YouTube, a platform that started as a simple video-sharing website, has evolved into a full-fledged media platform that offers significant earning potential for content creators.
With over 2 billion logged-in monthly users, YouTube provides a vast audience for creators to share their content with. And in turn, learn how to make money on YouTube and earn income.
The platform has become a significant part of the digital economy. Creators, companies, and artists now use it to distribute video content, attract and engage users, and monetize their presence.
In 2024, the potential for earning income on YouTube is more substantial than ever. According to a recent report, YouTube’s ad revenues reached $19.8 billion in 2021, up 46% from the previous year.
This growth trend indicates the increasing profitability of the platform for content creators who effectively monetize their channels.
How much can you earn on YouTube?
The amount of money you can earn on YouTube varies widely and depends on several factors.
These include the number of views your videos receive, the number of subscribers to your channel, the demographics of your audience, the type of content you produce, and how effectively you monetize your channel.
Factors that affect earnings on YouTube
- Number of views: The most direct way to earn money on YouTube is through ad revenue. YouTube pays creators a share of the revenue generated from ads displayed on their videos. The more views your videos get, the more ads are seen, and the more revenue you can potentially earn.
- Number of subscribers: A large subscriber base can lead to more views and higher ad revenue. Once you reach 1,000 subscribers, you become eligible to join the YouTube Partner Program and gain access to additional monetization features.
- Audience demographics: Advertisers are willing to pay more to reach certain demographics. If your audience falls within a desirable demographic (for example, young adults with disposable income), you may earn more from ad revenue.
- Type of content: Certain types of content can attract higher-paying ads. For example, content related to finance or technology often attracts higher ad rates.
- Monetization strategies: Beyond ad revenue, there are several other ways to earn money on YouTube, including channel memberships, merchandise shelf, Super Chat, and YouTube Premium revenue. The more effectively you utilize these features, the more income you can generate.
Case study: A YouTuber’s earnings
To illustrate the earning potential on YouTube, let’s look at real-world data.
According to ZipRecruiter, the average salary for a YouTuber is about $66,000 a year, which works out to about $32/hour.
Since this is based on views, the earnings breakdown is a bit different than in other industries. According to Credit Karma, you can earn about $5 per 1000 views.
This means, in order to achieve the average YouTube salary mentioned above, someone would need around one million subscribers to earn up to $60,000 a year.
This figure doesn’t include other income streams like sponsored videos, merchandise sales, or crowdfunding. We’re talking strictly about ad revenue here.
This example underscores the potential of YouTube as a platform for earning income.
However, it’s important to remember that success on YouTube requires a significant investment of time and effort.
Building an engaged subscriber base takes time. Creating high-quality content that attracts views and ad revenue requires dedication and creativity.
But for those who are willing to put in the work, the potential rewards can be substantial!
Understanding YouTube monetization
YouTube monetization is the process by which creators earn money from their content on YouTube.
This is typically achieved through the YouTube Partner Program
The program enables creators to earn revenue from ads, channel memberships, merchandise shelf, Super Chat, and YouTube Premium revenue.
YouTube has its own Creators channel dedicated to the subject:
When we talk about YouTube monetization, we’re referring to the various ways YouTubers can generate income from their videos.
This can be through ad revenue, channel memberships, merchandise sales, and more.
The primary way that YouTubers make money is through ad revenue, which is generated when viewers watch ads on their videos or click on ads.
It’s important to note that not all videos are eligible for monetization. YouTube has specific monetization policies that creators must follow, and these policies can affect what types of content can be monetized.
For example, content that includes violence, adult content, harmful or dangerous acts, and hateful content is typically not eligible for monetization.
Brief overview of the YouTube Partner Program
The YouTube Partner Program (YPP) is a scheme that enables creators to generate income from their YouTube content.
To qualify for the YPP, creators need to fulfill certain criteria. Once a creator is inducted into the YPP, they can begin to profit from ads displayed on their videos.
These ads are delivered via Google AdSense, and the earnings are divided between YouTube and the creator.
Besides ad revenue, creators in the YPP can also gain income from channel memberships, the merchandise shelf, Super Chat, and YouTube Premium revenue.
More on that in a bit.
Monetizing different types of content
Different types of content can be monetized, including regular videos, live streams, and YouTube Shorts.
