We’re excited to introduce you to the always interesting and insightful Sarah Funk. We hope you’ll enjoy our conversation with Sarah below.
Alright, Sarah thanks for taking the time to share your stories and insights with us today. Let’s jump right into the heart of things. Outsiders often think businesses or industries have much larger profit margins than they actually do – the reason is that outsiders are often unaware of the biggest challenges to profitability in various industries – what’s the biggest challenge to profitability in your industry?
When I started as a full-time content creator in 2017, it wasn’t something people did as their primary career because monetizing was challenging. However, it has become increasingly straightforward over time, though it still requires running your platform like a business.
As an early adopter in the industry, I had to explore every avenue to generate income. This early diversification has been a critical factor in my long-term financial success. I have established multiple income streams optimized for success from the beginning.
I make money through four main channels: affiliate revenue, ad revenue, sponsorships, and product/service sales. My products and services are derived from three businesses: my influencer business, where I sell NYC guides; my NYC tour company, which offers historic walking tours and vacation planning; and my production company, which creates high-end video content for brands.
Many influencers make the mistake of solely focusing on securing sponsorships, which can be an unreliable source of income. As a result, they often have to return to their day jobs when sponsorships dry up. Instead, I believe that influencers should concentrate on building a brand around their content that can grow sustainably over time. Diversifying income streams through ad revenue, affiliate sales, and creating products is crucial for ensuring long-term success in this industry.
The biggest challenge to profitability in the content creation industry is the reliance on a single income source, such as sponsorships. By diversifying revenue streams and treating your platform as a business from the outset, content creators can overcome this challenge and build a sustainable, profitable career in the industry.
Sarah, love having you share your insights with us. Before we ask you more questions, maybe you can take a moment to introduce yourself to our readers who might have missed our earlier conversations?
I first had the idea for my travel brand in the summer of 2015. I was working at a 9 am – 6 pm office job. I knew I wanted more than the traditional career path, but I didn’t know where to start. Taking a chance, I bought a domain name using a high school nickname, “Sarah Funky.”
In 2017, a new chapter in my life began. I took a leap of faith and quit my 9 a.m.- 6 p.m. job to pursue travel content creation full-time. My husband and I traveled the world using our savings. Every month, we lived in a different country, met terrific people, and did things we had only dreamed about. It was like living in a real-life travel movie.
However, in 2018, I returned to the USA, broke with $300 in my name, and was no further ahead in my goal of being an on-camera travel show host. I didn’t want to return to a traditional job, and I knew there must be a way to build the travel brand of my dreams. I decided to start a YouTube channel all about New York City using the skills I had gained as a full-time traveler and a lifelong New Yorker.
I spent a week filming my first three NYC videos and then hired an editor using the only money I had left in my bank account. Today, those three videos have over 3 million views and helped me launch a successful YouTube channel that has grown to 250,000 subscribers and 50 million views.
Today, I am an on-camera travel show host, and I run a tourism company in NYC (https://funkyexperiences.com/) and a production company called Funk & Co Creatives. I can make a living doing what I love.
The moral of my story is that you should never give up on your dreams, no matter how long they may take. Dream big, stay patient. You can do anything you put your mind to. Thank you for hearing my story and for your support!
Can you tell us about a time you’ve had to pivot?
In 2020, I experienced the most stressful year of my life. Just before the pandemic hit, my content creator and tour company business had finally reached a stable financial position, only for it all to be taken away overnight. As my main niche was travel, and travel was banned worldwide, suddenly, no one was booking tours, and everyone was asking for refunds on upcoming tours due to cancellations. Being a travel content creator during this time was horrendous. All of my sponsors canceled their campaigns as they also suffered financially in the travel industry. My affiliate revenue dried up because no one was buying travel products, and my ad revenue plummeted to just 10% of what it used to be, as people stopped watching travel guide videos on YouTube since they couldn’t travel. It was a nightmare.
However, this experience taught me the importance of diversifying my income streams and the industries I work in. My production company, Funk & Co Creatives, was born from the pandemic. I started working with local businesses not negatively impacted by the pandemic, producing high-end video content for them. Today, this business generates multiple six figures a year on its own.
The pandemic also helped me organize my travel businesses and become more creative in reaching people. For example, since people couldn’t join our walking tours in person, we were the first to stream our tours live on YouTube. We collected more money in tips on YouTube Live because 800 people would watch at a time, compared to only bringing 10 people in person when we were doing tours before the pandemic. It became more profitable and set us up to receive a lot of business once travel restrictions were lifted, as all the people joining our tours weekly could now participate in person on their trips.
The story’s moral is that when faced with a challenge, you must look at it as an opportunity to grow and improve. By diversifying my businesses and industries and adapting to the circumstances, I was able to not only survive but thrive during one of the most difficult times in recent history.
Any insights you can share with us about how you built up your social media presence?
When building a business on social media, the most crucial thing to remember is that your niche needs to be apparent from the start; otherwise, people will not follow you. Imagine you want to be known for your recipes, but you also post personal photos of your dog and friends in between and are not consistent with putting out new and exciting recipes. If someone visited your page, they would not be clear on what you do and would likely not follow. On the other hand, imagine a page where every post features engaging, unique recipes. You would follow that account because it is clear what it’s about!
This is one of the most significant challenges for newcomers growing on social media. The key is to choose your niche, post consistently, and create engaging content that is better than what is currently out there. By doing this, you’ll be guaranteed to grow!
In my experience, I focused on creating high-quality, engaging content in my specific niche of travel and New York City. I consistently posted unique and informative content that provided value to my audience. This helped me establish a clear brand identity and attract followers interested in what I had to offer.
Only once you have established a following can you start diversifying topics. However, I recommend adding only one topic at a time so you don’t risk losing your audience. It is a delicate balance between expanding your content and maintaining your core message.
For those just starting to build their social media presence, my advice would be to:
1. Clearly define your niche and stick to it
2. Post consistently and frequently
3. Create high-quality, engaging content that provides value to your audience
4. Interact with your followers and build a community around your brand
5. Gradually diversify your content once you have established a strong following, but be careful not to stray too far from your core message
Following these steps, you can build a robust and engaged audience on social media and lay the foundation for a successful business.
Contact Info:
- Website: https://sarahfunky.com/
- Instagram: https://www.instagram.com/sarahfunky/
- Facebook: https://www.facebook.com/SarahFunkyExperience
- Linkedin: https://www.linkedin.com/in/sarah-funk-aa303225/
- Twitter: https://twitter.com/SFunkyTravel
- Youtube: https://www.youtube.com/sarahfunky
- Yelp: https://www.tripadvisor.com/Attraction_Review-g60763-d17725499-Reviews-Funky_Experiences-New_York_City_New_York.html
Image Credits
Sarah Funk