How Much Money Does Jenna Marbles, Smosh and Toby Turner Make on YouTube?

Jenna Mourey (Jannamarbles) makes $4.3 million. Smosh makes $5.7 million. And Toby Turner (TobyGames) makes $4.2 million.

That’s according to this infographic, so it’s got to be true.

One of the top reasons people visit WillVideoForFood is to read about how much money YouTubers make. Read more…

how, much, money, youtube, stars, jennamarbles, toby, turner, smosh, jenna, marbles, make, 2013
How much money do youtube stars make?

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How Do I Become a YouTube Partner and Make Money on My Videos? 2012

Here's you as a YouTube Partner. Hmmm.

I’ve had a few requests from readers/viewers to clarify YouTube’s evolving Partnership program, and help “up and coming” YouTube creators understand how to make money via video. As always, I’d caution YouTube video creators to keep realistic expectations on earnings– right now there are hundreds of YouTubers earning six-figure income from YouTube. But the majority are earning small amounts, and the driver is daily/monthly views.

Below is some information about the evolving YouTube Partnership, and 9 additional ways to make money via video.

A YouTuber can expect to make anywhere from 50 cents to $5 on every 1,000 views. So a channel getting 1,000 views per month can maybe cover a cup of coffee. The bigger YouTubers like RayWilliamJohnson are making anywhere from $500K to $4 million a year (SocialBlade), and I’d guess it’s around $2 million. It’s a steep pyramid, folks.

So here are the ways to become a YouTube Partner, where you’re eligible for “revenue sharing” on your videos. Ads appear before and around your videos, and Google shares a percent (roughly 40% of what advertisers pay for those ads).

  1. Sign up to become a Partner on YouTube. Unlike previous years, most are granted Partnership (including my dog, FreddieNalts). In truth, this isn’t a full Partnership as we previously knew it. You’ll make a smaller amount of money because the ads are not exactly premium. YouTube has effectively changed the name of “monetize your videos” to Partner.
  2. If you’re getting tens of thousands of views per month, you could approach an Online Video Studio (OVS) to come a full-fledged Partner with advanced branding. You’ll need to share a percent of your earnings with the studio, but you’ll get some help resolving issues, and potentially some help building an audience. This type of Partnership also allows creators to customize their channel page and put a small icon over the videos that appear on “watch page.” This used to be available directly via YouTube, but YouTube is increasingly encouraging intermediaries to handle this process… remember Google doesn’t like to deal with people. It’s a technology firm, and isn’t resourced to provide personal attention to millions of YouTube creators. So becoming a full Partner can be accomplished broadly in two ways. First, you can sign with an “Online Video Studio” (OVS). In that post about web studios, I neglected to mention The Collective, which has helped a couple YouTubers (Fred, Annoying Orange) cross over to television.
  3. Finally for smaller YouTubers, there’s another option I discovered via Jason Urgo last night. Urgo/SocialBlade is helping smaller YouTubers (maybe 1,000 views per month) you can apply to become a Partner via Maker’s RPM Networks. The result is similar to option #2 but the bar is lower.

Don’t think of YouTube ad revenue as your only source of income for video creation. Here are 9 other options for making money via online video:

