Need advice from the business minded : kids youtube channel conflict

[Disneyplanners]

Hi everyone! I could use some advice on how to come to a fair resolution for my kids and their youtube channel. How everything has played out is complicated, so I'll explain.

DS12 created a youtube channel for himself in 2016. He created pokemon videos just for fun and had a few subscribers. He received a capture card for his birthday in late 2017, and started making video game videos. One of the first ones he made became very popular at one point and continues to be.

DS15 had his own channel as well, but didn't do a lot with it. He started making the video game videos as well, for DS12's channel, and the boys were working together well. Many of the videos the boys did together.

Into the spring 2018 the channel starts receiving a lot of subscribers and a lot of views on their videos. DS15 is contributing more now, the boys agree that they will share the channel. DS15 starts doing live streams of video game play on it.

Over the summer, DS12 starts to get edged out a bit. DS 15 kind of takes ownership of it with the live streaming. The boys have put in to monetize the channel months ago, but the process is long. DS 15 takes the channel over and DS12 agrees to it and starts up a new channel. I tried to let the boys come to an agreement on their own without DS12 getting the short end of the stick. I told them when the monetization came through, they would have to share the profits 50/50.

The channel has been now earning $ for three months, and the amount coming in is more than we all thought. About $275 a month, which is a lot to them. DS15 is now being surly about giving DS12 his 50%. His arguments are that the channel gained popularity when he took it over and he's has been making videos for the channel on his own.

I just checked, and right now 89% of the channels revenue comes from the popular video DS12 made. I'd like to get this resolved and put in writing so their will be no more discussion or conflict about it. I still think the boys should share the profit 50/50, and probably should do that for the life of the channel, since that is what we all initially agreed to.

Right now the $ is being put into an account that belongs to DS15. We have not yet asked him to pull any $ out to give to DS12.

Can anyone give some insight on a more fair way to do this? I don't want this to be a problem when DS15 leaves our home, and is harder to force him to share the $. Should we set up a joint paypal and is that even possible? We also have to decide a way to fairly set aside $ to pay the taxes.

Thanks for any direction with this, I did not see a lot of this coming, or I would have handled it differently and told DS15 to stay with his own channel.

 

[buzzrelly]

Yikes. This isn’t a business problem, it’s a family problem. Sit them down and talk about it as a family.

 

[Disneyplanners]

I know, I just want to get this resolved and come to a specific agreement that will work when the boys are 18+. DS15 has a strong personality, and in hindsight, I can see what happened. I wish I would have told them to stay on their own channels. Now I need to decide what is fair, because I know DS15 will push for more and DS12 will reluctantly agree to what his older brother wants.

 

[jaybirdsmommy]

You are the parent, you told them 50/50, that's what it is. I would change the account that the $ is going into to one in your name and distribute the money as agreed. If the older one doesn't like it, tell him the other alternative is to divide it up according to the percentages, meaning his brother gets 89% and he gets 11%.

 

[Imzadi]

I just checked, and right now 89% of the channels revenue comes from the popular video DS12 made. I'd like to get this resolved and put in writing so their will be no more discussion or conflict about it. I still think the boys should share the profit 50/50, and probably should do that for the life of the channel, since that is what we all initially agreed to.

DS15 may have put in more work, but the majority of the revenue is coming from DS12. I'd say 50/50 UNTIL DS15's stuff starts making more money. THEN you renegotiate a new arrangement that is more fair.

I know you want to stay out of it, but DS12 is still 12 and he needs an adult overseeing on his behalf, (which you are doing. ) So, don't feel guilty about stepping in. It's a teaching moment for both of them. DS12 on how standing up for himself is done. And for DS15 to be more fair during negotiations.

Right now the $ is being put into an account that belongs to DS15. We have not yet asked him to pull any $ out to give to DS12.

Is this even legal/allowed, according to YouTube's Terms Of Service? He's still a minor. I think you need to put the money into an adult account to oversee. And DS12's share of the money might have to go into a trust of some kind. Once you start reporting taxes, the IRS may look more closely at what the minors are earning to make sure the money fairly goes to them. Not sure about the legalese of it all. I know that kid performers have to have their earnings put into a trust account so the parents don't spend it all. But, that's also because the performers' union stepped in with rules. I don't know what the laws are for any other businesses.


You might also see about re-linking DS15's live stream to a different channel now. So he doesn't lose revenue as people can't find the new channel or may not want to click on it. Also, it's going to take time to monetize the new account. You don't want him resentful of the time lost.

 

[cabanafrau]

Letting all of the money be deposited in only one son's account needs to be rectified immediately. Wanting the boys to work it out was an understandable wish, but given the dynamics you've outlined it wasn't realistic.

I understand how this seemed like a small issue initially, but letting it go this far will likely prove to be problematic on the family front and in regard to business & tax matters for quite some time.

