How Do Youtubers Make Money?
YouTube is the largest video sharing platform in the world. Naturally, there will be no direct income from the audience, everyone can watch videos for free, however, there are more and more full time youtubers. Some youtubers with millions of subscribers can make a lot of money, Where are the money coming from? How do youtubers make money?
To answer this question, we have to understand what is the source of income from youtube. For more detail, please check out our article 6 ways to make money on youtube.
As a video website that is free for everyone to watch, YouTube’s way of making money is the same as Google, the company that acquired it, using their powerful page views to make money from advertisers. Whether it’s an audio and video ad that can’t be skipped at the beginning of the video, or a small ad slot next to the page, it’s all YouTube, or Google’s source of revenue. Similarly, as a youtuber some of their revenue also comes from advertising.
In fact, the logic of this mechanism is very simple: When you have generated many views on your videos, YouTube will pay you some money, so that you will work harder to help us attract more viewers. YouTube chooses to distribute part of the revenue they earned through advertising to the corresponding youtubers, which can constitute a win-win situation. The company makes money, youtuber makes money, and advertisers get publicity.
How to Advertise on Youtube?
What exactly you need to do so that youtube can start advertising on your channel? The answer is pretty simple, - Create high quality videos, attract more audience.
Being a YouTuber is pretty simple, as long as you are at least 18 years old and have your YouTube channel, after reaching 10,000 views on one of your videos, you can start making money.
If you want to make money by advertising on the channel, there are two ways:
- Apply for YouTube’s own advertising program and selectively add ads to each of the videos.
- Apply for Google AdSense and make money through Google’s advertising distribution.
For full-time youtubers with a lot of subscribers, their advertising fee could be huge, because they have a lot of video views and audience sources, which bring them a lot of advertising revenue. But for some beginners, it may be difficult to get anything. In conclusion, the money a youtuber makes depends largely on their popularity. These ads fee seems to be very low price, but when you accumulate a certain amount of views, you can actually generate amazing income. For example a famous youtuber PewDiePie, his annual revenue is over $7.5 million, but at least 4 million is not entirely from ads on the youtube channel. As a popular gaming youtuber,
PewDiePie has a lot of subscribers who play games, this is exactly the advertising companies’ target audience. Advertisers work directly with PewDiePie to promote their products.
In addition to advertising, youtubers actually have a lot of ways to earn extra money.
All kinds of peripheral goods, such as T-shirts, cups, posters, wristbands, etc., should be familiar to everyone. Most of the well-known youtubers have their own online stores that sell their products.
For the beauty youtuber, they can cooperate with different brands, launch their own clothing series, cosmetics series, etc., but its quality and price has always been a controversial topic.
Recently, publishing book is the latest trend in the YouTube community. Whether it’s autobiography, novels, life guides, graphic novels… most of the popular youtubers already have their own books.
Although it seems easy to be a full-time youtuber, you can make money by making a film in front of a camera, but in fact, the effort and time to establish channel awareness are unimaginable. If you really want to make money on YouTube, it is recommended to be mentally prepared. After all, any profession has his difficulties. If you decide to be a youtuber, please checkout our camera recommendation for youtubers
Is it too late to start as youtuber now?
Now if you want to start from scratch, it is very difficult to become a well-known youtuber. Although there are more people watching videos online, there are more people who want to become youtuber. The competition is much harder than before. Look at some of the most famous youtubers today, their channels have at least a few years of history, so if you start to work hard now, it will take a lot of effort to break through.
Knowing how youtuber’s revenue comes from, let’s answer how their income calculates this problem. First, we need to know the three types of ads on YouTube: the video ads in the title, the ad area on the page, and the pop-up ads below the video.
If I want to become a youtuber now, what should I expect? Let’s be straightforward, It is very difficult to make money as a youtuber if you don’t have a lot of subscribers, simply because no advertisers are willing to invest money to a youtuber which has no marketing value.
Let’s talk about four different kind of youtubers.
Stage 1: New Youtuber
In this case, if you are a new youtuber, you must first have 10,000 views on your video in order for YouTube to review your channel and provide monetization for your channel (showing ads on your videos). Showing ads on your videos is your first achievement as a new youtuber. The ratio of how much you can earn from advertisement is about one thousand views = $1 USD. Once your account balance reach $100, you will be able to cash out from your youtube account. This mean that your videos must have at least 100,000 hits.
Stage 2: You got some subscribers
When you have over 1000 subscribers, your main income source is still from youtube ads. Some youtubers may receive some advertisers’ mail, but generally the income is quite low. Some youtubers can start selling their own stuff on their channel to make some money. This stage is not easy, you must have persistence and determination, many Youtuber gave up at this stage.
Stage 3: 5 digits subscriber
Many people think with over 10k of subscribers on your channel, you may have already making a lot of money from advertisement. Wrong! Big mistake! Subscribing to tens of thousands on YouTube means you only have tens of thousands of fixed audiences. Not every subscription will watch every video of you uploaded. All videos with copyright issues on YouTube will not be profitable, which means only original video can be used to collect advertising fee,
Let’s say you have 90,000 subscribers. Each of your videos will have an average of 30,000 views, so the profit will be 30 US dollars. Let’s assume you spent five hours to produce the video, in average, you get $6 per hour. The real situation is not the case, You can not product high quality videos in just 5 hours, that is why even a full-time youtuber can’t upload video daily.
The actual hourly profit from YouTube is much smaller than this number. Many youtubers have a team, this advertising fee is not enough to support it. Generally the youtuber can take some advertising from various advertisers.
Stage 4: High popularity youtuber
If you are on this stage, I don’t think you have time to read this article. There will be a lot of advertisers contact you and your channel will be making a lot of money.
There are lots of YouTubers who became millionaires, but not overnight. It takes a lot of struggle to get up in the rankings.
Money from Ads alone are just 4–5% of how much you can actually earn with the help of YouTube. The smart strategy is to build an email list using YouTube and when it becomes big enough you can use it to sell your own products.
1M subscribers and 500 videos for example will bring you in average ~ 20M views/month which are equivalent to $5,000/month. It is not bad, but can you imagine how much money you would make if you’re trying to sell a product to 1M people. A product such as a $49 course. Out of 1M people, at least 10,000 will purchase it instantly. This means that you’ll earn - $49 x 10,000 = $490,000. Now, compare $5,000 to $490,000. Google Ads are just 1% of your channel’s potential.
In fact, you don’t need that many subscribers. If you have 50,000 subscribers and you monetize them properly, you can easily hit $10,000/month. That’s equivalent to having an account with 2M subscribers. YouTube is powerful, try to take advantage of it. Good luck!
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