  1. Create Commercials. If you’re talented and have high production capabilities (but don’t have an audience), you might join Poptent and create videos and commercials for brands… you’re not guaranteed to be compensated, but if a brand selects your video, you can make $5 or $10K.
  2. BYOS. If you have a large audience, you can pursue your own sponsor (bring your own sponsor- BYOS). Just call a company and see if they’ll pay for a custom video or some product placement. These are easier to get if you’re in a web studio/OVS.
  3. Get Free Loot. Call a company and see if they’ll send you free loot in exchange for your mentioning them. It’s not easy to find the right person, but I’ve been surprised how receptive companies are. They often have programs to reach online influencers, and if you have a decent audience… that includes you.
  4. Sell Your Stuff. This DailyFinance reminds us that artists can sell their stuff via video. Got something on eBay? You could mention it in a video, and see if you can get the video SEO-optimized so it might appear via a Google search.
  5. Sell your videos if you think there’s a market for them. Learn more here. I believe you need a Partners account to do this, and I wouldn’t count on this tool. Most people don’t purchase amateur video content, unless you count porn or Louis CK. I suppose there’s some “how to” video that’s worth buying, but I don’t see this as being lucrative.
  6. Drive to Website: you can try driving traffic off YouTube onto a website that allows you to sell loads of additional advertisements/sponsorships. It’s difficult to get people to follow a link of YouTube, and I’d estimate low single-digit numbers (depending on the reason). But Smosh’s “Smosh Pit” is a nice example of how YouTubers have created adjunct websites where additional monetization is possible.
  7. Affiliate Links: If you’re really cheesy, you can try making videos an inserting affiliate links into the description. I’ve never seemed to make anything notable via affiliate links on my blog and in a few links from a video.
  8. Merchandise: CafePress and other sites allow you to create your own branded merchandise and sell it to viewers. I think I’ve sold max. a dozen things on CafePress, but I haven’t put much effort into it.
  9. Get Rich Quick: Try one of the bullshit “get rich quick” schemes. Good luck.

 

How To Get Views on YouTube (via Kindle)

So you want to know how to get views on YouTube. You want to grow a vibrant YouTube channel, go viral, and become the next Ray William Johnson. Do you cheat, or choose a more proven way?

No Kindle lovers… you could read a great American classic on that sun-enabled iPad you call a Kindle. Or you could dive into some magazine article about the proliferation of germs on door handles. But here’s “How To Get Popular On YouTube Without Any Talentright on the Kindle store. Is this a blatant promotion? Yes!

Oh it’s 34 pages long which is pretty beefy even though the image makes it look like a tomb.

What To Do When You Go Viral… Accidentally

So your video of you dog/baby/pratfall suddenly goes viral, and you’re faced with choices… how do you capitalize on the luck?

Can Fail Dog be the next "Guilty"?

I’ve had the pleasure of informally coaching viral lotto winners, from “David At the Dentist” and Richter Scales to the recent Dagfinn (who is navigating his stick the way I manage my career). It’s a small world, and if I’m checking e-mail I’m happy to help a fellow “Viral Video Genius.”

Anyway, here are some of the pieces of pro-bono advice (I never ever ever charge fellow creators) which I’ve provided. In general, the goal is to knock out some important things (getting channel in shape, applying to be YouTube partner, tagging video), enjoy the ride, and hope the 15 minutes lasts.

  1. Get your YouTube channel submitted to become a Partner (I used to help rush that before YouTube scaled back on human contact)
  2. Optimize the video for search. Most viral lotto winners have failed to describe the video, and load the description/keywords with terms that people might use having heard about the clip.
  3. Provide a URL (or Facebook fan page) in the video description with more info and contact information. It’s very difficult to use YouTube’s lousy message system which GOD FORBID they merge with Gmail (I’m on year 4 of that idea). Make sure this hyperlink appears in the truncated description.
  4. Pay attention to, but doubt, the multitude of business propositions. Sure it may make sense to create some merchandise but a) it’s kinda cheesy, and b) It won’t be a drop in the bucket relative to ad revenue.
  5. Pray the viral viewing continues. By my best guess, David at the Dentist has paid for an Ivy League college with his viral clip, which has surpassed 100 million views.
  6. Be open to a sponsorship ($5-$20,ooo) but that depends on timing and the content. It’s unlikely these will keep rolling in, so be selective and more while the video is hot. It’s generally hard to find these… they kinda have to come to you.
  7. If you’re lucky enough to get national media inquiries DO IT. It’s free (except hotel/travel), but it will drive views and intrigue. If you are going to merchandise, here’s a way to promote that subtly. For instance don’t pimp a website, but consider wearing a t-shirt that celebrates your viralicity.
  8. If you plan on creating more videos, then ask viewers to subscribe. Also create a good looking YouTube channel page… otherwise people won’t even think about subscribing… they’ll just think it’s a one-hit wonder.
  9. Post more videos but do not expect anywhere near the views. For proof, check the other videos on any channel that has a viral one. It’s very rare to see, for instance, a second “Charlie Bit My Finger” do anything even close to the first. Still worth trying.
  10. If you want to do some audience development and promotion, check out my free eBook called “How To Get Popular on YouTube Without Any Talent” (version 4). If you really want to get fancy, pick up my real book “Beyond Viral“).
You get typos when you get an eBook cover designed on Fiverr.com for $5

 

SFGate to YouTube Star-Wannabees: It’s Asymptotical.

