This is an important question, as recent research shows that becoming a YouTuber is now considered one of the most desirable jobs in the world. However, some articles say that few people make a living with YouTube.
But on the other hand, there are others who say that ordinary people have become millionaires thanks to their videos. What is the truth about how rich you can get on YouTube? In this article, you will learn how YouTube ad revenue works, how much money you can make on YouTube, and all the other ways some YouTubers monetize their channels (including some monetization tricks you can use). about it.
For example, we`ll be explaining how a video with less than 1000 views made over $500, and yet a video with 10,000 views, made considerably less. So, let`s delve into the truth about making money on youtube.
“Now in terms of how much ad revenue, some channels can earn a whopping $2 million and some are in credit card debt right now Both of these two example YouTubers have fairly similar audience sizes with several million subscribers, so how can they be in such different financial positions?
One a multimillionaire, one in credit card debt?. And of course, it`s not just these two examples, there is a divide all across YouTube where some creators seem to have incredibly glamorous luxurious lifestyles, whilst others talk about struggling to even pay their bills…
Now, their spending habits are obviously a factor in that too, but the truth is that when it comes to making money from youtube ad revenue, views are not paid equally. Some creators get paid far more for the exact same amount of views.
You see, YouTube doesn`t set a price for ads. They don`t say you`ll get $x for x views. Instead, every time an ad is displayed on a video, advertisers bid how much they`re willing to pay to be in front of that content.
This means that advertisers pay significantly more for certain types of video. Let’s go back to the previous example. The reason the ad revenue is so much higher is that the creators are talking about finances and investments. This is a topic that advertisers are willing to pay much more for.
This is because you generally know that if you are selling something related to finance, your profits will be higher and people watching your financial videos will be more likely to be interested in the product you are selling. Whereas the other creator has pranks and vlogs. To advertisers, those aren`t the types of videos that advertisers want to pay a lot to be in front of they don`t fully know whose gonna be watching those types of videos, and they don`t really relate very well to particular products or services.
So when it comes to YouTube ad revenue, the riches are in the niches. Certain types of videos are simply much more valuable to advertisers, and so they will earn far more. And if you have your own channel, when you go into creator studio, you`ll see which of your videos advertisers are paying most for, by looking at the CPM this metric tells you how much advertisers pay for every 1,000 monetized views of that video. So, hypothetically, a comedy sketch could have a CPM of $2. The insurance video has a CPM of $40. This means your insurance video earns 20x more revenue for every 1000 views. If 1 million views are monetized, one is about $2,000 and the other is $40,000. And while this may seem a bit unfair, it makes sense. Because you can imagine an insurance company would be willing to throw big money to be in front of a video that`s about insurance, whereas not many companies are gonna throw big money to be in front of a comedy sketch.
However, if you are in a niche with a typically low CPM, remember that every video is ranked individually. So if you were making a comedy sketch, if it was a comedy sketch about making money, finance, investing, real estate, business, lawyers, or anything that advertisers would likely pay more for you can still get a high CPM. Because YouTube is looking at things like the words you say within your video, and your title and tags.
For example, one of his most profitable videos of all is when you interview a day trader. because day trading and investing are keywords with such high CPM`s, you can make considerably more money with that video. So if you really wanted to, you could deliberately make content around topics that are known to be more profitable.
But, that`s not the full picture. Advertisers don`t just pay more for certain topics and keywords, they also pay more depending on who the ad is being shown to.
For example, most advertisers will pay considerably more for views from people in first-world countries, especially America and the UK, simply because they know people in these countries typically have a higher amount of disposable income to spend on their products and services. After all, it’s a bit pointless to advertise a $500 product in a country where the average citizen can’t afford to buy it.
In fact, because of the large amount of data Google has on most people, advertisers can target their ads based on a huge amount of different factors, even things like interests and estimated household income. So, the amount a YouTuber earns is not just based on what their video is about, but also who is watching it, and how much advertisers are willing to pay to be in front of those types of people. Because, advertisers will bid more to be in front of certain demographics and topics, which will drive the CPM up, the creator earns much more money.
And so you can see why a site like Socialblade that tries to estimate YouTuber earnings, is never going to be accurate. You can see where they`re guessing the CPM is between 25 cents and 4 dollars. This is very small for many channels. And even within that range, there is a huge difference between 25 cents and $4, so Socialblade cannot provide an accurate estimate of advertising revenue. But wait a minute. Because this is just the tip of the monetization iceberg. For the wealthiest YouTubers, ad revenue isn’t the only way to maximize revenue…
If you want to consistently make money with YouTube, advertising revenue should never be your main source of income. It’s so unpredictable and frankly, there are better ways to make more money. Here are some things to remember: Attention = money.
If you are interested in people watching your videos and liking your content, there are many other ways you can make money. For example, did you know that one of the richest YouTubers in the world is 9-year-old Ryan Kaji? According to some estimates, his income is about $30 million per year. But not because of advertising. This is because he provided another source of income through the channel.
The attraction is that anyone can do it with a very small number of people.
