Print 39 comment(s) - last by nafhan.. on Aug 23 at 3:30 PM

Popular site splits profits 50/50.

It pays to be on YouTube.  The influential video-sharing website has thrived on its concept of user-generated content; now this powerful platform is generating a thriving income for some of its users.

According to
 Business Insider and a study by TubeMogul, 10 independent YouTube partners made over $100,000 in the past year.  The distribution web service, TubeMogul used their viewership data to estimate the annual income for independent YouTube partners which are  designated by TubeMogul as anyone who is not part of a media company or brand.

The analytics and advertising company compiled their estimates from banner ad revenue placed near successfully loaded videos.  The impression cost per banner ad was $1.50, according to the report by TubeMogul.  To determine what to pay out to its rising stars, each partners individual number of views from the past year were added up and divided them by 1,000.  The popular site then multiplied each of their totals by $1.50 and split that number in half.  YouTube shared those profits with those partners down the middle, giving them 50 percent of the profits resulting from their individual numbers.

All of the successful YouTube entities have developed niches that focus on comedy, pop culture, and various topical issues.

The most profitable YouTube celebrity, Shane Dawson pulled in an estimated $315,000.  The popular comedy sketch artist has three different YouTube channels.  

The Annoying Orange, is a comedy web series about talking fruit that netted $288,000.

Philip DeFranco is a YouTube personality who raked in $181,000 for his show.  DeFranco video blogs about pop culture, politics and other topics.   

Viral star Ryan Higa, has 2.6 million subscribers and made $151,000 on YouTube in the past year for videos like "How to be Gangster" and "How to be Ninja".  

Lucas Cruikshank currently has the second most subscribed YouTube channel.  Cruikshank made $146,000 in the past year on the site by portraying himself as "a six-year old named Fred" .  Cruikshank reportedly has a movie about the character that is being backed by Nickelodeon currently in development.
Ian Hecox and Anthony Padilla are part of a comedy duo called "Smosh".  The pair went viral with their most successful video "Pokemon Theme Music" in 2006.  They currently have over 1.7 million subscribers and made $113,000 by partnering with YouTube.

The Young Turks, a show created by Cenk Uygur pulled in $112,000 from the popular site.  The show focuses on political talk and also airs on Sirius Satellite Radio.  

These estimates give you a general idea at what kind of money can be made by having popular video channels on YouTube. However, don't think that Uncle Sam is going to let you get away unscathed if you start brining in a six-figure income on YouTube – you still have to file paperwork with the IRS.

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By gigahertz20 on 8/21/2010 1:05:37 AM , Rating: 5
Meanwhile, the majority of us working stiffs pull in under 100k a year working our asses off, while the people that created the annoying orange video series collect 288k....time for me to go puke in the toilet.

RE: Meanwhile....
By BruceLeet on 8/21/2010 1:46:16 AM , Rating: 5
My friend sent me an annoying orange video once, all I thought was "people find this funny?"

But I'll admit I'm subscribed to communitychannel (Natalie Tran) who is appealing to me. Asian w/ an Aussie accent...I mean come on. I know there are loads of them in Australia but she made a youtube account and got popular first...

On that note I find none of the other 9 amusing or funny, or interesting. I despise annoying orange subscribers, who should seek sterilization to avoid procreation.

RE: Meanwhile....
By KoolAidMan1 on 8/21/2010 2:19:32 AM , Rating: 5
The tears of bitter IT drones nourish me

RE: Meanwhile....
By killerclick on 8/21/2010 2:36:12 PM , Rating: 5
Haha yeah, I also get mad and then sad when I see people with half my IQ pulling in ten times more money by being popular idiots.

RE: Meanwhile....
By littlebitstrouds on 8/21/2010 3:09:19 AM , Rating: 5
While I agree that idiotic humor isn't my thing either, I think you're generalizing and attempting to martyr yourself a little bit too much here. While creativity is sometimes overly compensated, you would be surprised how under compensated it is in most cases. I think the ability to do something creative and put it on the public forum with little to no censorship is pretty awesome. If 20 million people think it's something that is worth their time to watch, then I think you getting compensated for that is completely fair and balanced.

RE: Meanwhile....
By EricMartello on 8/21/2010 4:40:57 AM , Rating: 4
So your mad because you have no ambition and chose to be a paycheck monkey? America is a country built by people who are independent and want to make a living for themselves. Worker drones are the epitome of what America IS NOT all about.

Entrepreneurs - people who have the balls to pursue their ideas and live outside of their comfort zone - may find that they are rewarded for doing things differently...of course, for every 1 success there are thousands of failures...but that doesn't matter because success only comes to those who don't give up.