Sorry, online-video stars of 2011 and 2012. Seems your future is “asymptotical,” according to this report by SFGate titled “Inside Google’s Boot Camp for Viral Video Stars.” The New York Times covered the recent program for the “chosen” YouTube Partners that were selected as YouTube NextUp winners (see explanation of program).

Yeah I had to look that word up too. In fact the only reader of WVFF who’s likely heard of “asymptotical” is StalkerofNalts, a mathematician who helped me monitor my own inappropriate use of the word “exponential” (something I apparently misused in Beyond Viral).

According to Wolfram Math World, the term asymptotic means approaching a value or curve arbitrarily closely (i.e., as some sort of limit is taken). Aline or curve A that is asymptotic to given curve C is called the asymptote of C.

Indeed the odds of becoming tomorrow’s YouTube star are somewhat remote, but don’t let that discourage you, friend. I’ve watched with delight as many creators have gone from obscurity to six-figure salaries that exceed the earning potential these people would likely make otherwise. You just need patience, persistence, some talent, and an insatiable thirst for fame and social interaction with your viewers. Here’s the presentation I gave at YouTube’s “boot camp,” which is a bit of a malapropism (definition) considering the lavish food the YouTube Next peeps were fed.

Go get ’em tiger! Get my book, read the free eBook (How to Get Popular on YouTube Without Any Talent) and commit to grandeur.

 

NextUp YouTube Winners in NYC

So the NextUp YouTube winners are in NYC right now… receiving loads of love from Google/YouTube. It made me happy seeing the next generation of amateurs… and to see that Google/YouTube still encourages them even while commercial content is on the rise on the world’s second-largest search engine.

I was invited to speak to the 25 of ’em, and here’s my presentation. If you were one of the wanna-bees, don’t fret. I asked if they’d be picking a new crop 3 times until I got the answer I wanted to hear… yes.

After I cranked this presentation out, I realized I’d been billed as the marketer. So this deck actually represented only half my time. During the rest I decided to play the role of an amalgamated product director, and I replaced my “Nalts” hat with a blazer. I asked them to pick a product (they said Coke), then I proceeded to explain my goals, hidden agendas, beliefs about YouTube and my understanding about product placement and sponsorship. I couldn’t help but point out that Coke gives out free products on the streets of NYC but no swag to people that have hundreds of thousand views daily. Hmmmm.

I told them I wanted to sell more Coke so I could become Chief Marketing Officer, and that I was mostly concerned with reach, frequency and single-minded proposition. I wanted to leverage emerging media, but I deferred YouTube spending to my media agency. And I wouldn’t know how to begin to tap YouTube creators… frankly I’d be scared they’d harm my brand (as a product director, of course, I wouldn’t realize I could review/approve any sponsored videos).

Lots more detail in my free eBook or Beyond Viral, which you really should just go ahead and buy. And dont find any thpelling erars.

 


Models for “Signing” YouTube Creators; Tips for Advertisers, Studios & Stars

Several trends are causing many independent “YouTube Creators” to sign with “new establishment” (web studios) such as Makers Studios (good luck finding its website), Next New Networks, The Station, Howcast and Machinima. Many early web studios were formed to create and promote custom shows for wide distribution. But the high investment ($1-$5K per edited minute) could not be sustained by the modest advertising dollars moving into the medium. In the past year, most have abandoned custom shows and are signing proven YouTube talent, many who have low costs, but large and steady audiences that are valuable to advertisers.

