A multichannel network (MCN) is an organization that helps YouTube creators manage and grow their channels. If you’re considering joining one, it’s important to understand how they work and the trade-offs involved. 

What is a multichannel network?

A multichannel network works with YouTube creators to help them grow and monetize their following. For example, an MCN may help creators optimize their YouTube channel and develop a content strategy. It may also offer guidance on improving the video quality and reaching a larger audience.

MCNs may also help YouTube creators find advertising and sponsorship opportunities. And MCNs can facilitate partnerships with other creators in their network so both parties can grow their following and reach larger audiences. 

Pros and cons of joining an MCN

Pros

  • Audience growth: When you join an MCN, the team analyzes who is visiting your channel and helps you come up with a plan to grow your audience. This saves you from having to try lots of different strategies yourself and possibly wasting time.
  • Content strategy: Once you understand your target audience, an MCN can also help you develop a content strategy and figure out how to monetize your content. This can help you grow your channel and begin putting out quality content from the beginning.
  • Support in resolving issues: YouTube’s rules are constantly changing, and if you aren’t familiar with the company’s rules, it’s easy to get a strike against your account. An MCN won’t prevent copyright claims or strikes, but it can provide support and help you resolve any issues that arise. 

Cons

  • Less flexibility and control: An MCN could make it harder for you to maintain full control over your content since it may license or claim the rights to your content. You also may have to sign a three- to five-year contract.     
  • Less money: MCNs will take a percentage of any revenue stream you’re bringing in, like ads or sponsorships, which means less money in your pocket.
  • Required quotas: Depending on the terms of your contract, your MCN may require you to meet monthly quotas. If you can’t meet these performance metrics, you could be dropped from the network. 
When you join an MCN, the team analyzes who is visiting your channel and helps you come up with a plan to grow your audience.

Revenue sharing models for creators

Before joining an MCN, you need to understand how the revenue will be shared. MCNs earn money by taking a percentage of the revenue generated by their creators, but these agreements can be structured in a variety of ways:

  • Flat percentage split: Many MCNs take a flat percentage of your channel’s total revenue, ranging anywhere from 1% to 50%, depending on your agreement.
  • Tiered model: To stay competitive, some MCNs will agree to a tiered model where you’ll get to keep a higher share of your revenue as your channel grows. This structure rewards you for growth, but makes it harder for smaller creators.
  • Service-based model: Some MCNs only take a percentage of certain revenue streams, like AdSense or brand sponsorships, while leaving others untouched.
  • Hybrid model: Some MCNs do a combination of a percentage split and a service-based model. For example, they might take a lower percentage across the board while charging more for premium services.  

Contracts and rights to watch for

MCN contracts are legally binding, so you want to understand what you’re agreeing to first. Start by reading through your agreement and making sure you understand the duration of your contract and any fees the network charges.

It’s also important to understand what your obligation to the network is. For example, some contracts require creators to produce a certain number of videos per month or maintain certain performance benchmarks. If you’re unable to meet these requirements, you could be dropped from the network. 

You should also pay attention to what kind of ownership the MCN has over your content. Some MCNs can claim partial ownership while you’re under contract, which could limit your creative freedom or how you use that content in the future. Others may control how brand partnerships are handled, so you have less say in choosing which companies you work with. 

Finally, consider having a lawyer review the contract before signing. An experienced attorney can explain the fine print so you understand what you’re getting from this agreement and what you’ll be giving up. 

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

Published