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You really understand online money making? Answer this...

by lakshaybehl
24 replies
Alright, so these young girls are doing make up tips on Youtube and they have channels that are a You-tuber's dream. More often than not I find one such video on the homepage of Youtube in the "How to and style" category. Check this out

http://www.youtube.com/user/juicystar07

So how do you think they make money? Or do they really even make that much money? The girl who owns this particular channel doesn't even have her own website. All she does is get people following her on Twitter, Youtube, so on and so forth. Or maybe she has and I don't know.

But she's still going places. Interviews other rising "You-stars". Gets interviewed. Meets up with popular people. And what surprises me is that she runs her own giveaways. Gives away prizes worth real world dollars.

I'd guess some part of her revenue is coming from Adsense revenue sharing by different social media websites that they appear on. Another thing might be that they are just too passionate about discussing eyeliners and et cetera. Personally I think they will make much more money by running their own membership sites (as low ticket as $5/month) and occasionally releasing free videos on Youtube and the like to get more members to subscribe to their site.

And by the way, if you are not yet thinking about the possible revenue streams you could generate, then you really need to hit yourself hard on the head. I won't go into details, but lets just say that if you get one such rising You-star and start a membership site, you can make them rich, and you can become rich yourself.

Anyhow my question to you is... How do think they are making money right now?

-Lakshay
#answer #making #money #online #understand
  • Profile picture of the author justin.helloall
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    • Profile picture of the author dannyadams
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      • Profile picture of the author lakshaybehl
        Originally Posted by dannyadams View Post

        I honestly think that video quality means very little. Of course to us IMers we think that we need to put out TV quality stuff but I think to the average user (people not thinking about business...thinking about Make Up), they care much more about AUTHENTICITY.

        Check out WineLibraryTV. Vee's backdrop is a white wall with Jets crap on it and he spits in a Jets helmet.

        Authenticity and being REAL is so huge on the internet especially.
        Authenticity is a big deal everywhere, good point.

        But video quality does help. I wouldn't watch the same video in someone's unlit backyard on a new moon night, and I am not alone.

        its like the more you do, the more you start stacking the odds in your favor.

        Anyhow lets return to original question... How is she monetizing it?

        -Lakshay
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        • Profile picture of the author Hanz
          Originally Posted by lakshaybehl View Post

          Authenticity is a big deal everywhere, good point.

          But video quality does help. I wouldn't watch the same video in someone's unlit backyard on a new moon night, and I am not alone.

          its like the more you do, the more you start stacking the odds in your favor.

          Anyhow lets return to original question... How is she monetizing it?

          -Lakshay
          She has her website listed in her channel. And in her website, she has an online store where you can purchase tons of makeup products and kits.
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          • Profile picture of the author lakshaybehl
            Originally Posted by Hanz View Post

            She has her website listed in her channel. And in her website, she has an online store where you can purchase tons of makeup products and kits.
            Yes, that is one place where she makes money. However I do not believe its her website. You notice that she's giving away a discount coupon which is a tracking code for the website owner to see which orders she's landed them. And then she simply gets a cut.

            Nice revenue flowing, but could be more. But great catch.

            -Lakshay
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            • Profile picture of the author Hanz
              Originally Posted by lakshaybehl View Post

              Yes, that is one place where she makes money. However I do not believe its her website. You notice that she's giving away a discount coupon which is a tracking code for the website owner to see which orders she's landed them. And then she simply gets a cut.

              Nice revenue flowing, but could be more. But great catch.

              -Lakshay
              Agreed. I didn't notice at first either. They should push their website up the page to make it more noticeable. I think they should create their own line. Can't be hard. Like IMers say, make your own product!
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        • Profile picture of the author dannyadams
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          • Profile picture of the author lakshaybehl
            Originally Posted by dannyadams View Post

            lol...yes this is true. I just think the professionally produced stuff with all kinds of crazy stuff is for TV. Blogs and youtube or for people with a flip cam and a voice.

