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The Six-Second Video Is a Big Business for Brands Gary Vaynerchuk's viral video company, GrapeStory, gets paid up to $25,000 to create sponsored posts for brands on Vine, Instagram on Snapchat.

By John Patrick Pullen

Opinions expressed by Entrepreneur contributors are their own.

"You guys are about to become famous," Gary Vaynerchuk told young, popular Vine video creators during invite-only meetings in May 2013 in New York and Los Angeles. "Be prepared for that journey, and figure out how to navigate through those things."

Vaynerchuk was pitching producers of viral video clips to join his new talent-driven production company, GrapeStory, founded with partner Jerome Jarre. GrapeStory produces clips for major brands like General Electric, Samsung, Unilever and Virgin Mobile, companies that pay up to $25,000 per six-second video to place sponsored posts on Vine, Instagram and Snapchat. The 25 popular video creators on GrapeStory's talent roster get an 80 percent cut from each clip they make.

While Vine's looping videos are over practically in the blink of an eye, Vaynerchuk argues that GrapeStory's clips are solid mobile ad buys, since the creators come with built-in followings on distribution platforms that reach young viewers wherever they go. It's like getting LeBron James to promote your product—if the NBA superstar had his own 24-hour-a-day, app-powered TV channel.

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