The Typical Revenue Share of a YouTube MCN Contract

Typical Revenue Share of a YouTube Contract

Typical Revenue Share of a YouTube Contract

Are you a YouTuber?
Are you making money off YouTube?

Making money from YouTube is a topic that has received an incredible amount of hype over the years.

When it comes to generating revenue from YouTube, we mean making enough money to earn you a living and probably fulfill your dream of working as a video producer, full-time.

YouTube is damn rich and attracts Billions of dollars in advertising revenue each year and so what piece of the pie do creators get?

Changes in YouTube requirements has compelled most content creators to enter into partnerships with Multi-Channel Networks (MCN) in order to quickly monetize their videos as well as avoid content ID problems. After all, it’s the creators’ content that attracts advertisers to the site and so increase revenue.

Multi-Channel Networks provide content creators with many services. From linking them with brands and negotiating deals for them, offering production assistance to providing a support system for creating video content, marketing and distributing it, they definitely play a major role in generating revenue for content creators.

In exchange, MCNs ask for compensation which may vary-some will ask to own the copyrights of the content creator, others ask for a negotiated percentage of the total revenue generated from your content, while others may ask for a collaboration with the creator’s artists.

While thousands of YouTubers are making enough money to lure them into making a full time career out of YouTube, there’s an overwhelming majority who see negligible revenue return.

However, it’s worth noting that realizing worthwhile weekly or monthly ad revenue income takes hundreds of thousands of views and millions of them to sustainably turn you into a full-time partner.

 

Problems from YouTube MCN Contracts

Most issues arising between YouTube creators and multi-channel networks relate to contracts.

Besides the many possible benefits of partnering with MCNs such as higher CPM, easy access to editing and production facilities, access to traditional media, and the option of making money from copyrighted music videos, there are various controversies that have involved YouTube Networks.

For instance, Ray William Johnson criticized Maker Studio for putting him under pressure to sign a contract which gives the company a 40% share of all his channel’s AdSense revenue and 50% of his intellectual property rights as regards to his shows.

Ray stated in a statement that Maker used “thuggish tactics” to really pressure him into signing the contract, which was leveraging his AdSense account for YourFavoriteMartian’s intellectual property rights.

In line with the above content creator example, it’s crucial for content owners to involve a Youtube lawyer to help them read through every agreement and fine print that they have to sign.

Since MCNs are for profit businesses, YouTubers and channels should always seek legal advice form competent contract attorneys to help them guard their interests.

With access to the internet, anyone can upload a content video to YouTube and make money off it. But first, one has to become a YouTube Partner.

 

How to Become a Revenue Generating YouTube Partner?

Well, this is as easy as ABC…..Anyone with an account that has a good standing can become a partner with YouTube, allowing it to place adverts on, in, and around your video.

Google will make money from the ads’ views while partners get to earn a percentage through the Google Adsense account. Ultimately, the exact amount of revenue a partner makes varies enormously depending on various factors.

 

Typical Revenue Share Earned by YouTube Partners

YouTube has indicated that the Partner Program has over one million channels (up from 30,000 in 2011).

YouTube estimated that it takes home a 45/55 share of all the ad revenue. In short, YouTube takes a 45% slice of the total advertising revenue. Apparently, there are no official figures available to validate this.

With YouTube MCN contracts, video content creators should be prepared to deal with approval issues in the event that they violate any copyright agreements or publish material that is deemed racist, abusive, or sexually explicit.

Google may immediately take down this kind of content hence affecting their good standing if they continually break the law and their rules.

Of course, the internet video consumption is fast growing in popularity and whoever plans to join a YouTube MCN should consult a legal attorney before entering into any sort of agreement with MCNs. Ensure you fully understand your commitment to the multi-channel network and the value they in return will add to your efforts.

 

Sam Mollaei Esq., YouTube Lawyer

Sam Mollaei Esq., YouTube Lawyer