Why You Should Have a Brand: Logan Paul Edition
You might know Logan Paul from some YouTube video. It’s this guy.
He started posting videos on the now closed-down app Vine around 2013 and then moved over to YouTube as well. Right now, his net worth stands at more than $40 Million, conservatively. He started posting different kinds of videos on YouTube around a decade ago and has now built his brand to a point where he has created a number of income streams by leveraging it. Read on to know about his revenue streams.
YouTube Adsense
His main channel currently has more than 23M subscribers while his podcast channel (IMPAULSIVE) has around 4.5M subscribers. A quick search on socialblade.com reveals both these channels have monthly views in excess of 9 Million. Only around 70% views on YouTube are monetized for various reasons. Therefore monetizable views on these two channels would be 18M x 0.7 = 12.6M.
Let’s say the average CPM rate in the US is $3 (this is the lower end of the estimates thrown around). This will yield 0.003 x 12.6M = $37800 per month.
Podcast Sponsorship
The IMPAULSIVE podcast has a considerable audience across platforms, ranked 68th in the Comedy Genre in the USA on Apple Podcasts and 47th on Spotify in the same category. It has more than 34000 ratings on Chartable.com, that’s massive. And he monetizes the podcast with standard sponsorships-basically talking about the products at some point in the podcast. Based on comparables, the estimate would be $40K per sponsored podcast. And the show runs two times per week more or less. Which means $40K x 2 x 4 = $320K per month.
Maverick Clothing Line
Here’s the trailer. Logan created an experience when he created this brand. It’s just clothes, but he used storytelling to make people aspire to buy. Coming to money, there’s a famous clip on YouTube of Logan telling the story of how he made $3M in 3 days around the famous Black Friday Sale! So doing some quick math. Let’s say in a year, 1% of the 23M subscribers he has bought from the brand with an average price of around $50 (you can check the products on the website). So, 23M x 0.01 x 50 = $11.5 M per year. From here, a net profit margin of 15% means $1.725M.
Maverick Club
This is a club with exclusive access to Logan and his team for his hardcore fans. The cost is $19.95 per month. Let’s say 0.1% of his subscribers actually sign up. That means $19.95 x 23M x 0.001 = $458K per month.
Now it starts to get wild.
Boxing Matches
Logan has had two boxing fights with YouTuber KSI, and one with Floyd Mayweather too! Fighting one of the most famous boxers of all time actually does pay. Logan can draw a lot of attention and that means big money, His 2019 fight with YouTuber KSI made both of them $900K, and the Floyd fight was estimated to make Logan around $5M. That’s a good paycheck, even if it’s a one-time thing.
Pokemon Cards
Yes, you read that right. Logan likes Pokemon Cards and he makes money by flipping rare ones. He bought a “booster box" consisting of 36 super rare Pokemon Cards for $200K and ended up selling each of these for $11,111 through his channel. That’s almost a $200K profit on this single deal. He probably has some more in store.
PRIME
He recently launched a sports beverage company in partnership with KSI (yes, his first boxing opponent). The company was launched in 2022, and made $250M in sales in its first year! According to experts, PRIME is the 6th largest brand in its sphere and the end goal here would be to sell it to a bigger beverage brand. That sale would be at a revenue multiple, which would definitely put the brand’s worth at a few billion dollars if the sale comes in a few years.
Logan has also dabbled in the crypto space. But most of those figures are either not public or too controversial to talk about. So let’s leave that for some other day.
Creating a brand through years and years of pushing content takes hard work. But when that hard work is combined with a good business mind, you get paid big time. Logan Paul’s yearly income, not considering all the weird and wild stuff would be $37800 x 12 + $320K x 12 + $1.725M + $458K x 12 = $11.5M. Now this number could be close to or far from the actual one, but you get the point. Love him or hate him, Logan Paul knows how to use his brand to make money.
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