Youtube Entrepreneur: A New Industry

In our day and age there exists a machine that can make anyone a entrepreneur, and this machine is right in front of our noses. It’s Youtube. A small website that started in 2005 is now a thriving 70 Billion dollar business that can make the smallest content creator a star in eyes of our youth. Despite the recent media attention, mostly negative, no one can deny that brothers Logan and Jake Paul are a prime example. Logan himself made 12.5 million in 2017 and his brother Jake owns a clothing brand as well. A youtuber can make money off of Ad Revenue gained by Ads played on their channel. This is calculated with cost per thousand [CPM]. To put it in perspective an advertiser will have a $10 cpm on an ad and sell it to websites like Youtube. If that ad is viewed 100,000 times it will generate 1000 dollars. Depending on the revenue per thousand [RPM] Youtube would give a certain percent (lets just say 50%) to the content creator. 

In result the content creator will gain 500 dollars in ad revenue. So for content creators who get millions views per month. Over time with this money they make merchandise for their fan base. 

A prime example are Youtubers Ethan and Hila Klein that both go by the alias of H3H3Productions. Both a young couple that started out in Israel with the bare minimum but with ad revenue and sponsors they have achieved success and now run their own clothing line, Teddy Fresh. 

With new programs like Youtube Red and Youtube TV these content creators are finding new ways to run their business. This new wave of Youtube entrepreneurs will set the example for our youth as the next generation.

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