The trends driving these deals are:

  • It’s a buyer’s market. YouTube advertising revenue is relatively depressed because it’s new and driven mostly by Google Adsense, which allows even small advertisers to target viewers. The revenue model is largely based on “cost per thousand impressions” (CPM), and the income to the creator is mostly hovering at a modest $1 plus range… obviously YouTube pockets a portion before the creator is paid. Since an advertiser is often willing to pay far more for a targeted view, there’s plenty room for an intermediary who can command higher CPMs. Despite Google’s large salesforce, the display team at Google is relatively small. As I’ve said before, most media buyers are opting to put dollars into other sites because YouTube is less flexible.
  • Many solo acts have significant monthly views (mine alone are 5 million plus), but can’t justify selling their own inventory.  However if a network can assemble a collection of creators that are attractive to certain industry advertisers, they can rationalize a salesforce and a premium.
  • The marketplace for talent is growing increasingly competitive, making it more attractive to independent creators to share in such fixed costs as management, marketing and production. Many solo acts on YouTube lack even basic talent representation, and don’t know how to find sponsors or price their sponsorships (and some are not willing or capable).
  • Budgets are flowing online dramatically, as video consumption increases. YouTube has missed a significant portion of online-video budgets because Google’s emphasis remains on paid search (while smaller properties are focused on pursuing larger digital budgets and even television budgets). This is changing, and could become more complex as the lines become less clear between YouTube (which has often proclaimed to be a platform not a network) and web studios (like its rumored acquisition, next New Networks).
  • Cross promotion across creators can grow the size of an audience significantly, and collective groups (like The Station) can expose individual shows/stars to audiences that might not otherwise know they exist. Many creators have sought alliances because there’s strength in numbers. The brat-pack model is not to be underestimated, even though shared successful YouTube channels are rare.

While few web studios and creators will reveal detailed terms, here are a few models that I’ve seen first hand. I will avoid revealing specifics or suggesting which studios gravitate to various models. Even within the same web studios, the deals can vary dramatically based on the creator’s negotiating skills, their content quality, and their audience size. Most deals are more nuanced than the following, but here are some simplified examples:

  • We own you. Small “up and coming” creators were often willing to effectively sell their show to a web studio and become compensated at a fixed price per episode. This is increasingly rare, as it is risky to both the studio (who can’t be sure the star/show will succeed) and the creator (who loses the otherwise unlimited upside potential of a solo YouTube artist).
  • We own 50% to launch you. Some “web studios” sign new talent with a revenue split. A talented but unknown creator can gain accelerated growth via appearances in the network’s already popular shows, and in return provides a portion of his/her YouTube Adsense dollars to the studio. Both this model and the previous require the studio to “claim” the channel via YouTube, and then pay the talent in some form: usually a month after the studio is paid. YouTube is attempting to make this easier for the creator, studio and advertiser… but it’s still fairly complicated to execute. Since the creator can become blind to the actual revenue their channel receives, it requires some trust.
  • We “mark you up.” Since the average ad CPMs remain modest, some studios are able to offer a creator/show a premium CPM (income per view) that is higher than that to which they’re accustomed… but sometimes capped. For instance, the studio may promise to pay the creator $2 per thousand views, and pocket any incremental revenue. This makes sense if the studio can sell the inventory at an ongoing premium, and is even more attractive to the creator if the studio can promote and grow the channel as well. However it means the creator may not benefit from what I’d expect to be higher CPMs in the years ahead.
  • We split incremental proceeds. A more mature YouTube star may negotiate a deal where anything in excess of their regular YouTube “Adsense” revenue is split. The studio may, for instance, sell a series of sponsored shows to a brand or advertiser, providing a complement to typical display ads (prerolls, banners, InVideo ads). The studio also may offer additional “value ads” that are not easy to execute via YouTube directly (such as having a collection of creators promote the brand on their Facebook and Twitter profiles). The creator may occasionally get a fixed sponsorship income (a few grand) to provide messaging within the show, and the display ads are marked up during a specific timeline. We’ve seen programs like Howcast’s GE Healthymagination that involve a number of YouTube stars working together or sequentially. In some cases YouTube manages these directly, contacting top talent to participate.
  • Pay per sponsorship. Some studios remain strictly in the pay-per-sponsored video space, providing advertisers with a flat fee for a series of videos that mention a product or service. A creator who fetches 200K to 1 million views per video can command o5-50K for a single sponsored video, and the studio takes a percent. Again, YouTube does many of these programs directly since the marketplace for these programs is still immature. Hitviews was one of the early companies for these, and Mekanism is doing some now. In my experience, it’s far more profitable to a creator to do them directly via YouTube… but there’s little a creator can do to increase the quantity of these. They’re bought not sold.

