Stream Smart, Spend Smart

 Stream Smart, Spend Smart

Throughout this blog, it's often emphasized that purchasing equipment is not necessary to start streaming. Most likely, if you haven't begun yet, you already possess the tools needed to go live in some capacity. However, this doesn't mean that purchases should never be made during a streaming career. The key factor is the mindset. Tech upgrades are frequently perceived as solutions for streaming issues, or as substitutes for skill or experience. Some people use the prospect of future purchases as a reason to delay starting to stream, or to avoid taking it seriously once they've started. These perspectives are limiting and can lead to dependency on spending money to go live.

Purchasing streaming-related equipment is not inherently problematic, as long as it is approached with the right mindset. The challenge, once accepting the necessity of certain purchases, is knowing where to draw the line. As consumers, one purchase can often lead to several more. For many, this can result in significant expenditures or numerous small purchases that accumulate, leading to regret over spending habits at the end of the month. This entry aims to help avoid overspending on streaming.

Initial Expenses

The first consideration is expenses already incurred. If you own a game console, PC, camera, or other streaming equipment, these are part of your existing toolkit. If there are no future payments associated with them, they require no further concern. However, some tech items can seem to continually require additional spending. For example, DSLR camera owners often find themselves buying new lenses, better lighting, various adapters, and improved tripods. Similarly, VR headset owners may feel compelled to purchase more accessories, or those with new microphones might need extra boxes, cables, windscreens, mounting arms, and soundproofing. This pattern shows how larger purchases can lead to ongoing expenses due to hidden costs. These smaller, supporting purchases can often double or exceed the original item's price.

Relative Value Trap

The concept of 'gateway purchases' extends beyond streaming and affects all spending decisions. As Dan Ariely and Jeff Kreisler explain in Dollars and Sense, we perceive value relatively, comparing one item's worth to another. Car salesmen use this tactic to sell unnecessary add-ons by making them seem insignificant compared to the car's total price. Similarly, big box stores show the original price alongside the sale price to make the deal appear more attractive, even if the item is frequently sold at a lower price.

This was evident when J.C. Penney's CEO in 2011 introduced a 'fair and square' pricing concept, eliminating sales and offering the lowest price year-round. However, profits dropped by 32% in one year because customers missed the excitement of finding a deal. The CEO was fired, and sales and coupons were reinstated. This shows people enjoy feeling smart or special for spotting a deal, even if it requires using coupons or timed offers.

A personal example is the accumulation of video games bought on sale over 15+ years of owning a Steam account. Many of these games, bought at 90% off, remain unplayed, collecting digital dust. Similarly, during Black Friday and other major sales events, people often buy items they don't need simply because of the temporary price reduction. Therefore, it's important to be cautious with sales and deals, using them only for items already needed before the discount.

Final Thoughts

While it's okay to purchase necessary items for streaming, be careful not to fall into a spending spree. For those recently transitioning to working from home, the temptation to buy new gadgets to pass the time can be strong. However, it’s important to focus on what you want to achieve with your stream and limit your purchases to items that directly contribute to those goals. Aim to complete many streams before making any major upgrades. This will ensure you get the most value from each new piece of equipment and help you thoughtfully consider what your channel truly needs. You might find innovative solutions that you wouldn't have discovered through impulsive buying. By managing your spending, you can concentrate on the quality of your streaming rather than the quantity of your gear.