We don’t think most investors understand the disruptive power platform companies like Alphabet Inc. (GOOG) have over traditional industries. Google is more than a search company. Most investors get excited about Disney (DIS) or Netflix (NFLX), but we believe Youtube has a better business model than the other streaming companies. During the third quarter Youtube generated $5 billion in advertising revenue, growing at a 30% rate. Youtube has more than 30 million music and premium paid subscribers, and Youtube TV has more than 3 million subscribers. Instead of paying upfront for most of its content, Youtube mostly relies on user generated content that is paid for via a revenue sharing scheme.
The Covid-19 pandemic has been a challenging time financially for so many people. In times like these, it can be helpful to see what business strategies are working. In this exclusive interview with YTMoney Creator Kody White, the young YouTuber shares his insights for young entrepreneurs planning to launch their start-ups amidst the pandemic.
Hello Kody, what would you recommend for young entrepreneurs looking to get their start?
Broadly, I’d say that you have to commit to your business and put in some hard work. My school counselors, teachers, and other adults in my life told me that there was no way I could turn YouTube into a real career. But you can’t listen to those negative voices. Trust your instinct and capitalize on your strong points.
How did you start your entrepreneurial journey at such a young age?
My journey as an entrepreneur started like so many others, at a fast-food joint. I was a cashier at Taco Bell when I was sixteen, and I knew even that early that the 9-5 life wasn’t for me. I was into YouTube and started to wonder if there was a way I could make money off of that. Now, I’m 21, and I make $100k a month off of YouTube. People think you can’t make money off your interests, but I think that’s where all entrepreneurs should start.
Kody, why did you choose YouTube over other platforms like Instagram?
YouTube provided more opportunities for me to establish my brand, which is an important thing to do early on. I also found that I could generate more revenue from YouTube ads than from merchandise sales. YouTube advertisements are a great way to automate a part of your business that makes you money.
How do you turn regular YouTube channels into cash cow accounts?
Well, cash cows make money based on the number of views you get. So I recommend learning some intro-to-marketing skills. Because really, you can’t make money off of YouTube unless you can compel your viewers to subscribe and share. If you can convince your viewers that your content needs to be shared with others, you are on the right path.
Has the recent increase in the number of small day traders helped your business?
More people trading on the stock market has been great for my business. While day trading doesn’t affect the economy’s long-term health, I believe that more people entering the market and engaging in high-frequency trading (HFT) or range trading is good for day-to-day business and promotion.
What should new entrepreneurs focus on during the pandemic?
The Covid-19 pandemic has been a tough time for a lot of entrepreneurs. To avoid having to close up shop during this crisis, I recommend you double down on social media marketing. Show your customers that your brand is here to stay, and don’t let them forget about you. It’s also really important to be transparent with your investors during a global crisis. When things start to open up again, they’ll remember that transparency.
Disclosure: No positions.