As we live in the age where just about anything can be found on YouTube, it’s not surprising to learn that a lot of people make good money from putting their original content on the video-sharing site.
Although some users are happy to upload their stuff for free without asking anything in return, it’s a great way to earn some extra cash for doing something you love if you’re looking for a new way to make money.
How many YouTube views do you need to make money though?
A YouTube channel doesn’t automatically become a money earner when you hit a million subscribers, but rather it looks at other things like engagement levels, views, and other channels of revenue. To earn a successful income from YouTube alone, you should be utilizing different methods of money making on the site, and ensuring your account is set to monetization mode.
If you’ve often wondered what your potential YouTube earnings could be with your own channel, you’ve come to the right place, as we’re going to investigate the potential streams of income you could have thanks to the site.
Check out our guide to making money with YouTube to see what’s possible and the best ways to monetize your content.
- 1 Working At Home With YouTube
- 2 YouTube Partners Program And YouTube Premium
- 3 Types Of Advertising On YouTube
- 4 CPM And YouTube
- 5 5 Additional Ways To Make Money On YouTube
- 6 Alternatives To YouTube
- 7 Creating Content To Earn A Living
- 8 Related Questions
- 9 Final Thoughts
Working At Home With YouTube
For people looking for a way to leave their regular office job and work from home, the notion of creating content for YouTube and living off the ad revenue sounds like a nice alternative.
However, it’s a hard market to get into due to the millions of other videos out there and the thousands of other content creators all striving to hit the same goal.
Although you might not become a YouTube millionaire overnight, there are a few smart ways you can increase your earning potential.
If you already had plans to upload original content or like playing around with media and creating new things to share with the world, it makes sense to monetize your account so that you can earn a passive income that will at least put some extra cash in your pocket.
Being an original content creator and uploading videos to YouTube isn’t all you have to do to make money from the video-sharing site, though.
To start making money from your channel, you must first change your settings so that monetization is enabled.
From there, you’ll be able to choose options like listing your videos on YouTube Premium or joining the YouTube Partners Program, both designed to extend your reach to the world.
YouTube Partners Program And YouTube Premium
When you first join YouTube in the hopes of making money from home, the first revenue stream to consider is ads.
To qualify your channel for monetization, or making money off YouTube, you’ll need to have 1,000 subscribers and at least 4,000 hours of watched videos from viewers in the last 12 months.
After selecting monetization in your account settings and becoming part of the YouTube Partners Program, you can get an idea of your revenue by looking at the Analytics tab.
This will change regularly depending on views and ads, but it’s a good idea to keep track of to see what your predicted cash flow will be.
If you don’t want to make money on ads alone, YouTube Premium is another great avenue to explore.
This is a paid membership program that lets viewers watch videos without ads and you’ll be paid depending on how many of these Premium members watch yours.
Therefore, there’s the potential to earn from non-ad viewers here as well as ad watching viewers who make you money there.
Types Of Advertising On YouTube
The best way to earn money with YouTube is with advertising, but there’s a lot to learn about making it work.
There are three common types of ads on YouTube, however, it’s up to you to decide what will suit your demographic so you have a higher chance of people clicking through to the site behind the advertisement.
- Preroll: A preroll advertisement runs before the video starts but is a longer and more expensive ad since it can’t be skipped by the viewer. They can run for up to 30 seconds and normally have an enticing call to action that prompts people to go through to their website.
- Bumpers: A bumper ad is just six seconds long and can be placed either before or in the middle of a video. They’re a good choice for brand awareness and promotion, and ideal if you only want a shorter advertisement.
- TrueView: A longer and high-quality style of ad that fits perfectly with your demographic and the videos you’re showing. These can be skipped after a few seconds of viewing, but placed in the hope that viewers will want to watch the entire thing and click through.
CPM And YouTube
When looking at YouTube and its money making capabilities with advertisements, you’ll likely come across the term CPM quite a lot.
CPM stands for ‘cost per mille’ and it’s a standard advertising term used for decades which means ‘cost per thousand’ and this is the going rate that advertisers charge to have their ad shown one thousand times.
The CPM amount is not a measurement of how much you’ll earn from advertising, but rather just one of the ways you can make money.
For example, ff an advertiser has a CPM of $5, they’ll pay $5 to show their ad to 1,000 people. If you get 1,000 people watching your videos and seeing these ads, you can earn $5 from that advertiser.
When you add up the number of ads you’ll have and the number of views you hope to earn, it’s one of the easiest ways to make money on YouTube.
CPM is calculated using several different factors, with the location being one of the most significant.
Depending on what local media are paying for advertisers, the rate of CPM will also change, with countries like the Maldives, Denmark, and Poland earning some of the highest ad revenue on YouTube, so there are ways to increase your earnings.
CPC is another term related to CPM, meaning ‘cost per click’. This refers to ads that only make revenue if the viewer clicks on the ad and follows through to the website.
They can earn more revenue but don’t usually occur as often as a CPM which might only require the viewer to watch the ad for 5, 10, or 15 seconds to qualify.
5 Additional Ways To Make Money On YouTube
Although advertising is a popular way to make money on YouTube, it’s not the only one.
There are many issues that you might come up against when trying to earn a living using advertising alone, including a lack of advertiser-friendly content being published or viewers clicking past or not watching the ads on your videos.
The top earners on YouTube employ a range of strategies to earn money from home with their YouTube channels, and if you’re hoping to make this your biggest source of income, you might want to consider them as well.
#1: Sell Your Own Merchandise
You might not have made a name for yourself with just 50 subscribers to your channel but once you start to gain some recognition online, why not consider putting your brand on some merchandise?
