In a recent earnings call with YouTube investors, Google senior vice president and chief business officer Nikesh Arora said that the video sharing site has “found” its model—meaning that the site has come a long way since 2007 thanks to its push for original content and deals with NBC Universal to stream the upcoming Olympic Games.
What is more stunning than its very vague assessment of its business model is the fact that Arora emphasized that partners are benefiting from the growing monetization of the video site. He mentioned that “thousands” of partners are earning six figures, which is a jump from the previous estimate in the hundreds.
Although Arora’s statements are vague at best, the fact that he mentioned that “thousands” of partners are earning six figure incomes points to the fact that a career on YouTube is more viable than ever. Whether partners are solely relying on partner income from YouTube or cutting deals with sponsors and production companies, creators are finding ways of turning a passion into a viable business.
This positive news should encourage more content creators to explore, plan and create videos that will bring a loyal following of fans and advertisers to them. Many YouTubers who started back in its infancy would have never imagined that their talent would have earned them enough money to consider it a career. It is the talents of so many of the pioneering YouTube stars that have prompted larger studios such as Maker Studios and Big Frame to exist in signing up and nurturing bankable talent.
On the other hand, the success of these pioneering YouTube stars may encourage others to just use YouTube as a way of making money. In my opinion, most of the content you see on YouTube is unremarkable, so if people are lacking creativity in their productions in hopes of making a quick buck, these so-called “artists” won’t last a day. Rather, they may be sucking away valuable ad revenue from YouTube partners who truly deserve it.
While the number of creators earning six figures keep growing, some questions remain from Arora’s statement this week. What does it take for a creator to earn six figure incomes just by producing YouTube content? What do they need in order to keep the money flowing besides relying on views and subscribers?
Check out these articles from NMR’s marketing expert Benny Luo on how you can earn your way through YouTube: