How Do YouTubers Make Money?

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Nowadays, everyone is making money online by opting plenty of ways and one successful medium to make money is via YouTube. You must have heard there are many successful Youtubers that earn millions of dollars per annum by just uploading videos. But it is not simple as that.

How Do YouTubers Make Money?

So, lets us understand how do Youtubers make money?

First of all keep in mind that by just uploading videos on YouTube you cannot earn plenty of dollars instead you need to work on thosevideos to make money. In order to understand on a deeper level you must first understand that what the sources are from which the money can be earned via YouTube. There is plethora of factors involved that can help you generate income from YouTube.

  • YouTube Partnership (ads): Most of the YouTubers make money via advertisements which are sold on an auction base. The person with the highest bid can grab the best spot to display his ads. But there are times when the advertisers are more concerned about advertising and then there are those times too when there are not plenty of advertisers especially in the summer season. So, all these scenarios cause a huge impact on the Cost Per Click (CPC)that a Youtuber gets.
  • YouTube Partnership Program: The next factor from which you can make money is via partnering with networks. They take a slight share of the revenue. This program allows the YouTube content creators to monetize the content via plenty of ways such as paid subscriptions, ads and merchandise. They mostly pay $3 per 1000 views which varies from person to person.
  • Sponsorships: For most of the Youtubers advertising is the smallest medium to earn big bucks so they also consider making money via sponsorships( for instance: this video is sponsored by so and so company), product placement (they will get paid by the companies to display their products in their videos), selling merchandise and via affiliate marketing (through referred links). Advertisers sometimes pay you extra if you have a huge reach.

Above are the factors via which you can earn money. But in order to proceed further you must understand the CPC revenue model.

CPC is also known as Cost per Click, is the amount you earn when each time a user clicks on your ad. There are certain factors that influence the YouTube CPC model are:

  • Niche: The first thing that is necessary is to select the right niche for your video. So, the more advertisers earns by selling their product the more he will be willing to pay for the ad space. So, you should carefully select your niche.
  • Quality of content: Your content must be interesting and qualitative. Suppose the advertisers want to endorse the footwear and your video is also about footwear then you are most likely to get the ad revenue and ad placements.
  • Views on the ads: This method of calculating dollars per 1000 views and them multiplying it with the actual views is very common to calculate revenue but this can be misleading because nowadays there are things like ad block that can prohibit from displaying ads and hence no income is generated.
  • Number of views you actually get: The more number of subscribers the more views you will get so it is very important to increase your subscribers and you must know that how to deal with the subscription in order to increase the income.

You can calculate your total earnings: (Conversion Ratio * Number of Subscribers) * Ad-specific CPC

So that means you can earn huge dollars by partnering with the right network and via great ads for maximum conversion.

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