YouTube is the world’s second most popular website, just behind Google. With 2 billion monthly active users, the platform has become a way of life for many viewers. On the other hand, many YouTubers look at the platform as a way to earn money from the YouTube Channel they own. Therefore the content on their channel is an important business for them. If you are a YouTuber looking to make money on YouTube, there are some brilliant ideas to do it. However, first, let’s bust some myths about making money online from YouTube.
Top Myths about Making Money from YouTube Channels
It is a fact that a lot of YouTubers have made money on YouTube, but there is a lot of misinformation floating about the concept as well.
- You don’t need to be an expert: It’s a popular myth that you do not need to be an expert in the subject matter. To produce professional videos on a particular niche or subject, you should have some level of expertise. Without knowledge, your videos will fall flat.
- Cats and dogs’ videos always work: Yes, posting cute and funny animal videos can drive traffic and views. However, if you want to make money with animal videos, you need to self-produce them and not just repost them from someone else.
- More subscribers will drive more money: Though all YouTubers want to increase their subscribers’ count, there is no guarantee that it will drive money. You will make money on YouTube only when those subscribers contribute to the number of views on each video. However, more subscribers can get you good deals from brands that want to work with you.
- YouTube ads are not for my business: With 5 billion videos being watched every day on the platform, there is something for everyone here. No matter what kind of business you have, you can certainly grab the attention of a potential customer on YouTube.
- It is easy to be rich on YouTube: No, it’s not. Successful YouTubers have worked day and night to get their desired fame and money on the platform. Whether you are a gamer or a digital marketer, you need continuous efforts and learning to be rich in this medium.
How Much Money Do YouTubers Make on YouTube?
YouTube offers many opportunities to make money online. It’s only about developing creative content and promoting your channel in the right direction. So on average, how much money can YouTubers make on the platform? Here are some estimates:
- YouTubers can make about $18 for every 1,000 ad views
- A video with ads and 1 million views can make around $2000
- YouTubers with 1 million subscribers can make $60,000 annually
- YouTubers with 100,000 subscribers make $2400-$4000
- MrBeast is the wealthiest YouTube channel making over $54 million annually
- YouTube generates over $13 billion every year from Ad revenue
- Food, entertainment, and gaming are top profitable channel categories
Now, earning money from YouTube may sound lucrative. However, it takes a lot of creativity and effort to excel on the platform. Check out some interesting ways to make money on YouTube.
Best Ways to Earn Money From YouTube Channel
1. Youtube Partner Program
One of the primary ways of making money from a YouTube channel is through ads. YouTube is half a fraction of the internet. Therefore, earning through ads is a great option. You can generate revenue through ads that appear before or during your videos. The YouTube Partner Program (YTPP) allows YouTubers to avail of special features and access multiple income streams through ads and channel memberships, Superchat, YouTube Premium Subscription fees, and more.
To begin monetization, you must create an Adsense account, even if you have 2 YouTube channels under your brand name. Adsense is how you will get paid. You then have to work on the placement of the ads. After this is done, Google shows ads on your videos, every time anyone watches and clicks on the advertisement, you get paid. Generally, YouTube takes 45% of the ad revenue, and the rest is for the YouTuber. At first, it doesn’t seem like a lot of money, but it will be a handsome amount if the views are in the thousands or millions. One add-on feature is that upon activating all the monetization features, you get an automatic share of their premium fee if a YouTube Premium member watches your video.
To qualify for the YTPP, you should be a resident of the country from where you are operating the YouTube channel. Your channel should pass 4000 hours of watch time of the videos published from the past 12 months, and you must have 1000 subscribers.
- More than 2 million members are a part of the YouTube Partner Program.
- YouTube pays between $2000-$3000 for 1m views with videos that contain ads.
2. Youtube Premium
YouTube Premium is the ultimate win-win situation for both the subscribers and the creators. Under YouTube Premium, members can enjoy an exhaustive list of features that amplify the YouTube experience while enjoying interruption-free videos. It allows the users to access original and unique content, watch ad-free videos, download them on their mobile devices, play the videos in the background while switching apps, and more. With YouTube Premium, you will be able to access the YouTube originals that showcase exclusive shows by YouTube.
On the other hand, views from YouTube Premium members can get the creators a chunk of money along with their regular ad revenue. The revenue from YouTube Premium, distributed among YouTubers, is based on the time of content watched. Ad revenue, the primary source of your income, will be boosted by the YouTube Premium revenue you will get. After a one-month free trial, the Premium plan offers a wide price range for different audiences; one can choose a tier that suits them.
- YouTube music comes as a complimentary service. It replaced Google Play after it was discontinued in 2020.
- Reportedly, YouTube Premium has hit 50 million premium subscribers (including one-month free trial users)
Crowdfunding is a way to get money directly from your audiences’ pockets to your YouTube channel. This is, provided you have a loyal, engaging audience and offer relatable content to them. Only those who pay are eligible for some exclusive content. In return for the desired content and to fund your videos, you can ask to raise money from your subscribers.