This is a simple way to generate income as well as get your name out there to generate more views.
It’s easy enough these days to create your own merchandise using one of the many freelance recruiter sites, where artists can create just about anything you pay them to.
Once you have something worthy of sticking on a t-shirt, use a print-on-demand provider who does the entire order for you from printing to shipping, so you don’t have to lift a finger except to collect your money.
#2: Ask For Crowdfunding
When you’re looking for money to create bigger and better things, who better to ask than your loyal fans and viewers?
Crowdfunding has become one of the simplest ways to earn money for a good cause and if you have people who like your content and want to support the arts, they’ll be happy to donate.
Crowdfunding sites can help raise money for things like new equipment, production costs, and hiring staff, giving you the chance to create more of what you like.
Places like Indiegogo and Kickstarter can help you start a campaign to share with subscribers in just a few simple steps.
#3: Make Sponsored Content
If you have a large following and an earned status of influencer, you’ll have loads of opportunities to create sponsored content and work with brands that will pay good money for your audience reach.
This is an easy way for companies to reach your already loyal fan base by having you sell a product for them, and a great way for you to make money.
Brands these days understand the importance of social media and how one influencer can impact their audience, so come up with a fair fee that you can give to potential advertisers when they want to use your face and channel to sell something.
Make sure whatever you promote is something you truly believe in otherwise you can turn off subscribers and lose your clout entirely.
#4: Consider Licensing Content
When you’re good at something, you should never do it for free, and if you happen to create a viral video that gets shown around the world, make sure you get paid.
Viral videos that reach mass audiences will likely be played on morning shows and online news sites, so make sure you license your creations. This way, they’ll have to pay you a fee to play it, and the more time it plays, the more money you make.
#5: Ask Viewers to Pay You For Content
Have you ever visited a news site or media platform and found they were asking for donations from viewers to continue to run?
You can apply the same concept to your YouTube channel, similar to a crowdfunding request, and see what people are able to contribute.
If you’re asking for money, you need to be clear about how it’s going to be spent, and make sure you have something to offer people who are giving you funds.
This is a great way to reward your loyal fan base and make some money, and if you create free content that’s worth its weight in gold, people will be happy to throw you a few dollars as a way to say thank you.
Alternatives To YouTube
Although YouTube is the biggest video streaming site today, it doesn’t mean their model will work for everyone.
If you create original content and are looking for somewhere else to host your videos, consider one of these popular websites that can earn you money through advertising as well.
- Vimeo: Vimeo’s goal is quality over quantity so if you care about your art, it’s a unique place to host videos. Their video player is of higher quality as well so your content will get the platform it deserves and it ranks well on search engines so you can be easily found.
- Metacafe: Metacafe has over two million visitors a month and prides itself on sharing unique content. If video quality matters to you, they’re one of the better options for hosting, and they have an internal reward system that lets you earn money for the number of views you get.
- Facebook: Facebook has many functions for sharing videos for individuals or brands and you can make money through advertising here as well. There are loads of options when sharing videos to Facebook including tags, thumbnails, and optimization tools, as well as being able to upload in HD without downscaling.
- DailyMotion: If you have content that regularly gets banned from YouTube even though it’s not that out there, you might consider DailyMotion. They host videos in high quality, have millions of viewers, and are a little more relaxed about content guidelines.
Creating Content To Earn A Living
When you first think about ways you can make money from home, having a YouTube channel might not be the first thing that pops to mind.
However, if you’re smart about the content you create and have multiple revenue streams, there’s the potential to make quite a bit of money with the video streaming service.
The best approach to making YouTube lucrative is utilizing all of the methods for making money and not just relying on advertising alone.
With a good fan base, you’ll earn cash from sponsored content, crowdfunding, and creating your own merchandise so it can become a sole business in itself.
YouTube is viewed by millions of people a day and if you’re able to find a niche market and gain a loyal fan base, it’s an exciting and lucrative way to make money from home.
Whether you want to offer makeup artist tips or review the latest video games, there are so many cool ways to make money doing something you love, so don’t discount YouTube earnings as a potential way to earn a living.
Working from home and running a YouTube channel or creating original content might be a goal of yours, but without knowing the ins and outs of how the streaming service works, you may be left in the dark.
To get an understanding of how people make money from YouTube, we’ve answered some questions to give you a push in the right direction.
What Affects Your YouTube Earning Potential?
The CPM that advertisers pay to put their ads on your channel is determined by your location, the demographic or audience you focus, the time of year that advertising is done, and the revenue they can expect ot make from the ads.
This amount varies all the time and will differ for each YouTube channel, so there’s no set figure you can rely on.
How Much Money Does YouTube Take From Ads?
When you make money from advertising on YouTube, around half of that goes to YouTube itself. For example, a channel that created around $2,000 for a million views of their video will then need to pay YouTube 45 percent of the earnings.
For this reason, many content creators utilize other methods of revenue that go directly to them, to compensate for the loss.
How Many People Use YouTube?
The reason YouTube is the number one choice for content creators is their huge reach, with around 1,300,000 unique users heading to the site to watch videos.
Although they have many viewers, an estimated 300 hours of video are uploaded to the streaming site every minute, so getting your original content to stand out can be a challenge.
Within the YouTube platform, there are plenty of online careers people can start right away.
Once you have a YouTube channel with a large audience, that’s when you will see the earning potential.
The key is to create a channel that you’re passionate about and start marketing it.
Use other social media platforms to market your videos and start a blog.
With time, your channel will grow and so will your YouTube earnings.
Last Updated on August 24, 2020 by Tony Monzon