So maybe you have been wondering How much do Youtubers make? Its a valid question as there are YouTubers who earns millions per year. But what about the average YouTuber? And how can i figure out how the earn their money?
Well we have researched what revenue streams current YouTubers use plus how much you can expect from these outlets. Gone of the days when you only use video ads, there are heaps more options out there which is a win for creators!
Everyone knows that the mass availability of the internet has transformed professions and opened new revenue streams. Advertisements & subscriptions have long been the internet’s way of paying creators and today considered solid ways of earning money.
Youtube’s monetization uses complex algorithms to provide users & channels with a rate/view, rate/click or so on. Before we could go further, its best to know the basics.
So How Much Do Youtubers Make?
There are several revenue streams through which a Vlogger can make money on Youtube:
As Google has fully integrated Youtube into its existing services, Youtube’s advertising is now based on the Google’s AdSense networks. Ads are the most common method used by Youtubers as revenue stream. (Google Adwords are for business’s that want to promote, Adsense is for YouTubers to display ads on their videos).
The concept is simple:
You get paid for placing relevant ads within your Youtube videos.
First of all, you must know that Youtube doesn’t pay you based on the number of views your channel has. It pays you based on people’s engagement with the advertisement being displayed. Engagement according to Youtube’s dictionary means people behavior with the ad, e.g. clicking, display for more than 30 seconds, etc.
Ads are chosen through either Google’s AdSense networks or through Google advertising partners. The revenue is split two ways:
- Google keeps 45%
- You get 55%
Types Of Ads
- Skippable: these are displayed before the video is played but have an option on the lower right side for skipping it after a set duration.
- Non-Skippable: these are usually short ads that can’t be skipped by the viewer.
- Display: these are displayed as a semi-transparent box on the user’s screen that can be closed.
- Overlay: these can’t be closed and appear at the right side of the video.
There are two models through which payment is processed:
- Cost per Click: this is where the advertiser pays money on the basis of clicks. For instance if a keyword has a CPC of $2, and I click on the ad, the channel will get $2.
- Cost per View: this is when the channel gets paid based on views. Youtube monitors the behavior on this model, and the channel gets money for the duration the ad is seen.
There are several websites that offer Youtube keywords along with their CPC. By placing ads that pay the most, you can easily boost up your revenue. Here are some of the best ones:
In May 2013, Youtube finally issued a press release in which a “paid channel subscription service” was launched. This would allow channels to charge for their video content, giving Youtubers another great revenue stream.
This feature has a 55/45 split, where you keep the 45%. This was basically an experiment done by Youtube to see if people would be willing to pay for content through subscriptions. Just like they do with video streaming services like Netflix or HBO on demand.
There are limitations though. All subscriptions come with a 14 day trial so Google doesn’t touch the viewer’s credit card until the end of that period. In addition, in order to be eligible for this program, your channel must have more than 1000 active subscriber.
Another great way of monetizing your content is by sponsorships. It seems that YouTube is quite strict about the sponsorship guidelines as its interrupting their potential revenue stream.
Youtube allows for brand sponsorships including endorsements as well as product placements. However YouTube want you to be transparent and upfront with your audience so you know there is a sponsored product or service.
You can inform Youtube of such sponsorships by going in the Advanced Settings Tab before uploading the video.
Sponsorships are a great way for you to cut Google/Youtube as the middleman and deal directly with interested parties. Now, how much should Vloggers, especially beginners charge for a promotional piece?
There is no definite number here. The key is to start off by testing the price. Start at a number at which you’re comfortable and keep it for a couple of videos. If the hits increase, the ball comes in your court and you can renegotiate with the client.
The next answer to the question as to how much money do youtubers make is donations. Youtube developed a program during 2014 that gave channels the option to receive payments from their viewers through Google Wallet.
Youtube allows the channel to display a “Support This Channel” button, through which viewers can donate to a channel to keep it alive and ad-free.
The downside of this revenue stream is that currently only a set number of countries are supported including:
In addition, you must have a Google Payments Merchant Account for all the processing and transfer. This revenue stream should be used only by those users who provide truly mind-boggling content, enough to motivate users to keep it ad-free.
With every passing month, Youtube is increasing its user base, and more and more people are becoming interested in making a living over Youtube. Here are a few success stories:
- PewDiePie – a 27-year Swede, Felix Kjelberg started his channel in 2010 and is considered as the inventor of the Gaming Videos genre. He makes videos playing & reviewing games, and has amassed more than 24 million subscribers, grabbing 7.4 million dollars in ad sales in 2014.
- BluCollection – the channel is dedicated to opening, assembling and playing with various toys. The unnamed Youtuber has 628,000 total subscribers and earns somewhere between $700,000 to $1 million after Youtube’s cut.
- Smosh – more than 27 million subscribers and almost $4 million in earnings, Smosh is a comedy duo and one of Youtube’s oldest sensations. Their channel is showing no signs of slowing down and their subscription base is only increasing.
- SkyDoesMinecraft – Adam Dahlberg posts gameplay videos & commentary about the popular Smartphone game, Minecraft. He has 9 million subscribers and gets close to $2 million after Youtube’s cut.
- Vegetta777 – this is a wildly seen Spanish channel owned by Samuel de Luque who does voice-overs of gameplay videos like Battlefield, Saint’s Row, Minecraft, etc. He has 4.5 million subscribers and earns around $2 million.