You’ll be astounded when you learn how much YouTube’s richest stars are earning – even after YouTube’s 45% cut.
And some of them are under 10 years old. The foul-mouthed #1 star is PewDiePie, aka Felix Arvid Ulf Kjelberg, who is a video game commentator. His channel, which has nearly 24 million subscribers, has had nearly 4 billion (yes, billion!) views. His earnings? They’ll blow your mind.
David Erickson & I discussed the stars and the numbers on episode 55 of The Beyond Social Media Show.
For many people, YouTube is a site where they can spend endless hours watching cat videos, product reviews or other people playing videogames. For others, it’s a way to make money.
Becoming a professional YouTuber might sound like fun, but you’ll have to hustle to get started, and there’s no guarantee it will pay off. If you’re looking to make a quick buck, you might consider other options. However, if you’re already an avid video creator and are willing to put in the extra effort, you might be able to make money on YouTube.
Here’s what you need to know.
Earning directly through YouTube
To earn directly through YouTube, you must partner with the site. Once you do, there are several ways to cash in, but to become a partner you must meet the requirements: Your videos must abide by the site’s advertising guidelines, and you need at least 10,000 channel views.
The more videos you have, the easier it is to reach that 10,000-view threshold. Someone with 200 videos needs only 50 views per video to get there, whereas a person with 10 videos needs 1,000 views per video. High-quality, entertaining videos are more likely to get views, so it pays to put effort into planning and production. Even when it sounds easy, the biggers issue most starting media content producers encounter is the lack of visibility, One of the best ways to start working on getting a regular audience is by buying YouTube views, the more viewers you receive the better placement you will have on the daily top, it will increase your popularity really quick.
Once you’re approved as a partner, you can connect your channel to Google AdSense, the company’s advertising system. Advertisers use AdSense to bid for space on videos based on factors such as your audience, video topic and relevant keywords.
In general, you’ll be paid based on the number of “impressions” your videos get; that’s when someone clicks on or watches an ad. Ads don’t display every time someone watches a video, though, so views don’t translate directly to money in the bank. Also, YouTube takes a cut of the ad revenue; it wouldn’t disclose that rate.
You’ll get payments once your balance reaches $100, so if you have a small channel, you might get paid only every few months. You may want to set aside some of that cash for taxes because Google GOOG, +1.33% which issues AdSense payments, might not deduct your full tax obligation.
AdSense isn’t the only way partners can make money on YouTube. You can also make videos available on YouTube Red, which is the site’s ad-free subscription service. And if you have more than 1,000 active subscribers, you can put videos behind a paywall and enable Super Chat, which lets viewers pay to have their messages highlighted during a live stream. To use that feature, partners have to be older than 18.
Thinking beyond YouTube
AdSense, YouTube Red and Super Chat aren’t the only ways you can cash in on a YouTube channel, but making money through these other methods still depends largely on having a loyal, engaged audience. Here are a few options to consider.
Use product placement and video sponsorship: Companies interested in your channel’s audience might sponsor your videos or offer you product placement deals in exchange for a shout out. You’ll likely receive payments on a per-sale basis or in commission tiers. Search on sites such as ShareASale, Clickbank and CJ Affiliate by Conversant for possible corporate partners — and be sure you’re willing to vouch for the company and products you’re selling before signing up.
If you do have an endorsement or product placement in a video, you must notify YouTube by ticking the “paid promotion” box in the advanced settings tab of your video manager.
Sell products or services to viewers: If you have merchandise or offer a service that’s relevant to your audience, let them know about it and provide links in your videos. For example, comedian Jenna Mourey, more commonly known by her YouTube name Jenna Marbles, sells T-shirts and posters featuring one of her dogs. Selling a physical product might require you to buy materials or find a manufacturer, but you can also sell downloadables such as e-books or art prints. Have a secure payment system in place before you advertise your goods.
Meet up with fans in the real world: Meetups and similar events let YouTubers connect with viewers and sell merchandise. They’re usually best suited to those with active and engaged subscribers. Those with smaller audiences might want to skip ticketed events and bank on merchandise sales instead. Or if, for example, your videos teach viewers how to draw, you could set up a free class at a local park and sell your book of drawing techniques afterward.
Turn to crowdfunding: There are two primary types of crowdfunding: recurring and project-based. Recurring crowdfunding lets contributors pay an amount they specify on a regular schedule. You’d want to maximize this type of funding to turn a channel into a substantial income stream. Incentives such as one-on-one video chats, private classes or merchandise can entice viewers to sign up.