            To get to the "HOW"....They have the one thing that most people don't....A following.

            I don't really know to many IMers with a lack of monetization methods....but I know plenty with a lack of personal brand and a following.

            Traffic isn't a switch. You can't just go from zero to tens of thousands in a day.

            Monetization IS a switch. They have the community. All they have to do is turn on the money switch and they're in business.

            i'm guessing that most here would suggest a membership site or digital product. I wouldn't go that route at all. Products come and go. The NEED for qualified prospects is always there and will always be needed no matter what.

            Because of that I'd go after every advertiser that's interested in the young adult demo. I'd spend a half hour making my video then I'd spend the next 12 hours calling every advertiser in the market. I'd go for a monthly fee to be a "sponsor" of a video. Whatever the price is it is...not the point. You can charge $500 to have a company shown on the bottom of the video twice a month. That video is being seen by tens of thousands of people daily. That's more than MSNBC for a tenth of the cost.

            If you do a video a day (lets say 24 for the month) youd have $500 for every 2 videos. That would be $6000 per month just in video ads.

            Next I'd sell space on the blogs. SELL space...not affiliate commissions. Sell the space.

            During this time I'd be building my name and identity with the big name companies in the industry. From that comes speaking engagements, book deals, ect.
            You have made some very valid points here. Monetization CAN be a switch but the flow of money really depends upon a lot of other factors too.

            Now lets take the example you stated. I'd say she $250 for a video that gets on an average 100,000 views is approximately $2.5 CPM. Valid and viable.

            So $6000 per month is not an income that can not be accomplished by her.

            However, when she has 100,000 RABID followers, I'd guess she could easily get 500 subscribers to pay her $17/month. See the point? That would be an ADDITIONAL $8500/month.

            But what if you were to do marketing for her your membership site where she created content? How many members could you get? 3000 wouldn't be too hard would it? Even at $17/month that would mean a combined monthly revenue of $50,000 per month. Now we are talking. ;-)

            Those videos might be making her enough money, but its nowhere close to the amount of money she could be making if she were to partner up with a marketer worth their salt.

            And besides over time you realize that traffic, especially targeted traffic is the easy thing. The MOST important factor that makes all the difference is the quality of content. And content includes the marketing content too.

            Products might come and go, but they are always REPLACED by newer products and trends.

            Do not underestimate the value of information marketing.

            -Lakshay
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            • Profile picture of the author dannyadams
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              • Profile picture of the author lakshaybehl
                Originally Posted by dannyadams View Post

                I never underestimated the value of info pushing. I understand that old products get replaced by newer products...just look on Clickbank to prove that point. The 2002 affiliate marketing book is the same as ones launched yesterday with a different cover and name. I get that.

                People can have enough make up. People can over buy product.

                Companies on the other hand can NEVER have enough qualified prospects.

                The culture is shifting more and more towards the internet for advertising. No one reads newspapers and TV is dropping off dramatically. Add in the DVR people and TV advertising is in the sewer with newspapers.

                Once the 65 year old CEO's retire and the 40 year old middle manager takes the CEO chair, I'd say 75% or more of the ad budget will be online.

                I'd go advertising all the way with this one...no doubt about it. There are way to many companies out there with way too much money...I wouldn't be able to resist.

                Those girls go out and grab MAC as a sponsor and they have a million dollar personal brand. Can't get that from a membership site.

                You also forgot to add in that membership sites include customer service, more content, better content, and much more work that they are not familiar with.

                If I were going to talk about membership sites with these ladies, I'd tell them to build up the advertising clients first then teach Biz Development through consulting. I think they'd be able to sell the "how I built my 10 million dollar brand through youtube and twitter in 3 years" course much better than the "make up product of the month" club.

                Just my opinion and you bring valid points as well. I think it could be too early to tell without doing any kind of market research.
                Danny, at no point did I disregard advertising as a money making model. I'd be happy keeping those ad revenue dollars. And yes, this is a great thing to do- looking on for the future.

