Over the next few minutes you’ll learn why we believe this is the best passive income business.
These are 10 fact-based reasons, with zero fluff.
You’ll see why owning a YouTube channel run completely for you is extremely lucrative. You don’t have to know anything about filming or even know how to login to YouTube.
In-fact, financial gurus such as Robert Kiyosaki, Dave Ramsey and many others have known for years that owning YouTube channels is extremely lucrative.
Anytime you’re watching any of their YouTube channels (and they each own many) the ads shown by YouTube before the video, is making them money.
YouTube pays you, the channel owner, 55% of what they receive. Thus the more video views you get, the more cash flow you receive each month.
It’s like owning real estate rental properties that pay you monthly cash flow and appreciate in value each year.
When you buy a rental property, you fix it up in the first few months and then rent it out for monthly income. Eventually that rental income pays off the investment and continues to cash flow nicely until you sell the property.
Owning a YouTube channel is similar but without the headaches of renters, fixing the property or those moments you sit vacant without a renter.
Similar to having a property manager for a real estate, with YouTube you can hire a channel manager that does all the work for you.
This means you gain all the benefits of this asset but without having to do any of the work or having the risks of owning a property.
The first few months your YouTube property manager will get your channel built up and then it produces monthly cash flow. Unlike owning a rental property though, this monthly cash flow grows larger each month.
Well, each time you upload a new video that is getting watched you get paid but those older videos are still getting daily views and paying you. Thus this is what a typical well managed YouTube channels income looks like month over month:
Before jumping into reason number one of why this is the best passive income business, if you’d like to learn more about hiring your own YouTube channel manager, click here now and schedule a time to speak with a YouTube portfolio manager today.
#1 Reason to Own a YouTube Channel: Completely Absentee
If you’re looking at owning YouTube for a business, then you can own a channel as an absentee owner.
You can either hire and assemble a team of experts yourself on a site like UpWorks or outsource your channel to a company like us here at CBA.
Many of our clients here at CBA are entrepreneurs with other businesses, individuals and families with other jobs or investment companies that understand the opportunity of owning a YouTube channel but don’t want to deal with any of the actually day-to-day work.
YouTube channels that are run as a business are simply following a system that is easily duplicatable. All the owner of the channel has to do is pick a widely popular topic the masses love such as pets, golf, business, celebrity gossip, fashion or something similar and the rest can all be outsourced.
Daily the outsourced team will handle all the work of creating good content in the form of faceless YouTube videos and all the work that is required to make a video go viral after you upload it.
There’s an actual simple math formula for success on YouTube that isn’t very difficult (it’s just tedious). If you’re curious to see everything that goes into making a YouTube channel successful and profitable, we’ve spilt the beans here in our YouTube channel owners manual.
#2 Reason YouTube is the Best Passive Income Business: Wicked Fun
Owning a YouTube channel that is 100% run for you can be wicked fun and actually should have been the number one reason.
The only reason I’m sharing this as number two is most people don’t know you can have a YouTube channel without doing anything.
So why is owning a profitable YouTube business wicked fun?
What does your family or friends love to share with one another or do for fun?
Love golf, imagine owning a golf channel of the most famous golf courses in the world? How about a football history channel?
Love traveling with your family and/or friends? Let’s create a luxury travel channel.
Do you, your family and friends love playing jokes on one another. How about owning a practical joke channel.
Do you and your friends love decorating for Halloween? Guess what…
Don’t start a Halloween decorating channel.
Though it’s fun, if this is for a business that will make you sick cash flow, this type of channel most likely won’t do that each month.
You want a channel whose videos can have consistent views 365 days a year verse just one season of the year.
You might say, well how about a channel covering all the holiday seasons Mike? Great idea, but will you watch a halloween decorating video during Christmas decorating season?
My daughter probably would, but not the average non halloween crazy teen.
You want a channel that all the videos will be watched potentially everyday for years because each time a video is seen you get paid! So pick a topic you love but is popular year round!
#3 Reason To Own a YouTube Channel: Profitable
Owning a YouTube channel is extremely profitable when it’s run well.
As shown above, the income increases month over month because new videos are being uploaded weekly.
Every time a video is watched and an ad is shown, the channel owner makes money. Thus you want to stack videos that will always be watched year round and for years to come.
Look at this chart:
This shows a channel that uploads a video every other day, 14 a month. By the end of year two you have over 300+ videos.
If you’re following a formula when creating content that is highly predictable, it will get seen a lot, then you’re having 300+ videos that are paying you income monthly by the second year.
By year three you’ll have 500+ predictable income generating videos.
#4 Reason of Owning a YouTube Channels Absentee: Diversification
Owning a YouTube channel is a great alternative investment that isn’t correlated to the economy or stock market.
During Covid, when the economy was pulling back and the stock market took a hit initially, YouTube saw great growth.
