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YouTube Earning: How It Works and How Much Money You Can Make?

You’ve probably wondered many times – if you’re here and you’re reading this article, you do – how much money you can make with YouTube video and whether you can make a living from it or not. 

The good news is that in this article, we will now detail how YouTube makes money and how much money you can make by creating YouTube videos. The bad thing is that you may not be sure you still want to make money on YouTube once you get around. Well, I don’t want to scare anyone, because you can make a nice income, but you have to work a lot. Let’s cut in then.

How to make money on YouTube?

That’s exactly how you can make money on YouTube can be broken down into 3 major categories. Here are some of the ways to make money on YouTube (and its popularity):

  • YouTube Partner Program (or partnership through an MCN)
  • Fan subsidies
  • Sponsorships paid collaborations
  • Affiliate Marketing
  • Merchandise (selling own “branded” t-shirts, mugs, products)

Now let’s look at them in a little more detail.

YouTube Partnership Program (or partnership through an MCN):

Let’s start with the fact that when someone says YouTube is making money, 95% of people jump in first. (However, there are plenty of options beyond that.)

You will receive money in this category after seeing ads that appear in your video, before, after, and next to your video. Viewers need to view or click on the ads because YouTube severely penalizes clicks on ads on our own videos. Manipulating ad views can even lead to banning. Importantly, this is usually the first money-making opportunity for novice videographers. Now let’s look at the difference between joining the YouTube Partner Program and joining the MCN.

YouTube Partnership Program (YPP)

The YouTube Partner Program ( YPP for short ) is YouTube’s official tool for monetizing videos.

Requirements :

  • You must have had more than 4,000 hours of public viewing in the last 12 months.
  • You must have more than 1000 subscribers.
  • You must live in a country or region where the YouTube Partner Program is available (available in Hungary and most countries)

In fact, meeting the requirements is not impossible, but it is not the simplest task in the world. If we have a good theme, we regularly produce videos and promote them properly, we can achieve our goals in a few months, up to a year.

Advantages:

  • 100% of the money earned is yours (of course YouTube deducts your share, but now let’s take this as 100%, you’ll soon understand why)
  • There is also a payment to a bank account

Disadvantages:

  • Their customer service is not very good, and they are not helpful enough
  • They do not pay for PayPal

If you want to read more about YouTube’s easiest way to make money, YPP, here’s YouTube’s official help on the subject. Click here

Multi-channel Network (MCN)

The MCN s (or Multi-channel Network s companies) are YouTube-certified, who will receive the right to use the YouTube CMS. They are interesting to us because we can make money through them as well. In this case, we are not signing directly with YouTube but with an outside company.

There are requirements here, but they may vary from company to company, so that I won’t detail them.

Advantages:

  • Some MCNs have contracts with other companies, so we may also receive exclusive ads.
  • Better customer service
  • They offer various services, such as free use of music, free software, help with creating cover images, collaboration opportunities with other YouTubers
  • They also pay for PayPal

Disadvantages:

  • You can only keep 60-70-80-90% of your YouTube revenue (though they need to fund their services from something)
  • They are usually not paid into a buck account.
  • With plenty of MCNs, you have to commit for a fixed period of time (you can’t get out for 1-2 years)

What are MCNs eligible for?

How Much Money Can You Make With YouTube Ads?

It’s tough to determine how much money you’re going to make with YouTube ads, so let’s look at how it affects our revenue performance.

  • Length of your video: because in 10 minutes YouTube will automatically place ads in your video, one, two (because this has now been introduced to the delight of viewers) before/during and one, two afterwards in general, however, over 10 minutes, you decide how many ads to show in your video, and you can even specify exactly in which minutes the ad will appear; placing 10 ads in your video does not guarantee that YouTube will display that much, but if they have that many ads, they will show them all
  • The topic of your video: advertisers pay much more if your videos are built around a competitive theme, such as related ads for listing videos, while ads for toilet flushing will show ads. Their capacity, they can pay you more.
  • Your viewers: it’s imperative who watches your videos. An adult banker is a much more solvent than a 7-year-old schoolboy, so advertisers also pay a lot more for an adult banker; it is also important which country your viewers come from, as a Hungarian teacher does not earn as much as a Swiss teacher.
  • The language of your video: although it follows from the previous one, it is worth mentioning, obviously a video in Hungarian, Americans will not watch, and an American viewer (due to their better economic situation) is worth more than a Hungarian.
  • Viewing time: it is important how long viewers watch your video, as there are 3 ads in your video in vain if they close it before the second. It is also essential whether the viewer views or clicks on the ad.

