YouTube has become the world’s largest video-based social network and every day, countless content creators in the form of both individuals and businesses upload unique videos to inform, educate, entertain, and promote.
However, a small percentage of YouTube creators or “YouTubers” as they are commonly known, are also able to make substantial money off the platform. For these YouTubers, creating videos for their YouTube audiences has become their job and their success has inspired countless more around the world to take to the platform to earn their living.
If you happen to be one of those who have been inspired by one or more YouTubers, you must have wondered how exactly they earn their money and how much the best-paid content creators actually make. In this post, we’ll check out how YouTubers can earn money and also how much the top 5 YouTubers at the moment earn.
How Much Do YouTubers Make?
Ad revenue: The primary source
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 32%
- You get 68%
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:
How Ad Revenue Works
Step 1 – Enable account monetization: To earn money through the videos you upload on YouTube, you need to first enable monetization on your account and this is the most fundamental step towards earning from the platform. Trust us, even the big boys in the game today had to do this once.
To successfully monetize your account, you need to go through and accept the advertising guidelines stated by YouTube.
The most important guideline states that the total ad revenue earned by a video will be split 45/55, with 45% going to Google and 55% coming to you. In addition to accepting YouTube’s advertising guidelines, you also have to connect to a Google Adsense account.
Step 2 – Upload videos consistently and promote them: The second step is fairly obvious, but most YouTubers fail to take this seriously and as a result, don’t succeed in using the potential of the platform to earn money.
You need to be persistent and most importantly, consistent, with your YouTube uploads. Also, you need to set realistic goals and expectations, as you can’t expect to make money from the platform immediately.
To increase your chances of earning ad revenue through YouTube, you’ve got to put in significant effort to promote your videos.
Use all your social media profiles to spread the word and encourage every contact to engage with your videos by commenting on them, liking them, and of course, subscribing to your channel. As the views and subscriptions increase, so will the ad revenue.
https://www.youtube.com/watch?v=zZjRYrE4LA0
Secondary sources of YouTube income
Apart from ad revenue, there are various other methods through which YouTubers earn money, which we’ll cover in the points below. However, before you can expect to earn through these methods, you have to establish your channel so that there is consistent engagement with your videos from your subscribers and followers.
Influencer marketing: Once you have firmly cemented your place as a YouTuber, you can tap into the world of influencer marketing, which involves the promotion of a product, service, or brand through videos. Methods such as branded integration, becoming brand ambassadors, and affiliate marketing are some of the key components of influencer marketing.
Super chats: Super chats is a fairly recent feature that YouTube has added, allowing content creators to earn even when they stream live videos. For example, if you have an active YouTube following, you could do a live question and answer video, where followers have to pay for their specific questions to be answered.
For every super chat question asked, YouTube will give you a share of the earned revenue.
Merchandising: Successful YouTubers often launch clothes, accessories, or other products that they sell through their YouTube channels. The products typically feature something characteristic of a YouTuber, such as a phrase that is used consistently across all of his/her videos or the logo associated with the channel.
Merchandising is a great way to establish a brand identity on YouTube and to connect emotionally with followers.
Individual businesses: YouTubers often set up their own business ventures once they achieve success on the platform and they use that success to promote their businesses.
For example, numerous YouTubers have created their very own mobile apps and written books on their respective areas of expertise and promoted them through their YouTube videos.
YouTubers with a substantial following may also be targeted by different brands to advise them on marketing strategies and campaigns, which results in additional income. Many are invited to public events as well and paid for sharing their knowledge with attending audiences.
The Highest Paid YouTubers
Previously we looked at the earnings of PewDiePie, David Dobrik and Emma Chamberlain, who are some of todays biggest creators. They have amassed billions of views, millions of subscribers and a whole lot of money.
Below are the top 5 highest paid YouTubers at present and how they’ve risen to become global sensations.
Jeffree Star:
Makeup guru Jeffree Star is the 5th highest earner on YouTube and in 2019, he earned around $17 million. However, Star’s success on YouTube wasn’t achieved overnight. He started his YouTube channel way back in 2006 and back then, he was known for his musical prowess, having become the most followed individual on then-popular music platform MySpace.
However, in 2013, Star decided to call it a day on his music career and opted to focus on the makeup industry. In addition to his successful YouTube channel, Star also has his very own line of cosmetic products that dates back to 2014, which makes him an additional $100 million every year.
Rhett and Link:
American comedy duo Rhett and Link are the 4th highest earners on YouTube and they earned approximately $17.5 million in 2019. Rhett McLaughlin and Link Neal, the comedians who make up the duo, first met in school and their friendship persisted into their college years, during which they pursued engineering.
However, not long after they had graduated, they bid goodbye to careers in engineering and focused on making comedic videos on YouTube.
Since the duo’s YouTube journey began, they have started five YouTube channels and all of them have done incredibly well, significantly elevating the duo’s status internationally. The most popular channel of the duo, Good Mythical Morning, has over 16 million subscribers and more than 6 billion total views.
Anastasia Radzinskaya:
A Russian-American YouTube sensation aged just 6, Anastasia Radzinskaya became the 3rd biggest YouTube earner in 2019 as her channel generated an income of more than $18 million. Life wasn’t very kind to Anastasia in her early years when doctors diagnosed her with cerebral palsy.
However, things took a turn for the better in 2016, when her parents decided to create ‘Like Natsya’; a YouTube channel with Anastasia at its core. The channel, which initially published toy unboxing videos, shifted to videos that showcased amusement parks in various countries.
After Anastasia’s parents signed a contract with Yoola, a multi-channel network, the channel started gaining popularity rapidly and today, she features prominently on three family-run YouTube Channels that include the aforementioned ‘Like Natsya’, ‘Like Natsya Show’ and ‘Like Natsya Vlog’.
Dude Perfect:
Dude Perfect was 2019’s 2nd biggest earner on YouTube with $20 million. Unlike other top paid YouTubers, who are mostly individual creators backed by either their families or a few collaborators, Dude Perfect is a sports entertainment conglomerate whose presence is now well and truly global.
The company, headed by a group of five who formerly studied together at Texas A&M University, made its name on YouTube initially in 2009, when the group uploaded a video of basketball trick shots.
As the video notched up hundreds and thousands of views in a matter of days, more videos followed, increasing the group’s popularity and cementing Dude Perfect’s place on YouTube. Frequent public appearances and professional endorsements have led to the group becoming a multinational conglomerate and today, they also have their very own mobile app, television show, and documentary.
Ryan Kaji:
Who would have thought that one day, an eight-year-old would rule YouTube? Ryan Kaji, the eight-year-old American, has made the impossible a reality and in 2019, he topped the highest-paid YouTubers’ list with a mammoth $26 million in earnings.
Ryan’s entry into the YouTube world happened when he was just three, as he reviewed toys on videos published by his channel, ‘Ryan Toys Review’. Several years and a significant rebranding later, ‘Ryan Toys Review’ became ‘Ryan’s World’ and along with his Japanese and Spanish YouTube channels, his popularity on the platform skyrocketed rapidly.
The youngster has more than 25 million subscribers and thanks to his success on YouTube, today, he has his very own clothing line, TV show, and frequently appears on magazine covers. Well, that must have been a long read but we hope you now know what kind of figures the top YouTube content creators earn. So if you’re planning on starting your YouTube channel, stop planning and start doing!
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