Economics of YouTube
Discussion
Hi All,
Just wondering after the latest shenanigans amongst the various bigger Top Gear type YouTube channels if there is anybody in this place who understands it.
From a lay perspective it seems to go like this:
1. You can't start with absolutely nothing, there are loads of channels I watch which have 30 subscribers / minimal views per episode and eventually whoever is trying to get it going ends up quitting even if the content is watchable.
2. So we're kinda saying you've got to pump in some startup capital one way or another. What do you spend that on? Professional staff or traffic from click farms, the content or what?
3. When you have successful channels like Car Throttle with over 3 million subscribers how do you end up losing to a channel with just a fraction of that like Auto Alex with 600,000 subs?
I can't think of any more questions... I find the whole thing a little puzzling.
Just wondering after the latest shenanigans amongst the various bigger Top Gear type YouTube channels if there is anybody in this place who understands it.
From a lay perspective it seems to go like this:
1. You can't start with absolutely nothing, there are loads of channels I watch which have 30 subscribers / minimal views per episode and eventually whoever is trying to get it going ends up quitting even if the content is watchable.
2. So we're kinda saying you've got to pump in some startup capital one way or another. What do you spend that on? Professional staff or traffic from click farms, the content or what?
3. When you have successful channels like Car Throttle with over 3 million subscribers how do you end up losing to a channel with just a fraction of that like Auto Alex with 600,000 subs?
I can't think of any more questions... I find the whole thing a little puzzling.
carinaman said:
Nice short video, to the point. So if he earns less than the minimum wage and has to work 70 hours a week how can there be corporate backed channels which employ a lot of staff and clearly spend tons on content? Just from advertising? Can I talk about my own experience? Launched my Tesla channel in October 2022 and just threw content at it - I was doing 3 videos a week at the start to try and build up a bank of material. Went through 1,000 subs February 2023 and monetised, at which point dropped to 2 videos a week. As this is a side project and not a day job I then dropped to 1 video a week last summer, and have cemented that Friday 4pm release slot so that I now get kind comments from people who look forward to my latest dropping at the end of the week.
Some stats and things for you. 5,085 subscribers, 796k views, 88k watch hours, £2,844 in revenue. Early earnings started as an absolute trickle. Then sudden growth - biggest revenue month was £1,029 (November 2023) when a couple of videos took off. How did I pull that off? Comment on anti-EV channels to essentially trigger morons. The algorithm is something I still don't entirely understand, though that is shared with people who watch. One bit of fun I have is where you get the most rabid anti who watches quite a few videos and makes quite a lot of comments is to thank them for their support because the more they interact the more the algorithm likes it and the more they help to promote the channel and thus bring in revenue.
I know plenty of channels who have grown far more slowly than I have - some really decent ones still only with a few hundred subscribers. And I know stacks that have grown far quicker. I have spent more cash on equipment to make videos than I have earned money! I own a couple of businesses and making videos is registered as a function of one of them - so its all a business expense. From what I can see practically every YouTuber who is doing this seriously has a business, because there are operating costs and expenses which you may as well get tax relief on.
Final point. There has been a glut of content producers burning out, and once you get started its not difficult to understand why. YouTube can be a gruelling treadmill, especially for the people who now make videos for a living. Unless I get utterly disillusioned I plan to carry on doing this long term - you never know where it could go and a side project is useful to have.
Some stats and things for you. 5,085 subscribers, 796k views, 88k watch hours, £2,844 in revenue. Early earnings started as an absolute trickle. Then sudden growth - biggest revenue month was £1,029 (November 2023) when a couple of videos took off. How did I pull that off? Comment on anti-EV channels to essentially trigger morons. The algorithm is something I still don't entirely understand, though that is shared with people who watch. One bit of fun I have is where you get the most rabid anti who watches quite a few videos and makes quite a lot of comments is to thank them for their support because the more they interact the more the algorithm likes it and the more they help to promote the channel and thus bring in revenue.
I know plenty of channels who have grown far more slowly than I have - some really decent ones still only with a few hundred subscribers. And I know stacks that have grown far quicker. I have spent more cash on equipment to make videos than I have earned money! I own a couple of businesses and making videos is registered as a function of one of them - so its all a business expense. From what I can see practically every YouTuber who is doing this seriously has a business, because there are operating costs and expenses which you may as well get tax relief on.
Final point. There has been a glut of content producers burning out, and once you get started its not difficult to understand why. YouTube can be a gruelling treadmill, especially for the people who now make videos for a living. Unless I get utterly disillusioned I plan to carry on doing this long term - you never know where it could go and a side project is useful to have.
