- On this channel I enjoy breaking down professional athletes' finances, and occasionally I'll discuss
why a specific athlete went broke after earning millions. David Dobrick won't be going broke, but he's definitely taken
a big hit financially, with the recent spiral his brand
is going through right now. David is one of the biggest YouTubers with over 18 million
subscribers on his main channel, and 8.5 million on his second channel. In this video, we'll take a look at how much money the top YouTubers can make, by analyzing David's income sources which will also give us an idea on how much money he's missing
out on with his sponsors, removing themselves
from their partnership. David has had one of the
cleanest brand images on YouTube, and seem to be the one creator
who couldn't get canceled. His videos generally
had a positive message, were entertaining to watch,
and oftentimes involved giving away cars to his friends. Issues that fans weren't aware
of started coming to light. First, it was big Nik an early
member of the vlog squad, speaking about his past
experience with the vlog squad, and how his appearances only existed, for him to receive jokes at his expense. Next was Seth speaking
about his experience in a bit where he thought
he was kissing Corinna, but was in fact kissing
Jason, a 40 year old dad. The allegations against
Durte Dom were next and most alarming due to
the nature of the case, and because of Dom's
prominence in the group. With Jeff Wittek's documentary
coming out this week explaining how he nearly lost his life due to being the character
in a very dangerous bit, all of the heat has been on David for being the director
controlling this operation. David's sponsors have
made public statements about cutting ties with his brand, and a likelihood of never
working with him again. SeatGeek, HelloFresh, EA Sports, Chipotle just to name a few, have
all moved on from his brand. In addition to his long list of sponsors, David stepped down from Dispo, an app that was experiencing
major growth and popularity immediately before this downward spiral. We'll discuss the financial ramifications of the sponsors backing out and him losing his equity
in Dispo in just a minute, but creators are always at the mercy of their sponsors' best wishes. Most companies don't want any
association with another brand that could have financial
risk for their brand image. I think Nike sticking with Tiger Woods is the last big brand to stay
by the side of an entertainer or athlete while their brand was getting ripped to shreds in the media. With that said, let's talk numbers. David still averages around
85 million views per month for his YouTube videos, despite
not releasing any videos. At my average RPM rate of $8, if I received the number of
views David did each month, I would earn 680,000 each
month from Adsense alone. Let's see how much David earns. - So I mean, I can tell you
like my paycheck right now on YouTube is under, what? Oh
my God it's not a big deal. It's under 800 bucks, which
is, which is, which is very low - Only $800 a month from Adsense alone. This isn't surprising since
his content is very similar to other channels who are demonetized. All of his videos contain
copyrighted music, so there's no way he'll be
able to monetize from the ads that run on his channel. All of that money goes to YouTube, and the original copyright
owner, that's if ads run it all. This is the challenging aspect
of a lot creators on YouTube. You make content that YouTube
considers inappropriate for whatever reason and your
videos can get demonetized. If you use another person's song, and the video gets a copyright claim, then you lose 100% of the ad revenue. It seems more fair that
an even split should occur but that's not the case. So David doesn't make
any money from Adsense. How is he able to pay
for his friend's cars? I know this may seem obvious to many, but most of your friends
probably don't know how creators make money on YouTube. Adsense is the obvious one, YouTube places ads on the videos, and
you get a certain amount per 1000 views. With enough views of the ads, you can earn a full-time living. But sponsorships is where the real money was earned for David. I was influenced by Colin
and Samir's video titled why David Dobrik gives away Teslas in making this video. And the content of that video certainly helped make this video. - But initially like most
brands Ian and SeatGeek were looking for a more
traditional marketing campaign. David however, had other plans. - We knew David wanted
to go to the world series and surprise his best friend. - David Dobrik and SeatGeek
is probably the most well-known brand relationship on YouTube, and became synonymous with
David giving away cars. - David thank you so
much, this is (inaudible) But more importantly, thank you SeatGeek. - Fans knew that whenever
David started reading the ad for SeatGeek in his video, that one of his friends was
about to receive a new car. - And the video, just crushed
both in the review wise, but more importantly for us, for me to prove it a conversion wise. We had a ton of new SeatGeek purchasers. - When a creator can
implement a sponsorship read successfully in their
content and make it engaging, then it's likely that the
company sponsoring the video will see a huge uptick in
new customers or sales, like SeatGeek experienced with David. Creators will generally
have a specific code for users to use at
checkout so that the brand can analyze how many
customers are being sent to their product or