 

[anniemae]

I am not savvy with this stuff, but I would try to distribute the channels so that each boy has their original videos, then go on from there. I don't even know if its possible, but I would take the video that ds12 made and put it on his channel, as well as any other videos he made. DS15 keeps all his videos on his channel. Then keep them totally separate. As far as the money that was earned up to this date, I would have them split it equally since everything got kind of mixed up and move on.

 

[Frantasmic]

Split what they currently have. Show both the statistics. Then, DS15 either buys out DS12 outright (purchases rights to DS12 profitable video), or agrees to remove that video since it isn't his. If DS15 balks, have him remove the profitable video for a month or two since he claims the channel only started being popular under his management. Readdress with statistics. It's a business.

Edited to add: Watch The Founder as a family. Tell DS15 he is acting like Ray Kroc.

 

[Poohforyou]

If the agreement was a 50/50 split than they'd abide by that or I'd shut the whole thing down.

 

[MamaBelle4]

I agree with everything everyone said. It needs to be split 50/50. Or you could split it based on how the revenue is being generated, which I don't think your 15 year old would like.

I mean, this is super unfair to the 12 year old.
12 YO has the channel first.
15 YO gets one but doesn't do much.
They start making videos together on 12 YO channel.
12 YO makes a video that generates a lot of views.
15 YO takes advantage of that and forces 12 YO out.
15 YO then complains that 12 YO doesn't deserve as much of the revenue because he isn't making the videos because 15 YO forced him out, even though most of the revenue comes from 12 YO.
Money is being deposited into 15 YO bank account.

I mean, if I've got the summary right, that is wildly unfair to the 12 YO. Frankly, I would probably force them to split channels, ASK the 12 YO to promote his brother's channel, and split the revenue based on who is earning what. 15 YO can then monetize his channel. He is using his little brother's internet presence to "line his own pockets" and trying to force his brother out. Not cool.

 

[wenrob]

The deal was 50/50, end of story. They made a deal, it doesn’t matter who did what. A deal is a deal especially among brothers. You are the parent, it’s your job to enforce that.

Personally if I needed to come up with a contract between my KIDS over a YouTube channel, I’d be shutting the whole thing down.

 

[gotomu212]

The money should be going into an account overseen by legal adult. The adult should be estimating taxes and that cost should come off the top. Then I’d distribute the money 50/50 to the two kids. If you control the account the 15 year old can’t withhold the money from the younger one and you’re sure neither have tax problems. Once both have turned 18 I’d turn it over to them and let them enter their own contract.

I understand wanting them to work this out, but you are dealing with real money here and you can’t expect a 12 year old to pay his own taxes. If either don’t like the set up they are free to start their own channel and stop contributing to the shared channel. However at this point the subs and content are a shared product and there isn’t a good way to divide it (since the good video might have brought people in but they’re staying for the new content vs only the good video makes money. It’s hard to really figure that out or to decide on “worth”).

 

[BLAZEY]

The deal was 50/50, end of story. They made a deal, it doesn’t matter who did what. A deal is a deal especially among brothers. You are the parent, it’s your job to enforce that.

Personally if I needed to come up with a contract between my KIDS over a YouTube channel, I’d be shutting the whole thing down.

Any arrangement involving shared earnings of profit even among siblings should have some sort of agreement written up and signed by both kids and a parent. I had a paper route that I did when I was a kid. My younger sister stuffed the flyers in the papers and mum said she deserved some of my pay as she helped. She got 25% of the funds for stuffing helping me stuff the papers. We kept a chart, If she stuffed flyers she got paid if not, I kept the whole cheque. When she got older and could help (or wanted to as she wanted $$) we would both stuff and deliver papers, we re did the agreement and she got 50% as she did 50% of the work. Then I got older and started doing a lot more babysitting, she kind of took over the whole route and I called the paper and asked them to put her name on the cheque as she was stuffing and delivering all the papers. She had to go in with Mum to officially take over the route which she did for a few years on her own. My point is is that an agreement needs to be upheld, but if that agreement becomes "unfair" to one party due to changing circumstances, it should re negotiated. You as the parent can oversee the changes.

The Channel is a joint venture. Think of the videos being intellectual property. DS12's video is much more valuable (DS12's contribution) than the ones DS15 makes. 50/50 is what they agreed on as DS15 does more of the work now maintaining the channel (that's his contribution). It's split 50-50 or each month a breakdown is done by who's intellectual property earned what. DS15 probably wouldn't like that. Perhaps have the funds set into your account then you split the funds via bank transfer to each son.

 

[wenrob]

Any arrangement involving shared earnings of profit even among siblings should have some sort of agreement written up and signed by both kids and a parent. I had a paper route that I did when I was a kid. My younger sister stuffed the flyers in the papers and mum said she deserved some of my pay as she helped. She got 25% of the funds for stuffing helping me stuff the papers. We kept a chart, If she stuffed flyers she got paid if not, I kept the whole cheque. When she got older and could help (or wanted to as she wanted $$) we would both stuff and deliver papers, we re did the agreement and she got 50% as she did 50% of the work. Then I got older and started doing a lot more babysitting, she kind of took over the whole route and I called the paper and asked them to put her name on the cheque as she was stuffing and delivering all the papers. She had to go in with Mum to officially take over the route which she did for a few years on her own. My point is is that an agreement needs to be upheld, but if that agreement becomes "unfair" to one party due to changing circumstances, it should re negotiated. You as the parent can oversee the changes.