Regular videos are the most common type of content.
They can be monetized through ads, channel memberships, merchandise shelf, Super Chat, and YouTube Premium revenue.
Live streams can also be monetized in similar ways. Creators can earn money from ads that play during the live stream, as well as from Super Chat, where viewers can pay to have their messages highlighted during the live chat.
YouTube Shorts, which are short, vertical videos, can also be monetized, and have different requirements than standard videos.
As of 2024, YouTube is still experimenting with other ways to monetize Shorts, such as introducing ads or brand partnerships.
Monetization requirements
YouTube has specific requirements that creators must meet to monetize their channels.
They are part of the YouTube Partner Program, and are designed to ensure monetization is fair for everyone involved.
To be eligible for monetization through the YouTube Partner Program, creators must meet the following requirements:
- 1000 subscribers: Your channel must have at least 1,000 subscribers.
- 4000 watch hours OR 10 million Shorts views: Your channel must have had at least 4000 watch hours in the previous 12 months or 10 million Shorts views in the last 90 days.
- Compliance with YouTube’s policies: Your channel must comply with all of YouTube’s policies and guidelines.
- Living in a country where the YouTube Partner Program is available: You must live in a country or region where the YouTube Partner Program is available.
- Having an AdSense account: You must have a linked AdSense account.
These requirements help ensure that channels are active and following YouTube’s guidelines before they can earn money on the platform.
For a more detailed explanation of these requirements, you can refer to YouTube’s monetization policies.
Monetizing your YouTube channel without 1000 subscribers
As mentioned earlier, YouTube has recently updated its policies to allow creators with fewer than 1000 subscribers to earn money on the platform.
This is a significant change that opens up more opportunities for smaller channels.
Starting in 2023, creators can apply to the YouTube Partner Program once they’ve met a threshold of 500 subscribers, 3 public uploads in the last 90 days, and either 3000 watch hours in the past year or 3 million Shorts views in the last 90 days.
Once you meet these criteria, you can access fan funding features like channel memberships, Super Chat, Super Stickers, Super Thanks, and promote your own products with YouTube Shopping.
This change is part of YouTube’s ongoing efforts to support creators at different stages of their journey and to diversify the ways in which they can earn money on the platform.
For more information on these changes, you can refer to YouTube’s official announcement.
There are more ways to monetize a YouTube channel than just through the official channels.
Let’s turn our attention now to monetization methods you can embrace on YouTube directly and through third-party approaches.
9 ways to monetize on YouTube
YouTube monetization is a great way for creators to make money on the platform and there are several different ways to do so.
Here are nine of the most common ways to monetize your YouTube channel.
- Ad revenue
- Channel memberships and Super Chat
- Membership website
- Merch shelf
- YouTube Premium revenue
- Influencer marketing and sponsorships
- Leveraging affiliate marketing
- Creating online courses
Let’s dive into the first method on this list.
1. Ad revenue
The primary way YouTubers make money is through ad revenue. This is the main way to earn income and is based on viewer engagement and watch time.
As seen in the example above from Roberto Blake’s channel, ad revenue is calculated based on these metrics.
The more engaged viewers are and the longer they watch your videos, the more likely YouTube’s algorithm is to recommend your content to other users.
This leads to more views and potentially higher ad revenue.
Viewer engagement refers to the interactions between your viewers and your videos or channel. This includes likes, comments, shares, and subscribes.
High engagement tells YouTube that viewers find your content valuable, which can boost your videos’ visibility on the platform.
Watch time, on the other hand, is the total amount of time that viewers spend watching your videos.
YouTube considers watch time an important indicator of video quality.
Videos with longer watch times are more likely to be promoted in search results and recommendations, leading to more views and, in turn, more ad revenue.
1.1 Strategies to increase viewer engagement
There are several strategies you can employ to increase viewer engagement on your YouTube videos:
- Create high-quality, compelling content: This is the most fundamental strategy. If your content is interesting, informative, or entertaining, viewers are more likely to engage with it.
- Encourage viewers to interact: Ask your viewers to like, comment, share, and subscribe at the end of your videos. You can also ask them to engage in the comments section by posing a question or asking for their opinions.