In this blog and my book, I’ve argued that advertisers and creators need intermediaries to facilitate sponsorship programs when they go beyond traditional ad buys (invideo, prerolls or adjacent display ads). When I consulted with Hitviews, I helped orchestrate some of these complex sponsorship programs, and they require skills that are rare in traditional and digital agencies. They’re difficult to sell, tricky to execute, and require cash reserves — since creators must sometimes be paid before revenue is received from advertisers. I’ve also done these directly with advertisers since I have a marketing background, but that’s not easy for most creators. Still, these sponsorships are lucrative for creators and extremely valuable for brands. They take the advertising message to where it has greater influence (within the show) and cannot as easily be ignored. They’re also perpetual annuities for brands. Some of my sponsored videos have garnered significant views long past the campaign’s period.

Audiences can be tolerant of these sponsored deals as long as the creative is strong, and a webstar or show does not do them too often. To see some of my own sample sponsored videos click here. You’ll see that most are not heavy on the promotion since that can severely impair views, ratings and comments. My income for these has varied radically, and often does not correlate with the total views of the videos. In a few cases, the advertiser has paid YouTube to “spotlight” the videos, but most of the views are organic.

I have seen some of my favorite YouTube creators fatigue audiences by accepting numerous sponsored deals (especially in a short time period). I’ve seen both extremes: the advertiser paying far more than it should (based on quality of the video or total views), or the creator selling out for a modest fee (and sometimes not paid at all).

Here are some tips first for advertisers/studios, then for creators. My emphasis is on sponsorships rather than “signing,” since the former is more common.

  • Advertisers or studios should not, in my opinion, subsidize a show’s creation. That can get cost prohibitive to a brand, and can result in mostly paid views. Those are not nearly as valuable as “organic” views (where a show already has a recurring or loyal audience).
  • I believe advertisers should provide at least 50% up front (like with any media buy) and withhold 50% based on performance metrics (total views). This ensures the studio has sufficient funds to attract and pay creators, and also reduces the risk to the advertiser. However it seems studios and YouTube often commence campaigns before getting paid, which results in ridiculous long gaps (3-6 months) between posting a video and getting paid for it.
  • Studios (and advertisers) should be careful about the stars/shows they pick. Some have a reputation for delivering content that meets the needs of the audience and the brand, and others are known for turning in marginal content, missing deadlines, or even harming the reputation of the brand. It is difficult for someone not extremely familiar with YouTube and creators to vett them well. For instance, I was approached recently by Best Buy despite my disdain for the company.
  • A good “match maker” will instantly know what creators/shows are right for different advertisers/sponsors, and that requires more than an understanding of a channel’s demographics. Since most popular YouTubers ignore e-mail, it’s not easy to catch their attention even when dollars are involved. If I had a dollar for every false-positive “sponsor,” I could buy YouTube from Google.

Creators:

