How Do People Make Money on YouTube?

Making money from YouTube used to be angstrom simple as upload great content, garnering millions of views, and earning a plowshare of advertise gross. immediately, contented creators have entree to multiple ways to monetize their capacity. In accession to advertise, this can include corporate sponsorships from a major brand, fan financing or merchandise sales .

Key Takeaways

  • Content creators can join the YouTube Partner program after accumulating 1,000 subscribers and 4,000 hours of watch time.
  • This gives creators access to monetization features such as advertising, fan funding and merchandise sales.
  • Top YouTube stars make close to $20 million a year. However, most make far less or nothing at all.

The foremost step to making money on YouTube is to join the YouTube Partner program. Partnership gives content creators access to particular tools, such as the ability to monetize their videos via Google Adsense. To qualify, content creators must have at least 1,000 subscribers and 4,000 hours of accrued determine fourth dimension over the anterior 12-month period.

YouTube monetizes television via pre-roll, display, and early advertising formats. Advertisers pay based on clicks and impressions. YouTube gives the message creator 55 % of this tax income and takes 45 % for itself. subject creators must adhere to advertising guidelines. message that contains foul linguistic process, adult capacity, violence, and other subjects will not have ads placed against them. This can include discussion of sensitive news program events .

Brand Sponsorship

One lucrative kind of advertise is brand sponsorship, besides known in the digital market world as “ influencer market. ” A company will pay a content godhead to promote a sword or intersection within a video. For case, early in her YouTube career, Michelle Phan drew the attention of cosmetics stigmatize Lancôme with her democratic constitution tutorials .

As of 2019, there were more than 700 agencies that help match brands with social media influencers on platforms such as YouTube, Facebook, Instagram, Snapchat, and Twitter. Famebit, which is associated with YouTube, was acquired by Google, and has been rebranded as YouTube BrandConnect .

Fan Funding

Another democratic means to monetize a distribution channel is through channel memberships. Fans and followers make recurring monthly payments in change for bonus subject such as badges, emojis, special videos, alive chats, and early capacity. YouTube partners who have reached 1,000 subscribers can enable this monetization feature on their accounts. Third-party services such as Patreon besides help video recording creators to monetize their fan base via monthly memberships. top television creators earn deoxyadenosine monophosphate a lot as $ 40,000 per calendar month from fan support .

Merchandise Sales

YouTube partners besides have the ability to sell up to 12 items of merchandise to their audience by enabling this feature in their accounts. Jeffree Starr has made millions selling lipstick, highlighters, and center shadow palettes to his fans .

YouTube Best Practices

To increase their prospect of attracting a boastfully follower foundation, creators should follow established YouTube best practices. One of the most fundamental best practices is to create rich, engaging content. Viewers come to YouTube looking to either be entertained or for a solution to a trouble they face. By creating great content, it ‘s more likely the video recording gets viewed and shared .

The more engagement a video recording receives, the more valuable it is to YouTube, increasing the chances it will rank higher within the search results. Another way to increase viewership is for message creators to optimize their videos for YouTube search. This includes using the Google keyword planner to find words that a big number of people search for and to include those keywords within the description and tag of the YouTube video page. Promoting the YouTube video through the manipulation of social media and paid media advertising is another democratic means to generate extra traffic to the television .

tax income Generation Challenges

even when all these best practices are followed, there are some gross genesis challenges that YouTube video creators face. The median cost per thousand ( CPM ) ad rate charged to advertisers was merely $ 3.53 as of 1st draw of 2020. Because creators are paid only on monetized views, and not total views, the effective CPM they earn can be far lower.


Despite these challenges, people who are able to attract a large and patriotic follow can make a solid income on YouTube. According to Forbes, the highest-paid YouTube video creators are pulling in conclusion to $ 20 million a class, so it ‘s easy to see why many chase this apparently bottomless well of income.

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