service from the creator. An example would be go to this website and use the code Spencer for 15% off - I wanted to maybe get myself a Ferrari. And I wanted to see if
you guys could help. - [Ian's voiceover] Okay, how much - I'll pay for half, I'll pay for half. - [Ian's voiceover] Okay, I
can get you the other half. - What's up guys. This
next part of the video is brought to you by SeatGeek, - Most importantly, how much
money are we talking here? When a brand and creator form
a good working relationship where the creator is getting paid well, in the brand hit certain KPIs, then the company will
be willing to pay well to sponsor videos. In the clip I just shared, David was able to get
enough money from SeatGeek to pay for half of a brand new Ferrari. Let's estimate a new Ferrari is 350,000. Then that little segment of his video made him roughly $175,000 to the people who don't
understand the creator economy, that might sound absurd. David includes a read for
buying tickets on SeatGeek and he's able to buy a Ferrari. It doesn't sound so ridiculous when you consider the numbers. The 2019 NBA finals between
two large market teams, Bay Area, and Toronto averaged 13 to 18 million viewers each game. David's vlogs routinely
cross over 18 million views, and can receive as many
as 20 to 30 million views. What would an advertiser
be willing to pay, to have their brand as the only sponsor of an NBA finals game? It's similar viewing numbers,
but here's the kicker. David has a much more targeted audience, as YouTube analytics can
show the type of viewer that watches this content. And think about television ads. How many people have the
NBA game on the TV but can't hear the ad, aren't watching the ad, or have the TV on and just
simply aren't paying attention. Advertisers are paying for those eyeballs. With David's content all 20 million eyeballs are
watching while the ad gets read. That is insane value for a brand. Because of the attention and
access to demographic data, how much do you think advertisers
would be willing to pay, to have 10 million to 20
million people watch their ad. SeatGeek is willing to
pay at least 175,000. - And how does it make economic sense. For this part of the video, we've decided to use
ourselves as an example. So let's just say there's this world where you wanna work with us, where would you price us right now? I'd typically start at $20 CPM. I would pay you somewhere between my, my floor would be $2,000 for a 32nd spot. So $20 is the CPM or
the cost that he'll pay, for every thousand views that
we deliver on this video. - Ian from SeatGeek was
willing to pay David $20 for every 1000 views. Let's estimate a video
receives 10 million views. If you look at the views
his content was receiving, 10 million is super conservative. As he's generally reaching
20 to 30 million views. 10 million divided by 1000
will give us 10,000 units. 10,000 times the CPM rate of $20 will give us $200,000. Pretty close to the estimated 175,000 for the Ferrari purchase. David was making 12 videos
per month at his peak. Let's estimate eight of
them had a sponsored read like this SeatGeek videos or an obvious sponsor in the video. That's probably $1.6 million on the low end in major sponsors. My guess is his videos also had
secondary sponsors at times. This is just a guess, as I have no knowledge on this. I wouldn't be surprised
if he had sponsorships with brands that appeared in his videos as a non-sponsored read, but they still were prominent enough to get the viewers attention. In this video, he has an
obvious sponsor in Chipotle as they gave the homeless guy
a year's worth of burritos, but he also gave away a Chrysler. There isn't mention of
Chrysler being a sponsor, but I would not be
surprised if he was able to negotiate with them to
receive the car in cash. That video could have two sponsors. I hope you're starting
to see how much money can be made when you
have a large following. $2 million a month for
sponsors on his YouTube videos, is probably a conservative estimate. And those are gone so we can
add roughly 20 to $25 million per year in lost YouTube sponsors. - Turn around. Yo, tell me the top of her
head does not look like this. - Let's look at Tiktok. In this video, David
has a subway sandwich, as the integral part of the bit. It's a short clip but it has 1.6 million
likes and 9.8 million views. Given what I just explained
with the YouTube sponsors, how much do you think
he can earn from subway on this Tiktok video? If you're subway and you
know 9.8 million people are directly viewing your
product by a creator, who at the time was loved
and as brand safe as anyone, how much would you pay? It's not crazy to think he can earn maybe a hundred thousand dollars per sponsored video on Tiktok. - My bad. Okay. Bye Eli. Oh my God. - This video has 8 million
views and is a sponsored ad with a link to Frank's
hot sauce Tiktok page. I would not be surprised if Frank's paid $250,000 for this post. Let's assume that David was
doing one sponsored post per month and would continue at that pace. Let's estimate that he
could earn as high as $250,000 for a sponsored post on Tiktok. That's $3 million per
year, just from Tiktok. Between YouTube and
Tech-Talk I'd estimate, he is missing out on $25
million per year from sponsors. David entered into the app
space by founding Dispo, an app that would rival Instagram and mimic the experience of
using a disposable camera. In the seed funding round in October led by Reddit co-founder Alexis Ohanian's firm seven seven six,
