Laptop with hands. Text reads: Legitimacy and Profitability Unveiled In The World Of UGC

If you’ve been sucked into the world of social media and side hustles, you’ve probably heard the emerging buzz about User-Generated Content (UGC). Creators are claiming they are making $10,000 per month (on the low end!) selling their content and many in the TikTok audience are being lured into the latest get rich quick scheme. But, is it legit? Let’s investigate.

What is User Generated Content?

User-Generated Content (UGC) is content created by everyday people, instead of by professionals or companies. It includes things like photos, videos, reviews, and posts that individuals share online on social media, forums, or other platforms. UGC is genuine and made by users for personal expression or to talk about products, services, or experiences. Businesses often use UGC to build trust, engage with their audience, and show real people enjoying their products or services.

It seems you cannot escape TikTok without hearing at least one user talk about UGC and how it is bringing in huge amounts of cash for little to no work. I had heard so many of these claims that I almost got sucked into it myself. I was lured with the thought of making quick and easy money. This was especially tempting to me because to do UGC, you do not need a following (according to TikTok gurus). You just submit your videos or content to companies themselves. Sounds pretty good, right?

Why is UGC still exploding in popularity?

According to an article in Business Insider, UGC has changed over the years. The content used to be shared organically and independently via fans about products and brands they truly used and loved. However, there has since been a shift in recent years and UGC is mostly generated by brands. This means they are approaching creators or looking for creators to boast about their products online; hence, more cash flowing around and bigger payouts.

This is leading to the gold rush on TikTok with creators gushing to their audience how much they are making and encouraging others to join. But before we jump on the bandwagon, let’s dive a bit deeper to see if there is any truth to the claims of easy money.

How do I start with UGC?

We’ll boil it down to a simple format here for times sake. You can get started by creating a portfolio of work samples. In most cases, these are videos of you talking about a product and discussing the benefits and encouraging others to try it. You can then compete for jobs on freelancing sites (Upwork or Fiverr) or reach out to brand marketing teams directly. Is it really this easy? Should we all be working on portfolios right now?

According to a media manager who spoke with Business Insider, it is possible for people to be making very comfortable salaries with UGC (5 figures!) monthly. The catch is that those creators have spent years creating content, building skills and relationships with the brands. Also, they are on retainer with the brand, meaning that it is a long term relationship rather than a quick payout. She has noted that she is not aware of any overnight creators making 5 figures, but this doesn’t mean it’s not happening.

After a quick search for UGC creator jobs, I found only one that paid $50/hour for 12 hours weekly (and it was Canadian!). So we’re looking at $2,400 monthly. All things considered, this is a great side hustle. The catch is that they were looking for someone with a minimum of 1 year of marketing experience. This definitely doesn’t apply to me, but maybe this is something one of you could be successful with. 

There were other jobs available, but they were in the $10-$30 range. Still not bad side hustle money, but not the huge payments you were lead to believe you’d be making right away.

How do I create User Generated Content that will be successful?

A free list of 12 things you can do to be successful with UGC without the $150 price tag. You’re welcome!

  1. Authenticity: The most valuable UGC reflects real experiences and genuine opinions. Authentic content resonates with audiences and builds trust.

  2. Relevance: Good UGC is relevant to the brand or community. It should align with the interests and preferences of the target audience and contribute meaningfully to the overall narrative.

  3. High-Quality Visuals: Visual content, such as photos and videos, should be clear, well-composed, and visually appealing. High-quality visuals can capture attention and enhance the overall impact of the content.

  4. Clear Messaging: UGC should convey a clear message or story. Whether it’s a review, testimonial, or visual content, the audience should easily understand the intended message.

  5. Engagement: Good UGC sparks engagement. It encourages likes, comments, shares, or other forms of interaction. Content that encourages discussions or prompts followers to take action is often considered valuable.

  6. Diversity: A mix of content types and contributors adds diversity to UGC. Different perspectives, styles, and formats keep the content interesting and appealing to a broader audience.

