Zach Kornfield and Keith Habersberger of Try Guys
Renes
try guysOne of YouTube's most well-known creator groups has successfully abandoned its reliance on Google algorithms and advertiser revenue by launching an independent streaming service called 2nd Try. It's already starting to pay off.
Brand partnerships, sponsored content, and advertising have long been the main revenue channels for creators, but some creators are turning from the unpredictable world of algorithm-driven platforms to subscription services for more stable income.
“Businesses that rely on advertising are very volatile and unpredictable,” Try Guys co-founder Zach Kornfeld said in an interview with CNBC. “There are so many things that are out of your control, and we've certainly been through the worst. On the bright side. Say, it's fragile. At worst, it's corrosive and explosive. And it also forces you to creatively optimize for things that aren't always in your audience's best interest.
Potential TikTok ban could wipe out almost everyone Annual revenue of $15 billion For small and medium-sized businesses, and as YouTube's advertising revenue growth slows, creators are seeking more reliable revenue streams in an increasingly volatile advertising market.
Try Guys currently has over 8 million subscribers and 2.7 billion views on YouTube. they announced Launching their streaming service in May, second trymost of their new videos are available for a fee, and subscribers only pay around $5 per month to access exclusive content without advertising. The company said it is on track to be profitable within three months of launching 2nd Try.
Other creators are also trying to recreate Netflix's subscription model. Watchman Entertainment and drop out are two other popular YouTube channels that have launched subscription-based streaming services to avoid the volatility of social media algorithms.
Social media platforms rely on algorithms to determine what content users see based on their past interactions and preferences. These algorithms analyze user behavior to create personalized content sources, which often prioritize posts that are likely to generate engagement, such as likes or shares. As a result, many creators feel pressured to produce content that caters to the algorithm, even if they think it will reduce the quality of their work, just to stay visible.
“We're very pleased with the progress so far. It's beyond our current expectations,” said co-founder Keith Habersberger. “We still have a long way to go. The goal is not to reach That number. The goal is to keep growing and keep learning, and we will make mistakes.”
Subscription platforms like Patreon allow creators to bypass the algorithm entirely and connect directly with their most loyal fans who are willing to pay for exclusive content.
Patreon founder and CEO Jack Coyne said in an interview with CNBC: “It's not a reliable source of income for creative people, so I think creators have recognized this over the years and they are looking for more. Stable stuff.
Try Guys found early success with BuzzFeed before launching a solo creative venture in 2018. A career-defining internet scandal In 2022, one of their co-founders and key talent was caught having an affair with another employee. It damaged brand relationships and the company was bleeding money while making new YouTube videos.
“Our company has been basically losing money for two years. It costs us more money to create shows that our audiences love than we make from YouTube,” Kornfeld said.
Revenue from the second attempt accounted for approximately 20% of the company's total sales. Try Guys will continue to publish content on YouTube. The platform's advertising payments remain an important part of its business model. However, Kornfeld and Habersberg emphasized that their primary focus is on growing the second attempt to become their largest source of revenue, along with merchandise sales and live tour.
