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YouTube Partners: YouTube Entrepreneurship

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With a crucial growth of the population there is a massive increase of job demands. Also, the typical sign that represents young adults in the 21st Century is media and technology, as they were directly influenced by its impacts since childhood. Early and mid twenty year olds seems to prefer to work in an environment that is technologically heavily supported and rich of gadgets that should make their work more efficient and effective. Therefore, any job in this field has become extremely attractive. One of the very promising areas is the YouTube entrepreneurship, as it offers the opportunity to monetize the uploaded videos. Relatively non-demanding work requirements lead many people to believe that they can easily start an effective YouTube business. As a result, there are many young people who recklessly invest a tremendous amount of money on editing software, cameras and its equipment, but they do not realize that the key to success is to invest time and effort in the planning the business and polishing the content of the video.

To start a YouTube business seems to be significantly less demanding than to start an actual company. Nevertheless, a person has to definitely decide to put effort into the development of this career as he or she would put into any other careers. Many beginners make a crucial mistake right at the beginning. Before they even think about the actual content of the videos, they invest a tremendous amount of money into equipment. That means expensive cameras, microphones and editing software. First of all, a person has to be at least interested in video making. That should enhance their motivation and make the startup easier. The most eminent issue is to create the idea and answer questions like “What kind of video will I produce? Who is my targeted audience?” According to answers to these questions a person has to adapt the equipment. For instance it is not necessary to buy a professional camera and editing software just for video blogging. Also a starting YouTube creator should be prepared for any kind of feedback from the audience, as YouTube is known for direct interaction with viewers.

Most asked question and most relevant topic related to YouTube entrepreneurship is about monetizing. According to Google, the corporate owner of YouTube, a video can make revenues from the advertisement displayed before or during the video. In order to be capable to earn money from advertisement, a creator has to make sure that all of his or her videos are “advertiser-friendly”. That means all of the content shown in the video (music, footage, products, etc.) have to be own by the creator. Any copyrighted content by a third party will be detected and resulted in monetizing incapability (Google). However, according to Claire Miller, an editor for The New York Times and a modern media specialist, YouTube have not always been friendly to partners (content creators) in the sense of revenue sharing in order to avoid copyrights violations. The change started in 2009 when YouTube changed the policies to more “audience friendly” (Miller). The actual revenue depends on how many people see/click on the advertisement. The exact number of amount per ad is not known information. However, there are many examples of successful YouTube creators who use this technique as the main source of income. Also, Miller suggests, “hundreds of these partners (YouTube businesses) make more than $100,000 a year” (Miller). Therefore it could be assumed that it is a significant amount.

It seems like it is fairly straightforward process and there is no obstacle on the road to success. However, there are important factors that may make monetizing the content ineffective or impossible. The most crucial factor is the viewership. Even though YouTube statistics claims that there are approximately one billion different people that watch videos on YouTube every month, it does not necessarily mean that those views are distributed evenly among content creators (YouTube). The videos have to attract as many viewers as possible in order to increase the possible number of people who click or see the advertisement. Viewership can be increased mostly by the interesting content of the video or by effective marketing (ex. sharing video via social networks). Another obstacles that will cause zero revenues are legal issues. For instance, videos that violate the monetizing criteria or contravene the copyright laws are subject to an elimination of the monetizing right. Moreover, an account may be terminated due to copyrights violation, making it impossible to upload any content (YouTube). Last major issue that could be a reason for unsuccessful business are technology issues. The video may be produced in a way that is difficult to watch or the quality does not meet the standard demanded by the audience.

