Navigating Economic Challenges: Employee Solutions for Financial Growth

Economic

Economic challenges significantly impact middle-class individuals, often pushing them into lower economic brackets. As the cost of living—from food to education—continues to rise, daily life becomes increasingly difficult, with financial concerns dominating existence. According to a Pew Research Center national survey of 2,508 adults, an overwhelming majority of middle-class Americans (85%) believe it is more challenging today than it was ten years ago to maintain their standard of living.

Employees face a tough dilemma: how can they improve their skills and increase their salaries when they work almost 12 hours a day? Without self-development, staying in the same job long-term becomes nearly impossible. The pressures of work, combined with limited family time, create an immense burden on people today. According to Health and Safety International, 61% of Middle Eastern workers struggle with well-being, contributing to global productivity losses estimated at $8.9 trillion.

But what are the causes of low productivity and high stress? Is it money? A survey of 3,000 adults aged 18 and over, conducted by Opinium between November 7-14, 2022, found that 29% of adults experienced stress, 34% experienced anxiety, and 10% felt hopeless due to financial worries during the previous month.

The Secrets to Financial Improvement

How do people gain wealth and improve their financial lives? What are the secrets? Many experts suggest that investment is the best path to wealth—"Invest to be rich!" But how can employees with limited income invest?

Investment comes in many forms, with money being the most popular. Another crucial investment is in yourself—your skills, education, and experience. Among various investment methods, generating passive income, which doesn't require much time or effort and isn't tied to a traditional job, is an excellent way to boost income.

"An investment in knowledge pays the best interest." — Benjamin Franklin

In today's world, hourly work limits the potential for wealth. As hourly rates decline and the cost of living rises, the number of hours in a day remains fixed. Therefore, generating passive income is essential.

Addressing economic pressures and investment is complex and multifaceted. Here, we focus on the technological feasibility that could positively impact millions of lives.

Harnessing the Power of the Internet

According to Forbes, 66% of the world's population, or 5.35 billion people, have access to the internet. Our main question is: how can we empower these people to improve their financial wealth using the internet's incredible connectivity?

Passive Income Sources Online

The most popular options for generating passive income online are content creation and freelancing. However, freelancing is still limited by hours, making it a good additional source of income but not the best choice.

In content creation, the existing market choices fall into four categories:

Social Media Platforms: These platforms target a mass market with free content and high communication features. While individuals can earn income through social media, it typically requires a huge number of followers, usually in specific industries like gaming or lifestyle. Other types of knowledge content struggle for attention. Forbes estimates that YouTube pays roughly $5 per 1,000 views. Creators need at least 1 million subscribers to earn about $60,000 annually, depending on ads, page views, and other factors. Most creators increase their income through partnerships and sponsorships outside these platforms.
E-Learning Platforms: These platforms focus on students and instructors. The profit margin for average creators is often unsatisfactory, as these platforms conduct massive marketing campaigns and have strong market reputations. However, they are considered better than direct social media income sources due to diverse content structures like courses. According to SellCourseOnline, the average instructor on Udemy earns $3,306 per year, with 75% making less than $1,000 annually. Only 1% make a full-time income (>$50K/year), with the top 1% earning more than 50% of all Udemy earnings.
Monetization Platforms for Creators: These platforms allow creators to sell digital products like videos, articles, or images. They offer more financial freedom than e-learning platforms, with membership options and a lower revenue share percentage. According to Blackline, Patreon takes 8-12% of creator earnings (plus a payment processing fee). GoBankingRates mentions that Patreon creators typically earn between $315 and $1,575 monthly.
Personal Websites: Developing one's website offers freedom, more control, scalability, and potential for increased income. However, it requires a high initial cost, technical expertise, domain knowledge, and extensive marketing to achieve high SEO rankings. According to WebFX, building a site costs $12,000 to $150,000, with maintenance ranging from $400 to $60,000 per year.

Overcoming Barriers to Passive Income

Generating passive income online through selling digital products requires significant investment in education, tools, hard work, time, and money. Many people feel overwhelmed and give up on these opportunities, while others lack proper guidance. Approximately 0.93% of internet users are content creators, leaving over 99% of users hidden from this potential income stream.

Income generation based on personal branding and individual knowledge is a complex, multi-dimensional business. It involves answering critical questions such as what to sell, where to sell it, how to generate profit, and how to manage the business.

MUAB's Approach to Monetization

At MUAB, we have spent years addressing these questions. Monetisation is rooted in communication, accessibility, and content data structure. We will explore these aspects in more detail in our upcoming articles. We aim to empower individuals with the knowledge and tools necessary to navigate economic challenges and achieve financial stability through passive income and digital product selling.

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