Need advice from the business minded : kids youtube channel conflict

[mummabear]

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.

How is that fair for DD12?

 

[Cannot_Wait_4Disney]

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.

They both did the channel. It's 50/50 for all revenues from both. When older boy is 18 if he moves out and wants his own revenue stream, he can pay for his own computer equipment and his own fees and do it.

 

[Skywalker]

If the deal was 50/50, just enforce that. Also, tell your son that normally in the business world, if someone wants to acquire someone else's company and assets that they built up over time, it's not just given to them - they buy it because it's a money making asset. So if your older wants to run the channel the keep the profits he should at least come to some sort of "purchase" agreement for your younger son's property with a hefty pay out to own it all himself.

 

[The Mystery Machine]

Sorry to take this off topic!!! Hope you are doing well Mystery Machine; I have wondered how you have been?! Good to see you again! Carry on!

I am hanging in there. Been really busy with house, remodeling, now we might move to AZ! We will see.

 

[cabanafrau]

I am hanging in there. Been really busy with house, remodeling, now we might move to AZ! We will see.

Your voice is missed. Good luck with the house and good thoughts that you wind up in the best spot for your family.

 

[jt'smom]

They are 15 and 12. You are the parent. While I think it's pretty amazing they have a monetized YouTube channel to begin with, they are both still minor children and it kind of seems like you are expecting them to work this out like a couple of adult friends. I know kids today are far more worldly and such, but since they are doing something that requires taxes and raking in some cash, it's really unfair to BOTH of them to not have a parent in charge of all the financial affairs. Look at it like a checking account. Or even an investment account. It would require a custodian to manage it until they became 18, and if you are allowing the money to be directly deposited into your older son's account, you aren't doing your part as their legal guardian and protecting your 12 year old's interests. It's great to treat it as a teachable moment and learning lesson, but by not providing oversight in this kind of situation, well, it just seems downright weird. But OP, kudos to both of your kids, because they are obviously pretty bright and ambitious!