Another critical topic that the creator has to consider while planning a YouTube business is the approach. To start a YouTube channel in order to make income requires deeper preparation of the content. Simply to think about what types of videos will he or she make? There are four predominant groups that a creator can follow. First significant group produce instructional videos. People who belong to this group are: Craftsmen, Make up gurus, Chefs or various advisers. Their aim is to teach or inform their audience. The most significant “magnet” that attracts viewers is the fact, that they can obtain all these information for free. Next dominant group are Musicians. They use YouTube as a media to share their original content. Many worldwide famous artists started they career on YouTube and many major labels find new talented people here as well. That shows the significance of this media in this branch. Another group belongs to film/short film creators. These people use this way as an outlet to their talent or interest. With a spread of amateurs and semi-professional high definition cameras, these creators are able to produce videos that are comparable with high production movies. Last dominant group consists of bloggers. This community produces videos of their interest. It might be movie review blog, food blog, lifestyle blog etc. Their goal is to find viewers that share the same interest and build a community around it. These people are called video bloggers or “vlogers”

In addition, there is a possibility to enter the YouTube business as a company. Therefore if the user already has developed a company, he or she can earn extra money from YouTube to support their business. However, this route is predominantly useful only for major media companies, which uses YouTube the way to enhance their sell. Even though, according to Liz Gannes, a business technology reporter for Gigaom and re/code, YouTube was not supporting cooperation with major labels at first but after Google purchased YouTube it started to form partnerships with companies like Warner Music Group, Universal Music Group or Sony BMG enabling them to upload music videos. Moreover, networks such as NBC or CBS also began to post commercial clips and in result increase the viewership of YouTube in general (Gannes 148). Now in 2014, it is a common practice that Television shows and recent music videos are being uploaded on YouTube. In comparison with individual creators, companies have the advantages of the audience because they already have a regular viewership on other media.

Viral videos and viral advertising can be an effective way for single creators to equal the viewership in the competition with other single creators and major companies. As Petya Ecklers, professor at the School of Journalism and Mass Communication at University of Iowa and Paul Bolls, an Associate Professor of Strategic Communication and co-director of the PRIME Lab, a media psychophysiology lab located in the Missouri School of Journalism describes, a viral video success is based on “peer-to-peer communication” where a consumer of the video actively share the content to another viewers, therefore increasing views and the popularity of the video (Ecklers and Bolls 1). In other words, viral video is a video that is massively shared among the Internet, gaining popularity and may reach millions of views. For the YouTube entrepreneurship it could be claimed that it is an ideal type of video because it is voluntarily shared by the audience and can reach a significant amount of view therefore more people can see the advertisements, which results in the revenue. Moreover, Kevin Wallsten from the Department of Political Science, California State University, Long Beach sais that viral video can effectively influence a political election or in his words “…when online political videos “go viral,” they have the potential to change the campaign agenda, persuade undecided voters and mobilize supporters to take political action” (Wallsten 2).

Many people start a YouTube business as they see other individuals success in this platform. One of the most known cases is the success of Justin Bieber. This artist was found on the Internet, as he uploaded his cover music videos, by a music producer and now he is a major pop star with millions of followers. Also there are many YouTube celebrities. The most influential is Ryan Higa, American-Japanese from Hawaii, who owns a channel called “Nigahiga”, most subscribed channel in 2010 and now one of the most subscribed with over twelve million subscribes. He started to upload his homemade videos on YouTube to share with friends. To his surprise, few days after his videos got viral and the feedback and interaction with his audience makes him to keep uploading new videos (Lavaveshkul 372). He is not the only one successful story though. There are many similar creators such as KevJumba, Jenna Marbles, Smosh or FreddieW, who have millions of subscribers and started mostly for fun.

In summary, with a spread of the Internet and related technologies, there is a significant number of new jobs opening to please the enquiries from the crucially increasing population. One of the potential jobs that may bring major income is the YouTube entrepreneurship. The revenues are obtained form the commercials. In order to setup an effective business, there may be a necessity to pay attention to factors such as the content, business planning or technology. Therefore an individual will not prematurely waste money on items that should be considered after the first thought. However, there is no exact way to start a YouTube business. Many successful “YouTubers” started a channel for fun or to share videos with friends and by luck became major YouTube individuals known all over the world. Therefore, it seems like a huge risk to leave a “day time” job and do YouTube fulltime. The suggestion could be to start a YouTube business in free time and slowly quit the regular job after there is a significant income from the videos. Lastly, the success depends mostly on preparation and luck, as this is still a newly developed job. Many people tend to be skeptical but societies that are familiar with this technique consider this as interesting way to earn money.

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