Making money on the internet remains to be a skeptic topic for some. However, there’s an urgent need to understand that the world now functions online, and earning money through platforms like YouTube is not a hard task anymore. YouTube launched 15 years ago in May 2005 and today stands as the leader of the video content market of the world.
In this article, we’ll be talking about how do YouTubers get paid and how much you can make on YouTube. In fact, a new term has been coined for the people who have earned a fortune using internet-based platforms called Intrapreneur. The best part about YouTube? Many YouTubers make content that is viewed again and again by users, and thus, the same video can fetch you money for ages.
How do YouTubers get paid?
There are essentially three ways in which a YouTuber can get paid, or make money through the platform:
- Google AdSense: Google pays out 68% of their AdSense revenue, which means that every time an advertiser pays $100, $68 gets credited to the ad’s publisher.
- Brand Promotions: Once you start building an audience on YouTube, the brand approaches you for sponsored content, and you get paid accordingly.
- Views: You get paid for views on YouTube, but its rather a complicated process that takes a while, and the calculation for the same varies.
Don’t worry; this is just a brief of it. We will now be diving deep into the ‘how do YouTubers get paid‘ question and all the other questions related to it like- how much do YouTubers make, how much does YouTube pay, etc.
One thing that you must note is that if you have a subscriber count of 1k or below, YouTube pays you nothing or almost nothing. There’s a major chunk of YouTubers that make a decent income from YouTube, while there’s a small chunk of YouTubers who have garnered a big audience with a great engagement that have been able to earn a fortune with it. Some of the most prominent YouTubers are Lilly Singh, PewDiePie, Daniel Dobrik, Liza Koshy, etc.
YouTube Earnings or YouTube Revenue Calculator
There are multiple YouTube earnings or YouTube Revenue Calculator available that allow you to calculate your estimated YouTube earnings from a video or your entire channel based on your channel’s multiple analytics, including average views, engagement, etc.
There are multiple factors that need to be kept in mind while using the YouTube money calculator like,
- The estimate gross earnings for per 1k views
- Cost per mille vs. Cost per click (CPM vs. CPC)
- Variation in an estimate based on the engagement of videos/content
- Estimated earnings provider per subscriber
Thus, YouTube stands as the second-largest site after Google and has higher earning potential in terms of AdSense Revenue. However, the one thing that you must remember is that the payment patterns on YouTube done by Google AdSense differ from their payment patterns for any other video platform.
How to Monetizetize Videos & Use YouTube Money Calculator
The process of monetization does not start automatically as you start posting content on your channel. You need to turn on monetization, and Google AdSense that allows advertisers to use their ads in the beginning, middle, or end of your video. Ensure that you take care and follow the steps given below to start your how much does YouTube pay journey.
- There is an option of enabling monetization on your channel, which needs to be turned in order to start earning money via YouTube. Tick the monetization option and agree to the terma stated in YouTube’s monetization agreement.
- Connect your YouTube account to your AdSense account or create a new AdSense account
- Ensure you follow all the video criteria and stay away from copyright songs to avoid demonetization of video. In your ‘how much do YouTubers get paid,’ you must know that YouTube only allows you to monetize on what they consider advertiser-friendly videos.
- You can either set up a single video or multiple videos uploaded on your channel to be monetized.
Once you have completed the entire process of enabling monetization on YouTube, you’re all set to unleash your potential of ‘how much can you make on YouTube’. Don’t feel bad if you are unable to get many views at the starting of starting your channel. Remember, YouTube is a journey, and the more relevant content you make, the more you will be discovered on the platform and increase your YouTube earnings day by day.
How much can you make on YouTube?
On average, you can calculate ‘how much can you make on YouTube’ or ‘how much do YouTubers get paid’ by:
- The rate at which an advertiser pays varies between $0.10-0.30 per view, but average out to $0.18 per view.
- So on average, you get paid $3-5 per 1,000 views on your video.
