YouTube Networks: The Dirty Truth
Monday, March 21, 2016
YouTube networks are a relatively new concept within the digital media world - and when I say "relatively new", I mean within the past 10 years. A YouTube network is:
"...an organization that works with video platforms such as YouTube, to offer assistance in areas such as "product, programming, funding, cross-promotion, partner management, digital rights management, monetization/sales, and/or audience development" in exchange for a percentage of the ad revenue from the channel."
As it stands today, there are well over 100 YouTube networks out there for people to sign up to. The reason that there are so many, is because anyone can start one up. All it takes is a simple email to potential YouTubers, and they've got their business running. However, there definitely are a number of king-pins in this industry who dominate the market, and have a lot of YouTubers signed to their networks. For example, the following is a list of the top networks and their current member count (as of 21st March, 2016).
This list could go on for another 100+ entries, but you get the point. These guys are BIG! Now, with member counts so large, how on earth do they manage all of these people's careers? Answer - they don't, but more on that a little later.
First, let's cut to the good part: money. When a YouTuber first monetises their videos, they are enabling a thing called 'adsense'. Adsense is owned by Google (so is YouTube, by the way), and it's their way of paying people as per the views and clicks they receive on a video. The way this works is Google will place an ad next to your video once you have monetised it. These ads are paid to be put there by the advertiser (so for example, if it's a Coca Cola ad, then Coca Cola have paid Google to put it there). These ads can appear in all sorts of forms, as shown below.
However, once you have enabled monetisation on your videos, YouTube will give you a share of the money they were paid to have that ad there. This share is a split of 55% to you, and 45% to Google. This is a short way of explaining how YouTubers get paid.
Now, back to YouTube networks. As stated in my definition of a YouTube network, the network will sign on a YouTube "in exchange for a percentage of the ad revenue from the channel." This is referring to their Google Adsense. Each network will write up a contract for their YouTuber, stating how much of this revenue they will take. This figure varies between network to network, and even YouTuber to YouTuber. Most commonly, it is a 60/40% split, with the YouTuber keeping 60%. What most people don't realise, though, is that that is a split of the figure that Google has already split. I know that was hard to read, so let me break this down:
Makes sense now? So as YouTuber, you are giving a large portion away to networks if you sign to them. So, are they worth it? Well, it depends who you are. If you're a person with 1 000 000+ subscribers, and a substantial amount of views per video, then yeah sure. You will probably get a lot of fringe benefits, such as invites to large events, accommodation or travel assistance, large campaigns, branding, etc. However, those people account for a very small percent (3% to be exact) of the amount of content creators on YouTube. The most of us don't have those numbers, and so networks will often put all of their focus on the big guys, because they make big money (big money for a YouTuber, means big money for a network). That leaves the rest of us with what, then? Well, nothing, to be honest. Essentially, if you're a small YouTuber signed to a network, you're just signing money away for nothing. Networks, unless it's explicitly stated in your contact, do not have to do anything to promote you. They may promise that you will make more money because they'll offer higher RPMs (pay per 1000 clicks) or higher ranking in videos, but more often than not they will fall flat on these offers.
You will pay money for nothing.
So, those are my two cents. I was signed to a network for two years. Around four months ago, I left mine, and I am now earning 50% more through Google Adsense alone. Why? Because I'm not paying someone to do nothing for me.
Be wise. Read the contracts. If it doesn't say it will do something, THEY WON'T DO IT!
Check out my video for more details...
5 comments
This was super informative and helpful! I'd always been suss about youtube networks anyway but you've definitely convinced me :)
ReplyDeleteThank you very much Sarita! Glad I was able to help :)
DeleteHow to unlink my Youtube Chanel from them?
DeleteI've just posted a video on my channel, and there will be a blog post on a later date :)
DeleteHi Katrina,
ReplyDeleteI was just about... Just about to go for one of them. You know... Nowadays it's way hard to grow up a channel in a short amount of time, so everyone is eager to get results fast.
Sometimes it's frustrating to create creative and nice content for YouTube and get no higher than 100 views. But I've bet in patience until now.
Thanks for the post. I will stick with my channel alone! :)