  • Creators should be very careful about signing “exclusive” deals, which limit revenue in other mediums or distribution channels beyond YouTube. I’ve been offered large monthly sums to move my content off YouTube and have never regretted declining. I’m also glad that I’ve never put a ceiling on my income, or provided any videos to a third-party with exclusively.
  • Since the CPMs are likely to get higher in coming years, I’d be reticent to sign a deal that locks me into today’s CPMs. If an advertiser can command higher CPMs for a specific video or time period, that’s nice. However I wouldn’t want to lock myself into $1 per 1K views, and then watch the average CPM rise.
  • It’s a good idea to have a time period attached to a deal, and opportunities for either party to exit. This is especially important since some of the web studios could be acquired by companies that may change the dynamics between the creator and the studio. It’s also important to have an agreement if an advertiser needs to remove a sponsored video (I’ve seen this happen more times than you’d imagine).
  • I urge creators to seek clarity about studio-exclusivity deals. A smaller creator will delight at signing with a studio that provides lots of new sponsorships. However what happens if that studio isn’t selling deals? Or if the studio is asking the creator to promote brands they don’t like? Or if the studio requests more sponsored promotions than the creator feels is appropriate (Smosh)? Is the creator obliged to take whatever deal the studio secures, or can they decline? More importantly, what happens if the creator is approached directly by a brand? Is he/she still permitted to do a sponsored video, and if so, are they obliged to provide a percent to the studio? Part of the reason I haven’t worked with Hitviews in more than a year is because it resented me working with other companies (YouTube directly or Howcast), and yet wasn’t providing a steady flow of well-compensated sponsorships. I’m still a fan of founder Walter Sabo however.
  • As online video begins to behave more like traditional television (where YouTubers are TV shows, and studios are networks like Fox or ABC) the dynamic could change dramatically. But it’s still a maturing industry, and deals very often favor one party far above another. So regardless of what is in writing, a relationship of trust is vital. There’s a certain “give and take” that is important for all parties involved (advertisers, intermediaries and show creators).
  • In general, I would rather be known as a pushover than a jerk… and the race is a marathon not a sprint. I have been “screwed” a few times, and have left money on the table (and I’ve steered clear of those people since). But I try to be flexible and make concessions knowing it’s a small industry, and that a professional, low-maintenance creator is more likely to earn the long-term trust of a variety of players that can provide income and other opportunities.
  • Finally, don’t be afraid to say “no.” I’ve seen several of my friends decline a modest or unfair offer, only to receive a much more generous one.

I’d welcome your comments if you have your own learnings… or your questions if I’ve been unclear. I’m sure it’s not an easy read, since it’s a complex space!

Lastly, if you’re a player in this space and regret not being mentioned, please identify yourself in comments or via e-mail. I am sure I have missed some web studios or intermediaries that are active in recruiting talent and wooing brands.

Earn $250,000 a Year Making Online Videos

Some people make $250,000 a year on Blip.tv, according to its affable CEO Mike Hudack (I’m a fan).

You can’t make $250,000 a year on Blip.tv, though. Sorry but you’re not talented enough. You know what? I’m sorry. Read my free eBook and give it a shot. Buy my book and give it a better shot. Go like it on GetGlue if you use it, or I’ll pee on you.

YouTube Stars And Their Estimated Income

How much money do YouTube stars make? TubeMogul used some ad-sharing revenue estimates and view counts to guestimate the annual income of YouTube partners like Shaycarl, Daneboe, and AnnoyingOrange. These estimates don’t capture the 5-30k these guys can earn from a sponsored video.

Posting from iPhone hence the terse post and lack of lovely image and fancy hyperlinks.

http://finance.yahoo.com/tech-ticker/meet-the-youtube-stars-making-100000-plus-per-year-535349.html?willvideoforfood

Ashkan Karbasfrooshan’s Magical Money Pyramid

WatchMojo CEO Ashkan Karbasfrooshan has written a series of smart articles about online video in TechCrunch, and here’sKarbasfrooshan’s recent “How to Make Money from Online Video.”

TechCrunch is totally working my content corner, and if I had a pimp he’d comb his afro and kick Michael Arrington right in his man crunch. In fairness, Arrington wrote about me like once… two years ago. But since then? Not even a TechCrunch footnote to the new version of my free eBook “How To Get Popular on YouTube Without Any Dandruff.” See if I share any profits with Arrington when he’s dirt poor because Google ripped all his content.

Anyhoo, Karbasfrooshan’s recent article is particularly smartish because Karbasfrooshan includes a pyramid including my name. In general I’m a big fan of pyramids. They’re the new quadrants. And when Karbasfrooshan includes my name (Nalts),Karbasfrooshan’s pyramid take on a sophisticated, glistening appeal. I’m listed with iJustine and Fred, right on the bottom of the “prosumer” level — just above that mud slop you call user-generated  content (UGC). It’s not profitable, but I keep my costs down and I make it up in volume.

Here’s Karbasfrooshan’s pyramid below. Karbasfrooshan’s article is goodly written too, but if he’d have quoted my blog it would have been more gooder. I hope Karbasfrooshan isn’t right about the damned prerolls. The dropoff rate is a deal killer.

And I hope they make a new ice-cream called Karbasfooshan. I’d have 4 bowls for supper.

P.S. Karbasfrooshan