- Respond to comments: Engaging with your viewers in the comments section can encourage more interaction. It shows viewers that you value their input and are willing to engage in conversation.
- Use YouTube cards: Cards are interactive elements that you can add to videos to promote other content, merchandise, or your channel. They can be used to increase engagement by directing viewers to related videos, prompting them to participate in polls, or linking them to your website or merchandise.
- Create playlists: Playlists can help increase watch time by automatically playing a series of videos. This can keep viewers on your channel longer, leading to more views and higher engagement.
The goal is not just to increase engagement but to do so authentically.
Genuine engagement from your viewers can lead to a more active and loyal community around your channel, which can ultimately lead to higher ad revenue.
2. Utilizing channel memberships and Super Chat
Channel memberships and Super Chat are two powerful tools that YouTube offers to creators for monetizing their content.
They provide an alternative to traditional ad revenue and can be particularly effective for channels with a dedicated and engaged audience.
Channel Memberships allow viewers to join your channel through monthly payments and receive members-only perks such as badges, new emojis, and other incentives.
This feature is available to creators who are over 18 years old and are members of the YouTube Partner Program.
It’s a great way to build a closer community while also earning some extra income.
Super Chat is a feature that lets viewers pay to pin their comments on live chat during a live stream. It’s a fun way to acknowledge your fans, and it’s available to creators over 18 in available locations.
When a viewer makes a purchase, their profile picture and comment are highlighted in the live chat stream, making their message stand out from the rest.
They also get access to Super Stickers and Super Thanks.
2.1 Strategies to promote channel memberships and Super Chat
Promoting your channel memberships and Super Chat effectively can significantly boost your YouTube revenue.
Here are some strategies to consider:
- Highlight the benefits: Make sure your audience knows what they’ll get when they join your channel or participate in Super Chat. Exclusive content, shout-outs, special badges, and other perks can be strong incentives.
- Engage with your members: Show appreciation for your members. You could host members-only live chats or Q&A sessions, for example. This not only rewards existing members but also encourages others to join.
- Promote during live streams: If you’re using Super Chat, live streams are the perfect time to promote it. Encourage viewers to use Super Chat to highlight their messages and ensure they’re seen.
- Use your video content: Don’t forget to promote your channel memberships and Super Chat in your regular video content. A brief mention or a visual cue can remind your viewers to support your channel.
- Leverage social media: Promote channel memberships on your other social media platforms. This can help reach potential members who follow you elsewhere but haven’t yet joined your YouTube channel.
The key to successful monetization on YouTube is to provide value to your viewers.
Whether it’s through entertaining content, educational material, or a strong community, offering something of value will make viewers more likely to support your channel.
3. Giving better perks with a membership website
Creating an external membership website can provide additional revenue streams and offer your audience more value.
This approach allows you to control the user experience more directly, provide additional perks and content, and build a community outside of YouTube’s ecosystem.
3.1 Building an external membership website
Building an external membership website can be a great way to provide additional value to your audience. This could include exclusive content, early access to new videos, merchandise discounts, or any number of other perks.
By offering these benefits through a membership website, you can create a more direct relationship with your audience and potentially generate a more stable income.
There are several platforms available to help you build a membership website, including WordPress, Squarespace, and Wix.
These platforms offer a range of tools and features to help you create a professional-looking website, manage members and deliver exclusive content.
3.2 Using SureMembers to manage memberships
If you’re using WordPress to build your membership website, one plugin you might consider is SureMembers.
SureMembers is a comprehensive membership management plugin that makes it easy to protect content on your website, create custom access rules, and manage your members.
With SureMembers, you can create an access group for your members, choose the content you want to sell access to, and set up smart protection for any part of your website.
It also allows you to drip feed content to your members, ensuring they always have something new to look forward to.
SureMembers is trusted by over 4,800+ businesses and has an excellent satisfaction rating of 4.9.
It’s a versatile tool that can be used by agencies, bloggers, podcasters, influencers, e-commerce gurus, and course creators.
4. Selling merchandise on YouTube
Selling merchandise is another excellent way to monetize your YouTube channel.
It’s not just about ad revenue and sponsorships; you can also generate income by selling your own products directly to your viewers.
This can be particularly effective if you have a dedicated fan base that is eager to support you and engage with your brand on a deeper level.
