How do Youtube-creators lose their income overpaying the ordinary MCNs

Vidgum
3 min readApr 27, 2021

When a creator joins the partner network, from 5 to 30% of his income from his Youtube-channel now goes to this network or as it’s called — MCN. Modern MCN (multi-channel network) is a support, production and analytical center for Youtube-creators. But does the creator really need all the options he gets for this monthly volatile fee? Let’s see.

The most popular MCN services

The standard MCN service-set consists of quick tech support and easy payments. That’s also 2 of the 3 most popular options, which big channels (revenue 5 000 USD per month and more) use.

Top-3 the most popular services for large YouTube channels

Tech support means that a partner network’s support answers all creator’s questions and helps resolve issues that don’t even require the intervention of YouTube representatives. If you still need to contact YouTube, MCN staff will do it much quicker: they have priority over regular creators.

And the financial benefit of MCN is an option to withdraw any amount of money via various payment systems. There is no minimum threshold if you withdraw money with the help of a partner network, but if you work directly with Adsense, you can’t withdraw less than 100 USD at a time.

What about other options?

Of course, there are creators who use the rest of the partner network services when uploading any content: video optimization, design, localization, etc. But there are a number of creators who very rarely or even never use these services.

Due to recent research, made by one of major CIS MCNs, only 43% of bloggers with an income less than 5,000 USD use the design assistance, and 39% use the optimization service. More than half of bloggers pay with the percentage of their income for the services they’ve never even used!

Using of extra MCN options by creators

Besides, some popular creators have their own teams that help with creating and promoting their content. But they can only ask MCN for reducing the rate for channel support, that includes this useless (for them) option.

A creator may use extra MCN-options once or twice during the all partnership period. And it’s weird to pay for unnecessary service every month, if the MCN helped you with a video cover design only one time 2 years ago. Isn’t it?

What partner networks should do to become more transparent

The challenge for progressive MCNs is to create profitable terms for creators. Let them choose the features they really need and pay for it. It is much more convenient when the price for all extra options is fixed and clear. Whether it is a channel audit or an assistance with localisation.

The suitable solution is offered by Vidgum. It is the first YouTube partner network that offers to join with a 100/0 revenue share to all the creators. The company chose the pay-as-you-go approach.

For free Creators can use all the basic services:

  • quick tech support and channel protection;
  • express payments and more than 10 way to withdraw money;
  • a convenient personal account with access to a whole ecosystem;
  • opportunity to work with our ads agency.

If creators need additional features (video optimization, channel audit, thumbnail design, a personal manager, etc.), they can use them for an additional fee.

Content creation is changing as a sphere, and YouTube partner networks have to change with it, and that’s what happens with gradually decreasing percent of revenue share that connected creators pay to them. The next logical step of this transformation is such terms of cooperation when creators don’t have to pay a revenue share to their partner networks at all. Vidgum has implemented this model already. This is how the most transparent relationship between an MCN and a creator is formed.

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