Zach Kornfeld and Keith Habersberger of Try Guys
JD RENES
The boys tryone of YouTube’s oldest groups of content creators, has successfully weaned itself off dependence on Google’s algorithm and Advertiser revenue by launching a standalone streaming service called 2nd Try. And it’s starting to pay off.
Brand partnerships, sponsored content and advertising have long been key revenue channels for creators, but some are moving away from the unpredictable world of algorithm-driven platforms to turn to subscription services for a more stable income.
“There is a business that is based on advertising “It’s very volatile and very unpredictable,” Try Guys co-founder Zach Kornfeld told CNBC in an interview. “There’s a lot of things beyond your controland we have certainly been through the worst. At best it is fragile. Corrosion and worst is explosion. And it also forces you to be creative in constantly optimizing things that aren’t always in the best interest of your target audience.”
With a potential TikTok ban looming almost wiped out $15 billion in annual revenue for small and medium sized businesses, and YouTube’s ad revenue growth is slowingCreators are looking for more reliable source of income in an increasingly volatile advertising market.
Try Guys currently has over 8 million subscribers and 2.7 billion views on YouTube. They have announced In May, they launched their streaming service, Second attemptwhere most of its new videos are behind a paywall, and subscribers can access exclusive content for about $5 a month without ads. In the three months since launching 2nd Try, the company says it is on track to become profitable.
Other creators are also trying to replicate Netflix’s subscription model. Entertainment Watcher And Drop out are two other popular YouTube channels that have launched subscription streaming services to avoid the volatility of social media algorithms.
Social media platforms rely on algorithms to decide what content users see, based on their past interactions and interests. Algorithms analyze user behavior to create personalized content feeds, often prioritizing posts that are likely to generate engagement, such as likes or shares. As a result, many creators feel pressured to create content that caters to algorithms, even if they believe it reduces the quality of their work, just to maintain visibility.
“We’re really happy with how things are going so far. It’s more than we ever thought we would be at this point,” said co-founder Keith Habersberger. “We have a long way to go. The goal isn’t to get to this number. The goal is to continue to grow and also continue to learn, and we’re going to make mistakes.”
Subscription platforms like Patreon allow creators to bypass the algorithm entirely, connecting directly with their most loyal fans who are willing to pay for exclusive content.
“It’s not a reliable source of income for creators, so I think over the years, creators have learned that and they’re looking for something more stable,” Jack Coyne, founder and CEO of Patreon, said in an interview with CNBC.
Try Guys found initial success with BuzzFeed before launching their independent creative project in 2018. However, they faced career-shaping internet scandal in 2022 when one of their co-founders and key talent was caught having an affair with another employee. This damaged the brand relationship and the company lost money to make new videos on YouTube.
“Our company has been operating at a loss for about two years,” Kornfeld said. “We got to the point where it cost more to produce shows that our audience loved than the money we were getting from YouTube.”
Revenue from 2nd Try accounts for about 20% of the company’s total sales. Try Guys will continue to post content on YouTube. The platform’s advertising payments remain a key part of their business model. However, Kornfeld and Habersberger emphasize that their primary focus is on growing 2nd Try into their largest source of revenue, along with merchandise sales and live tour.