JustGetATesla said:
Final point. There has been a glut of content producers burning out, and once you get started its not difficult to understand why. YouTube can be a gruelling treadmill, especially for the people who now make videos for a living. Unless I get utterly disillusioned I plan to carry on doing this long term - you never know where it could go and a side project is useful to have.
PH thread on Friday mentions a motorcycling vlogger shutting down all of their Social Media presence:https://www.pistonheads.com/gassing/topic.asp?h=0&...
YouTube burn out and/or stalker(s)?
The channels are 99% the personalities.
I don't get why the likes of WTF1 and Carthrottle get taken over then alienate the presenters that attract the audience.
A lot of revenue will depend on what your audience is.
If you're a successful YouTuber that caters to a young audience then you'll earn a lot more off it than someone with the same amount of viewers but has an audience of cooky conspiracy theorists.
I don't get why the likes of WTF1 and Carthrottle get taken over then alienate the presenters that attract the audience.
A lot of revenue will depend on what your audience is.
If you're a successful YouTuber that caters to a young audience then you'll earn a lot more off it than someone with the same amount of viewers but has an audience of cooky conspiracy theorists.
JustGetATesla said:
Some stats and things for you. 5,085 subscribers, 796k views, 88k watch hours, £2,844 in revenue. Early earnings started as an absolute trickle. Then sudden growth - biggest revenue month was £1,029 (November 2023) when a couple of videos took off. How did I pull that off? Comment on anti-EV channels to essentially trigger morons. The algorithm is something I still don't entirely understand, though that is shared with people who watch. One bit of fun I have is where you get the most rabid anti who watches quite a few videos and makes quite a lot of comments is to thank them for their support because the more they interact the more the algorithm likes it and the more they help to promote the channel and thus bring in revenue.
Therefore, for the slow of thinking - like me:You want:
Viewers
Subscribers
'likers'
Is that right?
What about donors?
How do you get started - day 1? Make a video, put it on YouTube - is it as simple as that?
How do you get total strangers, unknowns, to view it?
ingenieur said:
Hi All,
Just wondering after the latest shenanigans amongst the various bigger Top Gear type YouTube channels if there is anybody in this place who understands it.
From a lay perspective it seems to go like this:
1. You can't start with absolutely nothing, there are loads of channels I watch which have 30 subscribers / minimal views per episode and eventually whoever is trying to get it going ends up quitting even if the content is watchable.
2. So we're kinda saying you've got to pump in some startup capital one way or another. What do you spend that on? Professional staff or traffic from click farms, the content or what?
3. When you have successful channels like Car Throttle with over 3 million subscribers how do you end up losing to a channel with just a fraction of that like Auto Alex with 600,000 subs?
I can't think of any more questions... I find the whole thing a little puzzling.
The very short and simplistic answer is that the dumber or younger the audience the more valuable it is as they are easier to sell absolutely worthless tat to so the more ad rev can be generated. Just wondering after the latest shenanigans amongst the various bigger Top Gear type YouTube channels if there is anybody in this place who understands it.
From a lay perspective it seems to go like this:
1. You can't start with absolutely nothing, there are loads of channels I watch which have 30 subscribers / minimal views per episode and eventually whoever is trying to get it going ends up quitting even if the content is watchable.
2. So we're kinda saying you've got to pump in some startup capital one way or another. What do you spend that on? Professional staff or traffic from click farms, the content or what?
3. When you have successful channels like Car Throttle with over 3 million subscribers how do you end up losing to a channel with just a fraction of that like Auto Alex with 600,000 subs?
I can't think of any more questions... I find the whole thing a little puzzling.
Intelligent and wealthy people don't tend to respond immediately to adverts to buy something of no value. Conversely, if a channel attracts a large number of young adults, dumb people, skint lifestyle potatoes, conspiracy thickos then you can advertise all the quick money scams to that army of spuds. You can flog them worthless tactical kit for vast sums, worthless subscriptions to essential lifestyle tat no one needs, bits of Chinese tat made shiny or sparkly, drop shipping business courses, crypto trading courses and of course all the hate and conspiracy stuff so loved by the MGTOW weirdos etc.
So, the average viewer of someone like Harry's Garage or Robert Murray-Smith is not very valuable to the biggest paying advertisers wanting immediate customer interaction, they need to tap in to the vegetable consumer army instead who spend everything they earn and can borrow as quickly as possible on whatever junk that month is supposed to make them a better you. That's where you're hand waving, Turkey teeth, gibbering grifter starts to win.
Someone who I think has been very clever and for years has created a massive volume of content that is designed to keep getting pulled up in searches and generates a really solid income stream simply not dependent on whatever content is newest is Simon Whistler. He seems to have mastered the balance of just being clickbaity enough with having pretty good bite size content without being over excited.