                However, I never said they should get those members into the membership sites themselves. I just said they could partner up with someone like you and let you take care of all those membership issues while they took care of the videos.

                Now, when they do those videos with a Maybelline eyeliner L1-460, and then placed a banner taking them to a site selling Maybelline L1-460, would you epxect a much higher response rate? I would.

                The incomes that advertising can bring them would be hundreds of thousands of dollars. Add a few more hundred grands when you start the membership sites. Either one might be more than the other one. But each would be a substantial part of the total income, if done with the help of a professional marketer as a partner.

                -Lakshay
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                • Profile picture of the author Hanz
                  Originally Posted by lakshaybehl View Post

                  Danny, at no point did I disregard advertising as a money making model. I'd be happy keeping those ad revenue dollars. And yes, this is a great thing to do- looking on for the future.

                  However, I never said they should get those members into the membership sites themselves. I just said they could partner up with someone like you and let you take care of all those membership issues while they took care of the videos.

                  Now, when they do those videos with a Maybelline eyeliner L1-460, and then placed a banner taking them to a site selling Maybelline L1-460, would you epxect a much higher response rate? I would.

                  The incomes that advertising can bring them would be hundreds of thousands of dollars. Add a few more hundred grands when you start the membership sites. Either one might be more than the other one. But each would be a substantial part of the total income, if done with the help of a professional marketer as a partner.

                  -Lakshay
                  Absolutely true. But there's one thing I'm unsure about. In some of their videos, they are advertising different brands of make-up and from what I remember, they would say "You can check out so and so on my website!" And people can purchase from the website. I don't have any idea what kind of money they're making from the site but if the number of loyal subscribers is any indication, I bet they're making a killing daily.
                  I guess they're thousand-aires who probably should be millionaires. But again, I have no idea about anything regarding how they're leveraging their traffic into sales.
                  The website looks respectable though. I went in it and was about to buy a man-purse. It looked kinda neat I must say. I'd get beaten up though if I walked around with it.
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                  • Profile picture of the author lakshaybehl
                    Originally Posted by Hanz View Post

                    Absolutely true. But there's one thing I'm unsure about. In some of their videos, they are advertising different brands of make-up and from what I remember, they would say "You can check out so and so on my website!" And people can purchase from the website. I don't have any idea what kind of money they're making from the site but if the number of loyal subscribers is any indication, I bet they're making a killing daily.
                    I guess they're thousand-aires who probably should be millionaires. But again, I have no idea about anything regarding how they're leveraging their traffic into sales.
                    The website looks respectable though. I went in it and was about to buy a man-purse. It looked kinda neat I must say. I'd get beaten up though if I walked around with it.
                    LOL, if you are out trying to attract women at least that purse would be a pea cocking device. It would really depend upon a number of factors. however under any circumstances you couldn't assume conversions of the order of 10% or something. If the combined experience of all my friends and myself included is anything to go by, then its more in the range of 0.5% or less. However we never really had that kind of fan following, so who knows.

                    One thing I am sure of though- is that she ain't a marketer and a marketer could make a difference to the order of magnitude of their income.

                    -Lakshay
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                • Profile picture of the author KevinTorrence
                  I don't know any specifics on those girls ... but yeah, the YouTubers with big followings are making a killing with AdSense paid on cost per 1000 impressions.

                  One of the examples I know of is a Canadian guy on there that goes by "davidsfarm". He's a "junker" dude that buy old machinery, cars, heavy equipment etc. He started taping things like engine repairs, mechanic work, etc. Then he started taking junk cars out in his fields, wrecking them, jumping them, and messing around in general.

                  Now his videos don't get massive views like some of the bigger YouTubers ... but I bet his videos average between 20,000 to 50,000 views each adding up to about 1.5 million views a month or so? ... and he said he was making around $8,000 - $9,000 per month with the YouTube partner adsense sharing program. And his videos are total, redneck, ghetto quality.

