The New Youtube Business Model — How One Creator Made $3 Million in 3 Days

“Some kid from Ohio who maybe wanted to be an Engineer because he was told, when he was young, to go to college. And here I am, I just made $3 million dollars in 3 days.”

When you hear the word entrepreneur, the list of people who cross your mind certainly does not include a 25-year-old vlogger from Ohio, but here’s the deal: Youtube has become one of the best platforms to build a scalable business on, and Logan Paul is one of the smartest entrepreneurs to take advantage of this.

Over the years, Logan’s videos have been seen over 6 billion times. He was able to expand his business by diversifying the way he generates income from the platform, creating a massive empire through his online presence. It’s hard to estimate exactly how much he’s currently making, but it wouldn’t be too far off to say he’s pushing the $20 million/year mark.

But how?

Love him or hate him, if you have dreams of growing as a creator there are certainly a lot of lessons you can learn from him. Get ready to explore the lucrative business behind Logan Paul.

The New Youtube Business Model

On the Internet, attention is like gold dust. If enough people get on board with your content, you could be on your way to make some serious cash.

The #1 Business Takeaway from Logan’s Million Dollar strategy is simple: Multiple Income Streams.

The obvious route for the common Youtuber is, of course, Google AdSense. It is the money you get paid for views and a fairly simple thing to set up. There is one catch, though: Youtube controls it and ultimately decides who gets monetized and who doesn’t. The rules are constantly changing and Logan is no stranger to this, as he has seen his ad revenue cut from his channel in the past.

Fortunately. there is room for more. Here are 6 of his main sources of income today:

1. Google AdSense across his different channels

2. Maverick Clothing, his brand

3. Video Sponsors

4. Streaming revenue from his podcast and released music (iTunes/Spotify)

5. Youtube Boxing

6. The Maverick Club, his new exclusive content membership

The fact that he has his money coming in from multiple (& solid) sources puts him in a very strong position. If one goes down, he’s still chillin’.

The big question is: how was Logan able to develop all of these streams and sell so well in the first place? What is he doing differently than all the creators that are getting nowhere near his sales numbers?

Besides his phenomenal salesmanship, it was his ability to create a massive tribe of what can be defined as Superfans, a term used by Pat Flynn in his book.

See, we can usually divide Youtube viewers into 3 main segments:

1) Casual Viewers. They are the majority of your subscriber base. The people that watch most of your videos but don’t necessarily go further than that. They’re unlikely to interact in the comments or buy anything you tell them to.

2) Active Viewers. The ones who are actually engaged with the channel. They leave comments, they know the memes and they might even occasionally buy some merchandise.

3) The Superfans. Now, these are your most dedicated fans, the ones who support everything you do. They are itching for your next video release. They will buy your merch, tell everyone about you and defend all your mistakes. Being a fan is a part of their life and identity.

What sets Logan’s brand apart is the way it transitions people along this funnel so smoothly, creating a large base of Superfans that allow him to grow his business in a very sustainable way.

How did he do that? By creating a movement.

The Maverick Movement

Maverick Clothing, Logan’s merch line, is more than just a clothing brand. The reason for its success is that Logan is not just selling clothes, he is selling a whole movement. And it’s one that millions of people resonate with.

People don’t buy YouTuber merch just because of how it looks or feels, there is an inherent sense of belonging behind it, a form of group identity that they are glued to. People buy into a movement more than into a fancy new t-shirt.

In his latest commercial, he talks about not fitting in and not following the crowd. He addresses the audience himself and connects with the viewer by creating a feeling. That feeling is what being a Maverick represents and it works because it is Logan’s story.

These are the same tactics that some of the best companies in the world have used for decades. Take Apple, for example, with their “Think different.” campaign. Logan is using the same kind of strategy with his own products — he is creating a movement of like-minded people.

This is the strategy that put set him off to make $3 million in 3 days over Thanksgiving weekend, but it certainly doesn’t stop there. Logan’s next move comes in the form of an exclusive subscription-based membership that will turn him into one of the top-earning creators on the platform.

The Maverick Club, Logan’s “OnlyFans on steroids” is his next big thing. A $20 monthly membership that gives fans an all-access exclusive look into the content that is not allowed to go on Youtube, with exclusive discounts all around his store, a $10K monthly giveaway, member FaceTimes, and much, much more. It is the perfect product for the “starving” Superfan and he can scale it insanely well.

Logan gets around 6 million views per video. If 2% of those viewers are Superfans who are willing to pay for more, we’re looking at the possibility of around 120.000 people on a $20 membership. That means $2.4 million a month and a total of $28.8 million in a single year. Of course, we can all be guessing on the numbers here, but it’s entirely possible that, in a few years from now, he will be making more money with the Maverick Club than with all of his other income streams combined.

Now, it is a digital product that he controls himself, which means it can be replicated an unlimited amount of times. Everyone who signs up gets access and it doesn’t require additional work for every additional customer, making it the perfect tool for a Youtuber with a strong fanbase. It’s the natural way to make a ton of money while also providing a great product for the fans who are willing to pay for more.

As a smaller creator, there are a lot of lessons you can take from him. It may seem like something out of reach at first, but put it this way: if you can build 1000 Superfans that spend $100 on you a year, that’s already six figures in a single year. It’s never quite as far away as you think it might be. :)

Some of the links in this post are affiliates, which means I’ll earn a small commission IF you choose to make a purchase. This has
no extra cost to you and helps to pay the bills ‘round here! I only recommend shit that I trust :)



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