Alickadoo said:
Therefore, for the slow of thinking - like me:
You want:
Viewers
Subscribers
'likers'
Is that right?
What about donors?
How do you get started - day 1? Make a video, put it on YouTube - is it as simple as that?
How do you get total strangers, unknowns, to view it?
Let me explain a few basics. YouTube pays revenue based on advertising. To be eligible first your channel has to be monetised - more than 1,000 subscribers. You then have to monetise each individual video - has to comply both with copyright and YouTube guidelines. You then receive a cut of all the ad revenue made from the adverts played during your video being watched.You want:
Viewers
Subscribers
'likers'
Is that right?
What about donors?
How do you get started - day 1? Make a video, put it on YouTube - is it as simple as that?
How do you get total strangers, unknowns, to view it?
How much money that it depends on various factors. What the video is about and who is watching - advertisers pay far more if its a particular topic (say finance) played to particular audiences (with money). Clickbait for morons will get vast views but likely a low advertising value (which is assessed as per 1,000 views.
To earn more money you need more adverts to be played. So views are critical, also how long they watch for. There is a thing called YouTube Studio which we have access to which gives endless stats. The longer people watch the more adverts are watched and the more revenue there is. Subscribers help - not only will people get your videos in their subscribers feed, but the algorithm helps push your content to more people.
As for how you get started, its simple. Create a channel - we all have one if we sign into YouTube, it just needs to be customised. And yes, upload a video. How people watch it is how well you do the title of the video, the description, if the thumbnail is enticing, and of course how you tag it.
SweptVolume said:
ingenieur said:
Just wondering after the latest shenanigans amongst the various bigger Top Gear type YouTube channels if there is anybody in this place who understands it.
Just poking my head out from under my rock; what shenanigans are these?Edited by ingenieur on Sunday 25th February 12:29
DonkeyApple said:
Someone who I think has been very clever and for years has created a massive volume of content that is designed to keep getting pulled up in searches and generates a really solid income stream simply not dependent on whatever content is newest is Simon Whistler. He seems to have mastered the balance of just being clickbaity enough with having pretty good bite size content without being over excited.
I watch a fair bit of his stuff. I call him "talking Wikipedia" You will know if you're familiar with output that he credits team members at the ends of the videos so he's not doing it alone.
Think he's based in Czech Republic?
ingenieur said:
I watch a fair bit of his stuff. I call him "talking Wikipedia"
You will know if you're familiar with output that he credits team members at the ends of the videos so he's not doing it alone.
Think he's based in Czech Republic?
Yup. It was him and a business partner initially and there is now a whole team and they churn out a lot of content all of which is generally quite well balanced. It's always struck me as very professional business that is clever as to how it chooses and delivers long lasting content. Even down to when they do their own product ads, which often have an overt tongue in cheek vibe. What's particularly clever regarding the content is that like music it has the potential to still produce a revenue after the artist stops. You will know if you're familiar with output that he credits team members at the ends of the videos so he's not doing it alone.
Think he's based in Czech Republic?
It's really very simple, which is not the same as it being easy.
Step one, you make a channel. Step two, record a video and release it.
The early days are painful, and views will be measured in the tens. If you're super lucky maybe your first video will be a mega-hit (it happens but it's rare).
The way to gain traction using cars as an example would be share your videos with your car friends, go on owners groups etc, expect a bunch of flak but also a few people to like you.
Rinse and repeat a few hundred times, the channel will get big enough that YT starts pushing it out to audiences and it will grow - but to start earning what anyone would consider a reasonable wage can take years of effort.
As to how can CT be beaten by AutoAlex - that one's easy. For most people Alex WAS CT, when he left - they left. Some left long before. Despite many people commenting on videos to say "I Don't like this, I unsubscribe" very few actually do. What happens is if you just never watch a channel's video, YT slowly stops recommending them. So you've got lots of "dormant" subs. Ultimately meaning very little other than to gullible marketing departments.
It's not magic, it's not witchcraft, it IS possible to build something from nothing but to do it takes considerable time and effort so either you need to build up a nest egg before hand to keep you going, or you need to run it along some other kind of income until YT starts to win out.
Step one, you make a channel. Step two, record a video and release it.
The early days are painful, and views will be measured in the tens. If you're super lucky maybe your first video will be a mega-hit (it happens but it's rare).
The way to gain traction using cars as an example would be share your videos with your car friends, go on owners groups etc, expect a bunch of flak but also a few people to like you.
Rinse and repeat a few hundred times, the channel will get big enough that YT starts pushing it out to audiences and it will grow - but to start earning what anyone would consider a reasonable wage can take years of effort.