For creators, Patreon is one of the most commonly used platforms for crowdfunding. There are two models of crowdfunding – project-based and recurring. Content creators often use the recurring model to ensure a consistent income stream. The best thing about crowdfunding is that the more you give your audience what they want, the more they will be interested in your exclusive content and eventually think about investing in you. It also builds a solid creator-follower relationship that is helpful because there are people out there who donate generously to crowdfunding if they feel they are entertained and valued.
Even YouTube has its own “Join” button on YouTube channels. It allows users to access exclusive content from the channel if they join. YouTube also shares a part of this amount with the creator.
- A YouTuber can earn upto $35000 through monthly support from followers.
4. Affiliate Program
Affiliate Marketing is one way to make money on YouTube. It is one of the most accessible options and has excellent earning potential. Any YouTuber can work with this monetization method to benefit their business. All the YouTuber or creator has to do is attract a substantial amount of subscribers. A creator can join an Affiliate Program by themselves on any platform like Amazon, Flipkart, and so on.
Interested brands often come to YouTube channels with a good subscriber count and subsequent watch time on videos and offer good deals to market their product. Brands provide a product to the YouTuber to use and review. It is helpful when a new product is on the market, and the creator offers the first impression of it. The creator has to make valuable video content around it, discussing how they like the product and its benefits. Mention in the video that the product’s link is listed in the description box and ask audiences to purchase through that link. There is a thin line between encouraging the audience member and giving them a nudge and being too pushy such that you drive the audience away. YouTubers can make money from every sale made using this process. The commission can range from 5% to 30%, sometimes even higher.
Although, it is evident that the more followers and views a channel has, the higher the chances of making good money through affiliate links. Yet, with a successful marketing strategy, even YouTube channels with a few thousand subscribers can earn a decent amount of money. It is because, more often than not, the quality of the subscriber provides better conversion rates. A large quantity of them that are not interested in the offering may look good on paper for eyeballs but may not contribute to earning money from YouTube.
- Around 67% of users on the fence about purchasing decisions convert if they watch a genuine and compelling YouTube video of their interest.
- YouTubers can make approximately $2000 per month with the right audience and strategies.
5. Post reviews and unboxing videos
Not everyone is comfortable in front of a camera. It should not keep one from using the most lucrative platform – Youtube. There are other formats to produce faceless videos, which can return the same as the other genres. Depending on the creator’s passionate genre, they can create videos of products, software, and related reviews. A brand looking for exposure and a place in the market can offer a sizable amount of money for a well-established YouTuber reviewing their product.
Usually, tech and software products are some of the more prominent niches to get into. It is mainly because they make a lot of money, and almost everyone owns some tech or software product. If you have a strong community with the same niche, go for it, brands may send you free gadgets to review. They may also let you keep it to make videos for them. Even though there is no specific time for tech videos, the best time for brands could be around new product launches. It is when review videos can be most attractive and create curiosity amongst audiences.
Similarly, unboxing videos are popular among YouTube audiences. People buy products and turn to reviews before deciding if the product is worth it. Make sure you find out your audience’s preferences and narrow it down to what kind of products they might be interested in. Make videos around them, show them how the product looks as you open a new piece, what type of assembling it might need, and more. These can become viral videos. Additionally, you can get an affiliate link to place it in the description.
- A good tech product reviewer on YouTuber can make as high as $250000 per month.
6. Brand Sponsorships
Producing sponsored content is undoubtedly the most high-paying income stream for YouTube content creators. It also comes with the advantage that you do not have to share the earnings from the brand with YouTube. The transaction is only between you and the brand. More than ever, brands are now coming forward to invest hugely in influencer marketing; they sponsor their video in return for a shoutout. Brands look for creators with a significant amount of subscribers. Subscribers are loyal audiences who trust the creator. Audiences look to the YouTubers when making choices or forming opinions. Brands leverage highly through these types of creators. Additionally, if a creator’s negotiation skills are excellent, they can bag a great deal out of a single sponsored video.
The trick to a successful sponsored content video is thoroughly researching the product the YouTuber is going to promote and plug the product into the video so that it doesn’t interrupt the user experience. YouTubers are expected to be transparent with their audience and tick the partnership badge in their video setting to make it visible that they are promoting something. This way, the entry process looks authentic. To increase the creator’s creativity, they should refrain from promoting products they don’t like or use. It will harm them in the long run and make audiences lose interest in their views.
- In the best case, a YouTuber can earn approximately $2000 from a single sponsored video.
- Softwares, beauty products, tech gadgets, and electrical appliances are some of the most profitable categories for sponsored videos.
