Spending money to make money

HowToDudes

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Everyone knows the saying "you have to spend money to make money." With that being said have you invested much money into making videos or even for just one video? Do you like to spend money hoping to make it back?
 

coratison

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i don't really think that saying is true. I guess technically I have spent money for videos. I bought a graphic tablet for drawing, but I probably would have bought one eventually anyway.
I think I would only spend a lot of money on a video or videos if I was certain I made it back, I'm really careful with that sort of thing.
 

Yachts For Sale

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YouTube is full of examples of people who have made money without investing a dime, sometimes even using their phone to make the videos.

Personally I have invested quite heavily in my videos because they are designed to market and promote a high end product. I think my clients might have something to say about it if I turned up to film with just my IPhone 6... Having said that, for most people I really don't think it is necessary to have much of a budget to develop a successful youtube channel. Charisma, wit, and humour still seem to go a long way.
 

Num XIII

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I'd say it's necessary in some cases if the market you're trying to get into is quite saturated.
 

Quick Question

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Naw but if you count time as money, I've spent a lot of that on YouTube haha.
 

KiddieToysReview

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Everyone knows the saying "you have to spend money to make money." With that being said have you invested much money into making videos or even for just one video? Do you like to spend money hoping to make it back?
Yt is a business. Businesses need money, both for startup and operating expenses. Some channels are more expensive to operate that others. I think kids/toys channels and travelling vloggers would be the most expensive. Unless there's a rich/dead relative/beneficiary funding operating expenses in the background, you gotta find and then spend a lot of money to startup and operate the business.

The tax year here is finishing up next week, so I'm deep in prepping the tax paperwork. Our operating expenses all up run at about 15%-20% of revenue - that's props, costumes, petrol, % property utilization, % utilities, advertising, toys, office equipment, depreciation, travel, subscriptions, software, etc, etc. Startup costs were quite significant for the channel, I maxed out 2 credit cards, from memory about $20k in debt before we started making income and could pay off the debt.

It's not an easy gig to get into that's for sure. While I totally agree that's it's possible to bootstrap a channel with virtually zero $ by borrowing your Mom's iphone, digging through thrift shops for props and stuff, in some highly competitive, fast moving and saturated verticals such as kids toys, not sure how far that would get you these days. A few years ago, ye sure, now days the competition is well capitalised, on the ball, highly adaptive and fast moving. You have to compete at a high level to get views. That needs lots of cash or debt.
 
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I think it depends with kids channels, it used to be all the toy reviews, which were very expensive, especially with the big egg surprises, but now its more skits, which overall don't cost much, most of the props we use are used, free or from the dollar tree. We have spent quite a bit on more popular probs/toys, but the skits do better overall and cost less. But like KTR has mentioned before if you want to make it a business you have to put in all you can to profit.

Right now i am working part time from home, just so I can pour it right back into our channel.

Since we started though, we haven't even made close to what we have put in.. maybe one day.. hopefully sooner than later
 

xingcat

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The biggest expenses have been in equipment. I bought lights and a better camera, tripods and other things to film with. Other than that, expenses are mostly for making new puppets (fabric, foam, accessories), props for our skits, and the ingredients for our recipes.
 

KiddieToysReview

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I think it depends with kids channels, it used to be all the toy reviews, which were very expensive, especially with the big egg surprises, but now its more skits, which overall don't cost much, most of the props we use are used, free or from the dollar tree. We have spent quite a bit on more popular probs/toys, but the skits do better overall and cost less. But like KTR has mentioned before if you want to make it a business you have to put in all you can to profit.

Right now i am working part time from home, just so I can pour it right back into our channel.

Since we started though, we haven't even made close to what we have put in.. maybe one day.. hopefully sooner than later
It does seem that skits cost less in terms of dollars, but more in terms of time. Especially with the current trends of using special effects and green screens, the videos take a lot of time to plan, execute, and edit. And some of those props the Russian channels use are quite pricey! Where do they get those giant watermelon balloons and gigantic lolly pops and huge ice cream models?

I miss the good old days of cracking open a giant egg. We're going to do some again. It's been a while, there must be some kids who like them. But even giant eggs take some effort - like now, it's 1:15AM and the wife is hard at working getting the egg ready for filming tomorrow - what a trooper!

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