Alike almost all digital assets, you can sell YouTube channel, and maybe even make a very orderly profit from the sale. So, forth your motives for selling, there are a lot of queries that you may have. Let’s start off with possibly the main thing you want to know.
What may Cost of Your YouTube channel?
You can sell your YouTube channel for 25 times the channel’s monthly revenue. So, if your channel is making $400 per month, then a reasonable price for your YouTube channel would be $16,000. These figures can go up and downcast though, depending on a number of factors such as how they are monetized, channel engagement, audience attachment, type of content, and more. It is, however, possible to see channels sold for even 50 times their monthly revenue.
Some large YouTube channels are selling for millions, like the cartoons and children’s kids songs channel. For last three years, the sale of YouTube channels has been on the rise with YouTube MCN’s actively acquiring recognized channels. In addition to the revenue streams brought in by buying a channel, these MCN’s can use the possible association as an impetus to get YouTubers to join their network.
It’s not only MCN’s buying YouTube channels nonetheless. Media companies are also looking for good channels to develop their portfolios and individuals are looking for channels that have already gotten the ball rolling so that they don’t have to start from nothing. Before we look at how to find out exactly what your YouTube channel is worth, you may be wondering if it is even legal to sell a YouTube channel, or if it goes against YouTube’s Terms of Service to do so.
Stricto Sensu, it is not prohibited to sell YouTube channel. YouTube ToS and it is completely legal to sell your channel. In order to make a correct assessment on your YouTube channel, there are the factors that need to be considered.
It has to look at both the 12 months and the 3-month average is to make a fair decision based on the growth of the channel. It may have generated far more a few months ago and has now shown a decline, but it still has probable, so that earlier momentum should still be taken into account. Reliant on what happened to cause the drop-off, you could see a valuation made on the more recent 3-month period. If it was seasonality, like a winter sport-based channel, then you can make a valuation on the longer time period as the drop is something that is to be expected. Once you start seeing things that are unexpected with your channel growth, it’s generally good to use the shorter valuation period. This can also be good for you if you’re selling your channel and it is only starting to gain impetus in the last 3 months.
Monthly Earning on YouTube Channel
Possibly the most important factor in working out your channel’s worth is your monthly revenue. This is done by calculating how much money your YouTube channel has generated on a monthly basis over the last 3 months and the last 12 months. The monthly average can then be worked out for the 12 month period and the 3 month period. And these averages can then be multiplied by a 36x multiple, giving you a range that you can expect to sell your channel for.
Channel monetization can play another great part in how much you can ask for your channel. Some fairly safe methods of monetization are through YouTube Ads, affiliate marketing, and digital products like merchandise. These are fairly “passive” as the new buyer won’t have to do much onboarding apart from changing some links and registrations.
Age of the Channel
The age of your YouTube channel can also play a role in the appraisal. If you have an aged channel that has solid and reliable revenue, that can reflect well on your channel valuation. If you have a few videos that seasonally generate a certain number of views consistently, it can help you achieve even higher multiples than 36x your monthly revenue. Age has a factor because buyers tend to be more interested in consistency or growth when they’re acquiring a channel and newer channels tend to have less of a track record to look back on. You’re selling a digital asset, and as YouTube is a free platform, you should not have any maintenance costs. Remember to use your monthly revenue and not your monthly profit when making these calculations.
Channel Engagement, Niche, and Audience
Your YouTube channel engagement, the specific niche you’re in, and your audience can all effect your channel valuation. Generally speaking, these factors all impact how much money you are making on your channel already, but if you aren’t monetizing your channel as well as it could be, these can still help increase your valuation above the 36x multiple. Your channel engagement can help buyers estimate your channel route, which can help you get a good valuation. This doesn’t mean that you are basing this valuation on future earnings, but you can get a slightly higher multiple for the groundwork you’ve already laid. The niche, or topic, of your channel, can also play a big part in the valuation. If you’re in a niche that has high-income potential, and high RPMs for your ads, then you could get a higher valuation. The opposite can be said if you’re in a saturated niche with low RPM, your channel could be valued below the 36x monthly multiple.
Type of Channel Contents
The type of contents on your channel can impact your valuation as it can provide the consistency that interests most people interested in investing in a YouTube channel. Timeless content is some of the best, this is content that continues to gain views over time and on a consistent basis. This is about as secure of a periodic income as it comes on YouTube. Often evergreen content is educational in nature, and this content doesn’t have an expiry date meaning it can bring in views from search results and recommendations for months and years to come. Alternative type of content that is good but in a different kind of way is news content. If you can consistently show your channel as the place to go for the latest news within your niche. That has some added value that can help increase your valuation.
Is There a Face associated With the Channel?
If your viewers subscribed mainly for you, then they probably won’t be interested in your channel once you leave. Buyers should take this into account when looking to purchase a YouTube channel and so should sellers. If you have a face associated with your channel, test the engagement by introducing new people and having other people host the channel. You could even continue on for a fixed number of videos in the agreement, or work with the new owners on camera for a few weeks/months.