How much money does a sponsor give to LMG?

[matetx2012]

First of all, I know this forum, it is like reddit so I don't expect any quality reply from this question.
I am not a hater, I am just plain curious. I follow them since 2010 and I'm only happy to see that they're successful.

The question still stands because honestly it might prove useful to me in the future if I reach such a level of "popularity".

 

How much do they get per sponsor? I know it depends, that it's variable and the sponsor name and "size" matters a lot, I'm also assuming there's some sort of NDA on that information but still, an estimate would be nice.

You can feel free to estimate (using that inch of your brain that can answer seriously and not with memes and other retarded stuff) a quote, and we'll discuss if it makes sense.

 

Sponsors like Ting, TunnelBear, SquareSpace, DBrand... how much do they give him?

Usually he does receive free stuff for reviews/projects from brands like Intel, Razer, Seagate but what about those that just buy Ad Space? I'm curious.

 

[Myxzoid]

$1.00 to $20,000 or as high as $50,000 maybe even higher hard to say.And they wont say.

[matetx2012]

Just now, Myxzoid said:

$1.00 to $20,000 or as high as $50,000 maybe even higher hard to say.And they wont say.

Those figures are per month? per year? On what brand would you put those figures?

[Skanky Sylveon]

Enough to continue what he is doing.

[matetx2012]

1 minute ago, Cinnabar Sonar said:

Enough to continue what he is doing.

How much then?

[Skanky Sylveon]

Just now, matetx2012 said:

How much then?

No idea.  Linus never stated exact numbers, and to be frank, it's none of our business.

He might not even be allowed to disclose that information.

[captain_to_fire]

What is with the obsession on how much they earn or how much their sponsors pay them? 

[Akolyte]

Well my best guess would be that LTT makes quite a decent amount in sponsor money.  My guess is they make around $250,000 annually from sponsors.  I would imagine they also make money from floatplane and advertising here on their forum. 

 

My guess is LinusTechTips does take a decent amount to run, they probably have to rent a pretty high-power server for the forum, or host it in house which probably wouldn't be the best idea for privacy & security concerns (as well as redundancy and uptime). 

 

The deal is we have to consider all of the resources they must maintain to continue running, including staff, servers, video equipment, rent (the warehouse). However, we also shouldn't deny the possibility that LinusTechTips might potentially have sold off shares, and thus have corperate investors (like perhaps some of the sponsors) or they might own other investments like third party businesses, or own shares in retailers (perhaps LTT owns a small portion of NCIX?)

 

This is pure speculation, so don't take any of this literally, just some things to consider.  But my guess is $250,000 annually from sponsors.

[PCBjon]

Enough to keep his business going and thats all we need to know. He doesn't need to be transparent with his audience.

[TetraSky]

I'm sorry, but the only answer to this is :
"None of your business".
 

Asking how much someone makes is rude.
 

If you want to know how much the average sponsorship on youtube pays, just google the answer, you should find it really easily, but as far as LMG is concerned, I'm pretty sure Linus has said in the past they wouldn't disclose those numbers.

[Keystone Nyan Cat]

^{_{I'm currently bored so I'm sorry for mathing this out because how much money you make is none of my business.}}

Let's do some math here and take how much they might be making on minimum per day.

 

LMG has 17 employees. Minimum wage in Canada is $11.6 per hour, so by that logic (this is a conservative estimate. Linus previously mentioned during a WAN show that he pays employees above the minimum wage as is the case for Dennis as to employ non-Canadians- you need to be paying them a better wage than someone otherwise competent from Canada would be receiving)-

Min. Wage * 8 Hour Day * 25 days a week * 17 employees
$14 * 8hours * 25days * 17workers = $47,600
Total = $47,600

 

Pulling Warehouse renting prices from here (Assuming he's not flat out bought the warehouse ofcouse) and taking rent on the lower end of the spectrum for renting out the full thing-

Price per square foot in CAD per month- $0.6
Square foot of LMG headquarters- 25,000?
Total = $15,000 + $47,600 = $62,600

 

Now let's put money aside on average (once again, conservative lower-end of the spectrum estimate) for emergencies, repairs, upkeep, and unexpected purchases and planned purchases at $20,000 per month going by the REDs he bought, which places us at $82,600.

 

Now let's do some more math- LMG has diversified their income group based on their video here, where they've also mentioned about 12.5% of their income comes from preroll ads; making this now-

Percent accounted from pre-roll ads and integrations= 0.125 or 12.5%
Amount accounted for from total expenditure = $82,600*0.125 = $10,325 per month
Amount per day/ pre-roll integration = $10,325/30days = ~$350

 

This is pretty much on the really low end of the spectrum as all our calculations have been really conservative- it's far more likely that

• LMG pays their employees above minimum wage,
• Has more employees than listed on the linusmediagroup website (we know that there are part-time devs working on floatplane.com who are probably compensated something at the very least)
• the price he pays for rent and utilities is double of what we've estimated, not to mention we've not even taken into account internet which because they're a media powerhouse, have an expensive commercial line, and he
• makes much more big budget purchases than what we're shown on camera (for instance- he probably payed atleast in some part for his security system, camera gear, etc.)
• and has insurance scheme and bonuses for his employees
• other maintenance fees for the forums, off-site backups for all their footage, etc.
• Have legal fees/ consulting fees for things like copyright strikes, unofficial hostings of pre-release content, etc.

That come together to probably triple of quadruple the amount they are spending each month- and by that effect- how much he charges on preroll ads.

 

Going by this- each preroll sponsor probably accounts for anything between $750-$2500 per integration.

