The rise in African comedy in recent years has given birth to a plethora of Comedians gaining explosive fame with millions of fans across social media platforms, especially TikTok, Instagram, and YouTube. From the more established comedians to the upcoming ones, many crave the spotlight they enjoy.
You see them with large gatherings online and wonder how fat their bank accounts are too. The real question however is does popularity automatically equates to financial prosperity.
It is surprising when these celebrities despite their massive fan bases do not have the funds to match. In this article, we’ll look at the reasons why this happens as well as the practical solutions for African comedians to attain long-lasting financial stability. You’ll see why social media fame doesn’t always equate to wealth and how African comedians can rise above this and secure their financial security.
Technical Reasons Why Many African Comedians Struggle Financially Despite Their Popularity
Social media views don’t automatically guarantee wealth
People often believe that going viral on social media immediately means instant riches. That’s a misconception. Large social media views will only generate wealth if the right monetization strategies are put in place such as sales of merchandise or sponsorships. Even the platforms themselves pay very little for views compared to other regions such as North America or Europe.
The comedy industry is relatively undervalued
You may not believe that comedy is relatively undervalued because everyone likes to laugh, right? Unfortunately, reality paints a different picture. When you compare other elements of the entertainment industry like music and movies. Actors and musicians enjoy fat contracts, sponsorships, deals, and endorsements which are not always the norm for some comedians
Poor financial management
It’s one thing for you to make money and it’s another thing to retain that money and grow it. Many African comedians forget that fame is fleeting and they spend their savings lavishly on luxury items. It’s often after the season of social media vitality fades that they realize their mistake.
Limited monetization opportunities
We explored monetization opportunities earlier and we’ll take a deeper look at the technical aspect of it;
- Low Cost Per Mile (CPM)
In social media, CPM refers to the money an advertiser pays for every 1,000 views on their page. Comedians or content creators with high CPMs get paid more and those with low CPMs get paid less.
- Demonetization
Any content that violates the social media platform’s policies can lead to being demonetized.
- Limited audience reach
The demographic engaged can also reduce monetization opportunities. Some African countries have lower internet penetration and this can limit the audience reach.
Managerial Reasons Why Many African Comedians Struggle Financially Despite Their Popularity
Let’s look into the root causes that have to do with inefficient management.
Lack of financial structure
Comedians often focus on the creative aspect of their craft and ignore setting up a proper financial structure that consists of savings, investing, and having an emergency fund.
OverSpending earnings
Many comedians do this to keep up with appearances. They feel pressured to dress up in the latest clothes and drive the most expensive cars. Overspending earnings without a safety net is a poor financial management practice.
Poor business strategy
Managing a business is technical and that’s why many entertainers have managers. Some comedians do not see it as necessary and they end up mixing business with their personal lives. Entertainment is a business and simply being skilled in making people laugh won’t sustain the business entity they have set up.
Over-reliance on viral content
Comedians often rely on going viral which ought not to be so. No matter how good the content is, one can never be too sure that it will go viral and that means it is under probability. Therefore, these comedians should instead explore practical and sustainable streams of income from comedy like performing at shows.
The solution in the case of poor financial management
Delegate financial matters to experts
Comedians should focus on their creativity and work with financial experts who will help them save and grow their earnings so that it bears fruits over time.
There are experts like Financial Advisors and Investment Bankers whose jobs are primarily to help people grow their money and they’ll be more than happy to work with their clients to achieve their financial goals.
Reduce overreliance on one income stream
Saving and investing are easier when you have multiple streams of income and this applies to African comedians too. For them to build wealth, it is recommended to diversify streams of example. For example, instead of relying on just paid shows, they can get brand endorsements, businesses, or even merchandise.
Trevor Noah
Trevor Noah is an example of a comedian who has mastered the art of diversifying his income stream. Apart from his well-known comedy stand-ups, he wrote a book, hosted TV shows, and even invested in real estate.
Prioritize investment
The thing is no matter how much comedians earn, it’s not a 9-5 with a secured pension or retirement fund. This means to have financial security as they get older, African comedians should build up a retirement fund for themselves through investments that yield cumulative profit. That will ensure that they do not become stranded when they are out of the entertainment scene.
The challenge of lower recognition of comedy
Musicians, actors, athletes, and the like typically have access to sponsorships and opportunities that lead to easier generation of income for their brand.
These brands may overlook African comedians a lot of times because they believe that they may not offer as much exposure and customer engagement
It’s not difficult to see why some brands think like this. Comparison between music concerts and comedy shows often paints a stark contrast with music shows reeling in explosive attendance and sold-out tickets for large stadiums.
On a global scale, the comedy industry in Africa is not as internationally recognized and patronized compared to its global counterparts.
The solution to this is for African comedians to tap into foreign markets through creative comedy tours abroad. This will increase their earnings and also exposure on a global scale. Collaborating with platforms like Netflix or featuring in funny movies can also be a good headway for African Comedians.
Basketmouth
Basketmouth is a great example of a comedian who refused to be bound by the limitations of remaining in only one career (comedy). We’ve seen his successful transition from being solely a comedian to acting in reputable funny series. As he has expanded his career reach, we’ve seen him launch comedy tours and secure international sponsorships. He looked beyond his skills as a comedian and came up with brilliant ways to be internationally recognized for his craft. This is a strategy that when applied can help African comedians to successfully diversify and overcome the common financial challenges.
Overdependence on free content
Let’s face facts, people love free things and this applies to content as well. African comedians might be famous on social media and enjoy exposure, but these platforms offer mostly free content and lack exclusive paid offers.
African comedians should explore and take advantage of easy to make more of their content exclusive. They should utilize the exclusive offers that the digital space has such as YouTube memberships, Patreon, tickets, and other options that allow them to earn money from their content.
Kevin Hart
When it comes to how to create exclusive comedy offers, Kevin Hart is a pro. He knows how to execute ticketed shows and exclusive merchandise to get the money rolling in even when he is not necessarily making people laugh at that moment. He knows how to create exclusive comedy offers and that is what makes him stand out.
Thinking outside the box
Comedians should also look beyond the typical comedy videos and include creative additions to their offerings. African comedians can even begin to host masterclasses on how to attain the expertise they’ve gotten in their craft or even create tutorials on websites that offer lectures.
These lectures can be about how to excel as a comedian, how to manage stage presence, or even how to set up content creation gear. The point is that African comedians are encouraged to think outside the box if they truly want to break free from the cycle of earning only when there is a brand paying for ads.
Conclusion
For African comedians to unlock long-term financial freedom, they need to understand that diversifying into other more sustainable income streams and investments doesn’t make them any less creative.
Everyone should have savings, investments, and multiple income streams, no matter what their profession is, including being an entertainer. Poor financial habits should be nipped in the bud to retain and grow the earnings that come from content, shows, or even brand deals.
Finally, comedians should think outside the box and not be limited to the typical stand-up comedy shows. We know from experience that the most successful and financially stable comedians are the ones who diversify their skills in creative ways.