How Do People Make Money on YouTube? Explained!

Until recently, YouTube made money by uploading great content, attracting millions of views, and distributing advertising revenue. There are now multiple ways for content creators to monetize their content. This can include advertising, corporate sponsorships, fan funding, and merchandise sales, in addition to advertising.

How People Make Money on YouTube

1. Google Ads

Joining the YouTube Partner program is the first step to making money on YouTube. Content creators can earn money from their videos using Google Adsense with this partnership. In order to qualify, content creators must have 1,000 subscribers and 4,000 hours of watch time over the past 12 months.

YouTube monetizes its videos using pre-rolls, display ads, and other methods. Click-throughs and impressions are paid for by advertisers. YouTube gives content creators 55% of their revenue, taking the other 45%. Content creators must adhere to YouTube’s advertising guidelines. Advertisers will not place ads against content containing foul language, adult content, violence, and other topics. This may include discussing sensitive news events.

2. Brand Sponsorship

A company will pay a content creator to promote a brand or product in a video through brand sponsorship, also known as “influencer marketing”“. Michelle Phan attracted Lancôme’s attention early on in her YouTube career with her make-up tutorials.

There are currently more than 700 companies that help brands find social media influencers on platforms such as YouTube, Facebook, Instagram, Snapchat, and Twitter.4 Famebit, which was associated with YouTube, has been acquired by Google and rebranded as YouTube BrandConnect.

3. Fan Funding

In addition to channel memberships, another popular method of monetizing a channel is through ads. Subscribers pay recurring monthly fees to receive bonus content such as badges, emojis, videos, and live chats. Those with 1,000 subscribers or more can enable this monetization feature on their accounts. Video creators can also monetize their fan bases through third-party services such as Patreon. As much as $40,000 a month can be earned by top video creators from fan support.

4. Merchandise Sales

By enabling this feature in their accounts, YouTube partners can sell up to 12 products to their audiences. Among the products he sells to his fans are lipsticks, highlighters, and eye shadow palettes.

How To Get A Large Following on YouTube?

Following YouTube best practices will increase the chances of creators attracting a large following. Creating rich, interesting content is among the best practices. YouTube viewers either seek entertainment or solutions to problems in their lives. Great content increases the likelihood of the video being viewed and shared.

Content creators can also increase viewership by optimizing their videos for YouTube search. To do this, you need to use the Google keyword planner to identify words that a large number of people search for and put those keywords in the video description and tags. Another popular way to drive additional traffic to the YouTube video is to use social media and paid media advertising.

However, YouTube video creators face some revenue generation challenges, even if they follow all these best practices. According to the 1st quarter of 2020, the average cost per thousand (CPM) charged to advertisers was just $3.53. Since creators are paid only on monetized views, not total views, the CPM they earn can be much lower.

Learn more about how to make money on YouTube.

Final Words

Despite these challenges, YouTube can make a substantial income for people who can attract a large and loyal following. In Forbes’ estimation, the highest-paid YouTube creators earn close to $20 million a year, so it’s easy to understand why so many people pursue this seemingly bottomless source of income.

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