Why did the creators choose to work directly with sponsors?

The creators chose to work directly with sponsors to offer better rates and avoid undisclosed commissions and exclusive contracts imposed by dishonest middlemen in the YouTube creator industry.

What led to the successful launch of Nebula?

The successful launch of Nebula was attributed to promotions from popular creators, partnerships with CuriosityStream, and offering a bundle deal that provided access to Nebula for free.

How did the creators generate revenue from Nebula?

The creators generated revenue from Nebula through subscriptions, with creators receiving 50% of profits based on watch-time, and through partnerships with CuriosityStream and sponsorships.

How did the creators overcome cashflow constraints for marketing expansion?

The creators overcame cashflow constraints for marketing expansion by switching to direct marketing, with over 80% of sign-ups opting for annual subscriptions, eliminating cashflow constraints and allowing for unlimited marketing expansion.

Building a $150M Streaming Platform: Our Success Story

Name: Building a $150M Streaming Platform: Our Success Story
Uploaded: 2023-06-21 15:23:15
Description: A small group of creators built a $150 million business by identifying a unique formula, working directly with sponsors, and avoiding dishonest middlemen in the YouTube creator industry.

This article is a summary of a YouTube video "How We Built a $150 Million Streaming Platform with $100,000" by Wendover Productions

TLDR A small group of creators built a $150 million business by identifying a unique formula, working directly with sponsors, and avoiding dishonest middlemen in the YouTube creator industry.

Business Strategies and Partnerships

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Dave was able to beat the rates of these middlemen and attract sponsors by ensuring that the creators received a larger portion of the sponsorship payment.
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The meeting between the narrator, Joseph, and Dave at the bar during VidCon Europe resulted in a strong connection and laid the foundation for their successful collaboration in building a $150 million business.
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This profit-sharing model not only ties platform success to creator success, but also fosters a collaborative mindset where Nebula and its creators are seen as business partners rather than clients and servicers.
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The strategic partnership between CuriosityStream and Nebula resulted in massive results, demonstrating the power of collaboration in building a successful business.
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Taking a smaller share of revenue and giving more to creators can lead to long-term growth for a platform like Nebula, as creators drive almost all of the value and will produce more exclusive content and promote the platform.
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The investment in Nebula resulted in a significant minority stake that valued the company at over $50 million, showcasing the impressive growth and potential of the business.
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Online subscription-based services are the most effective form of advertising in YouTube sponsorships.
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The creators had confidence in their viable business model, backed by years of proof through YouTube sponsorship, showcasing the importance of data-driven decision-making in building a successful business.

Platform Growth and Success

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Nebula's success can be attributed to their unique approach and ability to identify a magic formula that made their simple concept work, leading to a $50 million valuation and over 650,000 paying users without any venture capital funding.
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The streaming industry experienced a significant boom during the pandemic, leading to increased earnings for creators and successful business ventures like CuriosityStream's listing on NASDAQ.
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Building a $150 million business required a massive and complex undertaking, including the development of backend tech, multiple tiers of membership, and a dense production schedule.
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Within a few months, Nebula went from spending zero dollars to over half a million dollars on marketing per month, while earning back more than that in the same month, showcasing the success of their marketing strategy.
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"Looking back, we’ll consider 2023: the turning point that makes previous success the backstory you just have to get through to get to the good part."

Q&A

How did the creators build a $150 million business?

— The creators built a $150 million business by identifying a unique formula, working directly with sponsors, and avoiding dishonest middlemen in the YouTube creator industry.
Why did the creators choose to work directly with sponsors?

— The creators chose to work directly with sponsors to offer better rates and avoid undisclosed commissions and exclusive contracts imposed by dishonest middlemen in the YouTube creator industry.
What led to the successful launch of Nebula?

— The successful launch of Nebula was attributed to promotions from popular creators, partnerships with CuriosityStream, and offering a bundle deal that provided access to Nebula for free.
How did the creators generate revenue from Nebula?

— The creators generated revenue from Nebula through subscriptions, with creators receiving 50% of profits based on watch-time, and through partnerships with CuriosityStream and sponsorships.
How did the creators overcome cashflow constraints for marketing expansion?

— The creators overcame cashflow constraints for marketing expansion by switching to direct marketing, with over 80% of sign-ups opting for annual subscriptions, eliminating cashflow constraints and allowing for unlimited marketing expansion.

Timestamped Summary

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00:00
A small group of creators built a $150 million business by identifying a unique formula, working directly with sponsors, and avoiding dishonest middlemen in the YouTube creator industry.
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05:04
Standard, a sponsorship agency for creators, grew into a $150 million business by providing a strong and ethical experience, launching Nebula, a platform for ad-and-sponsor-free videos, and aligning with creators for growth.
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08:31
Creators partnered with Zype instead of Vimeo to maintain ownership of billing relationship, built Nebula app for $100k but lacked ability for creators to talk unless paid, promoting Nebula for free hurts revenue for both creators and Standard.
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10:30
The creators launched Nebula with a flawed business model, but through collaborations and sponsorships, they were able to generate enough revenue to develop original content and create a successful streaming site.
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13:33
Creators partnered with CuriosityStream, resulting in a boost in sponsorship performance, and the creation of high-budget Originals led to rapid growth for Nebula, which was further accelerated by ownership stakes and investment.
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18:17
The company expanded, developed its own streaming technology, and produced Originals with funding from Curiosity Stream, but faced failure in business; they launched Nebula Classes to help creators earn revenue, but it didn't appeal to customers, so they made it available to all subscribers and slowed down production; CuriosityStream considered doing sponsorships themselves to reduce marketing spend on Nebula bundle sponsorships.
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22:15
Creators built a $150 million business by earning $60 profit per subscriber, using existing funds for YouTube sponsorship, and achieving unlimited marketing expansion through direct marketing and annual subscriptions.
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25:29
Creators built a $150 million business by working together, investing in technology, and offering what people want, with gratitude for early support and a promise to work even harder in the future.