We get asked all of the time: “I’m considering building a Youtube channel, what do you think?”
Our answer: Creating a Youtube channel is great if you want to provide additional value to the internet, but it’s very difficult to build an income stream on it today. In truth, most creators are leaving Youtube and that’s why we built Playbook. Here’s what’s going on:
YouTube pay is performance-based, and if you want to get paid by YouTube you will need to drive traffic to your videos to see and click on Google's ads. So not only do you need to drive traffic, but you have to create content that will keep people interested enough to watch the ads they embed in your videos. The problem is, we all hate ads so Youtube’s payment model is dying.
Here is a break down with a 50% video engagement rate (which is hard to do)
- $100 per month = 41,000 video views per month
- $500 per month = 212,820 video views per month
- $1,000 per month = 464,000 video views per month
- $2,500 per month = 1,050,000 video views per month
To make $1,000 per month or $250 per week you need over 400,000 people to watch your videos… No small feat. This is why so many creators are shifting to subscription platforms.
For example, the #1 content category in the world is gaming. Humans are completely obsessed with watching other people play video games. Gaming is the #1 most popular category on Youtube, but the gamers were not making much money - enter Twitch.
Twitch lets gamers live stream their gameplay and people can subscribe to them for $4-$5 per month and buy microtransactions.The entire gaming community moved off of Youtube to Twitch and consumers love it because (1) they only want to see gaming and nothing else (2) they hate ads and will gladly pay to have direct access to their favorite gamers
Now a view is not the same thing as a subscriber, but just like Twitch, Playbook has a subscription payment model, not advertising. This allows you to have a more transparent and efficient payment model. Also, you know who your customers are! $100 per month = 20 subscribers
- $100 per month = 20 subscribers
- $500 per month = 100 subscribers
- $1,000 per month = 200 subscribers
- $2,500 per month = 450 subscribers
Here are the other major benefits of Playbook compared to Youtube