How much I spend in a month...
7th February 2024 | ⏰ 00:11:29
How much I spend in a month...
TLDR: The YouTuber reveals the monthly expenses of running his business. The expenses include food, office space, fees, accounting fees, computer hardware and camera gear, subscriptions to software, freelancers, coaching, and team members' salaries. The total monthly cost is $84,400, which amounts to over $1 million a year. Despite the high costs, the business has a solid profit margin of around 60-70%. The YouTuber also mentions that further details about his financial journey and specific steps for starting a business can be found in the extended version of the video on Nebula, which is accessible through a CuriosityStream subscription.
A Deep Dive into the Financial Nuances of a YouTube Business: Unveiling the Costs Behind the Scenes
In the realm of content creation, YouTube stands as a formidable platform, empowering individuals with the opportunity to share their passions, expertise, and creativity with a global audience. While the allure of YouTube stardom often captivates aspiring creators, few truly grasp the financial intricacies that underpin a successful YouTube enterprise. In this comprehensive analysis, we embark on a journey to unveil the hidden costs associated with running a YouTube business, shedding light on the intricate interplay between revenue generation and operational expenses.
Delving into the Expense Ledger: Breaking Down the Monthly Financial Commitments
- Food: Nurturing Team Camaraderie and Client Relationships
At the heart of any successful business lies a culture of collaboration and camaraderie, and fostering these connections often involves sharing meals together. Our YouTube venture is no exception, with a monthly food budget of approximately $700 dedicated to treating team members to lunches and dinners during meetings and client interactions. These culinary investments serve as a testament to the value we place on building strong relationships and maintaining a harmonious work environment.
- Office Space: A Conducive Environment for Creativity and Productivity
As our team expanded, the need for a dedicated workspace became paramount. We found solace in WeWork, a premier coworking space that provides a stimulating and professional environment for our creative endeavors. The cost of securing these dedicated desks amounts to roughly $1,400 per month, and we firmly believe that the benefits derived from this investment far outweigh the financial outlay. The ability to meet with clients and team members in person, coupled with the vibrant atmosphere of a shared workspace, has proven invaluable in fueling our productivity and fostering innovation.
- Fees: Navigating the Labyrinth of Payment Processing and Bureaucratic Hurdles
In the digital age, the seamless transfer of funds plays a crucial role in business operations. However, this convenience comes at a cost. Our YouTube business incurs approximately $2,000 each month in fees associated with payment processing platforms such as Stripe and PayPal. These fees, often levied for credit card transactions and currency conversions, represent a necessary evil in the quest to receive payments from a global audience. Compounding this financial burden is the intricate web of tax regulations that govern digital transactions, particularly in the European Union. With varying VAT rates across different countries, our accounting burden intensifies, resulting in monthly accounting fees of approximately $2,200.
- Computer Hardware and Camera Gear: The Arsenal of a Digital Content Creator
The lifeblood of any YouTube channel lies in the quality of its content, and this, in turn, hinges on the capabilities of the hardware and camera gear employed. To ensure consistently captivating visuals and engaging audio, we allocate a substantial portion of our budget to acquiring and maintaining top-of-the-line equipment. This investment, which amounts to roughly $3,000 per month, encompasses not only cameras and lenses but also computers, lighting, and microphones. While these expenses may seem extravagant at first glance, they are essential in maintaining the high production values that have become synonymous with our channel.
- Software Subscriptions: A Symphony of Digital Tools
In the era of digital transformation, software has become an indispensable tool for businesses of all sizes. Our YouTube enterprise is no exception, relying on a vast array of software applications to streamline operations, enhance productivity, and elevate the quality of our content. From email marketing platforms and SEO optimization tools to video editing software and social media management suites, our monthly software subscription expenses clock in at an impressive $3,600. While this figure may raise eyebrows, the sheer diversity of tasks performed by these software solutions justifies the investment, enabling us to operate efficiently and deliver exceptional content to our audience.
- Freelancers: The Extended Family of Expertise
As our channel's popularity grew, so did the scope of our projects and the demands on our time. To supplement the core team's efforts and maintain our relentless pursuit of quality, we engage the services of talented freelancers. These skilled individuals, specializing in areas such as social media management, graphic design, and video editing, contribute their expertise to our endeavors. The combined fees paid to these freelancers amount to approximately $4,500 per month, a testament to the value we place on their contributions to our overall success.
- Coaching: Investing in Personal and Professional Development
In the fiercely competitive world of YouTube, complacency is the antithesis of progress. To stay ahead of the curve and continuously improve the quality of our content, we invest heavily in coaching and training. This commitment to personal and professional development manifests in the form of monthly coaching expenses totaling $6,000. These investments empower us to refine our skills, stay abreast of industry trends, and incorporate innovative techniques into our content creation process.
- The Part-Time YouTuber Academy: Nurturing the Next Generation of Content Creators
Our passion for content creation extends beyond the boundaries of our own channel. We are committed to fostering the growth of aspiring YouTubers, empowering them with the knowledge and skills necessary to thrive in this dynamic space. The Part-Time YouTuber Academy, our flagship online course, represents the culmination of our efforts to uplift the YouTube community. However, running this comprehensive program comes at a significant cost. Each cohort of the academy incurs expenses of approximately $80,000, encompassing fees for instructors, course materials, and affiliate marketing. Over the course of a year, these costs
##FAQ: Q: How much does it cost to run your YouTube channel and business overall?
A: Approximately $84,400 per month, or over $1 million per year. This includes expenses such as food, office space, fees, accounting, hardware, software, freelancers, coaching, and team member salaries.
Q: What is the biggest expense for your business?
A: Team member salaries, which total $41,000 per month.
Q: How many people work for your business?
A: Excluding Ali, there are 11 full-time employees, 2 people working around 4 days a week, 1 person working 3 days a week, and 1 person working 2 days a week, for a total of 15 team members.
Q: What are some of the software subscriptions that you use for your business?
A: Adobe, Ahrefs, Airtable, Alamy, Amazon Prime, Calendly, Canvas, Circle, CloudFare, DigitalOcean, ecamm, FastSpring, Figma, Frame.io, freepik, Geniuslink, Google, G Suite, Hypefury, IFTTT, Intercom, Kindle, loom, Otter.ai, puddle, Patreon, Podio, Riverside, Scribd short.io, Simple Poll, Subly, Typeform, vidIQ, Xero, and Zoom.
Q: How much do you spend on coaching?
A: Approximately $6,000 per month. This includes coaching for Ali, Angus, and other team members.
Q: How much does it cost to run the Part-Time YouTuber Academy?
A: Around $20,000 per month. This includes fees, contractor costs, and affiliate costs.
Q: What are your plans for hiring in the future?
A: Ali is looking to hire around 5 more people in the next few months to help with various tasks and projects.
Q: How much revenue does your business generate?
A: Ali hopes to generate around $3 million in revenue this year.
Q: What is your profit margin?
A: Approximately 66%, assuming a revenue of $3 million and expenses of $1 million. However, taxes and other factors may affect the actual profit margin.