You’ve seen YouTube sensations transform online popularity into real-world financial success. Read on to learn the fundamentals of making money on YouTube, and the building blocks you’ll need in place to start converting followers into income, providing a thorough answer to the title of this article, “How do you make money on YouTube?”.
Making money on YouTube is oftentimes the purpose of establishing and investing in an account, however, doing so is not necessarily easy or straightforward. Achieving financial success through your YouTube popularity requires strategy and focus, largely upon your audience and how to gain their consistent attention on your channel. This article will present a consideration of the various means of earning income on YouTube to best prepare you to monetize your investment.
SOURCES OF REVENUE
There are a variety of means through which you can earn income off of YouTube in answer to the question how do you make money on YouTube, beginning with advertisements, the most common way to monetize your fan base. Advertising will be explored extensively below, but at its most basic, you are paid by advertisers to place their content prior to your videos. You are paid when your viewers watch the ad, or a portion thereof, with payments varying depending upon ad engagement.
Beyond advertising, there are still many ways through which you can earn from your YouTube account. Once you establish yourself, your followers may begin to respect your opinion and appreciate your choices in terms of style and lifestyle. Working with brands allows you to gain financial backing from companies that you might otherwise be using anyways.
Merchandising is an answer to the question “How do you make money on YouTube”, and a fine way to earn income off of the notoriety you build in YouTube. As you gain popularity, merchandise such as branded products, clothing, or stickers not only generates revenue from your YouTube fame, but also provides you followers with marketing material. As your fans wear or use your brand and communicate this fact to others, you can organically grow your brand and gain new fans while making instead of spending money.
If your YouTube channel revolves around a particular project or cause, you may turn to crowdfunding to generate revenue and establish a capital foundation to advance your endeavors. Crowdfunding options such as Kickstarter or GoFundMe allow you to open the door to your fans to invest directly in you and your projects that they believe in, creating synergy in production for the materials and projects your channel presents. How do you make money on YouTube is a question that can expand outside the scope of YouTube, using it as a platform to gain alternative forms of financing such as crowdfunding.
The popularity that you might gain through YouTube channel can also be used to support experiences that you share with your audience in the form of events. If your channel supports snowboarding, organize a snowboarding outing at a local mountain in concert with one of your brand partners, find musical talent and food vendors, and sell tickets to your fans through Eventbrite. Event promotion can be lucrative way to provide experiences to your fans that further your connections.
ADVERTISING ON YOUTUBE
How to make money on YouTube through advertising is a relatively straightforward process. The process however does depend upon a great deal of work, as it is one that requires that you establish a fan base committed enough to your brand and interested enough in your content to watch, and sometimes engage with, the advertisements you present them with. Your audience will determine your success, so your targeting is very important.
When deciding upon what to advertise, consider your brand identity first, and make sure that the advertisers you take on are in the least not offensive to your audience, as your ads should align with your image to maintain your fans’ allegiance while also presenting to them content they may be interested in and engage with. The content you produce may also preclude you from engaging with particular advertisers due to suitability concerns, so target your audience and your advertisers carefully.
To use ads you must first enable monetization on your account, and may select from a variety of formats. YouTube suggests enabling all formats to maximize your revenue potential, but as noted above make sure to align your advertisers with your brand to present a consistent identity. Upon approval, the opportunities to earn through ads expand.
Once your account can be monetized and you’ve selected your ideal formats, YouTube connects your channel with paying advertisers. In most instances, you are paid when users watch the ads that play with your content. YouTube is proactive in its management of its advertising procedures, and works to ensure that the system works better for viewers and pays more to you, the creator.
An additional way you can earn through what is essentially advertising, although more so on behalf of YouTube than your channel, is through YouTube Premium subscriptions. Through this service subscribers pay a set fee, and are then able to watch videos without advertisements. When viewers paying for the subscription view your videos, you earn. Your income is calculated based upon the amount of time the viewer spend watching your content in contrast to other content.
PARTICIPATE IN AFFILIATE MARKETING
Affiliate marketing is a means of building out your audience alongside that of your co-branding partners. When you gain a valuable affiliate, both of your brands become interlinked, and you may benefit from the value of one another’s image in the eyes of your audience. Selecting appropriate affiliate partners is important to this end. Your branding must be consistent to achieve a sizeable audience that is committed to your channel and willing to view its output, ads and all.
Engaging in affiliate marketing gives the brands you associate with greater exposure in our increasingly digital world. People are increasingly giving up on television to instead get their video content from their mobile devices and social media such as YouTube. Brands are focusing upon this growing market by increasing spending in the social media and digital markets.
Once you’ve become an influencer on social media, with your Instagram account and YouTube channels holding sizeable viewers and subscribers, respectively, you are in a place to seek out affiliates. YouTube is particularly attractive to modern brands as using paid advertising options with established channels is cheaper than paying for views of their own content. Rather than engaging in direct marketing, your popular YouTube channel and your follows can be worked with, exposing the brand to an audience with similar interests to maximize the value generated through the ads.
The revenue you can earn through affiliate marketing is substantial. When your viewers click through to the affiliate’s website, you may gain a small income on the click-through. However, the real revenue potential comes in the form of commissions. When your viewers click through to your affiliate’s website and make a purchase, you receive a commission on the purchase, which can be a set amount, or a percentage of the overall sale.
CREATE SPONSORED CONTENT
The creation of sponsored content is the next level in affiliate marketing, through which you create content for your channel that features your affiliates’ products directly. Think back to Seinfeld the ongoing presence of various brands of cereal on his shelf, and transport this concept into the digital era. Featuring your brand affiliates in your productions allows for product placement and advertising on a different level of intimacy.
For you to be of interest to brands for sponsored content, it is a general rule of thumb that you must have 200,000 or 300,000 subscribers, with channels lower than this rarely having appeal for brands seeking to increase their exposure. Once you reach this point however, the income that can be earned is substantial. YouTube’s most influential content producers may make $100,000 to $200,000 for a single video, although such producers consistently achieve millions of views.
When creating sponsored content, it is important that the details are carefully worked out prior to beginning production. What products will be featured? How will they be featured? Will the brand affiliate provide the product and contribute to the cost of production? What will be your commission on sales and views generated? Such questions and details must be carefully worked out to ensure that your partnership is mutually productive to lay the foundation for ongoing collaborations.
How do you make money on YouTube? The formula for making money through YouTube is relatively simple in terms of strategy, but considerably difficult in practice. To gain income through YouTube, you must attract a sufficient audience to generate worthwhile revenue. Earning significant revenue is relatively rare, and quite difficult. For example, at the top end of YouTube earnings, a million views can equal up to a couple thousand dollars.
Achieving millions of views to make thousands of dollars is no simple endeavor. You must carefully build your channel and your brand identity to build out your audience. The more views you have, the greater your revenue potential is. Thus, focus first and foremost upon building a quality channel that connects with your audience, and from there, advertising and revenue-generating opportunities will organically emerge.