The internet is flooded with video content and we’re not surprised! After all, when compared to text, videos are what users love to consume and it’s the most engaging type of content. Those who recognized that trend early enough and used it to build their careers or improve their business, today are some of the most paid people on the Internet. Being the most popular video platform, Youtube has opened the doors for those who wanted to record their own videos and create a strong community around themselves.
YouTube created YouTubers
YouTube has given a chance to these people to become YouTubers – individuals who record their own video content, publish it on their own Youtube account and earn money based on the popularity of videos. When YouTubers became a famous term around the world, everyone was curios how are they earning money on this platform. With so many options for collaborations, sponsorships, live speaking engagement, and so much more, the real question is how much money do YouTubers actually make?
Now, we’re all aware of the benefits a powerful platforms like YouTube have, and it’s not a surprise that making money on them is something that attracts many people. Being a YouTuber is a relatively new profession. It’s been only a few years since the most powerful individuals have started earning money on this platform. However, the way that people are making money from it is still not clear to the audience. How much do YouTubers make? How much money one view can bring?
YouTube Partner Program
YouTube Partner Program or YouTube Adsense is a program through which most Youtubers are earning money. Even though there are many more ways to earn money, this is the only way you can get paychecks from YouTube or Google. In other words, Google will display ads in your videos on YouTube to generate revenue. From the total income earned through these advertisements, YouTube will keep 45% and pay the YouTuber the remaining 55%.
It’s hard to say what’s the exact income one person can earn from this program. Due to the fact that advertisement income depends on several factors and that the price of renting the advertising banner varies from one size to another, the amount a YouTuber will earn from Adsense will vary significantly from one person to another.
Youtube Earning Factors
To understand better how and how much are YouTubers actually earning while creating videos, there are factors that need to be considered in order to get an idea how the process of earning money on this platform looks like. Here are the factors that will directly affect how much a YouTuber is earning:
Location of the traffic is very important. For example, traffic from the USA and the UK gets higher Cost Per Click (CPC) when you compare them to countries like South Africa, Brazil, India, etc. This is why there is an assumption that for the same number of views (and same Click Through Rate), the traffic from the USA and the UK is more beneficial for Youtube as a platform.
What are the demographics of that traffic? Their age, gender and other factors will also influence YouTuber’s earnings. For instance, traffic that includes young people such as teenagers or those with lower income will usually make less money than traffic that includes working professionalsNiche of the video
YouTube will generally display those advertisements that are connected to the video the viewers are watching. This is why the niche of the video is another critical factor that will affect the Cost Per Click (CPC). The videos that get a very good CPC are usually those that come from the world of technology. The ones that have the lowest CPC rate are usually political and news videos.
There are so many types of ads that are displayed on YouTube. Ads such as TrueView and Bumper will get you money per view, and the pre-roll ads will pay you per click. Some ads can even be skipped by the users, while others don’t have that feature. Skippable ads are not charged to the advertiser if they are skipped. Of course, YouTuber will not earn money then as well. Only when the viewer clicks on the advertisement, a YouTuber will get money for it.
Targeting the wrong location or demographics will not be so much profitable for a YouTuber even with YouTube Partner program. That’s why a lot of YouTubers are using affiliate marketing as another source to earn money. Affiliate marketing allows these individuals to post product review videos, publish product unboxing videos and get money for doing that. In the food and fashion industry, bloggers will recommend a product to its audience. They will add their affiliate links in the description section so whenever someone buys the product using their link, they will get commision for it.
It’s very clear that platform such as YouTube is one of the best places for marketing. But, not too many people love viewing advertisements, so brand have decided to pay the YouTube channel to create a sponsored video. In other words, a brand will reach out to YouTubers and ask them to create a video about their product. YouTubers will charge a fixed price which is calculated through the expected number of views. Usually, it is from $10 to $50 per 1,000 video views. For instance, the video is expected to have a million views so the price for the sponsored post would be between $10,000 to $50,000.
How much money will a YouTuber make depends on a lot of factors that weren’t mentioned above such as talent or ability to create viral videos. One of the most popular YouTubers is named Pewdiepie and he’s earning $4 million Net income from his channel. In average, YouTubers actually earn from almost nothing to hundred of dollars every month. Since there are so many of them trying to get their share of the YouTube, earnings differ from person to person. According to the Observer’s website, the top 3% of YouTube channels get 90% of the total YouTube views. The important thing to keep in mind is that Youtube is not paying people salaries. Youtube is just a platform which allows those individuals to collaborate with niche brands.
If you wish to maximize your profit and jump on this YouTube train, you will have to upload your videos to your YouTube channel and work really hard to attract a high volume of traffic. There are many opportunities for everyone, but that’s exactly why it’s not so easy to turn it into your career. Create your own strategy, learn from others and do your best!