Here’s How Logan Paul made $3,000,000 in 3 days
When someone says the word entrepreneur, you probably think of Steve Jobs or Jeff Bezos, not some 25 year old vlogger from Ohio. But the truth is that YouTube has become one of the best platforms to start the business on. And Logan Paul is the one of the smartest entrepreneurs to take advantage.
In an Interview with Tom Ward, Logan shared his childhood memories where he said that he wanted to become an engineer because he was told to go to college when he was young. And also told that he made $3,000,000 in just 3 days. If you want to become an YouTuber, take a pen and paper and start taking notes as we explore the business of Logan Paul.
No doubt, Logan Paul is one of the richest YouTuber on the planet. According to the Forbes, Logan Paul was the 4th highest paid YouTuber in 2017 while his younger brother took the 7th spot on the list.
The business model behind YouTube is just as interesting. 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 a really good income from. I always knew Logan was making bags of money, I didn't realise how good of an entrepreneur he really is! I think that there are only few people on YouTube that are on the similar level with Logan when it comes to business. So let’s get right into Logan’s million-dollar strategy.
Multiple Income Streams.
So the one thing that is important for all the YouTubers is to diversify how you monetize your content . The obvious way to make money on YouTube is through Google AdSense which is the money you get paid for the ads that run on your channel. The most simple way to setup but there’s one big problem. YouTube holds the power back of who gets monetized and who doesn’t. They keep changing the rules at regular intervals of time. Logan is no stranger to getting his ad revenue cut when he filmed a dead body and posted on his channel and became the most hated YouTuber of 2018. Therefore, it’s been so important for him to diversify how he makes his money. Right now, he has around six sources of income
Google AdSense
Logan Paul has in total four YouTube channels from which he gets the ad revenue . Logan Paul — 22.5 Million, The Official Logan Paul — 5.2 Million, Impaulsive — 2.5 Million, Impaulsive Clips — 600k
Maverick clothing line
The Business which changed Logan’s life with bringing him more than 60% of his income, the maverick clothing line which is his official Merchandise.
Video Sponsors
Logan was removed from the Google Preffered platform and since then his income through ads was not enough and so he had to get sponsors for his videos who pay him hundreds of thousands for a quick 30 second mention.
Streaming revenue from his podcast
When everything was going down, he started a podcast named Impaulsive with his roommates Mike Majlak and Spencer. The podcast then became the most popular podcast of 2019 and won many awards. The podcast is available on Spotify, iTunes, and several other platforms and there are more than a million listners for every episode as they interview popular celebrities like 6ix9ine, James Charles, Josh Peck and his fellow YouTuber’s like Bella Thorne, Lele Pons, Austin McBroom.
Maverick Club
The exclusive content platform for the superfans of Logan which gives fans access to VIP clothes, Exclusive videos that can’t be shown on Youtube. The sign up fee to the Maverick Club is $20 and there are more than 50,000 members in the club in just 2 months of it’s launch.
Live events such as boxing match, Challenger games
Logan was challenged by the fellow British YouTuber KSI and they had two Boxing matches which became the Most Popular event in the history as Millions of people signed up to DAZN to watch them fight. Although Logan lost, but he still made more than $2 million in those two matches and so did his brother Jake.
So as you can see here, his business model is based on multiple sources of income which puts him in a very strong position where if revenue from one source stops, he has other five to cover it up. Even after getting kicked out from Google Preffered program which helps top creators to earn more, he’s still making around $20 million a year. And yes, the $3 million in three days was made from his clothing line which brings him the most amount of income.
After having so many source of income, the big question is how has Logan been able to develop all his streams of revenue and sell $3 million worth of clothing in just three days. Obviously you can’t just open a merchandise store and sell clothes and make $3 million. Having a huge audience helps the creators sell a lot of the it. But none of the creators are not even close to make such a high income from merchandise as him. So what is he doing different from the other creators. The truth is that Logan is a very good salesman. the marketing strategy he uses is unique and different from all the creators.