YouTube has made it easier for creators to sell merchandise directly through their platform with the merch shelf feature.
This feature allows eligible channels to showcase official merchandise right under videos. It’s a fantastic way to promote your products to your viewers while they’re watching your content.
To be eligible for the merch shelf feature, you need to be a part of the YouTube Partner Program, live in an eligible country, and not have any active community guideline strikes.
4.1 Tips for selling merchandise effectively
Selling merchandise on YouTube isn’t just about listing products on your product shelf.
You need to think strategically about what kind of merchandise will appeal to your audience, how to price it, and how to promote it effectively.
Here are some tips:
- Know your audience: Understand what your viewers like about your channel and what kind of products they would be interested in. If you have a gaming channel, for example, branded t-shirts or gaming accessories might be a hit.
- Quality matters: Make sure your merchandise is of high quality. Your merchandise represents your brand. Selling low-quality products could damage your reputation.
- Promote your merchandise in your videos: Don’t just rely on your merch shelf to sell products. Mention your merchandise in videos, and consider creating specific videos to showcase products.
- Offer a range of products: Different viewers will be interested in different types of merchandise. Offering a range of products can help you reach a wider audience.
- Set reasonable prices: While you want to make a profit from merchandise, setting prices too high could deter potential buyers. Research similar products to get an idea of what price range is reasonable.
4.2 Using SureCart for a seamless shopping experience
If you want to sell merchandise on your own website as well as on YouTube, SureCart is a great tool to consider.
SureCart is a shopping cart plugin that allows you to create a seamless shopping experience on your WordPress website.
It’s easy to set up, and it integrates with various payment gateways and shipping providers.
One of the great things about SureCart is that it allows for cross-promotion between your website and your YouTube channel.
You can promote your website merchandise on your YouTube channel, and vice versa. This can help you reach a larger audience and increase sales.
5. Leveraging YouTube Premium
YouTube Premium is a subscription service offered by YouTube that provides several benefits to subscribers.
Benefits include ad-free viewing, access to YouTube Originals, and the ability to play videos in the background or download them for offline viewing.
As a content creator, you can benefit from YouTube Premium in a unique way. YouTube shares part of the subscription fee with creators.
The amount you earn is proportional to the amount of watch time your content receives from Premium subscribers. The more engaging your content is, the more you can earn from YouTube Premium.
But how does this contribute to a creator’s revenue? YouTube Premium revenue is generated from the subscription fees paid by users. YouTube takes a cut of this fee and then distributes the rest among creators.
The amount each creator receives is based on the watch time their content receives from Premium subscribers.
The more a Premium subscriber watches your content, the more you earn.
6. Using influencer marketing and sponsorships
Influencer marketing and sponsorships are powerful tools for monetizing your YouTube channel.
They involve partnering with brands that pay you to promote their products or services in your videos.
This strategy can be incredibly lucrative, especially if you have a large and engaged audience.
A typical example can be seen in fashion-oriented channels where the YouTuber models the brand’s clothing, gives a shout-out to the brand, and includes product links in the video description.
When participating in such brand collaborations, it’s crucial to be well-versed with YouTube’s policies regarding sponsorships.
This includes the obligation to mark the “this video contains paid promotion” option in the YouTube video editor.
Adherence to these policies is non-negotiable.
6.1 How much to charge for a sponsorship deal?
The financial aspect of a sponsorship deal can significantly fluctuate, and there isn’t a definitive rulebook.
It largely hinges on your specific niche. Evergreen content, which remains relevant over time, can command a higher price than content with a shorter lifespan.
A prevalent method to calculate your rate is based on your average video views. Multiply your average video views by a chosen figure.
This approach is also recommended by Grapevine in their article discussing sponsorship deal pricing.
They suggest a CPM (Cost Per Mille, or cost per thousand views) of $20 – $30.
7. Leveraging affiliate marketing
Affiliate marketing is a powerful tool that YouTubers can use to generate additional income.
It involves promoting a product or service and earning a commission for every sale made through your unique referral link.
Affiliate marketing is a performance-based marketing strategy where you, as the affiliate, promote a company’s product or service. When your viewers purchase the product using your unique affiliate link, you earn a commission.
