Not all YouTubers get paid but all YouTubers have the potential to begin earning money from their videos. Now, this doesn’t guarantee your uploads are going to earn you a fortune, but with dedication, refinement and a good frequency of uploads, you’re sure to begin making a decent amount of residual cash.
Depending on your skills and time/budgetary constraints, you could start earning a good sideline income or even become a full-time YouTuber.
YouTube stars have reached the same acclaim as major sports athletes, with even celebrities following their favorite gamers and participating online. Here we’ll be giving you a brief overview of how YouTubers get paid and how much they earn.
YouTubers and the YouTube Partner Program
Videos which are monetized using Google’s very own YouTube Partner Program earn revenue to their AdSense account. The amount earned varies and hinges upon whether the ad is run using a cost per click model – or CPM – cost per one-thousand views.
The most commonly used advertising model for most YouTubers is CPM and the average earnings depend on the ads which are placed. Advertisers always target relevant content so the better matched your videos are to your audience, and in particular the demographic in demand of the product or service, the higher the CPM.
How Earnings are Calculated
If the average rate that an advertiser pays per view is $0.18. Only 15% of all viewers on average watch the necessary 30 seconds needed for the revenue to count towards payment. YouTube pays out 68% of their AdSense Revenue.
So, out of 1,000 views, roughly 150 people are likely to watch an ad. Multiply this be the rate of $0.18 per view and you reach a total charge of $27. Out of this amount, Google then keeps 32% or $9. This is then split with you, with Google keeping 45%. By the time this reflects as YouTube revenue, you’ll be earning a $4.95 CPM.
YouTube’s CPM rates vary according to which country the views are coming from. The United Arab Emirates has the highest CPM rates, with the US coming in second. Canada, Australia, New Zealand, and the UK all have roughly the same CPM, falling just behind the US. However, it is far more than geography which determines the rate at which YouTubers get paid.
Video content needs to be attractive to an advertiser, being not only family-safe in most cases, but also highly targeted while reaching a broad audience.
Affiliate Advertising and Your Earning Potential
Despite getting paid via the YouTube Partner Platform, many advertisers are not interested in subscribers and ad payments but rather the traffic which they can drive to their own landing pages. If one looks at success stories you can find new marketers earning enough to forgo doing anything other than marketing through online channels.
For example, if you are driving sales through a video review or unboxing video for the latest gaming hardware, 100 quick sales wouldn’t be too hard to achieve for a video reaching 100,000 views. If we assume an example where a $1,000 graphics card is being sold at high demand within a day or two of launch, then even at a meager 6% commission from sources such as Amazon, a YouTuber could earn as much as $6,000 virtually overnight.
Not every scenario will play out as favorably but once you get to know your demographics, there is a good chance of turning a tidy profit from creating promotional videos.
The Earning Potential of YouTube Stars
Together, the top ten YouTube stars earn a collective $180 million per year. All of the top earners for 2018, according to an annual report from Forbes, have a shared interest in the video gaming genre. YouTube influencers have swayed the count of many opinions from cryptocurrency investments to the type of gaming hardware users prefer using.
Seven-year-old Ryan from Ryan ToysReview ranks as the year’s top earning YouTube Channel. This young man has been reviewing toys since 2015 and has built himself over 17 million loyal subscribers. With pocket.watch and Bonker’s Toys partnerships launching an exclusive Ryan’s World toy line, next year is sure to top the staggering $22 million earned in 2018.
YouTube stars are indeed extremely popular. Another prominent YouTuber Logan Paul drew so much attention that he ended up with countless noise complaints in his LA neighborhood due to his fervent followers.
Factors Affecting Earnings
There are many factors which affect the revenue of YouTubers. Some months of the year are simply not suited to a particular type of channel or the marketing campaigns that a certain demographic need to be exposed to. Specific advertisers are also willing to pay more for specific types of ads.
For example, when an advertiser is looking for clicks, they’re looking for a particular type of viewer and normally one with a more definite buying interest. This will take the right video. The highest earning video creators always take the time to understand how an advertiser sees their audience, optimizing future content to make it a better match to prospective advertising campaigns.
YouTube’s Ever-Growing Revenue
If we had to imagine an example where a YouTuber grows a loyal fan base of 1,000,000 subscribers and attains an $8 CPM, then we’d already had impressive earnings. If the whole fan-base watches two videos a week, the calculation would work out as $8 x 1,000 x 2 = $16,000 per week from just AdSense payments.
This doesn’t take into considerations affiliate earnings, the value of traffic, the impact to brand presence, and the potential earnings of sponsored posts. Merchandising brings a whole new world of potential for revenue.
One need only look toward gamer clothing brands backed by top YouTube stars to see a trend for growing income off a loyal fan base. The more popular you become as a YouTube, the more affiliation your fans want with you.
This, in turn, translates into new ways to make money using your influence. Video marketing is a platform which is only beginning to expand. On-demand content is in higher demand than ever making YouTube a more and more lucrative prospect by the day.