Youtube is just one example of an opportunity that allows ambitious people to find success doing something they enjoy, or at the very least, something they want to do. If you're afraid to quit your job and take a chance then your future is essentially predetermined.

RE: Meanwhile....
By AnnihilatorX on 8/21/2010 8:25:11 AM , Rating: 1
I agree, it's not just America

Entrepreneuring is a high risk business. For every 1 sucessful person, there are certainly many more who failed. You only hear about people who made it in media, never the ones who don't.

The rewards are proportional to the risk involved.

RE: Meanwhile....
By Reclaimer77 on 8/21/2010 12:54:50 PM , Rating: 4
See, this is what I love about America and capitalism in general. Basically because of one or more peoples vision and ideas, other people are given an opportunity to become wealthy themselves. Youtube has created wealth in a segment where there previously was none. What used to be a hobby, putting a camera in your face and making vids, has now become an industry of sorts.

RE: Meanwhile....
By Bladen on 8/21/2010 8:40:47 PM , Rating: 2
These entrepreneurs, they always do 100% of the work themselves? Even when they become a massive multi-national corporation?

Or do they employ, and rely on, workers to, you know, get the work done?

RE: Meanwhile....
By kyleb2112 on 8/21/2010 11:35:03 PM , Rating: 3
Yes, how dare these selfish bastards create all those jobs. We must punish them!

RE: Meanwhile....
By tim851 on 8/22/2010 12:44:34 PM , Rating: 1
So you're saying that all those nurses, police officers, firemen or software developers are just stupid losers who couldn't do anything worthwhile? While some douchebag gets 10 million hits on youtube for being the class clown and earns more than some of the aforementioned in 10 years?
This is the America you're proud of? The one where everybody should strive to be the village idiot? Oh my.

RE: Meanwhile....
By freeagle on 8/22/2010 3:14:19 PM , Rating: 5
Nurses, firemen and software developers ( those that do not create their own stuff, just work for somebody else ) satisfy a big need of a very small group of people. Youtube guys satisfy a smaller need of a large group of people. One nurse can treat maybe 1000 patients a year. Lets say nurse's satisfaction is worth $40, so she makes $40 000. The youtube guy satisfaction is worth, lets say, 10 cents. But he has 2 000 000 million satisfied people, that's $200 000 bucks. I personally don't see a problem

RE: Meanwhile....
By psychmike on 8/22/2010 4:48:16 PM , Rating: 2
Because we don't always weight risk accurately, one potential problem is that more and more people try to be the 1/1,000,000 that make it rich being an entertainer rather than the 1/4 who learn to do something useful and productive. I'm sure it's always been the case - I'm sure lots of high school kids dropped out because they wanted to be the next Beatle - but there definitely seems to be an increasing emphasis on fame. I highly recommend 'The Narcissism Epidemic'.

Another potential problem is that we may culturally begin to value mass produced, simply understood products and ideas more than complex, nuanced, or individualized services and exchanges. While artists can more easily reach large audiences, there are also many more people putting out art. Not all opinions are equal, and popularity and democracy aren't always the best way to determine worth. Whether RU486 negatively affects women's health, whether coal fired plants result in more cancer downwind, whether nuclear waste is safe or not are widely discussed issues but often without facts.

RE: Meanwhile....
By jmunjr on 8/23/2010 1:46:30 AM , Rating: 3
It is truly amazing what a little common sense can do for the wallet. Some people just have a knack for knowing how to make money... I applaud them..

RE: Meanwhile....
By blakhama on 8/23/2010 2:27:23 AM , Rating: 2
Umm... Isn't that a result of creativity, marketing and especially the FREE MARKET? It's not how hard you work, it's more of how SMART YOU WORK. If you have an issue with your income you need to do more, or re-invent yourself or even better, become an entrepreneur.

Me personally, I come home and hustle/work on top of my consulting biz. I don't belong to 6 softball teams, don't constantly hit up the bar or sit around playing cards singing the blues getting doped up. My focus is family 1st, then making the $$$. There is nothing more challenging than making money for yourself rather than being dependent on a paycheck from another, especially the gov't. If you are not an entrepreneur, then you will make the most money long term working for the gov't (with the tax payer funded pension). Gov't jobs are more about credentials (certs/degrees) than experience, creativity and work ethic though.

Quick fact, More than half of the forbes top self made richest have not even attended college. KUDOS to those that have made a nice $$$ on youtube. I have more respect for these entrepreneurs than most college professors.