This strategy is beneficial for both the company and the affiliate. The company gets more sales, and the affiliate earns money from these sales.
7.1 Finding the right affiliate program
The first step in leveraging affiliate marketing is finding the right affiliate program. Choose a product or service that aligns with your channel’s content and audience.
If your channel is about tech reviews, you might want to join affiliate programs from tech companies.
Amazon Associates is a popular choice among YouTubers due to its wide range of products.
7.2 Promoting affiliate products
Once you’ve chosen an affiliate program, the next step is to promote the products. You can do this by incorporating the product into your videos naturally.
For instance, if you’re doing a makeup tutorial, you can use products that you’re affiliated with and provide the links in the description.
Remember to disclose that you’re using affiliate links to maintain transparency and trust.
8. Creating online courses
One of the most effective ways to monetize your YouTube channel is by creating online courses.
Online courses are particularly effective because they offer a high-value proposition to your audience. They provide in-depth knowledge and insights that go beyond what can be covered in a typical YouTube video.
This makes them an attractive option for your audience, who are likely to be willing to pay for this additional value.
Creating an online course involves a few key steps:
- Identify a topic that you are knowledgeable about and that your audience is interested in.
- Develop a comprehensive curriculum that covers the topic in depth.
- Create high-quality video content for each section of the course.
- Set up a platform to host your course and handle payments.
There are several platforms available that can facilitate this process but LearnDash stands out.
LearnDash is a powerful learning management system for WordPress. It offers a range of features including drip-feed content, video embedding, and prerequisites for lessons.
It also integrates with any WordPress theme or page builder, making it a flexible option for creating online courses.
By creating online courses, you can provide additional value to your audience and generate a significant income stream from your YouTube channel.
This method of monetization is particularly effective if you have a specific area of expertise that your audience is interested in learning more about.
How to increase your earnings on YouTube
Increasing your earnings on YouTube is not just about monetizing videos. It’s about optimizing your channel and content to attract more views and subscribers.
Here are some tips and strategies to help you do just that.
Custom thumbnails
Custom thumbnails can significantly increase your video’s click-through rate. A compelling thumbnail acts as the first impression of your video and can attract viewers to click and watch.
According to vidIQ, enabling custom thumbnails is one of the best things you can do for your channel to get more views.
You can see the effect of custom thumbnails in action on the Good Mythical Morning channel:
YouTube cards
YouTube cards are interactive elements that you can add to your videos. They can promote your channel, your other videos, or even your website.
They’re a great way to engage your viewers and guide them to your other content.
End screens
End screens appear in the last 5-20 seconds of your video. They can be used to promote your other videos, encourage viewers to subscribe, or even promote your website or crowdfunding campaign.
They serve as a powerful way for keeping viewers on your channel and watching more of your content.
Adding links to descriptions
Adding relevant links to your video descriptions can provide additional value to viewers.
These can be links to your other videos, social media profiles, or even products or services you’re promoting.
A well-written description with relevant links can give more context about your content to both viewers and YouTube’s algorithm.
Including a CTA in all videos – timing is everything
Including a call to action (CTA) in your videos can encourage viewers to engage with your content.
This could be asking them to like the video, leave a comment, or subscribe to your channel.
The timing of your CTA is crucial.
They are most effective when they’re relevant to the viewer’s experience and when they’re presented at the right time in the video.
Use playlists
Playlists can help keep viewers on your channel longer by providing them with a curated list of content.
They’re a great way to organize videos by topic or theme, making it easier for viewers to find and watch more content.
By implementing these strategies, you can increase views and subscribers, which in turn can increase your earnings on YouTube.
Remember, making money on YouTube is not just about monetizing videos, it’s about creating valuable content that attracts and retains viewers.
Importance of content quality and consistency
When it comes to making money on YouTube, the quality and consistency of your content are paramount.
These two factors play a significant role in attracting and retaining viewers, which in turn leads to increased monetization opportunities.
Quality over quantity
The quality of your content is what sets you apart from other YouTubers. High-quality videos are more likely to engage viewers, keep them watching for longer, and encourage them to share your content with others.
This can lead to increased views and subscribers, which are key factors in YouTube’s monetization policies.
Quality can mean different things depending on your niche and audience
Generally, it refers to producing videos that are well-structured, informative, entertaining, and visually appealing.
