December 18, 2015
How Do YouTubers Make Money
How do YouTubers make money? Probably you’ve been wondering on how YouTube video creators make money, I will try and explain how it is done.
Making videos and uploading it on YouTube has become a source of income to quite a large number of people.
When I mentioned making videos as a source of income it might sound so simple but the process of creating or producing a content that’s capable of generating massive YouTube views is a challenging one.
A lot of activities take place behind the scene, you can’t simply open a YouTube account today and create a channel, and then the next day you make a video, upload it on YouTube and start making money straight away.
No it doesn’t work that way, for anyone to earn a living creating videos on YouTube, he has to first build a brand on the site and secondly build a large following or subscriber base.
These two very crucial foundations for making money on YouTube are not easy to achieve, if it were then everybody will be making money on YouTube.
There are a lot of articles giving false information on how easy it is to make money on YouTube, this is a wrong notion and a very bad misconception of the real situation.
So this again takes us to the question, how do YouTubers make money and how much do they really make creating content on YouTube.
There are so many ways a YouTuber can monetize his content on YouTube and some of these are brand integration, merchandise, self-distribution of digital products, selling of physical products, movie, TV and book Deals etc.
To an average YouTuber, these ways of monetization I mentioned above are a bit too complex and exclusively for the top players in the YouTube content-creating industry.
To be a top player means having a monthly YouTube view of 5 Million and above, the percentage of channels that have such large viewership is less than 1% of the total channels on YouTube so how do the larger percentage of YouTube channels with much more smaller subscriber base and viewership make money, here is how smaller YouTube channels generate revenue.
How Do YouTubers Make Money?
Placement Of Ads At The Beginning Of Videos (Cost Per View)
As a YouTuber, when you monetize your content, you make money when a user views your video for at least 30 seconds provided he is not using AdBloc.
this means the ad integrated into your video by YouTube will play for 30 seconds before the actual video but if the viewer is using AdBlock that prevents the ad from playing it means you won’t make any money from that view because it will not be counted by YouTube. 1,000 YouTube views will help you make between $1.50 to $3 of revenue on the average.
Use of Text Ad Pop-Up (Cost Per Click)
When an advertiser is using Cost Per Click advertising model, it means he will only pay when someone clicks on an ad and these ads pop up as text in the lower part of the screen during video or as a square banner on the right side of your channel. The amount you will make is dependent on the CPC value of the keywords used in the ad.
This type of deal is usually offered to larger channels, but a small channel can sometimes be lucky to get such deals. This is a situation in which an advertiser will pay you to make a video about his product.
This type of ad will help you make more money than the normal Ad, but you are required by law to state in the description that the video is an ad.
An advertiser might pay a lump sum for the video while some advertisers will only pay an amount or fee based on how many people click through to their website, or by how many people watched the video
Use Of Patreon
Patreon is a crowdfunding platform that is very popular with YouTube content creators, it is a sort of pledge to donate a certain or a set amount of money on a recurring basis or per artwork created.
It allows content creators receive donations from fans or patrons every time they create a work of art or content. The site takes 10 percent of the total donations, and the creator gets the remaining 90 percent. Most YouTubers use this method as a way of making money from their content.
How Much Do YouTubers Make
A lot of people ask the question, how many views do I need to make money on YouTube, some people will tell you that it is $1 per thousand views, others will say it is $3 per thousand views.
If that is the kind of question that you ask, your question is totally wrong rather your question should be how much engagement does it take to make money on YouTube?
This is because you don’t make money on YouTube based on the number of views you have, but you make money based on viewer’s engagement with the ad.
When I say engagement it means watching an ad for at least 30 seconds or clicking an ad depending on the preference of the advertiser.
YouTube uses Adwords to manage its advertising platform, it gives advertisers the privilege of choosing ads based on a Cost Per View (CPV) or Cost Per Click (CPC) model.
Types Of YouTube Ads
Cost Per View (CPV)
Cost Per View is an advertising model in which the advertiser pays money based on views. For the advertiser, this is when someone watches an ad for at least 30 seconds, this means even when the ad is clicked a thousand times the advertiser will not be charged because they are paying for views and not clicks.
Cost Per Click (CPC)
Cost Per Click is a type of advertising model in which the advertiser pays money based on clicks. So when an advertiser uses a keyword with a CPC value of $5, it means that the advertiser will be charged $5 when someone clicks on that ad.
Most times these text ads are shown as a square banner on the right-hand side of your channel or as a pop up in the lower part of the screen during the video.
From the explanation above you’ve realized that advertisers only pay when someone clicks or watches an ad for at least 30 seconds, so this is why you cannot determine how much you can make from your YouTube channel based on the number views you have.
Your video might have 10 million views and nobody watches or clicks an ad, which means you wouldn’t make a dime. So asking the question how many YouTube views do I need to make money is wrong.
How To Make More Money On YouTube
1. Advertisers are willing to pay big money to get their advert in front of specific or targeted audience, one easy way to increase your YouTube earnings is by creating videos with a demographic target or a particular audience in mind.
In a nutshell, what I mean is that you must define your audience and create videos that appeal to them. If you are an expert in finance management then you can create videos that teach people how to manage their finance, with this type of video you have a target audience to communicate with and this is what advertisers want.
2. To make more money with your YouTube channel, you should understand that certain keywords pay more than others. Advertisers can pay $20 per click for some keywords because the return on investment is quite high and $1.50 for some keyword that has low value.
This knowledge is important because the amount you earn is tied to how much an advertiser is willing to pay. If you have a highly targeted niche with high CPC keywords, you don’t need a million views to make a substantial income, just a couple of hundred views will give you what you want. It is also necessary to know that YouTube will keep about 45% of your total earnings.