What Your Business Can Learn from YouTube Kids Channels

What Your Business Can Learn from YouTube Kids Channels

As a new father, I have spent more time in the company of various children’s characters and YouTube stars than I ever imagined. Like many other successful creators, they have managed to build valuable commercial concepts, and there is a wealth of knowledge to be gained for both businesses and organizations.

YouTube’s Partner Program rewards creators who can generate the highest number of views on the platform. However, in a small country with a small language, one might think it would be difficult to establish a financial foundation for producing high-quality local content on YouTube.

Yet, several creators still manage to build universes that, within a national context, achieve impressive levels of views and engagement—but how do they make it financially sustainable?

The Content Creator Business Model

If you look at successful children’s channels or niche educators, there are common traits that reveal their secret. They start by building a universe and publishing a wealth of quality content. They establish immense trust, reach, and a close relationship with their audience. Only then do they launch their revenue models.

It is, at its core, Content Marketing in its purest form. Whether you run a local gym, sell wine, or bake the town’s best sourdough, you can use this exact model to break through – without a massive marketing budget.

How YouTubers diversify their income:

  1. Physical Experiences and Ticket Sales
    Once the universe is established, physical events are introduced. For children’s universes, this includes theater shows and concerts, while for gaming and lifestyle YouTubers, it may involve Meet & Greets, talks, or event appearances.
  2. Physical and Digital Products
    A classic and highly profitable method is selling proprietary products directly to fans. This could include merchandise, books, board games, plush toys, or even digital products such as online courses and e-books.
  3. Direct Fan Funding
    Many creators receive donations via platforms like Patreon, YouTube Channel Memberships, or direct donations via MobilePay. Here, the audience pays a monthly fee for exclusive access, behind-the-scenes content, or early access to videos.
  4. Commercial Partnerships and Sponsorships
    YouTubers can enter partnerships where an entire video is sponsored and built around a brand or product. Examples include taste tests, product reviews, or travel videos produced in collaboration with a travel agency partner.
  5. Affiliate Marketing
    YouTubers can enter referral agreements where they earn money every time they drive traffic or sales to a partner. This is often managed through unique discount codes or tracking links in the video description.
  6. Cross-Media Expansion
    Some of the largest Danish YouTubers use their success on the platform as a springboard to traditional media. They land TV shows, publish bestsellers with established publishing houses, or produce successful podcasts.
  7. Optimization of Ad Revenue
    Creators with an adult, high-purchasing-power audience (e.g., within finance, tech, or automotive) can achieve a very high RPM (the revenue a creator earns per 1,000 views). This means that even fewer views can generate a significant, though rarely fully sufficient, income.

Millennials: The New Power Buyers

To understand why this strategy is so effective right now, we need to look at who is spending the money. My generation—Millennials—is now firmly established as the primary and most attractive buyer group, especially for young families.

We grew up alongside the maturing internet. In uncertain times, we turn to what we know and trust. For us, YouTube isn’t just entertainment; it’s the world’s second-largest search engine. When we need to learn how to fix a leaky faucet, tie a tie, or choose a software subscription, we don’t look for a text-heavy manual. We look for a video where a human being shows us exactly what to do.

The Case of the Hardware Store: Selling Certainty

Years ago, Jem & Fix – a danish hardware chail – was one of the prime Danish examples of a company that successfully established a succesful presence on YouTube. Instead of solely pouring millions into printed circulars, Jem & Fix teamed up with DIY content creator to produce a massive library of “How-to” videos.

The concept behind the channel was clear and distinct: they purchased a classic 1970s house and renovated it from top to bottom using the store’s own products—using the entire renovation process to create instructional videos.

They produced high-quality free content with a chronological narrative. It functioned almost like a TV series, where viewers followed along video-by-video to see the final result of the renovation.

In practice, this meant that when a homeowner stood there on a Saturday morning ready to build a wooden deck for the first time, they followed Jem & Fix’s guide step-by-step. Naturally, the guide recommended specific screws and brackets (sold at Jem & Fix), and the homeowner simply didn’t dare deviate from the instructions by buying a different brand than the one used by the expert in the video. Through this, Jem & Fix wasn’t just selling building materials; they were selling peace of mind.