Based on these, YouTube determines the payment for watching a video. Of course, the most important thing is how often we upload videos, how many people watch them, and whether the person who wants to watch your video is using an ad blocker. Because if you did, your revenue from it jumped. What’s more, if you use content in your video that you don’t own the copyright to, the revenue for the entire video has jumped.

SocialBlade: the site that tells you which channel makes how much money?

If you are unfamiliar with a page called SocialBlade, I would quickly introduce you to it. On this page, you can view statistics for any YouTube channel broken down by days. You can see their daily, monthly, yearly views and track changes in their subscriptions. We can even see their revenue. Theoretically.

As you can see in the image above, your monthly YouTube revenue is estimated at between $ 1.2K and $ 19.9K. The only problem is that the 1200 US dollars are, while the 19,900 US dollars, which is a huge difference between the two. More than sixteen times. Looking at smaller numbers: it doesn’t matter if it’s 25 dollars. It is not worth it based on this. Despite all this, SocialBlade is an excellent site for channel analysis.

How Much Money Can You Actually Make on YouTube?

It’s not easy to answer because it depends on many factors, and most people treat this information as a war secret. Let’s look at my data.

In June, I had 152,000 views, earning $ 114.07

In July, I had more than 168,000 views, earning $ 166.39

What can be seen from this is that even though I only had 16,000 more views in July than in June, my revenues still increased by 50 dollars (Even though I had $ 0 for 1 full day in July due to a change of partner company.)

It’s also important to know that my channel is a gaming channel that is entirely in English – I mean the description, the title because I don’t speak in the videos – which makes compilations about different games.

If you are saddened that you can only make so “little” money with video, I will also describe to them that there was a month when I earned more than 1000 dollars with 600 thousand views.

It is essential so that I will describe it again:

I produced these revenues on an English-language gaming channel with English content, mostly with English viewers.

Sponsorships paid collaborations

This process will bring more money, but getting a sponsor is harder than getting into the YouTube Partner Program. You have to show much more results for someone to give us fixed money.
In the beginning, with a few thousand viewers (unless we’re creating something on a particular topic), you can’t really count on sponsors yet.

You should know about these sponsors that they usually pay pre-determined fixed amounts (monthly or all at once) for a pre-determined number of impressions.
In exchange for their money, we undertake to display or mention their company or service in the video (+ we usually place a link in the description) following the contract terms.

How much do sponsors pay?

This is even harder to determine than how much YouTube pays. What is certain is that sponsorships start here with much larger sums.

Again, I can only start from myself. I had to advertise a toy company 4 times a month with the YouTube channel mentioned above. About 10 seconds at the beginning of the video. That’s why they paid me about 15 dollars a month.

Affiliate Marketing

The company mentioned above with the two lines also provided me with a unique link, and if one of my viewers bought through that link, I received 3% of the price of the product sold. That is, if something was sold through me for 20 dollars, then 300 of them were mine. This isn’t too chunky, but we realize it’s not such a bad deal if we look at the benefits.

Advantages:

  • We don’t have to buy products, and the company will solve for us
  • We don’t have to build a complete system to start selling
  • We don’t have to wait for sponsors to contact us. We can also look for such “partner companies.”

Disadvantages:

  • They pay extremely little (a few%)
  • We have no say in anything

Merchandise (selling own “branded” T-shirts, mugs, products, services)

This brings us to the absolute top: sell products and services with your name.
That’s what you have to work on the most. That’s what you need to be the most popular for: if you don’t have a massive tracking camp, you’re about unlikely to be able to sell anything under your own umbrella. However, it is a fact that it is one of the most profitable methods if we do it well.

This can also be divided into two.

  1. Sales through an external company :
      • we do not deal with production or delivery: we entrust it to another company
      • in general, we do not even provide the environment for the sale
      • in turn, we design the services and products
      • we set the prices, promotions (therefore, the external company deducts its own share)
      • as a result, we can work with a much larger margin than if we were dealing with affiliate marketing
  2. Sales through own platform:
    • we have an even bigger say in things: everything is really up to us
    • no one deducts from us
    • but we have to take care of the production, storage, transport, preparation and running of the sales page, everything

Summary

We got to the end, and I think I described everything on the topic that I wanted. I hope you found the article useful. If you have any questions about making money on YouTube, please ask in the comments, and I will try to answer them. Also, if you have any information or may already have someone making money making YouTube videos, please share your results in the comments, adding to the article so that those who want to join YouTube Make Money now can get an even more comprehensive picture.

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