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I really recommend to read the full series because the analysis really nails this topic lucidly and mercilessly, revealing all the contradictions that such online services come with!
> If you ever wonder where is the trick behind suck market, Kevinsan's gemlogs are a must read!
The idea of doing some decent videos and making money out of them is truly appealing and I think anyone thought as a viable solution once or twice, especially if you aren't scared by computers.
You probably changed your mind after evaluating it because you felt it was wrong someways and you were right, as Kevinsan revealed just making accurate but basic math.
One thing that really catch my attention anytime is this peculiarity: in these platforms there is always an elite of users that suddenly become quickly popular and extremely riches; but why them and not others? You can compare their different content and is the same crap, thus what made them so successfully?
No, we cannot, by any means1 We can't put faith in these services ever, they are constantly trying to evade taxes or doing other illegal activities to improve their profit (check by yourself). This is enough to state those companies cannot be taken by their honesty. Based on these preconditions why are they supposed to tell you the truth about their global marketing strategies?
It is a true statement that any company should never break the trust their costumers put on their products or their brands, but what is happening here is something that nobody can directly measure. It is the same logic that applies to the Casinos, their goal is taking your money not let you win, however in their marketing communication you will never find such brutal reality. Those online services are using marketing strategies that if would be revealed will surely make their uploaders run away pretty upset too!
Loss leader is a (marketing) pricing strategy where you sell a valued product under priced in order to get more customers that eventually will buy also other products.
Those services that allow you to upload contents and making, hopefully, a lot of money out of it, look to fall into a variation of such strategy. In this case the under priced part is not the subscription but the content made by the same users!
They are conveying the perception that a cheap and, often ugly, video content is enough to create a ridiculous amount of money. The leverage here is that people must enganged dreaming: « I can do same if not even better »; people must feel it an easy and cheap win, something very feasible, as for the lottery as well as for the Casinos.
I do not have the evidences to confirm what I am writing about; but I have been working on the marketing side for my whole career so I know how marketers think and act!
I can't say if the top elite of any of these services are packed or simply pushed, but I am pretty sure those uploaders (and nothing excludes that them are contracted to produce crap content) received, at the very beginning of their "content" production of any kind, a big help from these platforms; for the latter is imperative making their services appealing for the uploaders and start to get a lot of new users on a growing regular base, even if this means cheating.
Because this is the whole point: having more and more people producing content and having more and more people consuming it. If by any chance someone is able to get money because it was, actually, smart enough to understand how to leverage the mechanism good for him/her/them, however these platforms as they can push you up they can also push you down. The "Uploaders elite" must engage new "prospect uploaders", but when they grow too much the risk to saturate the visibility of others and preventing "new "uploader" to come aboard is too high, when this critical point is reached they are usually removed an kicked out of the game! And this is probably the most visible trace that uploaders are just another tool in the big pictures. You can find on the internet the rants of many angry ex youtubers…
Lastly a lot of cheap marketing is doing through PR. Journalists and writers are more than happy to receive suggestion for something to write about and probably are even happier when after a generous article comes a gift or a present... who knows? Clearly risking the own professional reputation must must be conspicuously compensated!
For comments or suggestion write me at:
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