How Internet Celebrities Make Money

Forbes published a list of Highest-Paid YouTube Stars 2016 (http://www.forbes.com/sites/maddieberg/2016/12/05/the-highest-paid-youtube-stars-2016-pewdiepie-remains-no-1-with-15-million/#418cc8656b0f), 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 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 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 (http://www.cosmopolitan.com/entertainment/celebs/news/a52410/scott-disick-sponsored-instagram-money/) due to he has 18.63 million followers. And some of the photos he posted as an Ad just look 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 super star 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

(http://venturebeat.com/2016/01/18/there-are-now-229-unicorn-startups-with-175b-in-funding-and-1-3b-valuation/). There are 6 in Germany which are “Hello Fresh”, “Zalando”, “Home24”, “Auto1”, “Delivery Hero” and “Rocket Internet”.

Screen-Shot-2016-01-17-at-10.39.09-PM.png

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 (https://www.rocket-internet.com/companies), 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” (http://thehustle.co/rocket-internet-oliver-samwer) 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” (https://www.rocket-internet.com/about), 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 (https://www.huxiu.com/article/139124/1.html).

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.

Candy Market in the United States: Sales Volume of Candy will reach $2.5 Billion in 2016

In the age of “Everything Can be the Gimmick”, fewer people care about the meaning of Halloween but care about how many discount department stores offer. The status of Halloween is a little embarrassing because it is too close to the big day of a year, Christmas Day. As a result, department stores will not offer good deals or discounts due to accumulating enough purchasing power for Christmas.pumpkin-carving-ideas-for-halloweenImage from http://www.digsdigs.com/100-halloween-pumpkin-carving-ideas/

Target launched a video commercial on YouTube last year which allows users have an interaction with the video. Consumers can click the good displayed in the screen and purchase.

However, one industry chases this opportunity for increasing the sales volume during Halloween. According to the data result anticipated by NRF.com (https://nrf.com/media/press-releases/halloween-spending-reach-84-billion-highest-survey-history), “consumers plan to spend $2.5 billion on candy.”

Chart from https://nrf.com/media/press-releases/halloween-spending-reach-84-billion-highest-survey-history

National Confectioners Association held a survey (http://www.candyusa.com/life-candy/halloween-central/trick-or-treat-tidbits/) to investigate consumer behaviors (maybe just tidbits) in the United States.  

“The nation’s porch lights are on: 

  • 76 percent of households plan to hand out candy to trick-or-treaters this year.
  • 82 percent of people over the age of 45 plan to be home to greet trick-or-treaters.

72 percent of parents confess that they take candy from their child’s Halloween haul (or other seasonal candy collections): 

  • 25 percent of parents wait until their kids go to bed or school before sneaking some sweets.
  • 47 percent have a house rule that everyone must share.
  • A surprising 22 percent of parents claim not to sneak or insist on sharing Halloween candy (or just won’t own up!).

The younger you are, the more likely you are to lose some candy to mom and dad:

  • Parents are most likely to help themselves after bedtime if their children are under the age of 6.
  • Teens are more likely to have parents who will let them keep the entire haul.”

The same situation as children in China when kids receive lucky money on Spring Festival. Parents will tell to their kid that they will help keep the money. But actually, it’s a white lie and lucky money will never be back.

“May I offer you a snack?

  • 57 percent of Americans will have stocked candy bowls in their home or office in the days leading up to Halloween.

Welcome trick-or-treaters:

  • 61 percent of the American public will decorate their front porch or door to welcome trick-or-treaters (69 percent of households with children will do so).
  • 27 percent of people will dress in costume to welcome trick-or-treaters, though millennials (47 percent) are far more likely than other age groups to wear costumes.

The candy corn clash:

  • When it comes to candy corn, 52 percent of people say it’s just not Halloween without it (48 percent of people say they’d just as soon skip it).

How much candy can you expect? 

  • 72 percent of households will hand out two (50 percent) or three (22 percent) pieces of candy per trick-or-treater.

We want our chocolate:6

  • Nearly 3/4 of Americans (72 percent) say that chocolate is their favorite Halloween treat.
  • Chocolate scored top points among all age groups but was most popular among those ages 45 to 60 who preferred it over other candies by 78 percent (compared to 68 percent of 18- to 29-year-olds).
  • Love it or hate it (we love it!), candy corn came in a distant second, garnering about 12 percent of the vote.
  • Speaking of candy corn, about 47 percent of people believe it’s best to eat the whole piece of candy corn at once, while 43 percent of people think it’s proper to start with the narrow white end.

Shopper preference drives Halloween candy selections:

  • More than six in 10 shoppers choose their own favorites when picking out Halloween candy.
  • Four in 10 shoppers take into consideration their families’ preferences or let price, sales and promotions decide the purchase.
  • In contrast, only two in 10 shoppers decide on Halloween candy based solely on its reputation as a seasonal classic.”