                  "WhatTheBuck" show ... with a huge following is doing over $100,000 a year.

                  "Fred" ... yeah, that kid is killing it too.... as well as all the other big YouTubers. Hot Topic even made a deal with him for a line of Tshirts.

                  "Smosh" ... yep, they're raking it in to ... plus they got a blog selling ad space along with T-Shirt sales... and all their latest videos tell viewers they can "see what happens next" or "behind the scenes footage" on their blog. You have to register to be a member there ... and they mail out promos to that list when new shirts, etc come out.

                  Only thing I wonder is how long it'll last. I can't imagine all these guys doing the same videos 10 years from now. Will they eventually get taken out of the partner program or ? Kinda curious to see what happens.
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            • Profile picture of the author J. Scott Systems
              So, my question is, has anyone on this thread contacted her/them and offered to run her marketing department for a cut of the profit?

              I'm read some great stragites so far. Hey with the kind of traffic she's getting, even a "email/zip submit" from one of the networks for a free sample of lip gloss or eye shadow would probably cover a house payment!
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  • Profile picture of the author dannyadams
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    • Profile picture of the author lakshaybehl
      Originally Posted by precious007 View Post

      Have you watched the videos ?

      They're advertising Folica.com and their networks of blogs :-)

      There's tons of firms on youtube that chose to market their products via video marketing and seemingly it works excellent for some of them.

      Al.
      No, she's not.

      I have not just been watching her videos, I have been following her very closely for over a month now. Folica.com appears in just this video because she has a giveaway and the girl she interviews has the website called folica.com, she herself does have a blog which is very inactive...kinda non-existent.

      Originally Posted by justin.helloall View Post

      Sometimes they do it because they want to as a hobby and you can really tell in the quality of videos they make. I am of course refering to chuggaconaroy and his video game lets plays.
      I didn't get chuggarconaroy, sorry. But do you mind explaining this a little bit?

      Originally Posted by dannyadams View Post

      First of all let me just say that [b]those girls are completely killing it![b] There are a few things I would change...for starters I'd make a FB fan page (may have one already but they didn't mention it) and make it a BIG part of my business model.

      I love that they push the twitter thing...they have 97,000 (give or take) followers.

      The one issue that I have is that the blog they have sucks. A few posts and it's brand new.

      I'd work up the blog a bit more and go after every advertiser in the make up market. Actually I'd go after every advertiser that's interested in the young adult demo.

      I think these girls are a few steps away from a multi million dollar business.
      That's what I am asking... How are they killing it right now?

      The keyword's HOW.

      -Lakshay

      EDIT: Her blog is now kinda active although its just not being monetized anyhow, or at least I don't see it.
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    • Profile picture of the author Hanz
      The two sisters have a combined 500,000+ subscribers on their channels! More importantly, they've gotten tens of millions of channel views not to mention average around 100k+ views per video.
      Just imagine if they created their own product line or released a book on make-up techniques and advertised it on their videos?
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  • Profile picture of the author E. Brian Rose
    AdSense shared revenue on their videos, Twitter paid ads, Tweets about their own product/websites, email marketing... that's how.
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    Founder of JVZoo. All around good guy :)

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    • Profile picture of the author Hanz
      I don't think the OP lakshay noticed but the girls do have a website which is listed on the channel. It's hard to miss. They have an online store. That's where part of their revenue is coming from I'd say. They've got hundreds of thousands of people basically eating off their hand. Check out the comments. The subscribers are asking for more videos.
      Although there's one thing I'm unsure about. How many subscribers are as interested in the make-up techniques as opposed to just staring at the girls? LOL!
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      • Profile picture of the author dannyadams
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        • Profile picture of the author lakshaybehl
          Originally Posted by dannyadams View Post

          That don't matter. How many people are interested in Rush Limbaughs theories as opposed to just listening because they hate him? How many of the 10 or so people who watch Keith Olbermann on a nightly basis actually agree with hiim as opposed to the people who want to puke when he speaks?

