Logan Paul is an entrepreneur and online influencer with a net worth of $20 million. When someone says the word entrepreneur they think of Jeff Bezos or Steve Jobs not some 25 year old vlogger from Ohio. But the truth is YouTube has become one of the best platforms to build a scalable business on and Logan Paul is one of the smartest entrepreneurs to take advantage of this. The business model behind YouTube is fascinating, creating videos always starts with a passion but on the Internet attention is like gold dust. If enough people follow and engage with your content, you have a platform to make millions.
It is vital for all YouYubers to diversify how they monetize their content. The obvious way to make money on YouTube is Adsense. The money you get paid for views, it’s simple and easy to set up but there’s one problem. YouTube ultimately holds the power over who gets monetized and who doesn’t. They are constantly changing the rules Logan is no stranger himself to getting his ad revenue cut and it’s therefore been so important for him to diversify how he makes his money.
The 6 main income sources he has:
- Maverick clothing line
- Video sponsors such as Raycon and the infamous blue Chu who paid tens of thousands of dollars for each video podcast
- Streaming revenue from podcast and songs on Spotify and iTunes.
- Maverick Club – Logan’s answer to OnlyFans
- YouTube boxing and the challenger games
Logan’s business model is based on multiple sources of revenue. This puts him in a very strong position, if one goes down he’s still earning. In terms of estimating how much he’s making, it’s difficult to be exact but as an estimate I wouldn’t be surprised if he’s pushing the $15 million per year.
The big question is how has Logan been able to develop all these streams and sell so much in the first place? You don’t just set up a merch store and sell three million in three days, obviously having a huge audience helps but there are plenty of big YouTubers who never get close to Logan’s sales numbers. The truth is Logan is actually a very good salesman and he’s been able to create what are known as superfans – this is the reason the likes of MrBeast, PewDiePie and Logan Paul are able to make so much money online.
You can divide YouTube subscribers into three main segments:
- Casual viewers – which is the majority of a subscriber base. These are the people that watch most of your videos but don’t necessarily go further than that. They’re unlikely to interact in the comments or buy any products.
- Active viewers – subscribers who are more engaged with the channel, they comment on the videos, they know the memes and they might even occasionally buy some merchandise.
- Superfans – these are the most dedicated fans who basically support everything you do, they buy merch, support videos and defend your stupid mistakes. Being a fan is a part of their life and identity what Logan does that sets him apart. His whole brand moves people along this funnel and creates a large base of superfans.
Like we mentioned before, Logan Paul is a great salesman – in commercials Logan is not just selling clothes he’s selling a movement. If you want to build up superfans, you need to be able to create a form of group identity. People don’t buy YouYuber much because of how it looks or feels they’re buying it to belong. This might sound a little deep but don’t underestimate how many young people look up to someone like Logan Paul. He uses similar tactics
tactics that the best companies in the world have used for decades. One of Apple’s most successful marketing campaigns ever was that think different campaign and Logan is using this same strategy with his own products.
Logan’s channel alone gets about six million views per video. If we estimate that he’s got a viewer base of six million and 1% of these viewers are superfans that would be willing to pay for the Maverick Club – 60,000 people paying $20 per month is $1.2 million every month! Logan Paul is a perfect example of the potential there is on YouTube and it all starts with just a camera to eventually build up a net worth of $20 million.
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