Have you ever wondered how YouTubers can afford to spend all that time making viral videos? Becoming a successful YouTube star may not be as easy as it sounds, but it is possible.
- YouTube Genres
- Facts about Earning on YouTube
- How YouTubers Make Money
- Why Doesn’t Everyone Become a YouTube Star?
YouTube has taken over the vlogging scene with full-force, creating a growing arena of self-employed, money-making vloggers. It’s easy to see why using YouTube’s platform has become such a lucrative business for some.
For instance, YouTube has become the second largest search engine in the entire world, and one of the most visited sites on the web. It has been estimated that all of us together spend a billion hours a day watching YouTube videos, and over 400 hours worth of videos are uploaded to YouTube every minute. YouTube has become such a giant generator of content that it has even developed its own list of genres, or “niches.”
- Top [#] lists
- Fail compilations
- Product unwrapping and opening
- How-to demonstrations
- Online education course
Facts about Earning on YouTube
To start off our understanding of how much YouTube stars can and do make, let’s take a look at some cold hard facts. The following are some lists of the top most successful YouTubers in the year 2015, 2017, and 2018 along with how much they earned that year:
Needless to say, these are some impressive numbers. A lot of people would love to make these kinds of figures each year while being working from the comfort of their own home doing something they love. So how does it work? How do people make money on YouTube?
How YouTubers Make Money
There are many ways that YouTubers make money, and it’s often because they’re branching out, partnering with others, and creating a brand for themselves that goes beyond their YouTube channel alone. Below is a list of some of the most common ways YouTubers are making money:
There are 2 kinds of ads: Cost Per Thousand (CPM) ads pay you per thousand views and Cost Per Click (CPC) ads pay you each time someone clicks on the ad on your channel.
Your money goes to your AdSense account. You can direct deposit your earnings out of your AdSense account when there’s more than $100 in it.
Many YouTubers end up making their own products like makeup, clothes, t-shirts, fan gear, and many others.
3. YouTube Partner Programs
When you are part of a YouTube Partner Program you can get paid for views and ads on your page. You can also access a large variety of content creation tools and get an opportunity to win prizes based on the number of views you have.
But you have to qualify for the program:
- Your YouTube channel needs to reach 4,000 watched hours and 1,000 subscribers in the past 12 months.
- You can apply for the membership anytime, but to get the top rated partner programs, you should have accumulated 15k of watched hours over the last 3 months.
4. Affiliate marketing
YouTubers can get paid to reference or recommend a product or service to their viewers. Online shopping sites will pay YouTubers a commission for any traffic or sales they get from the YouTuber referring viewers to their product.
They usually get paid based on how many people click the link to the product and how many people actually buy the product through that link. This can be done by a YouTuber in any of the following ways:
- A video unboxing the product you are trying to sell
- A video in which you recommend the product or service
- A video reviewing the product
- Links to the product in the video’s description
A brand will sometimes pay YouTubers to create a video specifically about their product. Sometimes the brand will sponsor the entire YouTube channel and then the YouTuber has to use, recommend, or mention the product in every video. Sponsorships aren’t easy to get, and usually only come to YouTubers who have already made a name for themselves.
YouTubers can charge their sponsors anywhere from $10 to $50 per 1,000 views. So if the video hits 1 million views, then the YouTuber makes anywhere from $10,000 to $50,000 for that one video.
6. Crowdfunding or Patronage
Patreon is currently one of the most popular examples that online entrepreneurs like YouTubers use to make money off their craft.
By becoming a patron on patreon fans can get extra perks like extra content, behind the scenes footage, bloopers, and more.
7. Live engagements
Depending on what your YouTube channel is about you can also get paid to do live events, like speaking.
Why Doesn’t Everyone Become a YouTube Star?
You may be thinking at this point about quitting your job and starting a YouTube channel of your own, but there are some cons to online self-employment. Yes, some YouTubers can make a lot of money from their branding and their channel, but MOST YouTubers don’t.
To put it in perspective, 90% of all YouTube views only go to a small 3% of YouTubers. Also, 97% of all aspiring YouTubers don’t make it across the U.S. poverty line ($12,140) with their YouTube channel earnings. Even if you do manage to make it to the top 3%, you’re looking at making an average of $16,800 a year, which is not very much.
Below are some other cons to remember before putting all your hopes on the success of a YouTube channel:
- Advertisers don’t always pay very well.
- Not all sponsorships are paid. Some come in the form of free goods or services instead.
- YouTube takes 45% of what advertisers pay you.
- Many YouTubers are a part of an agency or multi-channel network, and these partners will take a cut of your earnings too.
- Personal costs for equipment or anything else you might need for your videos.
- It takes a lot of your personal time to create quality content that will do well.
YouTubers can make money from their channels, but those who are actually successful at this are often branching out and making money in other ways as well. Their YouTube channel is often just one part of their larger brand. If you’re an aspiring YouTube star and need help with funds to get started, you can take advantage of the Check City Personal Loan and expand your brand as well. Isn’t it amazing that we live in a world where personal branding and creativity can allow so many a livelihood doing what they love?
Watch the Check City YouTube Channel!
Visit the Influencer Marketing Hub to see how much different YouTube stars made in 2015.
Visit the G2 Learning Hub to see their figures for how much different YouTube stars made in 2017.
Read Forbes’ article “Highest-Paid YouTube Stars 2018: Markiplier, Jake Paul, PewDiePie And More” to see how much different YouTube stars made in 2018.
Read the article “How Much Do YouTubers Make? (A Lot!)” to learn more about how YouTubers are making money.