RE: Meanwhile....
By nafhan on 8/23/2010 9:53:12 AM , Rating: 2
And there are people who make millions by running around in a field and throwing a ball. Life's not fair. Stop whining, and do something different if it's that bad.
Really, these YouTube "entrepreneurs" are doing a lot more work than most traditional movie and television stars and only 10 of them are making more than 100k. Most of these guys are doing all the writing, acting, and advertising by themselves! I say good for them. (and yes, I'm a "working stiff")

Making Money
By hal1000 on 8/22/10, Rating: 0
RE: Making Money
By Reclaimer77 on 8/22/2010 12:44:24 AM , Rating: 4
You can not create money

Oh I think the U.S treasury would say otherwise.

RE: Making Money
By hal1000 on 8/22/2010 12:51:17 AM , Rating: 2
That's why I mentioned Governments the Fed etc.
The us treasury can only create currency, currency is regulated by the Fed (Federal Reserve), it does not have the right to print as much as it likes, in other words it does not really create money, it just prints as much as it is told to.

RE: Making Money
By freeagle on 8/22/2010 3:41:05 PM , Rating: 2
Ahh, selflessness. The most dangerous of human features

RE: Making Money
By Solandri on 8/23/2010 4:44:54 AM , Rating: 2
You can not create money

Yes you can. Wealth is created any time value is added. You have 2 beers which you value at $2 each. I have 2 hot dogs which I value at $2 each. With the system as-is, the value of your 2 beers is $4, and the value of my 2 hot dogs is $4, for a total system value of $8.

You're not particularly happy with 2 beers. 1 is enough, and you'd really like something to eat. You're willing to pay $3 for a hot dog. I'm not particularly happy with 2 hot dogs. 1 is enough, and I'd really like something to drink. I'm willing to pay $3 for a beer.

We agree to swap 1 hot dog for 1 beer (the transaction can be done via money or barter). Now both of us have 1 hot dog and 1 beer. But the total value of the system has increased. Now you have $5 worth of goods, I have $5 worth of goods. The total wealth in the system has increased from $8 to $10 even though no material goods were added.

Please, take any introductory course in economics. It's not a zero-sum game. Stating that it is just broadcasts how uneducated you are on the subject. Any time goods and services are moved from a less-needed place to a more-needed place, wealth is created.

RE: Making Money
By hal1000 on 8/23/2010 9:38:07 AM , Rating: 2
I shall go and make some money then?
I wonder how long it would take before someone tried to stop me?

Try taking a course in HIGHER ECONOMICS

RE: Making Money
By hal1000 on 8/23/2010 9:53:00 AM , Rating: 2
Or to put it another way - where did the actual money come from - to pay for these beer's, hot dog's and services?

We only barter when money is not involved, so it is not part of my original supposition i.e. - YOU can not create money.

Money can be transferred and therefore so can wealth, but YOU still can not create money.

The transfer of wealth, is a different matter entirely.

RE: Making Money
By nafhan on 8/23/2010 10:08:40 AM , Rating: 2
You most certainly could create money, if people trusted you to do so! Governments create money, and when they lose the trust of the people (usually due to inflation) everyeone tries to unload the currency as fast as possible. Retailers (such as Wal-Mart) create money in the form of gift cards, and people buy them because they trust that the gift cards will retain their value.

Here's the wiki article on money:
Also helpful to you would be the article on fiat money:

RE: Making Money
By hal1000 on 8/23/2010 10:26:13 AM , Rating: 2
Like I said - I could create money - but how long do you think it would take until someone tried to stop me. As I am sure no one trusts me enough, to pay the bearer of. Flat money is what I was referring to and you would still need it to purchase - Wal-Mart vouchers, so Wal-Mart are not creating flat money - sorry if I did not make myself clear about that.

RE: Making Money
By nafhan on 8/23/2010 12:32:21 PM , Rating: 2
I think you might be using the generic term "money" to mean legal tender. Part of the value of legal tender comes from the issuing body's anti-counterfeiting activities. That said, no one would try to stop you from making "money" any more than they stop Wal-Mart from making gift cards, but no one would want your money as the hal1000 dollar has zero perceived value.
Also, unless you are an issuing body, you get fiat money the same way you get gift cards: exchange another currency, a good, or a service for it.