7. Market products on live streams
Selling products while on a live stream is also a great option that YouTubers can use to make money. Considering a creator has a large audience, this strategy works pretty well for them as they have already built trust in their audience, and the users are likely to buy the products they refer to. Nonetheless, this strategy is not limited to only big influencers; even budding influencers can benefit from a live stream and product placements during the process. Beauty and fashion are among the most popular categories in this model. These influencers have a solid fan base who rely on them for their opinions, which could lead to many impulse buys.
Even better, if creators have their products to sell, they get to keep more profit and can form more trust with their viewers. It is a great way to have extra income because you give what your audience love – real-time and interactive sessions and plug-in products that you think they could use. Once the creator knows their audience well enough, they can come up with their ebooks, courses, and other digital & tangible products to have a hold on the market. Unlike branded content, where brands have a few demands that you have to fulfill, you have control over how you market the products/services. Not only do all these ways make you money, but they also keep your sessions interactive and increase your watch time. YouTubers can also make money in different ways on a live stream, like ads, sponsored streams, and so on.
8. Sell Merch to Your Audience (Merchandise shelf)
From Ariana Grande to Lady Gaga, everyone has the merch they’re selling now. People would often not think twice about buying them because it makes them feel connected to their favorite stars. It is one of the oldest and most feasible ways of earning money for a YouTuber who is loved by their audience. The catch with this path is that a creator should have a significant subscriber count who relates with them and is interested in buying their merch. If their YouTube channel is eligible, they can showcase and list their products on the merchandise shelf.
If you are a YouTuber, you can opt for T-shirts, caps, mugs, hoodies, and so on as their merchandise. Putting your essence, quirky taglines, and using limited edition merch will likely boost sales. Afterward, it is a good practice to promote your products here and there by wearing them in videos, mentioning other people wearing them, providing reviews about the quality, leaving links in every video, and so on. You can hire a team to help produce and distribute your merchandise or use platforms like Shopify to manage everything independently.
- YouTubers can make around $3000 per month by selling their merch.
- It takes minutes to sell a well-established YouTuber’s merch stock.
YouTube introduced Superchat way back in late 2017. Back then, it was shared with some content creators. Now, it is only accessible to a YouTuber if the channel is monetized, the creator is above 18, has over 1000 subscribers, and resides in the same country from where they come to live for Superchat. It is simple to understand; whenever a YouTuber goes live and interacts with their audience, the audience may want to get their comment highlighted and pinned for a while so that it stands out. So, they have to pay for it, and the amount directly goes to the YouTuber. Additionally, the subscribers can also pay a monthly fee and becomes a member of your channel.
Superchat allows the subscribers to get exclusive rewards like live chats with the YouTuber. They also have custom badges and emojis, which are highlighted every time the creator comes live for a Superchat. Additionally, with super chat, viewers can buy super stickers, which works the same way as a super chat message. It just has a more custom message. To keep the interaction healthy and nice, creators here have the option to block or ban specific phrases from being used.
- Viewers’ donations can range from $1 to $500 (max for 5 hours).
10. Licensing popular content
Being a YouTuber, if your stars are aligned and your content goes viral, you will be flooded with paid media opportunities, news covers, advertisements, and whatnot. Opportunities like these are not an everyday sight for content creators, and they might as well make the most out of them.
In this case, getting your viral content licensed by a video licensing agency can be beneficial. Media houses, magazines, and press may want a copy of your content for their audience, and they can pay you a whopping amount in return. Always keep yourself ready if bombardings like these occur, stay updated with your information on your YouTube channel, and make it accessible for anyone to contact you for business inquiries.
- Depending upon the creator, views, and audience, media houses can pay $100 to $100,000 for a copy of a licensed viral video.
- Creators can also opt for 50% profits of the share when they sell their licensed video.
If you can work on improving your video quality, materials, and marketing, everything will fall in place. You will also need to work on different ways to increase subscribers on the channel, so there are more views for monetary benefits to follow. Here are some ways to increase YouTube Subscribers:
Top Ways To Increase Views and Subscribers
- Write catchy and engaging video titles
- Optimize videos with keywords, descriptions, titles, and tags
- Produce informative videos based on your audience’s preference
- Collaborate with other YouTubers to engage and grow
- Use tools like Canva to customize your thumbnails
- Come up with content, live streams, and polls to increase viewership
- Post your videos on all other social platforms
- Embed YouTube videos on your blogs and websites
- Create a playlist for your videos and organize the content
- Encourage audiences to watch other videos with a call-to-action button
- Learn constantly about new tools and techniques
To learn other ways to make money on YouTube, you can take up an all-inclusive and exhaustive YouTube Mastery Course by Sorav Jain. This is an exclusive course for creators looking to monetize their channel and make the most out of it. Everything is covered in this course, from starting a channel to using the best apps and creating quality videos to attract audiences and brands. Go ahead, and sign up today to create your personal brand!