You can use the YouTube revenue calculator/YouTube money calculator available online to calculate your YouTube earnings or use the above method to calculate your potential earnings based on the views.
How much do YouTubers get paid?
The early days in your YouTube career would fetch you nothing or almost nothing. Your main focus must remain on being consistent and post high-quality, relevant content to grow your audience. All the content creators and YouTubers that have made it big today started out focusing on their niche to grow an audience that adored what they did. PewDiePie, the most famous YouTuber ever known, was not known when he was uploading his first video in 2010. At the beginning of his career, Pew Die Pie focussed on creating niche content in Swedish, which garnered him a massive following across the world.
Once you enable monetization on your account, YouTube earnings start flowing in. However, you must remember that you are unlikely to make any real money until you have built up traffic to your channel- and by that, I mean organic traffic from people who watch your videos, and not by taking the shortcut method of paying for views.
Note: Google owns YouTube, and thus, AdSense and YouTube go hand-in-hand when it comes to YouTube earnings.
There are some advertisers who pay you according to Cost Per Mille, while others who pay you according to Cost Per ClickFor anything you earn from a CPC ad, you need a viewer to click on the ad. In actuality, only a small percentage of your viewers click on the ads surrounding your videos. The CPM ads, on the other hand, require more than just a glance.
For a CPM to be counted for YouTube earnings on ‘how do YouTubers get paid,’ a viewer must have watched at least 30 seconds or half of the ad (in case of short ads) and not skipped the ad. The majority of the viewers skip the ads before and in between the video, which is why the YouTube earnings of many get affected. If viewers click on or view your ads for long, it’s enough to earn income (how much do YouTubers make), you share any advertising revenue with YouTube.
Additionally, once you begin your YouTube earnings, there is no end to ‘how much do YouTubers get paid. ‘The answer is unlimited. Once you have the audience that loves your content and comes back again and again to view it, you can run affiliate marketing programs under which if you review a product/service/app on your YouTube channel and any viewer purchases it using your link or code, you get paid a commission.
Note: You must note that you only get paid once your Google AdSense account reaches $100.
How much do YouTubers make according to niche?
Niche is significant when it comes to picking ‘how much do YouTubers get paid’ and ‘how do YouTubers get paid’ questions as some channels make more YouTube earnings than others. There are some niches in which its easier to earn money, referring to the niches that most of the public can relate to, and content that lives forever on people’s feeds despite it being old, i.e., the relatable content. Therefore, if you’re hoping to live off your channel’s proceeds one day, it would probably benefit if you created your YouTube channel in a topic that interests people.
One of the most successful niches on YouTube is gaming, as it is a huge industry in itself, & many gamers have reasonable levels of discretionary money or income to spend. There are multiple other niches on YouTube that are considered to be successful, and that contributes massively to ‘how much do YouTubers get paid.’
Some of the other popular niches that are regrading fetch massive income on how much can you make on YouTube include the following:
- Top (X) Lists
- World’s largest, biggest, smallest, etc.
- Funny fail compilations
- Cute & funny animal videos
- Food reviews & kitchen hacks
- Unboxing of products (Currently, the unboxing niche is very popular amongst kids for unwrapping toys,etc.)
- How-to videos
- Parodies & pranks
How much does YouTube pay in 2020?
As discussed above, there are many ways to earn money via YouTube, and depending on multiple factors, the ‘how much does youtube pay’ question can vary. Let’s talk about ‘how much do YouTubers make’ in 2020 from videos on their channel. Before discussing the factors that affect your YouTube earnings, let’s talk about the newly launched YouTube Partner Program that allows YouTubers to earn money by rented ad space to advertisers. It differs from the usual CPC or CPM methods.
YouTube Partner Program
YouTube Partner Program is one of the most common ways that allow people to make money with YouTube videos on their channel. It’s the one way to get your paychecks from Google/YouTube. Under the YouTube Partner Program, Google displays ads on your YouTube videos to generate revenue and pays you a 55% commission from the total income earned through the advertisements, out of which Google keeps a cut of 45%.
