Investors are going absolutely crazy investing in different Digital Real Estate opportunities.
We live in a world of digital everything and thus that creates opportunities for serious investors who want to capitalize on this.
The advantage for investors is they own and profit but without having to do that work.
Today, you’re about to learn specifically how some investors are making money by investing in YouTube Channels as digital real estate and letting someone else manage the channel for them.
What is Digital Real Estate
First, let’s discuss exactly what a digital real estate investment is.
Similar to owning real estate as an investment where you collect rent and look for appreciation in the value of the property, the same goes for owning a digital asset.
Have you ever thought about owning a domain name for a website?
You go to GoDaddy to see if the name is available and maybe you buy it.
Years later someone approaches you and offers to buy it from you.
A great example of this is the name Private Jet.
An intellectual property holding company owned the domain and was approached in 2012 by Nations Luxury Transportation to purchase the name.
They agreed on $30 Million (just for the website domain name). Fast forward to today and the domain is for sale again.
That’s digital real estate, but it doesn’t stop there. Digital assets include built out websites, blogs, social media accounts; such as an Instagram page and yes even YouTube Channels.
Get ready because we’re about to share with you how to invest in YouTube Channels.
Why Invest In YouTube Channels
Before we jump into how to invest in YouTube channels, let’s review why this is such a powerful digital asset.
YouTube is growing at a very fast pace.
It’s the second largest search engine behind it’s owner Google.
Daily we see billions of videos being watched, along with billions of hours of videos also being consumed.
Before you begin to scratch your head wondering where the investment opportunity is, take a close look at that 19.77 Billion in advertising revenue in the image above!
That’s how much YouTube collected from businesses who are advertising on the platform and that number is only going to grow. Just last quarter YouTube reported over $6 Billion collected in ad revenue, blowing by Wall Street estimates.
And unlike Facebook advertising for businesses, YouTube is relatively new for small businesses and growing fast.
This means more revenue for YouTube and more money for YouTube channel owners because the YouTube payout is 55% of ad revenue collected to the channel owner.
The ROI for businesses is huge because the ability to target consumers on YouTube blows away offline marketing opportunities businesses were accustomed to.
The reality is we all have our cell phone within hands reach (if you’re not on it now) and that means wherever you go you’re being tracked because every phone has a mobile id.
You walk onto a car dealership parking lot and next time you’re home watching a YouTube video you’re shown an ad from the manufacturer or dealer. Why? Your mobile phone knows everything and once you are back in your house they now have your home location to show you an ad.
This is extremely beneficial for advertisers and profitable for digital asset owners.
How YouTube Channels Make Money
We shared earlier that 55% of ad revenue is paid to the YouTube channel owner that an ad is shown on.
The challenge for the majority of YouTube channels is you have to hit certain minimums before you can be approved by YouTube.
Every channel needs to meet the following YouTube Partner Program (YPP) requirements from Google:
- Follow all YouTube community monetization policies
- Live in a country where the YouTube Partner Program is available
- Have more than 4000 valid public watch hours in the last 12 months (no bots)
- Have more than 1000 legit subscribers
- Have an approved linked Google AdSense account
The community policies aren’t difficult for most if you post appropriate content but the problem typically comes in with either the 4000 watch hours or the 1000 legit subscriber requirement.
It’s a bit of a science figuring out what videos to post and how to build consistent subscribers.
Luckily we have a proprietary algorithm. His name is Frederick and he helps us here at CBA post consistent content with a higher probability of getting views across all our investor channels.
Just look at this one pick of his, “Floyd Mayweather Insane Cars & Jewelry Collection”:
Over 100,000 views and growing daily.
I want to show you this because even Frederick can make mistakes (and he’s a pretty smart robot) because the next video “How Michael Jordan Spends His Billions” only had a few hundred views:
But it doesn’t matter because here’s how this digital asset is like an ATM for its investors (we’ll talk about investing next).
2 to 3 new videos will be uploaded each week once a channel is fully invested in and financial capital will be put behind videos to increase views. That Floyd Mayweather car collection video will continue to gain views daily, paying the channel, as will other videos.
It becomes a snowball that just gets bigger and bigger each month as new videos are added and others take off going viral.
It’s not uncommon for a channel to start making $4,000 a month 12-months after becoming monetized. 12-months later that can climb to over $10,000 dollars a month (just in ad revenue from YouTube).
Channels also profit in many other ways!
Sponsorships, affiliate opportunities, merchandise, memberships, YouTube super chat revenue and so much more.
The real big profit opportunity comes when channels are sold. Many YouTube channels are selling for millions and others for hundreds of thousands.
YouTube channels sell at a multiple of annual ad revenue collected. So if a channel is generating $8,000 a month in year three, that’s $96,000 annually. That annual revenue will have a multiple of 3x-10x potentially, pending the buyer.
Let’s go back to that Sports District YouTube channel.
After 3 years that channel will have a lot of subscribers who are interested in sports. To a sporting business those subscribers are potentially worth much more than the ad revenue YouTube is paying and thus they may be willing to pay a higher multiple to own this piece of digital real estate.
Ultimately the goal is to have a channel take in ad revenue for a few years, while growing steadily and then eventually sell that channel for even bigger profits.
That’s the power of owning digital real estate.
Conclusion: How to Invest in Digital Real Estate (YouTube Portfolios)
YouTube channels are such powerful digital assets that once monetized become consistent passive income for the channel owner(s).
This post outlines for you exactly how you can create this digital asset yourself or you can invest in a channel that is managed for you.
At CBA, where we start, grow, monetize and eventually sell YouTube channels for our investors.
Our investors are absentee owners who actually own the channel, while we manage the channel with our team of content creators and proprietary algorithm, Frederick, who does the research for our team of what videos to create.
Each channel is in a niche that has a lot of interest ranging from music, to cooking and other topics. The reality is though, the niche doesn’t matter because people search YouTube for all types of content.
Content Based Assets (CBA) is a gift that continues to give and give, because content lives forever in a digital world.
If you’re in the process of building your own team to start, grow and monetize a YouTube channel; our best advice is be consistent with uploading content and do your homework on what videos to upload beforehand.
It takes time, but once your team gets this down you’ll see digital real estate is a great asset class to have in any investment portfolio.
Digital real estate is today and will be tomorrow a great way to make money.