A lot of people dream big. Make some videos and become a big youtube star — that’s not normally the case
Even though I do make YouTube videos, really it’s all about building the business behind YouTube — using YouTube as an engine.
I want you to think about this in mind as we continue and move forward through the video.
Before we get started, I do want to let you know a couple of stats and studies that have been done. This one is from a professor at a German University talking about first study to examine YouTube data for clues.
Basically, if you’ve got a million video views, it’s only worth about 12 to 16 000 a year in advertising revenue. That’s direct advertising coming in from the YouTube platform.
In the past, what happened was that top three percent of channels received 64 of all views in 2006. But a decade later 90 so that means that the more popular you get, you’re going to get more eyeballs and exposures. But the downside is all the little guys just starting out, it makes it tougher and tougher to break through in this world.
If you’re a small YouTube channel trying to get started, it’s very tough to make a living off of YouTube just looking at youtube revenue alone.
You have to understand what does a LIVING mean to you
If you’re living in a place where income or money is not as required, maybe a third world country, 20 000 a year for you is a lot. In that case, making a living is not too bad. It’s not too tough.
But if you live maybe in a very expensive place, you might need three hundred thousand dollars just to cover some living expenses. Depending on where you live, making a living is going to be different to you.
You have to look at a trade-off
If you’re lan engineer that typically make about 150 000 a year and you’re starting YouTube and you’re getting 20 000 a year, that’s not necessarily worthwhile.
On the other hand, if you can make maybe 300 000 a year, now that could be a little more worthwhile. But remember, if you’re going at a hundred thousand dollars a year at your job and you’re trying to go into this bracket [$300,000] on youtube, that makes it a lot more difficult.
The chance of hitting that just looking at the stats and figures makes it more difficult.
What I want you to understand when you’re looking to make a living off of YouTube
A lot of people they think about ad revenue.
They think about making money from ads. So, where does the money come from?
In my case, this is not the majority of the income. You have to look at extra income where is it coming because you’re using YouTube as a platform. You use it to drive traffic to other services. You could build out multiple services. Use it to sell products and build clients for different things — depending on what you’re trying to do.
Some people focus on one specific thing but that has its own inherent risks. Because if you do focus on one thing and that thing fails, then of course you’ve got problems.
If you’ve got hacking or somebody hacked your YouTube channel, again that’s got problems.
If you focus on a couple of different things all of a sudden your income starts to become a little more diversified.
I know that a lot of gurus say focus on one thing, but remember you’re unique.
Where does the money come from?
Well initially, ad revenue. It’s going to be a small chunk but that’s what most people think of. You may also want to look at:
- What product can I offer to people?
- What courses or a service can I offer to people?
- What can I do for my clients?
If you have a physical product that can bring more revenue — that could be a digital product, it could be a service you can work with clients — and now you’re starting to make some revenue and the list starts to go on.
You should start to diversify and look at your revenue as a basket coming in from different sources.
For example, you might see backstageincome. We have a handful of courses and books here along with coaching that I deal with one-on-one with people.
Those are a couple of different products and services. Not to mention the team that I work with. Meaning the team that I’ve set up, we also offer additional services.
I don’t personally do the work 99 of the time. But the team that does the work for me in my channel and helps me edit the courses or get my YouTube thumbnails done. They also got a new website set up for video editing for YouTube channel management.
They’re the ones that handle the things for me and they can also do the same for you. This is called www.videoacorn.com.
We also have other services.
- eBook covers
- book editing and formatting for authors — so anything if you’re writing kindle books uh
- social fire pro is more for pinterest management
- podcast color for podcast editing and designing podcast covers and
- local drip is for local companies looking for web design
We’ve got a lot of these services.
That really is a nice key point of where the money and revenue comes from.
But if you’re just constantly focused on your YouTube channel, then that’s really a tough bet. You’re betting on a single item, single focus.
It’s one of the other reasons why I actually have a couple of different YouTube channels.
If you go to my tradersfly website, this is where we do stock market and trading education.
We also just started mylittlenestegg which focuses on personal financial education for people just getting started and getting out of debt, saving money, building wealth.
Three areas all in the financial space. They’re a little bit different customer and demographic and that helps split up the revenue. It also helps split up the focuses on products and courses.
If some things grow a little bit faster than others, we hone in attention on that.