YouTube superstar Michelle Phan has just officially launched Ipsy, her new community site. Ipsy is an online outlet that allows subscribers to interact with each other and sample beauty products recommended by Michelle for the small fee of $10 a month. Check out her promo video below introducing the new site:
As Michelle noted in a recent interview with All Things Digital, her fans are sometimes too financially limited to try all of the products she features in her videos. With her new site, fans are now able to experiment with these products at an extremely affordable monthly rate of $10. Not only does a small fee like this increase user sign-ups, it also acts as a promotion for the products that are sent out. In the end, users are happy that they get affordable high quality products to test, Michelle continues to build her brand as a creator, and the advertisers get a targeted audience to promote their products to. Sounds like an ultra win-win deal to me.
But thats not it — Michelle has not only created an excellent outlet for beauty enthusiasts, but is showcasing a business model that I believe all creators need to try and adopt if they want supplemental income. One of the biggest things that irks me about some online video creators is that they sometimes get too comfortable taking in monthly advertising checks. In the end, your most valuable asset is that you have a targeted audience tailored to specific interests. With that being said, if you’re able to take the same business model and tailor it to products specific to your audience, the possibilities are endless. For example, say you have a fitness channel — one idea you can benefit from is creating a similar online community that provides fitness tips or health-related product samples to your subscribers for a small monthly fee. Even if you had a small paid subscriber base of 1000 all paying a monthly fee of $1, that’s $1000 per month in potential residual income. While I agree that this model may not work for certain types of creators (musicians, comedians, personalities, etc), you need to remember that you have a specific audience that collectively will be interested in paying for a single product; the challenge to you is figuring out what that product is.
Even though Ipsy is essentially a new business, the fact that it’s an eco-system that focuses on allowing like-minded individuals to engage and find products specifically tailored to them puts them in a position to grow in the long term. In building a successful business online, one of the most important things is finding a niche, and Ipsy has found an incredible niche that fulfills needs of the end-user and creates a good potential stream of income to help Michelle further share her talents with the world.