There are two ways people make money on social media. Let us take YouTube.
1. Using YouTube as an advertising or marketing source for their business.
Lawyers, doctors, people with their own businesses, etc. display their skills on social media. People watch the videos and if there is good content in their videos, they will contact when needed.
What’s happening here is self-employed people or business owners displaying their skills on social media to attract future clients.
Precisely, I am doing this by publishing content on YouTube and Facebook that is useful for new investors in the stock markets. In return, if people like my content, they might contact me for my advice on their future investments.
Be very careful, social media is the easiest way to get deceived. Personally, I had a poor experience approaching a professional for his service after watching his YouTube videos. But he was only misleading people into believing that he is an expert. His service was the worst you could ever get.
2. Using views and subscribers on YouTube and making money.
We all know that YouTube pays a certain amount of money for every view. There might be a YouTube formula for paying; several factors like geographic location, niche, length of the video, time viewed, etc. come into calculation. According to an article I found, for every 10000 views, a channel gets 200/- to 500/- from YouTube in India.
Fake gurus use this strategy to get more and more viewers. You can make a video every day on stock markets since something is always happening like a company reporting losses, removing its CEO, IT raids, a new deal with the clients, etc.
So you can make a video every day spending two to three hours. All you need are viewers. How would you get someone to subscribe to your channel? Simple, make them believe you are making crores trading in the stock markets.
Okay, how would I do that?
First of all, arrange some initial capital. Let us assume 25 lakh rupees. It could be arranged easily if three to four people form a group together.
You will need a setup that looks lavishing 25inch curved led screens, water-cooled PCs, and good looking interior for making videos. All of this will cost extra; it is out of the scope of article.
Let us take a simple example. Nifty closed at around 17656.35 on 25/10/2022.
For an easy calculation, we will take Nifty 18000CE November monthly expiry. Its price closed at 179.4/-. So we bought 20 lots of 50 each, 179.4 x 20 x 50 = 179400/-. Suppose we have taken this trade in one of my Demat accounts. Let us say Demat Account-1.
If Nifty closes at around 18500 by the expiry date (24/11/2022), profit in my account will be around 323600/-. But if the trade goes the other way and Nifty closes at 17900, I will lose 179400/-; No one would take that risk.
Instead, what I will do is sell the same options in the other Demat account. Demat Account-2. The capital required for selling options is higher. It costs over 1845000/- in this case.
Now, whatever happens in the market has zero impact on my accounts. Because I have taken the opposite trades in two different Demat accounts. Eventually, the market will move in the favor of one of the two trades. There is no other way to go…
I will only show the profit and loss account of the Demat account in profits. It might show profit in lakhs, but in reality, I did not earn a single rupee. Instead, I had to spend at least a thousand rupees for the transaction and other charges.
That is a very small amount and is easily taken care off by YouTube income.
So, buddies, this is how you could be tricked on social media.
They make money from you watching their videos. To make it simple, they earn lakhs from your YouTube views by tricking you into believing that they are earning crores.
I hope you understood the point. It won’t be exactly like this. I have taken a very simple trade only to make you understand. This is only one of the many ways. In actuality, trades are much more complicated.
Some of these channels have a subscriber count of one million and more. Let us do the math now. This person posts a video every day, out of one million subscribers, at least 20% (two lakh subscribers) might watch the video.
Let us assume he or she is earning 300/- per 10000 views. So 300 x 20 = 6000/-.That channel organizer is making 6000/- per day posting videos. It totals 180000/- per month. This is big money! This amount could be more or less, it is just a calculation from my side.
That’s it, Buddies! I hope you understood how we could be tricked on social media.
Disclaimer:
I provide the information and my views on the website only to educate new investors, stock market enthusiasts, and the common public on equity and other market investments. Please consult your financial adviser before making any investments in the stock or commodity markets. In case of any queries, you can contact me via email ID: shivakumar.lachapeta@gmail.com