However, it is a difficult task to calculate exactly how much do YouTubers make through this partner program as the income depends on multiple factors, and the amount earned from different videos ranges according to the success of the campaign. It is like renting banner space in an urban area and rural area of a country; One banner might be successful depending on the product’s success in that particular area.
YouTube earnings are also considered a secret as YouTubers are not allowed to talk about how much does youtube pay with anyone under its non-disclosure agreement.
How do YouTubers get paid – Factors
The multiple factors responsible for the pricing associated with YouTube earnings include the following:
1. Location of the traffic
Traffic coming from the countries like the USA, the UK, and other Tier 1 countries gets higher CPC in comparison to that from countries like India, South Africa, Pakistan, etc. hailing from the Tier 2 sect.
Therefore, even if you have the same number of views, assuming the same CTR, traffic coming in from Tier 1 countries will fetch you better and higher YouTube earnings in comparison to how much can you make on YouTube with traffic from Tier 1 countries.
2. Traffic Demographics
Demographic factors of the traffic on your YouTube channel like age, gender, etc. also might influence your YouTube earnings as one section of the demographics might be a priority over the other for an advertiser. However, there are no rules set in a rule book for the same, and this facto comes in from the sheer experience of other YouTubers. Some traffic demographics will give you higher income like working professionals, while other like teenagers and lower-income group people will earn you less.
3. Video Niche
YouTube generally displays the advertisements to the viewers that can connect and relate to the video that they are watching. Therefore, the niche of the video is another vital factor that decides the Cost Per Click. For example, tech videos usually get better CPC than political & news videos and same goes for beauty related videos.
4. Ad Type
There are multiple types of advertisements are displayed on YouTube videos. While the TrueView and Bumper advertisements get you money for each view, the pre-roll ads pay you according to each click.
Some ads can be skippe by the users while others cannot. If ads are skipped, then the advertisers are not charged, and thus you make nothing with it as a YouTuber.
Similarly for Cost Per Click ads, if the user clicks on the advertisement, you earn the commission, else nothing.
5. Click Through Rate or CTR
The revenue also depends on Click Through Rate (CTR) of the advertisements on your channel videos in case of CPC ads. The better the CTR, the better you get paid for your videos.
6. Audience Retention
Google & YouTube love to have quality videos that an audience can connect to while simultaneously watching it with attention. Therefore, there will be many that watch a few minutes of your video, but if your viewers watch the video till the very end, this indicates that the content of the video was good that the user watched it by paying his/her full attention. Therefore, higher CPC advertisements would be displayed in the video next time.
Also, the longer the duration of the view, more the advertisements will be shown to the users resulting in higher revenues. This also means that since the user pays so much attention to the video, he/she will pay equal attention to the content of the ad.
7. Channel Popularity
A YouTube channel that is popular with billions of views will get a better CPC and CPI ad as compared to a new YouTube channel that’s just beginning their journey and has a few views.
Conclusion – Think Long Term
Overall, YouTube in itself is a big empire now. While starting a YouTube channel, you must consider it as a business, and therefore must be consistent with posting videos while maintaining the quality of the videos according to the niche. Some of the highest paid Youtubers include:
- PewDiePie- $15m
- Roman Atwood- $8m
- Lilly Singh- $7.5m
- Smosh- $7m
- Rosanna Pansino- $6m
- Tyler Oakley-$6m
- Markiplier- $5.5m
- Rhett and Link- $5m
- Miranda Sings- $5m
While earning money through YouTube is an aim that many go for while beginning their YouTube journey, remember that it should not be you sole focus. Your main aim must be making your audience feel emotions and therefore build an emotional connect, which is what has led to the success of some of the biggest YouTubers today. YouTubers like Lilly Singh aimed at building a higher cause through her channel. If she only thought about earning money via YouTube, she won’t be where she is today. Money ultimately is the reward you get for working hard as YouTube itself is a business risk you must take.