          It's all about eyeballs. as long as they fit the demo, nothing else matters.
          I agree and I'd like to add that I'd probably not pay $17/month to watch a hottie doing her makeup, maybe I am different. You might get ad revenues one month, but if the ROI doesn't exist the advertisers wouldn't bother. There are much greener pastures in life for advertisers with budget. They push the button 11:00Am, the traffic starts flowing the same Noon.
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        • Profile picture of the author Hanz
          Originally Posted by dannyadams View Post

          That don't matter. How many people are interested in Rush Limbaughs theories as opposed to just listening because they hate him? How many of the 10 or so people who watch Keith Olbermann on a nightly basis actually agree with hiim as opposed to the people who want to puke when he speaks?

          It's all about eyeballs. as long as they fit the demo, nothing else matters.
          I know that. Was making a joke. I wonder what a guy could do to get that kind of following? Make-up obviously is out the window. How about car repair? Nah...maybe not. LOL
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          • Profile picture of the author dannyadams
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            • Profile picture of the author Hanz
              Originally Posted by dannyadams View Post

              I followed them and I hate make up..lol :p
              As a matter of fact, there is a fellow who also has a tremendous youtube following named Dan Brown. Over 200K subscribers. But he's not pushing anything in any of his videos. Basically he's just talking about life in general and people are interested in what he has to say. Anything from government to zits.
              I just wonder how he could monetize that kind of traffic?
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              • Profile picture of the author lakshaybehl
                Originally Posted by Hanz View Post

                As a matter of fact, there is a fellow who also has a tremendous youtube following named Dan Brown. Over 200K subscribers. But he's not pushing anything in any of his videos. Basically he's just talking about life in general and people are interested in what he has to say. Anything from government to zits.
                I just wonder how he could monetize that kind of traffic?
                I agree with that. Branding that these girls have is just too powerful. Although old hatters might say they do not have a branding strategy in place, but I tend to agree with you.

                -Lakshay
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            • Profile picture of the author Hanz
              Originally Posted by dannyadams View Post

              I followed them and I hate make up..lol :p
              I often just skip the make up videos and watch the ones where she talks about a personal incident. Like the time she was involved in a fender bender outside a mall. It's pretty good that she changes things up and her subscribers get to know more about her on a personal level, away from the make-up gig. Another good way to build a loyal following. Let people know more about you behind the scenes.
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          • Profile picture of the author J. Scott Systems
            Originally Posted by Hanz View Post

            I know that. Was making a joke. I wonder what a guy could do to get that kind of following? Make-up obviously is out the window. How about car repair? Nah...maybe not. LOL
            Well, Tim Allen's Tool Time came to mind!
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    • Profile picture of the author lakshaybehl
      Originally Posted by iknowalittlebit View Post

      AdSense shared revenue on their videos, Twitter paid ads, Tweets about their own product/websites, email marketing... that's how.
      I could buy ads from Google image ads at less than $2CPM. That would mean at 3,000,000 views on her videos monthly, she'd get something like $6,000 per month. Not zero, but not gigantic in any proportions.

      I do not see her building an email list, and you realize Twitter is any more effective than the number of followers TWEETING while you make your tweet. I think out of those 97000 followers only 3000 - 4000 actually see each of her tweet. And assuming the response rate is 10%, WHICH IS HUGELY OVER-ASSUMPTIOUS, she gets 300 visitors to her site. Not bad, but the conversions are still not going to be 100% on the website.

      I am not saying it all doesn't add up, I agree it does.

      -Lakshay
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  • Profile picture of the author marketingmyinternet
    Video marketing and YouTube advertising. Simple concept, hard to master.
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  • Profile picture of the author Rus Sells
    Adsense Rev Share

    And Twitter Mylikes, which potentially can make them much more then Adsense.

    That my 2 cents.

    Ok when I posted this I had not checked her twitter account.

    She only has 144,000 followers and um yeah if she's killing anything she's doing it with mylikes! Go girl go!
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