Dispo raised $4 million. This week, the company raised $20 million at a $200 million valuation, in a Series A funding
round led by Spark Capital, according to Axios. We don't know how much
ownership David had, but given that he was the
founder and was promoting the app all over his social media, I would not be surprised if he had at least a 50% equity share in the app. Late on Sunday, Mr. Dobrik announced that he would leave the company and step down from the board of Dispo in order to not distract
from the company's growth. Hours before the venture
capital firms Spark Capital, which led the start-up's $20 million Series A financing round in February, announced it would sever
all ties with Dispo. "We have stepped down from
our position on the board, "and we are in the process of
making arrangements to ensure "we do not profit from our
recent investment in Dispo." the company posted on Twitter. With the venture capital firms looking to exit their investment into
Dispo and David stepping down, I think we can conservatively estimate that David's on paper
equity from Dispo alone, was worth a hundred million dollars. With the app ever exit and
David earned the big payday? No one knows, but this incident
removed the opportunity of him earning the big payday. Given his prominence on social media, and his ability to garner
new users from a simple post, I don't think it's crazy to think that Dispo had the ability
to become a legitimate multiple nine figure company. His losses in Dispo are
more opportunity costs than actual loss, but I
think there was potential for a $100 million exit. After future rounds of funding,
his equity split dispersion in the company being purchased. - What's up guys. Welcome
to the end of the video. Jason and I have some big news. We just started our own
podcast, it's called Views. I'm gonna link in description.
Please go check it out. - On May 18th, 2017,
David debuted a podcast with his co-host and vlog squad partner, Jason Nash called Views. They've been consistently
releasing the podcast ever since then. Just a couple months ago, they began posting the Views podcast on a separate YouTube channel. The channel has almost reached
1.7 million subscribers, with only episodes and six uploads. The majority of the views for
the podcast were on Spotify as it was an audio only
podcast until recently. Let's estimate David does three ad reads throughout each episode. And let's estimate 10
million downloads per episode between YouTube and Spotify
in every other platform. Based on the numbers I've shared, I think $250,000 an episode, for the sponsored ads
is entirely possible. If they upload once a
week, four times a month, then that's a $1 million
per month podcast. $1 million a month would
be $12 million per year. What other podcasts can reach 10 million downloads
per episode? Joe Rogan. Joe Rogan's deal with Spotify was worth a hundred million dollars. It's not crazy to think that David's podcast could easily be worth $50 million or more for a
three to five-year deal, with no more sponsors the money has gone. Logan Paul's podcast and pulse
have went without sponsors for years after his infamous fallout following the Japan forest incident. It's only recently that he's
found sponsors for the podcast. I wouldn't be surprised if David experiences something similar. Whenever David wants to make a comeback, he's going to have his podcast for as long as he wants. The studio set is in his house, but I don't think he's
gonna be able to land any sponsors anytime soon. He could be missing out on
a huge nine figure payday, from the loss in sponsors
for the Views podcast. David had become part owner of a team and a new women's
professional soccer league, The Angel City football club
set to begin playing next year. There are no available
numbers with this venture, but it's yet another loss for David. I don't know how it works with being forced out of an
investment venture like this. Does he keep his original investment? Does he keep an equity split
for publicly stepping down? I'm not able to provide any numbers, but he did have ownership in
a professional soccer team, that has to be a
reasonable amount of money. The point of this video is to show you how creators can make their money, and how damaging it can be financially for a creator to experience a brand hit. We've seen athletes go
through brand separation. Guys like tiger woods
back in 2010 come to mind, but now we're seeing it rather common in the creator community. I hope you were able to learn about the creator economy in this video. A lot of people I meet are still confused as to how YouTube is make their money. So hopefully you can
send this video to them, so they can see all the
ways to turn a platform into an empire. I never root for someone's failure, but David made some
questionable decisions, and is now facing the repercussions. My guess is he won't
return to making vlogs for YouTube like he was. He will go through a transitionary period like Logan Paul did, and will take some time to
gain people's trust back. His content will be more
mature when he returns. Whenever you have the
following that he does, he will always have
opportunities to make money. So he won't be going broke, even though the losses from this fallout are quite staggering. Anyway, I hope you've learned
something from this video. Being a creator is challenging, but the numbers you saw in
this video are the upside, if you ever make it big,
it's a lucrative career. Just don't do anything stupid because the fallout is very public. Thanks for watching. (suspenseful music)
