How YouTubers Make Money

Make Money

Have you ever wondered how YouTubers can bring in the bucks when you're not paying any money to watch them? We both know that there's a lot of people that watch youtube, I mean as a may of 2018 youtube had over 1.9 billion monthly users, but how exactly does that equate to dollars

In this article I want to go over how YouTubers earn money, this way if you have a channel or if you've been thinking about starting a channel, you can see the different ways that you can earn money and if you're just curious, well, here's your answer

Starting a youtube channel and gaining traction to do all these things is not easy, but it is possible, so let's go over 5 ways that YouTubers make money


1. Advertisements

Commercials suck right, I mean there you are watching your favorite show on TV and then they're going to tell you some crazy things like order your pizza, those annoying commercial that you see are actually how the shows get paid. 

Businesses pay to air their advertisements during a show and the more viewers that a show has, the more that they can charge and the more money that the show will make.

Youtube kind of works, in the same way, Google which owns youtube runs advertisements on youtube videos, creators don't get to decide what advertisements you see, that's based on what you search on google and other things like that, but creators get to share the advertising profits with youtube

The amount of money that you make from advertisements will vary depending on a few factors, Google looks at what kind of content you have or where your audience is from and how often your audience is engaging with your advertisements

On average youtube channels make summer between $1,000 to $3,000 for every million views that they get


2. Sponsorships

For most YouTubers, the advertising revenue is not enough to survive off of, which is where the other streams of income come in. If you've seen talk shows or sports on TV, you probably have seen sponsorships were they say things like, this episode is brought to you by George's car company, or it brought to you by youtube TV

That is sponsorship and these companies are specifically paying the show to talk about their product during the show, it's the same on youtube, if your channel was about writing and poetry and stuff and you love writing in your diary, you could get a notebook sponsor

For example, if you got a deal you would say something like, this video is brought to you by notebooks RUs, check them out at notebooksrus.com

In this case notebooks, R Us would pay you, the youtube directly and you don't get to share any of that money with youtube.


3. Be An Affiliate

You don't see this on TV as much, it works very similarly to sponsorships the only difference is how you get paid. If you got a sponsorship notebooks R Us might pay you $200 to talk about their notebooks and recommend their website, the more viewers and the more subscribers that you have the more that they'll be willing to pay

But it doesn't matter how many people buy their notebooks, you're going to make $200 either way, with an affiliate promotion, you will get paid based on how many people buy notebooks

Let's say that these notebooks sell for $10 on the notebooks R Us website. If I was doing an affiliate promotion I will tell you to go and buy these notebooks using my affiliate link

You would still pay $10 to buy the notebook but now I would make something like $1 for every notebook that people buy through my affiliate link, so if a hundred of you went out and bought these notebooks, I would make $100

But if 10,000 of you went out and buy bought these notebooks I would make $10,000

Some people prefer to be an affiliate because you have the opportunity to make a lot more money, but other people don't really like that because they want to have guaranteed money from their sponsorship

As a small little tip, if you do go down this route or sponsorship route, do not promote anything that you would not personally use yourself, if your followers and your subscribers realize that you're just promoting a whole bunch of crap, they're not going to continue supporting you for much longer.


4. E-commerce Drop Shipping

Traditionally if you wanted to sell your own product you would have to spend a lot of time creating and then you would have to buy a whole bunch of inventory up front. With drop shipping, you're still selling your own product but you don't have to buy any inventory up front

the way it works is you partner with a manufacturer this way anytime somebody comes and makes a purchase on your website, the manufacturer will get a notification and then they will create the product and ship it out to the customer and it will only take a percentage of the sales price

This way you can start with very little investment up front, for example, if you make an order for a notebook on my website, you would pay me $10 and then automatically the manufacturer might take $6 out of $10 and it will create the notebook and sent it out to you

Now instead of promoting somebody else's brand, I'm promoting my own products and I don't have to buy any inventory to start


5. Create Your Own Products

If you're ready to turn the channel into a full business you have to decide how you want your channel to make money. I wouldn't be doing this in the beginning because if you start a youtube channel for the sole purpose of making quick money you're going to be very disappointed because of how hard it is to get off of the ground

But as you grow you're going to want to decide if you want to make your money from content creation using the things that I just talked about or if you want to focus on creating and selling your own products or something in the middle

The way this works is instead of being an affiliate, sponsored, drop shipping of somebody else's notebooks that they created, I would create my own custom notebook, this takes more time and money in the beginning, because I have to do the work to create and design my notebook and then I have to buy the inventory for my own products

But now because I am creating my own product and I'm buying a whole bunch of inventory up front, I might be able to get my cost down to something like $3.00 a notebook, this way if I can sell enough products I will be more profitable

This takes the most work and so this is something that you're interested in, first grow your channel and started getting some revenue and then you can reinvest that revenue into your business by creating your own product.

Author:

Hi, i am Micheal, the guy behind Roadtosuccesse. I share tips and tricks to help take a business to the next level, show which systems I personally endorse and use, share what I learn as a student of the game, and help people with personal development so that they can reach their full potential.

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