The Try Guys' subscription model has rapidly gained popularity on YouTube.

• Creators are seeking more reliable income sources in an increasingly volatile advertising market.
• The Try Guys have shifted away from relying on Google's algorithms and advertiser revenue by introducing their own streaming service, known as 2nd Try.
• Patreon subscription platforms enable creators to bypass algorithms and connect directly with their most devoted fans, who are willing to pay for exclusive content.

The Try Guys, a well-known YouTube creator group, have successfully shifted away from relying on Google's algorithms and advertiser revenue by launching their own streaming service, 2nd Try. As a result, they are already seeing positive results.

"Zach Kornfeld, co-founder of Try Guys, stated in an interview with CNBC that having a business that heavily relies on ads is highly unstable and unpredictable. He explained that there are many factors beyond one's control, and the Try Guys team has certainly experienced the worst of it. The situation is precarious at best and can be corrosive and explosive at its worst. Additionally, it forces businesses to constantly optimize for things that may not always be in the best interest of their audience."

Small and medium businesses face a potential TikTok ban that could wipe out nearly $15 billion in annual revenue, while YouTube's ad revenue growth is slowing. As a result, creators are looking for more stable sources of income in an unpredictable advertising landscape.

The Try Guys have over 8 million subscribers and 2.7 billion views on YouTube. They launched their streaming service, 2nd Try, in May, which features most of their new videos behind a paywall. Subscribers can access exclusive content for around $5 a month without ads. In the three months since launching 2nd Try, the company is on track to reach profitability.

Other YouTubers are also attempting to replicate the Netflix subscription model, like Watcher Entertainment and Dropout, who have launched their own subscription-based streaming services to avoid the unpredictability of social media algorithms.

"Co-founder Keith Habersberger stated, "We are thrilled with our progress so far. Although it exceeds our initial expectations, our ultimate goal is not to reach this specific number. Instead, our aim is to continue growing and learning, which may involve making mistakes.""

Patreon subscription platforms enable creators to bypass algorithms and connect directly with their most devoted fans, who are willing to pay for exclusive content.

Jack Coyne, founder and CEO of Patreon, stated in an interview with CNBC that the platform is not a dependable source of income for creative individuals. Over time, creators have realized this and are now seeking a more stable alternative.

Despite early success with BuzzFeed, Try Guys faced a career-defining internet scandal in 2022 when one of their co-founders and main talent was caught having an affair with another employee. This damaged brand relationships and caused the company to hemorrhage money while making new YouTube videos.

Kornfeld stated that our company incurred a loss for nearly two years. At some point, it became more expensive for us to produce the shows our audience enjoyed than we earned from YouTube.

The Try Guys' revenue from 2nd Try accounts for approximately 20% of their total sales. Despite the importance of ad payments on the platform's business model, Kornfeld and Habersberger emphasize that their primary focus is on growing 2nd Try as their primary source of income, alongside merchandise sales and live touring.