In the last post of this series I was speaking about the financial aspect of your content creation business. On purpose I left aside the staking aspect of your finances because I wanted to make a post specially about it.
When you have Hive, you can power it up and it will be staked for at least 13 weeks. Everybody can check how much Hive Power you have.
Your Hive Power matters and on this blockchain it is a kind of Business Card.
But why is it important to have a lot of Hive Power?
There are the obvious aspects why you should aspire to have a lot of Hive Power.
Have an account that works without problems
First of all, it will allow you to use the blockchain without limitations. With low HP you might run out of resource credits and you would be limited in what you can do. Fortunately you will only need about 25 HP to have a working account.
Earn curation rewards
If you have at least 100 HP, you will see curation rewards coming in and you can actively earn some money just by upvoting others. The bigger your account is, the more curation rewards you can earn. This can represent a very important part of your income in the long term.
However there are also aspects about owning Hive Power that may not jump to the eye immediately but that are nevertheless very important.
Show the world that you are committed to the cause
A lot of Hive Power will tell that you are committed to the cause. You are here to stay and it's worth to try to build a relationship with you. There is no need to try to build something with you, if I can't be sure that you will be around tomorrow. If you own a lot of Hive Power this will give me some security in this respect. I will know that the time I invest engaging with you won't be lost.
Your Hive Power translates your influence and your credibility on the blockchain
It's not for nothing that the ranking on Hive into Minnows, Dolphins, Orcas and Whales is done in respect to the Hive Power of the account. This shows directly how powerful you are and how much influence you have. Owning Hive Power gives you a status and shows your „level in this game“. It also gives a certain credibility to your content creation business. People will rather listen and believe somebody with a lot of Hive Power.
The Hive Power on your account gives to your business a trustworthiness that is difficult to achieve with other means.
Hive Power makes you interesting for others
When you have a lot of Hive Power, you have the potential to make a difference for others. Let's say I have the chance to build a relationship with somebody who owns 50 HP and with somebody else who owns 500 HP. If the first person becomes my friend it's nice but it won't help my business because his upvotes are worth very little at the moment. Maybe they will be more significant in the future but the person with 500 HP is much more interesting. If he becomes my friend and upvotes my posts, these upvotes will carry real value. In addition to that, the person with a lot of HP will grow much faster than the small account and in the future his upvotes will be even more interesting.
I believe this is a very important aspect for your business. To grow you will need these relationships and having a lot of Hive Power will facilitate to build them.
How to split your revenue ?
When you start out and want to build a business in content creation, you should consider your first weeks and months as a start up period where everything that you earn should be reinvested into your stake. The longer you will be able to let this stake grow, the easier it will be later on.
As long as you don't have any expenses, I would reinvest 100% into your account. If you need money, try to take only what you really need and let as much as possible in your account. Don't forget to Power it up regularly.
The more stake that you own, the better. It's up to you to decide when you want to start to take some money out. However I would always try to do so without powering down and choose to get 50% liquid and 50% staked payouts from your posts. Like that your stake still grows but you will have some cash to withdraw or to invest.
Be careful with delegating your stake to dlease
Dlease is an amazing service that offers you the option to lease out your staked Hive tokens and get a nice return on it. You shouldn't forget however that the stake that you lease out, is reducing your own Stake. It will reduce the value of your votes. If you have 500 HP and you lease out 400 HP, then you will only vote with 100 HP. This means that it will be difficult to earn curation rewards and again you are not so interesting for other people to build a relationship with....
I would suggest that you always make sure that when you give a lease that you keep enough HP on your own account to give significant upvotes and to remain interesting for others.
This post is part of a series in which I want to rise the awareness that content creation is a business. The previous posts:
- Content Creation is a Business and you are the CEO
- The most important part of your content creation business: YOU
- Your content – The core of your business
- Why your Content needs a nice Packaging
- How to Market your Content Creation Business
- How to keep your Readers Happy
Let's connect on Hive, Lbry or on Publish0x
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