, there is an underlying problem there, because it makes no sense to differentiate yourself in something that you are not sure has a return.
WHAT IS SURE is the following. Reviewing the website comparabien.pe, the personal loan ranges from 7.51% up to 82% annual interest rate (TCEA).
Data of comparabien.com.pe
From 21,307 to 35,238 nuevos soles It is what one should pay in a period of two years, depending on the bank or savings bank. The truth is that a venture (in traditional channels) can currently have better returns, but a PC Gamer/streaming (unless there is luck and talent) is not.
It's good to have your feet on the ground.
There is a difference between have dreams and reality that one lives or how feasible certain plans are in the short/medium and long term.
An advice? Start small and see the potential, but not borrow.
How is wealth created? and final words
In simple terms, saving. If you don't have good savings practice, there will never be riches. Quite the opposite, they will live in debt and slaves to their bad spending habits.
A perfect example is famous artists, who once had a boom and spectacular income and ended up bankrupt. The same can happen to any public person, streamer or influencer…
While younger start saving, how they manage their expenses, they will see that wealth that so many young people yearn for.
There is a big difference between dreams, plans and what one can do, since nothing is free and resources are limited (that's why the economics career exists).
There is no such thing as an assured short path.