Jem & Fix Lost Focus and the Magic Vanished

After the partnership ended, it is evident that Jem & Fix failed to remain loyal to what made users subscribe to their channel in the first place. The chronological storytelling disappeared, and the channel turned into a library of branding videos and a few monotonous voiceover tutorials.

The newer instructional videos are an attempt to recapture the magic—but the concept has undergone a round of “enshittification.” The focus shifted toward removing dependency on a specific personality, making production cheap, and ensuring easy translation for different languages. This has compromised the quality—a fact reflected in the interactions on their videos, which are virtually vanished.

Why Video Works

It is not just a gut feeling that video is the most effective way to capture customer attention. The data supports it overwhelmingly:

  • We want to watch, not read
    According to the renowned State of Video Marketing report from Wyzowl (2024), a full 72% of consumers prefer learning about a product or service via video rather than reading text.
  • It drives sales
    Wyzowl’s data also shows that 84% of consumers have been convinced to buy a product or service after watching a company’s video.
  • “How-to” videos are popular
    Data from Think with Google shows that “How-to” content is one of the four most-watched categories on YouTube overall. People use the platform to solve specific problems in their daily lives.

In short: The one who helps the customer understand their problem is also the one the customer ends up buying the solution from. In psychology, this is called reciprocity—we feel a natural urge to give something back to those who have helped us.

3 Practical Concepts You Can Use Right Now

You don’t need to reinvent the wheel. All it takes is taking your professional expertise and sharing it in front of the camera. Here are three practical examples:

  1. The Local Gym: Remove “Gym-timidation”
    Many beginners are afraid to start at a gym because they fear looking foolish on the machines. Create a video library where you systematically and down-to-earth explain every single machine. “How to adjust the leg press correctly.” “3 things to remember when using the rowing machine.” By doing this, you remove the fear. When the customer finally walks through the door, they already feel like they know your equipment—and you.
  2. The Wine Merchant: From Commodity to Storytelling
    Start a weekly video podcast or short “Bottle of the Week” videos. Pour a glass, tell the story of the winemaker, and be very specific about which everyday meals the wine pairs with (e.g., “This is the perfect wine for Friday’s frozen pizza”). When the customer is in the shop (or on the webshop), they will choose the bottle they have a connection to. You have elevated yourself to their “personal sommelier.”
  3. The Baker: Share Your Secrets
    Many fear that if they share their recipes, they will lose customers—but sharing a recipe is one thing; it still requires craftsmanship. Show people how you score your sourdough bread. Share a “food hack” on how to revive a day-old roll or how to fold a croissant. You are positioning yourself as the expert. People will love the videos, but very few have the energy to bake sourdough bread themselves at 5:00 AM on a Sunday morning—so they’ll go down and buy it from the master (you).

The biggest obstacle to getting started on YouTube is the belief that your equipment has to be top-tier. Forget about expensive cameras and lighting setups. Modern smartphones record in fantastic quality.

Stand in front of a window (daylight is free and best), perhaps buy a good wireless microphone from a brand like DJI or Røde (good audio is more important than a 4K image), and hit “Record.” Your customers want authenticity and good advice, not a Hollywood production.

Building a universe takes time, whether you are a major children’s brand or run a local plumbing business. But the content you produce today consists of digital assets that will continue to appear in YouTube’s search engine and help you acquire customers for years to come.

FAQ

Why is YouTube important for my small business?

Since YouTube is owned by Google and is a massive search engine, your videos act as permanent, searchable content that builds trust with customers long before they ever contact you.

What is “How-to” marketing?

It is a strategy where you focus on answering your target audience’s questions and solving their problems for free, rather than just shouting about your products.

What equipment do I need to start?

A modern smartphone, a good light source (the sun), and a basic external microphone (like a DJI or Røde) to ensure your message is heard clearly.