The Channel is a joint venture. Think of the videos being intellectual property. DS12's video is much more valuable (DS12's contribution) than the ones DS15 makes. 50/50 is what they agreed on as DS15 does more of the work now maintaining the channel (that's his contribution). It's split 50-50 or each month a breakdown is done by who's intellectual property earned what. DS15 probably wouldn't like that. Perhaps have the funds set into your account then you split the funds via bank transfer to each son.

This is why I used the words “personally” and “I.” It’s a YouTube channel and they’re kids. They made a deal. If it’s causing conflict in my home because you can’t keep your word to your brother, that’s it, game over. It’s that simple, for me.

 

[BLAZEY]

This is why I used the words “personally” and “I.” It’s a YouTube channel and they’re kids. They made a deal. If it’s causing conflict in my home because you can’t keep your word to your brother, that’s it, game over. It’s that simple, for me.

Oh I agree. It seems the DS15 isn't keeping his end of the deal, and wanting to unofficially change the terms. If he went about by having a meeting with all in involved to come up with a new agreement it would be a different story. It seems he is just not sharing the $$ as it goes into his account as per th terms of the current standing agreement. I would have no problem renegotiating the terms. But if what's happening now occured, I would shut the whole thing down, or I get the profits to put in university savings as it probably MY computer, MY internet, that they used to make the videos in the first place.

 

[nkereina]

This is why I used the words “personally” and “I.” It’s a YouTube channel and they’re kids. They made a deal. If it’s causing conflict in my home because you can’t keep your word to your brother, that’s it, game over. It’s that simple, for me.

But its raking in $275 a month which is nothing to sneeze at. I commend the kids for coming up with what is apparently a popular concept and sticking with it to the point of being successful, which can be difficult on YouTube. Regardless of the income, its a good life lesson and their first introduction to the business world which will be useful in life no matter what path they take. So if it were me, I wouldn't be so quick to shut it down.

OP, I have nothing more to really add to whats already been said. But my first thought was that the checks should come to you and then you can divvy it up 50/50. Is there any room for DS12 to come back to the original channel so that he and DS15 do it together again? He can start contributing to the content on the channel, so DS15 feels less like he's doing it all on his own. It would also make a better argument for the 50/50 split. One very successful YouTube channel seems like it would be better than two separate mildly popular ones.

 

[wenrob]

But its raking in $275 a month which is nothing to sneeze at. I commend the kids for coming up with what is apparently a popular concept and sticking with it to the point of being successful, which can be difficult on YouTube. Regardless of the income, its a good life lesson and their first introduction to the business world which will be useful in life no matter what path they take. So if it were me, I wouldn't be so quick to shut it down.

OP, I have nothing more to really add to whats already been said. But my first thought was that the checks should come to you and then you can divvy it up 50/50. Is there any room for DS12 to come back to the original channel so that he and DS15 do it together again? He can start contributing to the content on the channel, so DS15 feels less like he's doing it all on his own. It would also make a better argument for the 50/50 split. One very successful YouTube channel seems like it would be better than two separate mildly popular ones.

There are also consequences for your actions. I wouldn’t care if it were making thousands, that would be the result in my home. IMO keeping your word is worth more than the money.

 

[nkereina]

There are also consequences for your actions. I wouldn’t care if it were making thousands, that would be the result in my home. IMO keeping your word is worth more than the money.

Keeping your word is definitely important. But in the business world, the venture wouldn't just come to a halt because Johnny was being a stick in the mud. It's up to OP to give some tough love and make sure it stays 50/50. If DS15 decides he doesn't want to do it anymore because of the split, so be it.

 

[wenrob]

Keeping your word is definitely important. But in the business world, the venture wouldn't just come to a halt because Johnny was being a stick in the mud. It's up to OP to give some tough love and make sure it stays 50/50. If DS15 decides he doesn't want to do it anymore because of the split, so be it.

I don’t see this as a business venture but otherwise agree and said as much in my first response.

 

[Disneyplanners]

Thank you for all of the replies! It's giving me a lot to think about for different ways we can resolve this. I dug around on the boys youtube account (they were still logged in) and they actually made $270 over two months time. DS15 is either misinformed or I heard him wrong. I'm actually glad it's a little bit less, but doesn't really change anything.

We are going to hold firm that the boys split any money 50/50 made from the content already on the channel. We are going to receive the cash in our name, save a % for taxes and split the remaining between the boys. Then, renegotiate what the future of the channel is, with DH and I there to advocate for DS12. Looking back DS15 took over the channel one bit at a time and changed the original agreement with DS12 about the style of videos they were going to make. I like a previous poster's idea of making this a completely shared channel again, but there is the potential for more argument with that option. It could also be good for them to work together.