The most profitable channel you can build in 2024

The other day, I was onboarding another student into Tube Academy when he asked me:

“Adam, what is the most profitable type of channel to run?”

It’s a question that I rarely ever get, yet it should quite frankly be asked more often because how much your channel makes matters less than how much you take home.

While I can’t share the exact advice I gave him, I can give you a framework to consider when starting your own channel.

When you think about the word profit in general, what comes to mind?

What should come to mind are two other words: revenue and costs.

The difference between these two is what leads to profits.

Therefore, when we ask the question, “What is the most profitable type of channel to run?” you should really be asking yourself, “Which channels can make the most money and operate at the lowest costs?”

Starting with revenue, one of the ways to position yourself to maximize profit on your channel is to validate the number of income streams it can have.

I always advise that any channel you want to start should have at least two different ways of making money, and optimally three or more if you have higher-than-average goals.

For example, a channel with high income potential would be able to monetize through ad revenue, affiliate offers, products or brand deals, and even exclusive content.

Now, this is probably rather obvious to you, and you’re likely familiar with how YouTube channels generally make money.

However, what rarely gets addressed is the cost that goes into running a successful channel.

In my opinion, managing costs on your channel is one of the most important factors in turning this digital asset into a reliable stream of income.

Because let’s face it, if you’re spending as much to make videos as you’re making, then you’re not really getting ahead.

Therefore, what I typically advise is that students build channels using the most cost-effective formats possible. This could be through the use of stock footage or low-cost animations while running a faceless channel, or not overly investing in expensive camera equipment for an on-screen channel.

However, to make these more cost-effective formats work, there’s an important ingredient that needs to be added to the recipe, and that ingredient is strategy.

You see, if you’re not competing based on production quality, then you need to be competing based on ideas and topic selection instead.

This is where understanding how supply and demand play into the viewership of your videos becomes incredibly important.

To be totally transparent, this low-cost strategy will not work if you’re sharing the same information and making the exact same videos that everyone else is making in the market.

Why?

Because you’re not giving your videos any chance of standing out by adding a new value proposition to the market.

Therefore, if you’re considering starting your low-cost YouTube channel, always keep at the forefront of your mind how you’re adding unique value to the market.

Since it’s not high production value that you’re leveraging as your unique selling proposition, you need to ensure that your ideas and the topics you create videos around are what allow you to stand out.

Otherwise, you’re going to be spinning your wheels for days, weeks, or months and will never turn your channel into a cash-flowing machine.

Until tomorrow,

Adam

Friendly Reminder: 2 Tube Academy spots have now been claimed. One spot is left. Reply “tube” for the details.