RE: Making Money
By hal1000 on 8/23/2010 1:12:43 PM , Rating: 2
OK the best way to explain my point of view is - well just watch this -

You may or may not agree - with this explanation, but the facts speak for themselves, I am always in debt :)

RE: Making Money
By nafhan on 8/23/2010 3:30:06 PM , Rating: 2
Can't get to YouTube, right now :(

Why worry about their money?
By BillyCravens on 8/21/2010 5:08:26 AM , Rating: 4
I know some people hate the fact that these folks make ridiculous money while they bust their butt working. What about athletes? I know they have to work hard, but not $15 million worth of hard (does an athlete work 200X as hard as a programmer? I don't think so) They make what they generate.. no need to hate

By IcePickFreak on 8/21/2010 6:59:55 PM , Rating: 2
I agree to some extent, but generally thousands of people aren't willing to pay $50+ to watch a programmer to work like they will to watch an athlete work. Much the same that I don't think too many people would pay to watch these video's if they had to directly pay to watch them.

I mean more power to them if they can work the system and make a bunch of money for screwing around and filming it with a camcorder. It's just kinda sad that is how the system works.

This is awesome...
By AEvangel on 8/21/2010 9:56:23 AM , Rating: 3
What I like about this is whether or not you like any of their content IT'S FREE!!!

You can watch as much as you want and it wont cost you a dime, unlike all that content on Cable TV in which you have to pay a subscriber fee for. This is content created with out the big budgets of some Hollywood studio, it's created by people and chosen by the public. This is the free market in action plain and simple.

Your not forced to watch shows that others thought were creative simply because they are in control of the a major studio this is entertainment chosen by the masses.

Whether you like it or not it's interesting to see it work and hopefully this will help other area's of entertainment and information develop and show you can make money with out some huge corporation behind you developing what type of message you portray.

RE: This is awesome...
By IcePickFreak on 8/21/2010 1:35:49 PM , Rating: 2
Umm no, the money doesn't magically just appear for making a retarded youtube video. You pay for it when buying products, so they have hundreds of thousands of dollars to throw at people like this for the odd chance that someone see's their little add in the corner while watching it and that somehow make them buy it. Meanwhile the people who got an education in say engineering, to say invent, design, and improve the actual products they sell, get paid a fraction of what some kid does that talks in a retarded voice and records it with mom's video camera, and does a quick edit of it with some maybe $100 software. Just for the odd chance that someone decides to but their product (or service) blindly because they seen it next to a youtube video.

Companies all want to rely on "Apple" or "Harley Davidson" marketing, in that people buy their product simply because of their name. These types of companies aren't concerned about building a quality product, rather something just good enough to keep too many people from complaining about it.

I don't know about you, but I haven't ever been on the fence about a product until I thought "hmm, well I did them on that funny/stupid youtube video" or even "I did see that cool commercial for it last night" - they never tell you the slightest thing about the product other than it's name, and that you'd be the coolest mofo ever if you buy their product.

Maybe I'm boring because I look at the product itself when buying stuff, whether I seen their commercial or not?

Wait a minute...
By Hyperion1400 on 8/20/2010 6:37:41 PM , Rating: 1
Didn't Yahoo just post an article similar to this one a few hours ago?

My point being that this kind of thing is more up Yahoo's alley where as news about space elevators and orbital kenetic energy weapons tends to be more DT's bag.

RE: Wait a minute...
By IcePickFreak on 8/21/2010 12:25:59 AM , Rating: 2
Yep, seen this on there as well.

At any rate, it looks like we found our shining light in the darkness of the current economy and job market. We can all just post pointless, if not questionably funny, videos on youtube and if everyone watches everyone elses videos we'll be back on top in no time! Further more, if everyone stays "in character" all the time, there will be non-stop cameos and real life will be like a reality show!

Lol@working for a working for a living, that's for suckers.

And . . .
By kake on 8/20/2010 6:39:32 PM , Rating: 1
Then there's David Rock.

RE: And . . .
By KorruptioN on 8/20/2010 6:54:18 PM , Rating: 2
Davidsfarm rules!

By imaheadcase on 8/21/2010 8:37:42 AM , Rating: 2
Most the videos i see are from other sites embedded so never had need/desire to go to the actual youtube page.

By fbrdphreak on 8/20/2010 11:05:12 PM , Rating: 1
FWIW, I like DT's eclectic mix of topics here. They almost always appeal to my interests, all centered around tech in one form or another, and frankly I don't read Yahoo or MSNBC so I would have missed this.

And here's an eye opener for you: at least 90% of what you read is "rehashed crap." There are VERY few original news items on the internet, and they come from traditional media sources. DT has had some exclusives, sure, but most of their content is from other places. By your logic, Engadget and Gizmodo fall into the same bucket. <5% of their content is original, the rest is repurposed from elsewhere or they just insert a snarky line and link you to the source. At least DT puts their own narrative to it.

BTW, the door is right here if you want to leave:

"I f***ing cannot play Halo 2 multiplayer. I cannot do it." -- Bungie Technical Lead Chris Butcher
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