We have seen the stories on the internet, in magazines or newspapers of people making thousands and millions of pounds from YouTube.
The Internet was full of stories of Daniel Middleton, a British YouTuber, who made a whopping £12.3million from YouTube and was also the highest earning YouTuber of 2017[i].
He has 19 million subscribers on his YouTube Channel[ii].
While he is making millions, he is not the only one. Numerous people are making thousands of pounds a month, while a lot more are making hundreds of pounds from their YouTube Channels.
The best thing about YouTube is that anyone can upload a video on its platform with ease and convenience. All a person needs is an access to the internet, an idea, and a camera. It is not necessary to have a video that has gone viral, if the video is interesting enough, it will get the viewership.
Five billion videos are viewed every day by more than 300 million visitors, creating a huge opportunity to earn a lot of money.
There are some prerequisites that are to be taken into consideration to start making money on YouTube.
- The first thing is to enable monetization on the YouTube channel.
- A person needs to apply to the YouTube partner program. To get partner status a channel needs 1,000 subscribers and people must have watched 4,000 hour’s worth of the videos in the past year on the channel.
Few sure shot ways to make money on YouTube are
The easiest and the basic way to make money on YouTube is via ads. These are the ads that come before the completion of the full YouTube video.
Money from Ads used to be a bigger part of the earnings, but with time it has become less lucrative.
The person will get paid a certain amount of money, for every thousand impressions of the ad that is played per video. These can range between one to five dollars[iii].
YouTube has started taking almost half of the overall revenue that ad generates.
A million views on a video approximately equate to something between $1,000 (£750) to $5,000 (£3,700).
There are two ways which can help a person to earn money from ads.
- Cost Per Click: where an advertiser pays based on the number of clicks on the ad. These ads appear as banners during the video.
- Cost Per View: where an advertiser pays based on the number of views an advertisement had. A view gets counted when someone watches the ad for at least 30 seconds or half of the ad.
- Affiliate links
This is relevant for beauty and fashion Vloggers. By endorsing a specific product in their video, they get 5-20% kick back.
It is basically an incentive from the brand for telling people about the product.
People on YouTube make money through Patron.
The viewers are going to see the videos whether they like it or not, but if they really like the video and want to support then they can a dollar per video or a dollar per month.
Some channels on YouTube set up a specific feed that where only paying viewers can get access to exclusive content.
- Brand Ads
YouTubers make the most money via Brands deals.
Companies pay people to make videos about their products in exchange for large sums of money.