I publish quarterly breakdowns of the income and expenses involved in running the Noel Philips YouTube channel, and our operating company IFV Media. The reason for this is to maintain transparency, and hopefully to inspire other people who may wish to undertake their own YouTube journey.
Total income for Quarter 2: $151.705.62
Quarter 2 was a fantastic quarter in terms of the channel performance. This quarter was when I released the content from my India trip, which was very well received outside of India (but attracted a lot of criticism from within India, which was tough to deal with at times). The content however performed incredibly well and almost every video achieved videos in the several hundred thousands. By the end of the quarter we had grown the YouTube channel to over 340,000 subscribers. Our biggest video this quarter was the Indian Sleeper Train video, achieved over half a million views on YouTube. Closely behind it was Air India’s 787 video which also performed well.
Aside from the India series, the big surprise this quarter was my Loganair video, taking Britain’s longest domestic flight. I hadn’t expected much from this video however it performed incredibly well.
Ad Revenue from YouTube/Facebook: $117,930.36
As usual, advertising revenue was our primary source of income in quarter 2. Facebook picked up slightly this month, and was almost back to previous months in terms of ad revenue. However YouTube grew more, and still outperformed Facebook considerably this quarter.
Brand deals (Sponsored Videos) $21,750.00
We only take brand deals from brands that would be a good fit for our audience. We are approached by brands almost every day asking to work with us, and only select a handful each month to include in the videos. We choose our brand sponsors based on three core criteria:
- Is it relevant to our brand or audience?
- Is it ethical?
- Is it likely to cause a conflict of interest?
The first two are pretty self explanatory – any brand we work with has to be relevant to either our brand or something our audience would benefit from. It also has to be ethical – we’ve refused to work with several brands who have come to us because it simply would not feel right. For example. gambling and cryptocurrency are a huge no-no. The last one concerns whether a sponsor is likely to cause a conflict of interest. We will never take money (or even free flights) from any airlines in exchange for a review. We were offered free flights from two major airlines in the first quarter, one of which we turned down entirely and the other we filmed with but I paid for my own ticket in the interest of an impartial review.
Quarter 2 was a good month for sponsors. We attracted a number of new sponsors who are very pleased with the performance of our brand deals. For the first time ever, we are now fully booked up in terms of contracted sponsor slots for the forseeable future, which is fantastic news in terms of brand confidence in our videos.
Patreon supporters $10,369.25
Our Patreon supporters remain an integral part of our business, and we appreciate every single one of them. The support our Patrons give is invaluable not only financially but also from a support perspective via our WhatsApp group and the Zoom calls. The number of Patreons increased slightly from Q1, with some new Patreons and some older Patreons having to stop.
Merchandise sales: $2,703.52
Our merchandise sales increased significantly in quarter 2. We aren’t entirely sure what accounted for this increase – but higher viewership of the videos likely was the main contributor to this.
Travel expenses accounted for $36,132.21 in quarter 2, predominantly on flights and hotels. This includes hotels on my India trip, as well as flights and hotels for my Africa trip, and flights for my Australia/Asia trip that will take place in Q3.
We had to pay our corporation tax bill in the UK of over £10K / $12K which accounted for a significant chunk of this quarter’s expenses. Additionally we employed a social media attorney this quarter to represent us in future brand deals and contract negotiations, which accounted for $7,000 in set up fees and the work we have employed them for so far.
The remaining profits from quarter 2 remain in the company to invest into future trips, or are invested into savings in our ‘rainy day’ funds, that we keep as a backup in the event of income suddenly dropping for any reason in the future.