A big change is happening in the world of online content. YouTube creators are slowly moving away from relying on traditional ad revenue and brand deals because they know that income can be unpredictable because of platform algorithms and advertising rules.
Instead, they are becoming vertically integrated media companies by starting new businesses that include product lines, physical stores, and consumer brands that can handle the ups and downs of digital fame.
For many people, these side businesses aren’t just extras; they’re growing faster and more sustainably than their YouTube channels ever could.
This move toward diversification isn’t just a trend; it’s a smart way to deal with the problems that come with relying on just one platform. A YouTuber could make between $500 and $1,500 a month from ads if they get 100,000 views a month.
It might be challenging to put these funds back into the business to help it grow. Furthermore, ad revenue is difficult to guess because traffic can drop quickly or ads can stop making money, which is always a risk.
Artists have had to find new ways to make money because they don’t have enough cash. Fans can pay a monthly fee to become a member of the channel and get special benefits.
They can also offer super features like Super Chat and Super Thanks, which let viewers give money directly to creators during live streams. These ways have worked really well for some creators. In one year, memberships alone brought in more than $217,000 for one channel.
But the most popular creators have used a lot more than just YouTube’s built-in tools. The model of this new type of business owner is Jimmy Donaldson, also known as MrBeast. With 442 million subscribers, his empire is bigger than just video. What began as a store selling goods has grown into a giant range of services.
He has a hugely successful snack brand called Feastables. In its first 72 hours, the “MrBeast Bar” made over $10 million in sales. Notably, as of 2024, Feastables is making more money than his YouTube videos and even his “Beast Games” series on Prime Video.
The snack brand made about $250 million, while his media business lost about $80 million. He also runs the toy line MrBeast Lab, the restaurant chain MrBeast Burger, and an analytics platform. In the future, he might expand into mobile networks and financial services.
YouTubers are establishing brands that endure through viral fame
Other creators have done the same thing, using their fame to build long-lasting brands for consumers. Emma Chamberlain has had a lot of success in the beverage business with Chamberlain Coffee, which has well over 12 million subscribers.
The brand came out in 2019 and has different coffee, tea, and matcha products. After putting out ready-to-drink lattes in cans, the business made about $20 million in 2023.
It’s expected to grow by more than 50% by 2025, when it will also have opened its first store. Other artists, such as Jacksepticeye and Philip DeFranco, have used this model to make their own coffee brands.
Logan Paul has had a huge effect on people outside of YouTube as well. His energy drink brand, Prime, which he started with YouTuber KSI, went viral and made more than $1.2 billion in sales in 2023, which is a lot more than most creators make from ads and views combined.
In the same way, Ryan Kaji of Ryan’s World went from reviewing toys on YouTube to having a huge line of toys and clothes that made over $250 million in 2020, as well as a TV show and an educational app.
Other niches also mirror this approach. In the beauty industry, Michelle Phan co-founded Ipsy and has her own makeup line called EM Cosmetics. Huda Kattan, on the other hand, built the well-known brand Huda Beauty.
Bakers and food makers have also joined the fray. Rosanna Pansino sells baking supplies and cookbooks, and Rhett & Link started their own cereal brand called MishMash.
This widespread shift from making content to making products is a big change in how online influencers build long-term careers. It means that their success is no longer dependent on how many views and ads they get on a single platform.
