How Internet Celebrities Make Money

Forbes published a list of Highest-Paid YouTube Stars 2016, PewDiePie, a Sweden gamer, remains No.1 with $15 million pretax income. He uploads snippets of himself playing video games for 50 million subscribers.

Also, Rosanna Pansino who provides baking videos on YouTube made $6 million in 2016 compared to $4.5 million in 2015.

  1. Felix Kjellberg (PewDiePie) – $15 million USD
  2. Roman Atwood – $8 million USD
  3. Lilly Singh (Superwoman) – $7.5 million USD
  4. Anthony Padilla (Smosh) – $7 million USD
  5. Tyler Oakley – $6 million USD
  6. Rosanna Pansino – $6 million USD
  7. Mark Fischbach (Markiplier) – $5.5 million USD
  8. German Garmendia – $5.5 million USD
  9. Colleen Ballinger (Miranda Sings) – $5 million USD
  10. Rhett & Link – $5 million USD

List from http://hypebeast.com/2016/12/2016-highest-paid-youtube-stars

Let’s watch a video clip posted by PewDiePie.

 

Will you be jealous of that? A guy is just playing a video game and he can earn $15 million per year? Actually, you don’t need to. According to this list, we can say that everyone can be the Internet celebrity as long as one has a skill and knows about how to run the marketing oneself.

How to be a Celebrity on the Internet

First, you need a skill such as fitness, playing a game, cooking, baking, a sense of fashion, traveling or even a big stomach to eat (whatever it is). A Japanese girl, Kinoshita Yuka, has a big stomach and she opened a channel to broadcast eating. Now she has 2,447,211 subscribers on YouTube.

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Second, you need to know how to perform the marketing yourself. Influencer Marketing needs to cross several fields such as PR, social media strategy, content creating and more. In this way, influencers (Bloggers) should know about the technique of design, video editing, and a high level of personal aesthetics so that attract followers through charming content and photos.

How Internet Celebrities Make Money

The advertisement is the most direct method to make money through accumulating a big follower base. For example, Scott Disick, the influencer on Instagram, requires $15K-20K for one sponsored post due to he has 18.63 million followers. And some of the photos he posted as an Ad just looks like a casual street snap.

Also, Kinoshita Yuka, I mentioned before, will be sponsored by food materials manufacturers and use these food materials in the video.eating-a-dozen-of-nissins-red-ye

Photo from http://lolframes.com/tag/yuka-kinoshita/

Moreover, fashion bloggers select different costumes which are inexpensive and not from well-known brands and take colorful and well-composited photos to give followers a hope that common people can also become gorgeous due to these celebrities are common and not well-trained by superstar training companies compared to those entertainers, either. As a result, some of these fashion influencers establish their own apparel brands and sell them through their social media accounts.

Rocket Internet: a Company Factory

Venture Beat, a Tech Blog company, published a list of unicorn startups in worldwide. There are 6 in Germany which are “Hello Fresh”, “Zalando”, “Home24”, “Auto1”, “Delivery Hero” and “Rocket Internet”.

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Image from http://venturebeat.com/2016/01/18/there-are-now-229-unicorn-startups-with-175b-in-funding-and-1-3b-valuation/

However, according to the official website of Rocket Internet, surprisingly, most German unicorn companies I mentioned before are invested and built by Rocket Internet such as Hello Fresh, Delivery Hero and Home 24.

Sam Parr, one of the columnists of theHustle.co said, “Rocket Internet is one of the most hated yet successful tech companies in the world” because the strategy of Rocket Internet for building companies is to copy successful business models from Silicon Valley. And the slogan displayed on the homepage of the official website of Rocket Internet is “To Become the World’s Largest Internet Platform Outside the United States and China”. In this way, Rocket Internet actually is a startup factory company which builds and invests other startups.

slogan

Image from https://www.rocket-internet.com/

How Rocket Internet Established

The founder of Rocket Internet, Oliver Samwer, holds a degree from WHU. “Upon graduation, Oliver, and his two brothers founded Alando.de in 1999. After the sale of Alando.de to eBay Inc., he was Managing Director of eBay, responsible for Germany, Switzerland, and Austria. In 2000, Oliver and his two brothers founded Jamba! AG, which was acquired by Verisign Inc. in 2004”, I believe that the experience of establishing Alando gave Oliver a formula which can clone and develop startups quickly.

Then, in 2007, he founded a startup factory, Rocket Internet, to help startups grow at a high speed such as three years compare to ten years normally.

Let’s watch a Rocket Internet film.

Focus on Internet Business

According to the film, the main business that companies invested by Rocket Internet’s focus is the online business such as online finance, e-commerce, and online marketplaces. “5.4 billion consumers outside the United States and China = 75% of global population = 74% mobile users in the world.”

Usually, in the period of coping, Rocket Internet will provide a wider service range than the original product and spend a huge amount of money on Google Ads as long as the project still has capital left in order to attract consumers.

The running and managing way of Rocket Internet is totally like an assembly line. The only thing they are pursuing is efficiency which can grow a project in a short period and then sell it to the original company to make money.