9 Steps to Get Investors for YouTube Channel
How to Get Investors for YouTube Channel
1. Get monetized
Are you already making money with the YouTube channel, or are you in the beginning stages?
Investors will be more likely to give you their time if the project already has decent top and bottom lines. If not, then the YouTube channel is a risky investment.
To compensate for this risk, investors will demand a larger equity stake if an equity deal is on the table. They will also want higher interest rates if a loan is being discussed.
Therefore, you should focus on monetization first. If the channel is making a significant amount of money, then you can secure deals with favorable terms and keep as much of the company as possible.
First and foremost, familiarize yourself with the eligibility criteria for the YouTube Partner Program.¹ You should also learn to monetize your channel in other ways, such as through affiliate marketing and sponsorships.
Most importantly, diversify your revenue mix so that you are not reliant on any one revenue source. When the time is right, investors will come to you. Can you imagine that? They will notice your success and will want a piece of the action.
2. Develop a good track record
To reiterate, savvy investors rigorously think about risk before putting their money to work. They try to avoid high-risk, low-return projects. They must think about wealth preservation before thinking about capital appreciation.
If you have a good track record, then you will be able to convince investors that you are the right person to execute business objectives.
Have you started YouTube channels in the past, or will this be your first one?
Besides YouTube, what other digital platforms are you on? Are you successful on those platforms?
Do you have any business experience whatsoever?
These are the questions investors will ask. If you have a mediocre track record, then you must rely on other things to convince investors to back your YouTube channel.
3. Reach out to other YouTubers
If you know YouTubers who have secured investment deals, then you should reach out to them. Maybe they can give you valuable tips on how to navigate the financing process. They might even be able to introduce you to the same investors.
This once again confirms the importance of networking. Networking can help you open a lot of doors and increase your chances of success.
4. Approach the right investors
You shouldn’t just let anyone invest in your YouTube channel. Remember, shareholders have voting rights. They have a say in what the future of the YouTube channel looks like. So, only sell equity stakes to people who know what they are doing.
Ideally, investors should be seasoned content creators with their own YouTube channels. They should know what it takes to grow an online following.
If you’re lucky enough to work with these kinds of folks, then you won’t just have investors. You will have mentors. That’s valuable.
5. Pitch your channel
When speaking to investors, be sure to explain how your YouTube channel is different from other channels in the same niche. You should also go over your numbers.
Elaborate on the channel’s financials as well as engagement metrics. Finally, don’t forget to talk about your story.
Why did you decide to become a YouTuber?
What do you envision the future of the channel to be?
6. Go over the plan
Investors want to know what you will do with the money.
Are you going to use the money to pay yourself a salary? Investors will not like this answer. They don’t want their money to be used to finance your lifestyle.
A better answer is this:
You will use the money to hire a team so that you can pump out more videos. As revenue increases, you can create more videos that require higher production budgets.
Be smart about your business strategy. This is what being a good CEO is all about.
7. Sweeten the deal
Are you only opening your YouTube channel up for investments? What about complementary digital assets?
For example, do you have an online store? Are you active on Twitch and other streaming platforms?
If you let investors tap into these other pieces of the business, then they will be more likely to write you a check. That’s because they can benefit from any profits that these other assets generate.
Overall, think of ways to make the investment more appealing.
8. Leverage your fanbase
Don’t just reach out to wealthy individuals and institutional investors. Many of them might not understand what you are trying to do. This is why you should let your fans directly support the channel.
After all, your fans are the ones who watch your videos. So, let them be more involved in the content creation process.
You can do this by setting up a one-time crowdfunding campaign on Kickstarter or GoFundMe. You can also let fans donate a consistent amount every month by setting up a Patreon or Ko-fi.
In exchange for their financial support, you can provide dedicated fans with behind-the-scenes footage and exclusive merchandise. Be creative and have fun with the perks.
9. Deliver results
The hard work begins as soon as you receive the money from investors. This is no longer just your company. You have shareholders now.
So, execute the business plan and make everyone happy. This means having a consistent publishing schedule. You also need to optimize thumbnails, titles, and video descriptions. Promote videos on Reddit, Instagram, and other social media platforms.
In general, do what you have to do to improve the YouTube channel’s engagement metrics and financials.
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