Data
Methodology
The net worth was dervied from income generated from sources such as advertising, sponsorships, and merchandise. It then subtracts taxes and expenses.
Advertising revenue is calculated using Cost per Mille, which determines how much advertisers pay for one thousand views. It takes into account YouTube's 45% share of the revenue, and is dependent on the YouTuber's genre and audience. For example, a YouTuber with a $5 CPM, who posts a video once a week that generates 1M views (or 4M views per month), would earn (4,000,000/1,000) x $5 = $20,000 per month.
However, YouTubers make significantly more from sponsorships because advertisers are willing to pay more for being directly integrated into the video and personally endorsed by the creator. Sponsorship revenue is calculated using a higher CPM. We multiply the CPM with the total number of views, as well as the percentage of videos that are sponsored.
Merchandise is another important source of revenue. We looked at the retail prices on their shop page, and assuming most people would order the lower priced item such as a t-shirt, determined the average order value. This was then mulitplied with a conservative conversion rate, multiplied again by a gross profit margin (e.g. at a 25% margin, you would make a profit of $15 on a $60 hoodie).
Finally, we added other sources of revenue (such as podcasts, courses, business deals) and subtract for taxes, expenses, and value of their primary home (if data is available).
Advertising revenue is calculated using Cost per Mille, which determines how much advertisers pay for one thousand views. It takes into account YouTube's 45% share of the revenue, and is dependent on the YouTuber's genre and audience. For example, a YouTuber with a $5 CPM, who posts a video once a week that generates 1M views (or 4M views per month), would earn (4,000,000/1,000) x $5 = $20,000 per month.
However, YouTubers make significantly more from sponsorships because advertisers are willing to pay more for being directly integrated into the video and personally endorsed by the creator. Sponsorship revenue is calculated using a higher CPM. We multiply the CPM with the total number of views, as well as the percentage of videos that are sponsored.
Merchandise is another important source of revenue. We looked at the retail prices on their shop page, and assuming most people would order the lower priced item such as a t-shirt, determined the average order value. This was then mulitplied with a conservative conversion rate, multiplied again by a gross profit margin (e.g. at a 25% margin, you would make a profit of $15 on a $60 hoodie).
Finally, we added other sources of revenue (such as podcasts, courses, business deals) and subtract for taxes, expenses, and value of their primary home (if data is available).
About NWE
NetWorth Explained (NWE) is the world’s only publication transparently showing you the variables, thousands of calculations and detailed presumptions used to determine a person’s net worth. Others hide behind the excuse of a "proprietary algorithm," jargon that shields them from any criticism. Learn more