YouTube is a very lucrative earning platform for those who are willing to put in the work. Not all videos pay the same as difference audiences are more lucrative than others. Many factors play a role in the rate which YouTube ad revenue pays. Here we’ll be taking you through a look at which to expect at a bare minimum.
We’ll also show you how much the average channel makes, and the potential for earnings which having a channel holds.
YouTubers can make a small fortune or next to nothing at all, it all depends on what you’re broadcasting. Let’s take a closer look.
CPC and CPM
The advertising revenue paid by YouTube depends on which ads are displayed. This places the value of advertising relative to the AdSense value. There are two types of ads. Cost per click advertisements as the name states, pays for each click leading from the ads displayed in your video. The second revenue model is the one more frequently used – CPM – or cost per one thousand impressions.
The viewer needs to watch the ad for over thirty seconds in the case of longer videos, or half the duration for short videos, for the revenue to count. Advertisers who pay per impression have varying rates but you can expect a minimum CPM of $2 to $4. This means that for every 1,000 eligible views you will earn $4.
Pay per view rates on YouTube average $0.18 meaning that after Google keeps its 45% cut, you’ll still reach a CPM of $9.90 per 1,000 views. That can quickly total tidy earnings when you consider how many views a viral video accrues over a very short time period. Regular broadcasters rely on their audiences to speculate their earnings and set budgets for video creation.
There are many different types of affiliate marketing but the basic agreement is one where a retailer pays a commission to the YouTuber or traffic/sales affiliate. Commission rates are typically fixed, although varying pricing strategies exist. Video reviews, unboxing videos, and product recommendations are the most common type of affiliate marketing on YouTube.
Any sales that are generated by these videos are paid according to a click-through rate (how many people clicked your link), a conversion rate (how many people ended up buying the product) and then a commission paid on the product itself. If a video gives you a click-through rate of two percent and a three percent conversion rate, then the earnings can be quite significant.
At a $5 commission per sale, 6000 people will end up buying the product earning the YouTuber $3,000 off one million views or $250 dollars a month, if you look at the earnings over a year. While this may be a hefty target for a new YouTuber, it is attainable.
Run multiple videos and stick to uploading and interacting frequently, and you could be earning a fantastic residual income from each upload. Most uploaders report that they still earn a notable amount for many years after the initial success of a video.
How Much Can I Make on YouTube?
Well, the sky’s the limit if you manage to snatch hold of an audience. With the lowest CPM falling at $2 and one-hit wonder Gangnam Style from Psy hitting over 3.2 billion views in its six-year lifespan, you can do the math. Forbes recently released a top ten list of the highest earning YouTubers from 2017 to 2018. Here’s a look at just how much money the cyber-celebrities of today truly make.
This 7-year-old who reviews toys has topped earnings at $22 million. He even has moved on to launch his own line of collectible toys which are being sold at Walmart. Posting daily, Ryan has massed over 17 million subscribers.
Jake Paul first rose to fame on Vine. His first attention was drawn due to the role Dirk which he played on the Disney Channel series Bizaardvark. Today the YouTuber uploads daily videos relying on his notoriety and haters as much as the few fans between. At 17.6M subscribers, the boisterous broadcaster is the second high-earnest earner at $21.5 million for 2018.
Dude Perfect is a five-man crew who specialize in sporting feats of dexterity and complex trick shots. The channel holds 37.4 million subscribers and their highest earning video so far was one where they triggered a domino fall of Oreos by hurling ping pong balls, netting them 175 million views. 2018’s earnings for Dude Perfect sits at $20 million.
Dan dropped from last year’s highest-earning YouTuber to 4th in 2018. His year’s earnings tallied $18.5 million. Daniel Middleton has reached just over 20.7 million subscribers and began his rise to fame as a hardcore Minecraft gamer. Today he continues to broadcast Minecraft but has expanded to other popular genres like Fortnite.
As the makeup mogul to turn to for all types of tips, Jeffree Star comes in fifth an $18 million for the year. Other than his success as a broadcaster, Jeffree Star Cosmetics also sells an estimated $100 million worth of products. At 11.6 million subscribers, Jeffree has become an authority on beauty and makeup.
You don’t get a more famous PS4 gamer than Markliplier. This Hawaiian has toured America landed countless brand deals. He even partnered with this list’s number eight – Jacksepticeye, to launch ‘cloak’ a high-end clothing line for gamers. His channel is currently at just over 22.5 million viewers and continues to grow.
Mainstream gamer Evan Fong from Canadian has captured an audience of just under 23 million subscribers with his humor. His efforts put him at $17 million for 2018 and he is also launching a hip-hop career on the side.
Dirty-mouthed Irishman Sean McLoughlin is one of the funniest video-game commentators around. Despite his foul mouth, he has managed to do a series for Disney and is even involved in developing exclusive content for Twitch. From his channel carrying just under 21 million viewers, he managed to pull in a whopping $16 million.
PewDiePie doesn’t seem to be able to chase viewers away despite a massive backlash from his anti-Semitic uploads last year. A sponsored video alone brought him in $450,000 while the year’s earnings are sitting at roughly $15.5 million from his channel carrying 77 million subscribers.
In January, Logan Paul may have been kicked off Google’s Preferred program due to an inappropriate video depicting suicide but this prankster still earned $14.5 million for the year. His channel holds just under 19 million subscribers.
YouTube’s Massive Potential for Revenue
YouTubers stand to make as little or as much money as they are driven to earn. With enough dedication, time and careful crafting of well-targeted videos you could hit it big with a viral video like Gangnam Style overnight, or set up a channel with a loyal following bringing in more money than any day job could cover.
Not everyone is suited to running their own channel but for those who find the right balance of marketing and engaging content, the sky is the limit for earnings.