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    YouTubers aren’t relying on ad revenue anymore — here’s how some are diversifying

    YouTube has firmly established itself as a leading platform, presenting a myriad of opportunities for creators to monetize their output. In June, the company announced that its creative ecosystem contributed over $55 billion to the U.S. GDP and was responsible for generating more than 490,000 full-time positions.

    However, a growing number of creators are shifting away from relying solely on ad revenue and brand collaborations. This trend can be attributed to several factors: ad revenue is often inconsistent, and frequent policy updates from YouTube make it increasingly difficult for some creators to secure reliable advertising for their videos. Moreover, many have come to understand that their income streams can diminish without notice.

    Aware of the precarious nature of revenue tied to platform algorithms, numerous YouTubers are evolving from mere content creators into vertically integrated media enterprises. These multifaceted ventures often include product lines, physical storefronts, and consumer brands, enabling them to thrive irrespective of algorithm updates and policy fluctuations.

    In many cases, these ancillary businesses are growing at a faster and more sustainable pace than the creators’ YouTube channels.

    MrBeast

    Image Credits:Beast Industries

    Jimmy Donaldson, widely recognized as MrBeast, has captured the attention of 442 million subscribers, establishing himself not only as a YouTube phenomenon but also as a dynamic entrepreneur.

    What began with the launch of a merchandise store, ShopMrBeast, in 2018, has rapidly expanded into a diverse portfolio of enterprises, including the snack brand Feastables, which is now three years old.

    Feastables made an impressive debut with its “MrBeast Bar,” a chocolate bar that raked in over $10 million in sales within just 72 hours, selling over a million bars at its launch. Currently, Feastables has surpassed MrBeast’s YouTube content in profitability, outperforming even his competition series “Beast Games” on Prime Video. In 2024, Feastables generated approximately $250 million in revenue with over $20 million in profit, while his media business faced a loss of around $80 million.

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    Additionally, MrBeast has ventured into various other initiatives, including a packaged food brand called Lunchly (in collaboration with YouTubers Logan Paul and KSI), the MrBeast Lab toy line, MrBeast Burger, and the analytics platform Viewstats. Recently, he even attempted to acquire the U.S. operations of TikTok as part of an investment consortium led by Employer.com founder Jesse Tinsley.

    Now, MrBeast is setting his sights on new ventures, planning to launch a mobile virtual network operator (MVNO), potentially in collaboration with a major carrier like AT&T, T-Mobile, or Verizon. He’s also been observed filing a trademark for a mobile app that aims to provide banking, financial advisory, and cryptocurrency exchange services.

    Emma Chamberlain

    Chamberlain Coffee Emma Chamberlain ready to drink
    Chamberlain Coffee.Image Credits:Chamberlain Coffee

    Emma Chamberlain rose to fame as a teenage vlogger in 2016 and has since amassed over 12 million subscribers, successfully diversifying her career into the beverage industry.

    She founded her coffee brand, Chamberlain Coffee, in 2019, offering an extensive selection of products that includes cold brew, coffee pods, ground coffee, whole beans, tea, and matcha. Other content creators have emulated her success, including Jacksepticeye with his Top of the Mornin’ Coffee brand and Philip DeFranco with Wake & Make Coffee.

    In 2023, Chamberlain Coffee experienced significant growth, launching ready-to-drink canned lattes and reportedly generating around $20 million in revenue, as stated by Forbes. The brand expanded further with the opening of its first physical location in January, in addition to its online presence and retail partnerships with major retailers like Target, Sprouts, and Walmart.

    Although Chamberlain Coffee faced some challenges last year due to supplier issues, recovery is anticipated, with projections indicating over 50% revenue growth by 2025, leading to over $33 million, as reported by Business Insider. The brand is also working towards achieving profitability by 2026.

    Logan Paul

    Floyd Mayweather punches Logan Paul during their contracted exhibition boxing match at Hard Rock Stadium
    Image Credits:Cliff Hawkins / Getty Images

    Logan Paul, who boasts 23.6 million subscribers, has transitioned from a controversial figure to a wrestling superstar, although he has faced his share of scandals, including an infamous 2017 video and accusations regarding his NFT project, CryptoZoo, which has been labeled as potentially misleading.

    His energy drink venture, Prime, has significantly raised his profile, achieving explosive popularity in 2022. Co-founded alongside fellow YouTuber KSI, Prime surpassed $1.2 billion in sales in 2023, a number that dwarfs typical income streams from views, advertisements, and partnerships for most content creators. Still, the brand is now grappling with declining sales, regulatory scrutiny over its high caffeine content, and lawsuits from disgruntled partners. In fact, sales in the U.K. dropped by about 70% from 2023 to 2024.

    In 2020, his apparel line, Maverick Apparel, generated between $30 million and $40 million.

    Logan’s brother, Jake Paul, is also active in various business endeavors, having co-founded the Anti Fund, which boasts investments in notable companies like OpenAI and Ramp. Jake also has his grooming product line called W and a sports betting platform called Betr.

    Ryan’s World

    Ryan’s World, hosted by the 13-year-old Ryan Kaji, is another prominent channel amassing an impressive following of nearly 40 million young viewers through entertaining toy reviews and unboxing videos.

    Beyond YouTube, Kaji has strategically expanded his brand with a line of toys and apparel sold in major retail outlets, reportedly generating over $250 million in revenue in 2020. Kaji and his family have also branched out to create a TV show and an educational app aimed at children.

    Rosanna Pansino

    Image Credits:rosannopansino.com

    Rosanna Pansino has carved a niche for herself as a beloved YouTube baker, renowned for her captivating baking tutorials and themed treats. With 14.8 million subscribers, she has become a household name, particularly for her recipes inspired by popular culture, gaming, and cinema.

    In addition to her YouTube success, Pansino has published several popular cookbooks and has expanded her brand, Nerdy Nummies, further. Her baking tools are available across various retailers, including Amazon.

    Many other YouTubers have branched out into cookware and food product offerings. Noteworthy examples include chef and author Andrew Rea, also known as Babish, who launched his Babish Cookware brand in 2021, along with comedy duo Rhett & Link, who offer MishMash Cereal.

    Michelle Phan

    Ipsy founders Jennifer Goldfarb (left), Marcelo Camberos, and Michelle Phan (right)

    Michelle Phan transitioned to stardom in 2007 with her makeup tutorials, becoming a pioneer among beauty influencers in monetizing content effectively. Besides her flourishing YouTube career, she co-founded the popular beauty subscription service Ipsy, which gained massive traction. Phan also launched her own makeup line, EM Cosmetics.

    Huda Kattan

    Image Credits:Huda Beauty

    Huda Kattan launched the renowned beauty brand Huda Beauty in 2013 and sold a minority stake to private equity firm TSG Consumer Partners in 2017. However, she repurchased this stake in June after discerning that investor pressures conflicted with her vision for the brand, which continuously generates hundreds of millions of dollars in yearly sales.

    A number of influencers have seized the opportunity to launch their own makeup brands. Other notable names include Jeffree Star Cosmetics and Tati Beauty, both created by YouTube influencers.

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