YouTube serves the purpose of entertaining people. However, there are some diligent people who have leveraged this video streaming platform to build a business empire. An eight-year-old kid from Texas earns as much as $22 million, annually, through YouTube. For those who don’t know who the kid is, his name is Ryan Kaji and he runs a “Ryan’s World”, a YouTube channel that quickly adapted to the “unboxing” genre. If you’re procrastinating as to whether or not to start a YouTube channel, read the article to find 8 ways that you could make money from it. Hopefully, it will motivate you. Moreover, towards the end, we will also discuss how you could slowly build your channel from 0 subscribers.
1. Ad Revenue
Ad revenues were the primary source for many YouTubers until the concept of Influencer marketer became relevant. Essentially, YouTube would place advertisements before, after or in the middle of a particular video. Generally, the advertisement to be shown to the viewer is decided by YouTube’s algorithm based on a particular viewer’s history. Even though it is the easiest way to earn money, the revenue from Ads alone isn’t lucrative. As per statistics, the average cost per thousand views on YouTube is between $7 to $8. In other words, you will get $7 for every 1000 views on your video. Hence, to become a millionaire, you will need at least a total of billion views on your channel. Since this will take a lot of time, Ad Revenues are the best source for passive income, but not a good option if you need money in a shorter period.
Nowadays, YouTubers have started selling their own merchandise. This is a really wise decision. Put it this way, for every 1000 views you will only earn $8. But, if at least 50 of them purchase a Shirt costing $10 you will earn $500. See the difference! That is the reason as to why this is the most sought after revenue stream. In fact, many of those who started small have made their merchandise into a larger brand. For instance, Logan Paul, a YouTuber based out of the United States owns “Maverick”, his merchandise line. The brand is estimated at $10 Million in annual revenue. You will need at least one and half billion views on your video to earn that much from As revenue!
3. Affiliate Marketing
While some YouTubers have a dedicated warehouse and production space for printing and mailing their merchandise, some YouTubers stick to affiliate marketing. The concept of Affiliate marketing is simple. If you have a product that you want to sell, you can widen your consumer base through YouTubers. Subsequently, these YouTubers would link the affiliate links to your products on their description of each video. Hence, if someone makes a purchase through that affiliate link, then you have to give a small fraction to the YouTuber. Now you know why some YouTubers link the camera and tripod used for filming, on their description!
Digital marketing experts say that sponsorships and brand ads can fetch YouTubers 12 times their monthly Ad revenue. Above all, you don’t have to share a dime with YouTube! You might have noticed how a YouTuber starts a video with “Today’s sponsor is..”. In fact, if you have seen the infamous YouTuber Mr.Beast, you would have seen him mention the cashback website Honey, a few times. That’s because they pay him a lump sum to mention them. However, don’t think it is only a couple of dollars. In fact, in one of his videos wherein he gave away $200,000, he said that a fraction of this amount came from Honey. Needless to say, sponsorships are the easiest way for a YouTuber to make money.
Simply put, Patreon is an online tip jar wherein you can support your favourite YouTuber by paying some extra cash. Usually, YouTubers decide their prices that could start from $1 to all the way to $200. If I’m not wrong, there are no upper limits. If you are a “Patreon”, you will gain access to some exclusive content. For instance, if you pay a Guitarist $5 per month, you will get tabs, sheet music and tutorials from them. On the other hand, if you subscribe to a review/react channel, then you will have the authority to vote on the song/material that you would want them to react to.
6. Brand Ambassador
Last year, Microsoft broke the internet when they announced their million-dollar deal with gamer/YouTuber Tyler “Ninja” Blevins. The deal supposedly made the YouTuber switch from Amazon-owned Twitch to Microsoft-owned Mixer for streaming. Although this is more about “Ninja” as a gamer, it was YouTube that helped him gain mainstream stardom. Also, as an active YouTuber, he still streams on YouTube and keeps his followers informed about Mixer. Furthermore, Ninja isn’t the only YouTuber getting such multi-million dollar deals!
7. Super Chats
Although Twitch is undeniably the best video-streaming platform, many YouTubers would want to stream from YouTube itself. Even though YouTube does support live streaming, it doesn’t come with the lucrative ways that allow streamers to make some hard cash through donations. However, YouTube’s “Super Chats” feature has given some hope for YouTubers. Through this feature, you can pay a certain sum for your comment to get pinned. This way, your message stands out among the thousands of others’. But you can only get very limited revenue from this feature. Usually, this starts at $2 and could go up to $20. Moreover, YouTube takes 30% of all the donations made through this feature, while Twitch doesn’t take any commissions.
How to grow on YouTube like the rest of the YouTubers?
That brings us to the end of the article. Perhaps the part that would be a great help for you to kickstart your “YouTube career”. Some of the key takeaways from this crisp case study of YouTubers is that anyone with enough patience and good mindset can make millions. If you are planning on starting a YouTube channel, don’t procrastinate. Create an account straight away and start posting videos. Because, when it comes to YouTube, the more time your video stays in the system, the more you will earn. This was briefly discussed in the Ad Revenue section.
Also, once you have enough subscribers(even 1000 is a good start) you can start running Affiliate programs. However, do note that you will need 1000 subscribers and 4000 watch hours within 12 months to start monetising your videos. Hence once you reach 1000 subscribers and start running Affiliate programs, you can earn around $100 to $600 per month. Once you reach the $2000 per month mark, start selling merch. You can print T-shirts using third-party websites and drop ship to your buyers. This way, you won’t need a warehouse.
Finally, once you reach around 100,000 subscribers, start a Patreon page. Market yourself and find sponsors. Over time, you will gain more followers and by the time you reach 500,000 subscribers, companies will approach you for sponsorships. This way, you will have a steady cash inflow from sponsorships and a passive income from ad revenue and affiliate marketing. To clarify, patience is the key if you want to reach this point. Managing a steady income is possible through YouTube. If you play it safe and right, you can be the next YouTube millionaire!