Remember, when the economy is doing amazing people are watching YouTube. When the economy is doing poorly, people are watching YouTube.
Ad revenue shot up 46% from $4.7 billion to almost $7 billion during Covid. This was driven by both brands ads and direct response ads and channel owners make 55% of that.
If you’re worried the stock market is too high, that the real estate bubble might pull a 2008 or that crypto is too risky, owning a YouTube channel might be the best passive income business for you.
#5 Reason Owning YouTube Channels is a Good Business: Predicability & Consistency
Running a YouTube channel as a business owner verse an individual trying to become an influencer is a predictable and consistent cash flowing business opportunity.
Here’s the thing. Most people who call themselves YouTubers aren’t entrepreneurs.
They let emotions get in the way of profits. They create videos based on a feeling it will do well, instead of letting the data say it will do well. Many YouTube channel owners create content to be viewed in the moment instead of asking will this video still want to be seen next month, next year and beyond?
There’s nothing wrong with running a YouTube channel that way. However, if you’re an entrepreneur running this strictly as a business that can generate the most profits, act on data and not emotions.
When you create videos based on proof that the content has done well already on YouTube, you increase your probability tremendously that yours will do well. Now when you do this consistently and also understand how to promote and optimize after a video is uploaded, you now have a very predictable business model.
This is why YouTube is consistently one of the best ideas for a passive income business.
#6 Reason YouTube Rocks As A Passive Business: 24-Hour Cash Flow
YouTube is open for business 24-hours a day, 365 days a year (PERIOD)!
Videos are being watched worldwide all day and all night long.
While I’m counting sheep fast asleep here in Tampa Florida, our team in Dubai is up and on YouTube.
One thing to monitor as a YouTube channel owner is where your videos are being viewed from though. Too many views for instance from Pakistan verse Canada and your YouTube channel won’t be earning the same. This is something you should monitor but provided you’re running a good channel, you shouldn’t have to worry.
#7 Reason YouTube is Awesome as a Business: High Business Valuation
YouTube channels have a very attractive valuation model for individuals looking to purchase your channel when you’re ready to sell.
YouTube channels sell at a multiple of 3(x) to 6(x) your previous twelve months cash flow.
A well managed channel that is bringing in $350,000 in ad revenue a year will sell for $1,050,000 to over $2.1 million.
Channels that diversify their revenue outside of YouTubes ad money and that have a high subscriber count will sell at very nice valuations.
#8 Reason Owning a YouTube Business: Small Investment
Compared to other alternative businesses that offer great monthly cash flow like a YouTube channel, the investment to start a channel is small.
Starter channels here at CBA start for only $2100, with a total investment of around $40,000. A medium channel investment over 12-16 months is around $55,000. By the second year it produces more than that in ad revenue profits and has a valuation on average by its third year of $380,000 to $750,000+.
Again this is completely absentee. No team to run. No unforeseen expenses like real estate. If you’re running this business yourself with a team, it’s still a lucrative opportunity once you get your systems in place. You can copy our proven system outlined here in our YouTube channel owners manual.
#9 Reason Owning an Absentee YouTube Business: No Overhead
YouTube is digital real estate and there’s no expenses or overhead like many other business alternatives.
- Rent is Zero
- Employee taxes are non existent
- Insurance not applicable
- No utilities (though possibly deductible when you look below at #10)
If you’re running a YouTube business as an absentee owner, you don’t need any equipment at all.
#10 Reason YouTube as an Absentee Business is Amazing: Tax Advantages
Owning a business as a side hustle, gives you very nice financial advantages when it comes to taxes.
First, this is something you’ll want to discuss with your accountant.
Here are some deductions you’ll be able to take advantage of potentially:
- Startup expenses if outsourcing to CBA or another source
- Your new ‘Home office and supplies’
- Phone bill
- Vehicle, meals and travel
- Your new T.V. to monitor your Channel and computer software
It’s definitely a good idea to check with your friendly tax expert. Tax savings though are a huge advantage as a YouTube business owner.
Conclusion: 10 Reasons Why A Managed YouTube Channel Is The Best Passive Income Business
If you invest in the stock market, real estate or are an entrepreneur looking for an alternative opportunity pay attention. These 10 reasons should show you without any fluff, why YouTube is an incredible passive business to own.
Let’s recap the Top 10 Reasons a managed YouTube Channel is a Great Passive Income Business:
- Completely absentee and 100% run for you
- Wicked Fun owning a channel around a topic you’re passionate about
- High monthly cash flow and profits
- Not impacted by the economy, stock market or other global hiccups
- Predictable and consistent returns that compound monthly
- Passive 24-Hour cash flow without any headaches
- Channels sell at high multiples and valuations
- Small startup cost
- No overhead
- Big tax advantages
Ready to learn more about hiring your own YouTube channel manager, click here now and schedule a time to speak with a YouTube portfolio manager today.