_{^{Welp- time for me to go back and finish my homework; my chat app isn't going to build itself. Also- goodjob LMG on the forums! My computer blue-screened and when I came back- I think the forums cached/ saved whatever I was typing in it, saving me a lot of time!}}

[Arika]

37 minutes ago, matetx2012 said:

What is this obsession with licking their boots as good as you possibly can? Do you expect a reward in return.

The cringe.

 

It's literally none of out business nor should it matter in any capacity. They are not obligated to disclose how much money they make. 

 

In fact i find it cringey to ask how much they make.

 

[LienusLateTips]

15 minutes ago, Keystone Nyan Cat said:

^{_{I'm currently bored so I'm sorry for mathing this out because how much money you make is none of my business.}}

Let's do some math here and take how much they might be making on minimum per day.

 

LMG has 17 employees. Minimum wage in Canada is $11.6 per hour, so by that logic (this is a conservative estimate. Linus previously mentioned during a WAN show that he pays employees above the minimum wage as is the case for Dennis as to employ non-Canadians- you need to be paying them a better wage than someone otherwise competent from Canada would be receiving)-

Min. Wage * 8 Hour Day * 25 days a week * 17 employees
$14 * 8hours * 25days * 17workers = $47,600
Total = $47,600

 

Pulling Warehouse renting prices from here (Assuming he's not flat out bought the warehouse ofcouse) and taking rent on the lower end of the spectrum for renting out the full thing-

Price per square foot in CAD per month- $0.6
Square foot of LMG headquarters- 25,000?
Total = $15,000 + $47,600 = $62,600

 

Now let's put money aside on average (once again, conservative lower-end of the spectrum estimate) for emergencies, repairs, upkeep, and unexpected purchases and planned purchases at $20,000 per month going by the REDs he bought, which places us at $82,600.

 

Now let's do some more math- LMG has diversified their income group based on their video here, where they've also mentioned about 12.5% of their income comes from preroll ads; making this now-

Percent accounted from pre-roll ads and integrations= 0.125 or 12.5%
Amount accounted for from total expenditure = $82,600*0.125 = $10,325 per month
Amount per day/ pre-roll integration = $10,325/30days = ~$350

 

This is pretty much on the really low end of the spectrum as all our calculations have been really conservative- it's far more likely that

• LMG pays their employees above minimum wage,
• Has more employees than listed on the linusmediagroup website (we know that there are part-time devs working on floatplane.com who are probably compensated something at the very least)
• the price he pays for rent and utilities is double of what we've estimated, not to mention we've not even taken into account internet which because they're a media powerhouse, have an expensive commercial line, and he
• makes much more big budget purchases than what we're shown on camera (for instance- he probably payed atleast in some part for his security system, camera gear, etc.)
• and has insurance scheme and bonuses for his employees
• other maintenance fees for the forums, off-site backups for all their footage, etc.
• Have legal fees/ consulting fees for things like copyright strikes, unofficial hostings of pre-release content, etc.

That come together to probably triple of quadruple the amount they are spending each month- and by that effect- how much he charges on preroll ads.

 

Going by this- each preroll sponsor probably accounts for anything between $750-$2500 per integration.

_{^{Welp- time for me to go back and finish my homework; my chat app isn't going to build itself. Also- goodjob LMG on the forums! My computer blue-screened and when I came back- I think the forums cached/ saved whatever I was typing in it, saving me a lot of time!}}

Minimum wage in BC is only $11.35

And if you did this 2 months ago it was only $10.45.

[LienusLateTips]

Honestly I find it not our business to guess how much money they make, but I personally don't think its rude.

[Myxzoid]

3 hours ago, matetx2012 said:

Those figures are per month? per year? On what brand would you put those figures?

Would depend on the contract EX: 3 spots on Wan show for $10,000 type stuff, I know some of the Big streamers can $5,000-$20,000 to stream a game for 8hrs.

 

 

[Keystone Nyan Cat]

@JDE- Based on what I've read online- it's going up to $14 in January.

 

Like I said in my post- this is a conservative low-sided estimate- he's probably paying his employees more than $14 a month as was previously hinted from a WAN show; so it will probably be more than $14 in January anyways

[Skanky Sylveon]

44 minutes ago, matetx2012 said:

What is this obsession with licking their boots as good as you possibly can? Do you expect a reward in return.

The cringe.

First off, you didn't answer @hey_yo_s question.

Second off, holy shit dude!  You state that this forum is like Reddit, yet this is the most Reddit like reply on this thread.

[Max_Settings]

2 hours ago, Mike_The_B0ss said:

Well my best guess would be that LTT makes quite a decent amount in sponsor money.  My guess is they make around $250,000 annually from sponsors.  I would imagine they also make money from floatplane and advertising here on their forum. 

 

My guess is LinusTechTips does take a decent amount to run, they probably have to rent a pretty high-power server for the forum, or host it in house which probably wouldn't be the best idea for privacy & security concerns (as well as redundancy and uptime). 

 

The deal is we have to consider all of the resources they must maintain to continue running, including staff, servers, video equipment, rent (the warehouse). However, we also shouldn't deny the possibility that LinusTechTips might potentially have sold off shares, and thus have corperate investors (like perhaps some of the sponsors) or they might own other investments like third party businesses, or own shares in retailers (perhaps LTT owns a small portion of NCIX?)

 

This is pure speculation, so don't take any of this literally, just some things to consider.  But my guess is $250,000 annually from sponsors.

He has to be making at least double that to be able to pay all his employees and pay for all his operating costs.

[SansVarnic]

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