Let’s start with:
1. Affiliate Marketing
Even if your channel has 0 subscribers, you can start monetizing right away with affiliate marketing. This is where you partner with businesses who have products or services your audience may like, and promote them within your video. You`ll get a unique affiliate link which you can put in the description, and every time someone buys through your link, you`ll get a commission from the sale. You don`t have to deal with making the product, shipping it, managing it, customer support anything. Just make sure it`s a great product you think your audience will genuinely like, and then you can promote it and get commission on every future sale made through your link, even months or years later. You can find products to promote through affiliate marketplaces like ClickBank, but you can also try reaching out to businesses directly if there`s something specific you want to promote.
How much YouTubers make with this can vary wildly. If they`re using something like the Amazon affiliates program, it won`t be a lot, possibly a few hundred dollars at most, as they get a very tiny percentage of the sale. But if they`re promoting something like a digital course or software, it`s likely they may be getting 50% or even more of the sale because the business doesn`t have any costs to make more copies. And so there are affiliate deals I`ve seen where YouTubers are getting several hundred dollars per sale.
Where, instead of getting a percentage of the sale, you get a fixed amount up front to advertise a product or service within your video. Once again, don`t think sponsors are only for the big channels this channel started getting sponsorship requests not long after 1,000 subscribers, because it`s not just about the number of subscribers, it`s about how well the sponsored product matches the audience. Of course, there are some brands that seem to dominate sponsorships on YouTube that you`ve no doubt heard many creators promoting, but again remember you can reach out to any companies directly and try to make sponsorship deals. However, I would recommend only promoting sponsors you actually think are good for your audience, because otherwise, it will dilute the value of your recommendations. On the other hand, if you only work with sponsors that you know will benefit your audience, you can earn more money and trust by doing better for your audience and better for your sponsors. Everyone wins.
In terms of money, YouTuber Mr. Beast makes it easy to negotiate a 6-digit sponsorship deal because each video gets millions of views. But even if you have around 10,000 subscribers, you can get around $1,000 worth of sponsors if you have a very engaged audience and very suitable sponsors. Don’t underestimate yourself and always ask for more money in advance so you have room to negotiate.
3. Patreon & Fan Crowdfunding
If you have fans who love your channel, many of them will be happy to donate money to help you. YouTube itself has a built-in channel membership program as well as a paid live superchat, but it seems more creators are using Patreon instead. But let’s say your fans offer only $5 a month to access some extra bonus content. If you sign up for 1,000 people, it’s $5,000 per month. So, you can see that a large channel with a lot of fans can offer something like this, which can dramatically increase your earnings.
4. Selling Products
Most YouTubers are now selling products when selling products through their YouTube channel. For a large channel like Pewdiepie, it can be very lucrative, but if you have a small audience, just putting your brand name on a random t-shirt or mug won’t do much. We’ve seen some people run successful limited edition advertising campaigns, but what if they thought about selling products that would directly benefit their audience?
One of the very lucrative options is to create an electronic course in some form. Because if your audience likes free YouTube content, some of them are willing to pay to learn more. This can be applied to most niches such as fitness, dating, and business. If you share knowledge on a channel, people are more likely to pay for a complete system that can teach them in more detail. Once you start selling your own products, your income can skyrocket as you’ve now switched from being a simple YouTuber to running a YouTube business.
Here’s How To Actually Become a YouTube Millionaire Don’t treat your YouTube channel as a hobby or profession. Instead, think of it like a business. Because introducing all of the different sources of income we just talked about, especially the last one, makes YouTube more than just a channel when it comes to selling your own products or services like coaching. YouTube videos become free marketing for the products and services you sell. And that’s where the real big money is. And let me be clear. This doesn’t mean that videos suddenly have to feel like advertisements that spend half of their time selling things to people. But if you look at the creators who are making a lot of money, most of that income is not directly from YouTube, it`s because they`ve leveraged the attention their videos get.
If this is starting to sound a little overwhelming, then bear in mind that the very top channels almost always have a team working with them, they`re not doing it all alone. The reason they`re able to put out lots of regular highquality content is that they have a video editor, a thumbnail designer, and so on different people to help them run the channel and business, so they can scale much faster. Because the more sales you get, the more you can grow your team and invest in making even better content, which in turn brings in even more sales and the cycle repeats and your income keeps growing.
Once again, think of YouTube as a business. Don’t rely on advertising, and get multiple sources of income, especially related products or services that you can sell. At the beginning of the article, I mentioned a video that earns hundreds of dollars with less than 1,000 views.
1. There were affiliate links and each sale brings about $100. There have been some sales so far.
2. There was also a link to the YouTube Business Blueprint course, which is also sold in this video.
3. CPM is very high due to theme. So, if your video is really popular, every 1,000 monetized views (not all views are monetized) is worth it, so if you reach 100,000 monetized views, you’ll earn the same amount from ads alone. You don’t need millions of views to make a lot of money on YouTube.
A Correct approach is required. But now, if you’re wondering who the richest YouTubers are, you can check out our list of the top 10 YouTubers on Socialblade and see how much they earn.
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