YouTube has emerged as the leading platform for content creators, offering a myriad of opportunities to make a living. In June, it was reported that the creative ecosystem of YouTube contributed over $55 billion to the U.S. GDP and generated more than 490,000 full-time jobs.
Despite the platform’s potential, many YouTubers are shifting away from relying solely on ad revenue and brand deals. This change is driven by several factors. Ad revenue on YouTube can be unpredictable, with creators facing challenges in securing ads for their videos due to the platform’s evolving policies. This uncertainty can have a negative impact on their earnings, leading many creators to explore alternative income streams.
Acknowledging the volatility of revenue tied to platforms, many YouTubers are transforming into vertically integrated media companies. They are diversifying their businesses beyond YouTube, establishing product lines, physical stores, and consumer brands that are more resilient to algorithm changes and policy shifts.
One prominent example is MrBeast, also known as Jimmy Donaldson, with 442 million subscribers. He is not just a top creator on YouTube but also a savvy entrepreneur. In a recent development, MrBeast is set to open a theme park in Saudi Arabia, featuring rides inspired by his video content. Additionally, he is venturing into telecommunications by planning to launch a mobile virtual network operator (MVNO).
MrBeast’s business portfolio has expanded significantly, including a merchandise store, a snack brand called Feastables, and ventures like MrBeast Burger, Lunchly, MrBeast Lab, and Viewstats. His snack brand, Feastables, has outperformed his YouTube content in terms of profitability, generating over $250 million in revenue and $20 million in profit in 2024.
Another successful YouTuber turned entrepreneur is Emma Chamberlain, with over 12 million subscribers. She entered the beverage industry with her brand, Chamberlain Coffee, offering a range of products from cold brew to tea. Chamberlain Coffee saw substantial growth in 2023, introducing canned lattes and achieving around $20 million in revenue. The brand has since expanded to physical locations and aims for continued growth and profitability.
Logan Paul, with 23.6 million subscribers, is known for his wrestling career and ventures like Prime, an energy drink brand that surpassed $1.2 billion in sales in 2023. However, Prime has faced challenges like declining sales and lawsuits in recent years. Paul’s Maverick Apparel also saw success, earning between $30 million and $40 million in 2020.
Ryan Kaji of Ryan’s World, a 13-year-old YouTuber with nearly 40 million viewers, has leveraged his success into a line of toys and apparel, generating over $250 million in revenue in 2020. Kaji has expanded his brand with a TV show and an educational app for children.
Rosanna Pansino, a popular baker on YouTube with 14.8 million subscribers, has diversified her brand with cookbooks and baking tools, enhancing her Nerdy Nummies brand. Similarly, Huda Kattan founded Huda Beauty in 2013, a renowned beauty brand that generates substantial revenue annually.
In conclusion, many YouTubers are exploring new avenues beyond the platform to diversify their income streams and build robust business portfolios. By venturing into various industries and establishing their brands, these creators are transforming into successful entrepreneurs with sustainable businesses that can withstand changes in the digital landscape.