The real way to build a business on YouTube

Film cameraI recently posted an article on the potential to build a business creating YouTube videos and highlighted some of the ‘YouTube tycoons’ earning $1 million-plus incomes from the advertising revenues they share with Google (the owner of YouTube).

So it was interesting to see a different perspective from venture capitalist Mark Suster, who suggests businesses relying solely on advertising revenue share are leaving a lot of money on the table.

Changing media tastes

Mark was the first institutional investor in Maker Studios (sold to Disney for nearly $1 billion) and holds the largest investment in the Mitu Network (the biggest online video producer of Latino content).

He points out that online content significantly differs from television content and the trend is for short-form, snappy videos that can be consumed quickly on mobile devices.

Build your audience

In terms of distribution and getting your content seen by your audience, YouTube is still the place to go; but a video business built solely on the YouTube platform is never going to be a viable, long-term business.

Instead, you should use YouTube to build a video business that operates across a number of platforms (e.g. Vimeo, Vine, Amazon, Apple, your own website) and simply treat it as one of your primary content marketing platforms for growing an audience.

The key benefit of this approach is the advertising revenue share, which means YouTube will pay you to do content marketing and build your audience – something that won’t happen with other marketing activities such as Facebook ads, pay-per-click search listings, infographics or online PR.

Read Mark’s full article on the misunderstood facts about building a business on YouTube.

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