When he was 23 years old, Drake vowed to bank $25 million dollar by his 25th birthday. Two years later, he had achieved his goal. So he set an even higher goal. He aspired to make $250 million by age 29. He made “only” $150 million. Minus all his expenses, savings, and maintenance, Drake’s net worth totals to about $85 million as of this writing. This was enough to see him brush shoulders with some of the most iconic artists in the industry on Forbes richest, including Jay Z, Kanye West, and Lil Wayne. Not bad for someone who plans to retire by 35, right? His assets include a lucrative merchandising business, an $8 million Hidden Hills home, and the OVO Sound record label. Here is the story of the Canadian rapper and how he makes his money.
Aubrey Drake Graham was born on October 24th 1986, in Toronto, Canada. According to Drake, his rise to fame can be traced all the way back to his high school days. One of his classmates had a father who was an agent, and had always insisted on promoting upcoming talent in his kid’s school. He would encourage the students to send anyone who had a natural sense of humor to audition for him. After the audition, he became Drake’s first agent. Drake began as a young actor and quickly rose to child star status. One of his most notable works is the Canadian teen drama television series Degrassi: The Next Generation.
This earned him a good $40,000 a year. In 2006, he decided to venture into the rap music industry – a decision that has turned out to be extremely fruitful. To put that into perspective, a single concert can earn Drake dozens of jaw dropping millions. With support from other high profile rap stars such as Kanye West, Jay Z, and Lil Wayne, Drake took less than 3 years to get a song (“Best I Ever Had”) featured on the Billboards Hot RnB/Hip-Hop Songs Chart at number 2!
Main Sources of Avenue
Drake’s net worth is derived from a number of sources. The main ones include music sales, endorsements, concert tours, investments, and of course, Youtube. Considering that he writes his own music, and assuming that he earns 11.1 percent of every album sale, we can deduce that Drake has made approximately $14.4 million out of $130 million from his albums. A single, on the other hand, earns him $1.99 each. He has sold 50 million singles, which generates an additional $99.5 million. Multiply that by 11 percent (to give you around $11 million), which is what Drake keeps. The pop star also makes some “pocket change” as a featured artist. Each single he sells as a featured artist earns him 3.3 percent of the revenue. This means that, after selling 24.5 million singles, his total earnings go up by a whooping $1.6 million. He doesn’t earn anything from his mixtapes though, as these are given away for free as promotional tools.
Concert tours are the biggest sources of revenue for Drake. In fact, concerts are usually the biggest contributor to most pop stars’ net worth. This is especially because they keep most of what is generated from the concert tour. The first major concert tour Drake had was in 2010, from which he earned 85 percent of the stunning $18 million generated. He also held two important tours in 2012 and 2013 that produced an estimated $42 million individually. This upped his net worth by an additional $72 million. He matched that again during the Summer Sixteen tour, when he made a reported $71 million.
Youtube has also contributed significantly to Drake’s networth. His Youtube page has around 170 million views, while his Vevo channel boasts a striking 2.78 billion views. It is fairly easy to determine how these views add to the Canadian rapper’s net worth. Assuming that Youtube pays $7.60 per 1,000 views, and Drakes keeps all the earnings from his channel and 85 percent from the Vevo channel, his total revenue from Youtube would total to about $19.3 million as of this writing.
Drake’s net worth also benefits from endorsement deals. Some of the most popular brands he has partnered with include Sprite, Kodak, and Jordan sneakers. It is estimated that the rapper has earned about $5 million per year from all his endorsement deals since 2010. This would mean that he has earned about $36 million by 2017.
Drake is the co-founder of OVO Sound, which was initially used as a merchandising tool. He would mention the acronym regularly on his songs and during live performances. The acronym means “October’s Very Own”. When he released his second album in 2011 (Take Care), it was so successful that Drake was able to transform the label into a legitimate record company. The other co-founders are Oliver El-Khatib and Noah “40” Shebib. The following year, OVO partnered with Warner Bros. Records, who would sponsor all promotion and distribution.
Drake went on to release 3 full length projects with OVO, namely: What A Time To Be Alive (2015), If You’re Reading This It’s Too Late (2015), and Nothing Was the Same (2013). Other names that passed through OVO include: producers Boi-1da Nineteen85, Mike Zombie, and T-Minus, as well as Majid Jordan, Dvsn, Roy Woods, and PartyNextDoor. OVO also hosts an annual music festival in Toronto, which also earns him some good revenue.
Hidden Hills Home
Drake bought a $7.7 million home in Hidden Hills, California in 2012. It is referred to as the “YOLO Estate,” inspired by the acronym for You Only Live Once. The estate has been famed for its posh scale, which includes a 25- seat movie theater, a beach volleyball court, a tennis & basketball court, a mechanical bull, and waterfalls. In his 2016 hit single “Summer Sixteen,” Drake referenced the home, comparing the size of his swimming pool to that of Kanye West. The pool exceeds the space occupied by West’s swimming pool, and was in fact designed to compete with that in the Playboy Mansion. Drake had once listed his estate for sale at a reported $20 million, but later removed the advert.
Drake’s appearance at Forbes comes at a time when fellow rapper 50 cent is exiting the scene after burning through his stash with the Vitaminwater deal. Drake has managed to level up his earnings every year, and his current goal is to maintain his success to remain in the Forbes Five.