  7. Showcasing Product or Service Use: UGC that demonstrates how people use a product or service in their daily lives is effective. It helps potential customers visualize the real-world benefits.

  8. Positive Sentiment: While not all UGC needs to be positive, content that expresses satisfaction, excitement, or positive experiences tends to have a favorable impact. Positive sentiment contributes to a more favorable brand image.

  9. User Stories and Experiences: Narratives or stories shared by users about their experiences with a brand or product can be powerful. It adds a storytelling element to the content, making it more relatable.

  10. Compliance with Guidelines: Good UGC adheres to any guidelines or terms set by the platform, brand, or community. This ensures that the content is suitable for public display and aligns with any legal or ethical standards.

  11. Community Building: Content that fosters a sense of community and encourages others to contribute can be highly valuable. UGC should contribute positively to the overall community dynamic.

  12. Consistent Brand Image: UGC should be consistent with the brand’s image and values. It should reinforce the key messages and identity of the brand or community.

So, why is this touted as being such a huge ‘cash cow’ side hustle?

Experts note that if you’re someone who has never done content creation before, being told you can hop in and immediately start making 10K monthly with no past experience is a pretty huge stretch.

Many TikTokers are actually making their money from teaching you how to do UGC by offering courses, kits and content. Some are making actual money from UGC; many are just cashing in on the wave of people wanting to learn how to get started. That is quite suspicious as it’s not clear whether they are making their income from actually posting UGC content or if they are just making a killing off of their courses. There is no real way to prove whether they are successful in UGC or just making claims.

To be honest, this has a definite multi-level marketing feel on TikTok. People in the higher ranks are working to seduce people just starting out to buy into what they are selling. It is difficult to know who to trust as a “guru” because the UGC market is still so new. It’s a bit like the wild west on the internet around get rich schemes right now and UGC is at the forefront.

Where is most of the money coming from in TikTok income claims?

Many TikTokers who are touting huge paycheques are actually selling “cheat sheets” and guides to UGC. Some are going as high as $150 for tips on how to crack into the market and make it big. This is something that anyone could create with a bit of googling and research. I would wager a big bet that many are making their money with scams, not actual UGC. If their video has 40,000 views and they sell a cheat sheet for $100, they would only need to convince 60 people to buy their course to make $6,000. It’s kind of a brilliant swindle.

This isn’t new, either. UGC initially gained a lot of attention initially in 2022 and is still going strong today in 2024. It’s appealing to so many because you don’t need much to make it happen and many explain it doesn’t take much effort or work.

IS UGC just a total scam?

++RED FLAG ALERT!++ If a side hustle is touted as super easy and doesn’t require any effort or work but is extremely lucrative, be VERY wary. UGC is definitely a real area of expertise and some creators are making really good money from it. But, it is likely because they were trained in the area of social media and marketing and have worked hard over the years to hone their craft and know how to make listings that convert and sell. 

There are outliers in any field, I’m sure there are a few who have waltzed in and started making good money soon after getting signed up, but they likely have a good eye and some kind of legitimate training to back them.

Content creation is something that can take a while to get really good at. You need to create the right kind of content and find the right brands to work with. 

While it is not a scam, the TikTokers trying to cash in on it’s popularity are turning it into something it might not be, at least initially. That is no reason not to try it, though! We just need to readjust our expectations a bit initially.

Is UGC worth a try?

Depending on your background and what you’re looking for in a side hustle, possibly, yes! UGC could be very lucrative once you have experience or a willingness to learn. It will take hard work to get started and a lot of trial and error, but it could pay off. If you have a background in social media or marketing, it would be a great fit for you. I am not that person, but I’d love to cheer you on if you are!

Have you tried UGC or taken a UGC course? I’d love to hear about your experience! Any successful creators out there who would like to share advice? I’m anxious to hear your stories. Contact me here

Where to next?