As to how can CT be beaten by AutoAlex - that one's easy. For most people Alex WAS CT, when he left - they left. Some left long before. Despite many people commenting on videos to say "I Don't like this, I unsubscribe" very few actually do. What happens is if you just never watch a channel's video, YT slowly stops recommending them. So you've got lots of "dormant" subs. Ultimately meaning very little other than to gullible marketing departments.
It's not magic, it's not witchcraft, it IS possible to build something from nothing but to do it takes considerable time and effort so either you need to build up a nest egg before hand to keep you going, or you need to run it along some other kind of income until YT starts to win out.
WonkeyDonkey said:
The channels are 99% the personalities.
I don't get why the likes of WTF1 and Carthrottle get taken over then alienate the presenters that attract the audience.
A lot of revenue will depend on what your audience is.
If you're a successful YouTuber that caters to a young audience then you'll earn a lot more off it than someone with the same amount of viewers but has an audience of cooky conspiracy theorists.
Like a great many businesses the people who buy it do not understand what it was that made the "product" desirable in the first place, and think they can enhance revenue/minimise overheads without the consumer noticing. Or, in the case of these channels the presenter knows exactly how much money is being made, how much effort they're putting in and they decide they'd like to earn it rather than being paid minimal money for their effort.I don't get why the likes of WTF1 and Carthrottle get taken over then alienate the presenters that attract the audience.
A lot of revenue will depend on what your audience is.
If you're a successful YouTuber that caters to a young audience then you'll earn a lot more off it than someone with the same amount of viewers but has an audience of cooky conspiracy theorists.
It takes time, a long time!
A lad I used to cycle quite a lot with back in the day started a channel that today has 278,000 subscribers, seems to do a video every 3 days. He’s been doing it 7 years now and it did start as a trickle. Looks like mastering what is popular within the sport is part of it (I’m sure the same applies to niche but highly followed things like EV as above). I also agree that you have to be a big part of the draw, if not most of the draw.
I reckon the smart money is creating content for young kids, they don’t give a s
t about watching the same thing 20 times. My son watches the occasional video from these two kids - the numbers they do are staggering. Their parents will be worth tens of millions of dollars.
Total views 83,000,000,000
https://youtube.com/@VladandNiki?feature=shared.
A lad I used to cycle quite a lot with back in the day started a channel that today has 278,000 subscribers, seems to do a video every 3 days. He’s been doing it 7 years now and it did start as a trickle. Looks like mastering what is popular within the sport is part of it (I’m sure the same applies to niche but highly followed things like EV as above). I also agree that you have to be a big part of the draw, if not most of the draw.
I reckon the smart money is creating content for young kids, they don’t give a s
t about watching the same thing 20 times. My son watches the occasional video from these two kids - the numbers they do are staggering. Their parents will be worth tens of millions of dollars. Total views 83,000,000,000
https://youtube.com/@VladandNiki?feature=shared.
Edited by okgo on Sunday 25th February 14:42
okgo said:
I reckon the smart money is creating content for young kids, they don’t give a s
t about watching the same thing 20 times. My son watches the occasional video from these two kids - the numbers they do are staggering. Their parents will be worth tens of millions of dollars. Total views 83,000,000,000
https://youtube.com/@VladandNiki?feature=shared.
I have a feeling though that something changed a while back with videos aimed at kids - something like they aren't allowed to use targeted advertising, which cuts and revenue quite dramatically.
okgo said:
It takes time, a long time!
A lad I used to cycle quite a lot with back in the day started a channel that today has 278,000 subscribers, seems to do a video every 3 days. He’s been doing it 7 years now and it did start as a trickle. Looks like mastering what is popular within the sport is part of it (I’m sure the same applies to niche but highly followed things like EV as above). I also agree that you have to be a big part of the draw, if not most of the draw.
Based on that number of subs, I assume his channel is Cade Media. I’m a subscriber; Frances and Jimmi are engaging presenters and I subscribed as soon as I watched one of their videos. A lad I used to cycle quite a lot with back in the day started a channel that today has 278,000 subscribers, seems to do a video every 3 days. He’s been doing it 7 years now and it did start as a trickle. Looks like mastering what is popular within the sport is part of it (I’m sure the same applies to niche but highly followed things like EV as above). I also agree that you have to be a big part of the draw, if not most of the draw.
I hope it’s making decent money for them.
okgo said:
That's truly nightmarish. If I had a kid blasting that day and night I'd leave the sodding thing at the nearest motorway services and alter its DNA so it couldn't be traced back to me.
The creators who really know what's what are the ones who founded their own service, Nebula or whatever it is.
I'd want to use Youtube as a platform to end up elsewhere, not be forever one algorithm change away from oblivion.
Edited by bloomen on Sunday 25th February 22:58
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