It also means paying attention to the audio quality, as poor sound can deter viewers even if your video is visually stunning.
Investing in good recording and editing equipment can significantly improve the quality of your videos.
However, remember that content is king. Even the most high-tech equipment can’t compensate for lackluster content!
Consistency is key
Consistency in your posting schedule helps build an audience on YouTube. Viewers are more likely to subscribe to your channel if they know they can expect regular content updates.
Inconsistent posting, on the other hand, can lead to a loss of subscribers or a decrease in viewer engagement.
Consistency also extends to the type of content you’re producing. If your channel covers a specific niche, ensure that your videos stay within that realm.
This doesn’t mean you can’t experiment or branch out, but sudden shifts in content type can confuse and even alienate your audience.
Using SEO for better visibility
Search engine optimization is a crucial aspect of increasing the visibility of YouTube videos.
By optimizing videos for SEO, you can improve their ranking in both YouTube and Google search results, leading to more views and, ultimately, higher revenue.
You can prioritize SEO in three key areas: titles, descriptions, and in transcriptions.
In titles
The title of your video is one of the most important factors for YouTube SEO.
It should be compelling and accurately represent the content of the video. Including relevant keywords in your title can also help improve its visibility in search results.
However, avoid keyword stuffing as it can deter viewers and potentially lead to penalties from YouTube.
For example, if your video is a tutorial on how to make a vegan cake, a good title could be “How to Make a Delicious Vegan Cake – Step by Step Guide”.
This title is descriptive, includes relevant keywords (“how to make”, “vegan cake”, “step by step guide”), and is likely to attract viewers interested in vegan baking.
Take this lo-fi video as a real-world example:
It’s capitalizing on frequently searched phrases like “lo-fi mix” and “4 am” to bring in viewers interested in relaxing music.
Notice how it’s not repeating phrases or stuffing keywords? The phrasing is natural.
In descriptions
The description of your video is another crucial area for SEO. It provides more context about your video to both viewers and YouTube’s search algorithm.
A well-written description with relevant keywords can boost your video’s visibility in search results.
The first few lines of your description are especially important. They appear in search results, under your video during playback, and when your video is shared on social media.
Make sure these lines are engaging and give a clear idea of what your video is about.
Just take a look at what this video on the Hot Ones channel does:
It features a detailed description that identifies who’s taking part in the video and a brief overview of what to expect from the video.
You should also include relevant keywords in your description, but make sure they fit naturally into the text.
Including links to your social media profiles, related videos, or any resources mentioned in the video is a good idea as well.
In the same Hot Ones video, there are also several links featured, including those for products, merchandise, a subscription membership, an email list, and a charity they support.
They also feature a link to subscribe to their YouTube channel and all relevant social media links.
Transcriptions
Transcriptions, or closed captions, can significantly boost your YouTube SEO.
They make your videos accessible to a wider audience, including viewers who are deaf or hard of hearing, non-native speakers, or those watching without sound.
YouTube’s algorithm also scans your video’s transcriptions to understand the content of your video, which can help improve its ranking in search results.
You can either manually upload a transcription, use YouTube’s automatic transcription feature, or use a transcription service.
Remember to review and edit the automatic transcriptions, as they can sometimes be inaccurate.
Including keywords in your transcriptions – or rather, in your original video script – can also help improve your video’s visibility once transcribed.
Take a multi-faceted approach to making money on YouTube
Starting a YouTube channel and monetizing it can be a rewarding journey, both personally and financially.
It’s a platform where you can share your passion, connect with a global audience, and earn money doing what you love.
However, it’s not a get-rich-quick scheme.
It requires dedication, creativity, and a strategic approach to content creation and audience engagement.
The key to making money on YouTube lies in understanding the platform’s monetization policies, creating engaging content that attracts viewers, and effectively using the various revenue streams available.
From ad revenue and channel memberships to merchandise shelf and Super Chat, there are numerous ways to monetize your YouTube channel.
When you add in external earning opportunities like affiliating marketing or creating a membership website with SureMembers, you have a world of opportunity available to you.
So, go ahead and start your YouTube journey. It’s hard work but you won’t regret it!
FAQs
And now to answer a few of the most commonly asked questions about YouTube monetization:
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