If we divide the subscriber fan base into three main segments as Casual Viewers who are the most of the people who watch your videos but don’t necessarily further than that. Next there are Active Viewers who are more engaged with the channel. They are likely to comment on the videos and they might also buy your merchandise. And then there are Superfans. These are the most dedicated fans who basically support everything you do. They’ll buy your merchandise, support your videos and defend your mistakes. Being a fan of your content is a part of their life.
Maverick Clothing
What Logan does different is that his whole brand moves the people along this funnel and he creates a large base of superfans. So how does he do this? The biggest answer to that question is in the first 20 seconds of his video where he advertise his clothing line as well he advertise about the Maverick Club.
So this is the commercial for his clothing line. But how many times did he mention the actual clothes — zero times. Logan is just not selling clothes, he’s selling a movement. Now most of the people don’t buy the YouTuber’s merchandise because of how it would feel and the prices. Now don’t underestimate how many young people look up to someone like Logan Paul. The actual language Logan uses in his commercials is what I’m talking about. “Do you remember who you were before the world told you should be!”. That single sentence is a perfect example he’s addressing the audience himself and creating a feeling. He also talks about not fitting in and not following the crowd. The feeling is being a Maverick and it works because it is Logan’s story. Now this might sound a bit weird but these are the same tactics that the best companies in the world use for decades. This is what makes Logan’s clothing line and other different streams so successful. He has created a movement of like-minded people. He also enforces this with other factors. He’s very good at incorporating his merchandise into his videos. With the Maverick team wearing the merchandise in the vlogs. It’s almost like a uniform.
If you want to earn money on YouTube, you need to make a community and the way to do that is by relating it to your audience. He did some crazy stuff in his past and he still does it sometimes. But at the end of the day, he is a Maverick who wants to achieve great things and his superfans are of the same kind.
How can you connect to your viewers?
To make a successful YouTube career, you need to ask yourself what changes you want to make in yourself. It may seem out of reach or something but put it this way, if you can build a thousand superfans and they spend a $100 on you a year, that’s six figures for you. It’s never quite as far away as you think it is.
The Maverick Club.
Earlier, I said that Logan started Maverick Club and this strategy is so unique that this would make him one of the richest YouTuber’s of all time. And I realsied how perfect this idea is for YouTuber’s with strong fan base. It’s a natural way to make a ton of money while also providing a great product for fans who are willing to pay for more. Now I’m not going to sit and sell the ideas of the Maverick Club. I think that this a great idea and will get you a lot of benefits such as extra vlogs each week, access to VIP clothes, giveaways and discounts in the Maverick Store. And after Logan started the Maverick Clubs, we can see almost every YouTuber with over 10 million subscribers are starting a club to get some extra cash.
From the business point of view, how scalable the Maverick Club is? It’s a digital product which means it can be replicated and anyone who signs up gets access and it doesn’t require any additional work for every customer.
When Logan sells clothes, he is limited in certain ways. Every T-shirt or hoodie has a cost of production, shipping cost and also you can run out of stock. This isn’t the case with the digital products. Once you’ve set it up, there’s no limit to how many memberships you can sell. At the moment Logan is getting more than four thousand views on Maverick Club. The cost to sign in the Club is $20. On Logan’s YouTube channel, he’s getting around 6 million views every video. So let’s consider his viewer base is 6 million and two percent of that are his superfans that would be willing to pay for the Maverick Club, that’s 120,000 people. And if 120,000 people sign up for the Maverick Club paying $20, that would be $2.4 Million per month and $28.8 Million per year. And it has just been three months since he started the Maverick Club. In few years, Logan will be making more money on the Maverick Club and clothing line than the combined revenue of his other sources.
Logan’s ability to monetize his audience is insane. I think Logan Paul is the perfect example of the potential there is on YouTube and it all starts with a camera and a crazy idea.
