When you see a YouTube channel with a million followers, you might assume that the channel’s creator is a millionaire.
Many creators with large audiences struggle to convert their views into revenue.
Their main problem: lack of focus.
Many creators (even the biggest channels try to appeal to as many people as possible.
They cover a wide range of topics, aiming for mass appeal and chasing viral content.
While this strategy can lead to high view counts, it often results in a fragmented audience with diverse interests.
But you try to monetize your content, you face a dilemma: your products (or services) appeal to only a small fraction of their audience, making it difficult to convert viewers into customers.
A tried and test marketing mantra says:
“When you try to appeal to everyone, you’ll appeal to no one”
The Power of Niche Focus
Smaller channels that focus on a specific niche can build highly engaged audiences who trust the creator’s expertise on a particular subject.
This trust is invaluable when it comes time to offer a paid product or service.
Because the creator has consistently proved and provided valuable content that addresses a specific problem.
Their audience is more likely to purchase a solution tailored to that problem.
Let’s consider two hypothetical YouTube channels in the health niche:
- Channel One has spent five years building a large audience by covering a wide range of topics, from productivity hacks to mental health tips.
The creator is well-known, but their content is broad and aimed at attracting as many viewers as possible. - Channel Two is much smaller and has only been active for a year.
However, this channel focuses exclusively on helping people become more productive by implementing simple systems in their daily lives.
Every video is targeted at solving this one specific problem.
Despite its smaller audience, Channel Two is on the verge of generating more income than Channel One. Why? Because every subscriber of Channel Two shares the same problem, and they trust the creator to help them solve it.
When Channel Two offers a paid course or coaching service, the conversion rate is much higher than Channel One’s, where only a fraction of the audience is interested in any given product.
I have experienced this first-hand with my YouTube channels.
I wanted views and was afraid to alienate viewers.
But alienating viewers (in the right way), filters out the people that don’t buy.
You put in a lot of work and effort, but when nobody wants to buy, it is all for nothing.
4 steps: Building a Profitable YouTube Channel.
I have broken down this process in 4 steps (PISS):
1. Identify a Big Problem (P)
The first step is to identify a big problem that viewers have, and you have expertise to solve it.
This problem should be significant enough that people are actively seeking solutions.
The more “painful” or urgent the problem, the more likely people are willing to pay for a solution to fix it.
There is a pitfall however:
If your focus is too narrow (e.g., “How to feed a cat at sunday 4PM”), you’ll struggle to find an audience. However, if your focus is too broad (e.g., “How can you be happy”), you’ll have a hard time standing out in a crowded market.
2. Share Information for Free (I)
Once you’ve identified the problem, the next step is to share information that helps solve it.
This is where your YouTube video comes in.
Your goal is to provide as much value as possible for free, which builds trust with your audience.
By consistently offering valuable insights, tips, and strategies, you position yourself as an authority on the subject.
Over time, your viewers will come to see you as the go-to person for solving their specific problem. This trust is crucial when it comes time to monetize your channel.
Powertip:
Give your best advice away for free
Yes, you should give your best advice away for free.
If viewers want to know more, they can consult you.
You will be amazed how many people want more information.
For example, if your channel is about helping people become more productive, you might create videos on topics like “5 Simple Systems to Boost Your Daily Productivity” or “How to Stay Focused in a Distracting World.”
Each video should address a specific aspect of the problem and provide actionable advice that viewers can implement immediately.
Because this communicates that your payed advice is at least as helpful.
3. Create and Sell a Solution (S)
After you’ve starting to gather a loyal YouTube audience by solving their problem, it’s time to create a paid solution.
This could be a course, a coaching program, a community group, or a one-on-one consulting service.
The key is to ensure that your product offers a comprehensive solution to the problem you’ve been addressing in your free content.
When creating your product, keep it simple to start with.
You don’t need to create a massive, complex course right off the bat.
Instead, focus on delivering a specific result.
For example, you might offer a “30-Day Productivity Challenge” where participants receive daily tasks and guidance to help them build new habits and become more productive.
Because your audience already trusts you and values your expertise, they’ll be more likely to purchase your product when you launch it. And since your content has consistently focused on solving a specific problem, your product will feel like a natural extension of what you’ve already been offering for free.
4. Provide Exceptional Service (S)
The final step in the process is to go above and beyond serving your customers.
This is where you can differentiate yourself from others in your niche.
This might generate positive word-of-mouth, which work even better to sell than YouTube videos.
For instance, if someone purchases your course, you might send them a personalized thank-you email, or even a handwritten note if you’re selling a higher-priced product.
Small gestures like this can make a big impact, showing your customers that you genuinely care about their success.
Another example is offering additional support, such as a Q&A session or a private Facebook group where participants can ask questions and share their progress.
By creating a supportive community around your product, you increase the perceived value of your offering and make it more likely that customers will recommend you to others.
Conclusion
The goal isn’t to become famous, it’s to become known for solving a specific problem very well.