It used to be very easy to make money on YouTube by uploading fantastic material, getting millions of views, and receiving a cut of the advertising revenue. Content producers can now monetize their work in a variety of ways. In addition to advertising, this might also involve fan financing, business sponsorships from a well-known brand, or product sales.
KEY LESSONS
- The YouTube Partner program is open to content producers who have amassed 1,000 subscribers and 4,000 hours of viewing.
- As a result, creators can use monetization tools including advertising, fan fundraising, and product sales.
- Leading YouTubers earn close to $20 million annually. But most earn significantly less or nothing at all.
Ads by Google
Joining the YouTube Partner program is the first step in earning money on the platform. Through partnerships, content producers can use exclusive features, such the opportunity to earn money from their videos using Google Adsense. Content producers need at least 1,000 subscribers and 4,000 hours of total viewing time over the previous 12 months in order to be eligible.
Through pre-roll, display, and other ad types, YouTube makes money from videos. Based on clicks and impressions, advertisers are paid. YouTube splits this revenue with the content producer at a rate of 55% to 45%.
Advertising regulations must be followed by content producers. Ads won't be displayed next to content that is violent, pornographic, or deals with other topics. This can involve talking about delicate news stories.
Sponsorship of a brand
Brand sponsorship, commonly referred to as "influencer marketing" in the area of digital marketing, is one profitable method of advertising. A business will pay a content producer to use a video to advertise a brand or product. For instance, Michelle Phan attracted the interest of cosmetics company Lancôme early on in her YouTube career because to her well-liked makeup lessons.
More than 700 companies assist in connecting marketers with social media influencers on sites including YouTube, Facebook, Instagram, Snapchat, and Twitter as of 2019. Famebit, a YouTube-related company that Google purchased and rebranded as YouTube BrandConnect.
Fan Finance
Memberships on a channel are another well-liked method of generating revenue from it. In exchange for perks like badges, emoticons, exclusive videos, live chats, and other content, fans and followers make regular monthly fees. Customers with 1,000 or more subscribers on YouTube can use this monetization function on their accounts. Third-party platforms like Patreon assist video producers in monetizing their fan bases through subscription fees. Top video producers can receive up to $40,000 per month in fan support.
Products Sales
By turning on this function in their accounts, YouTube partners can also sell up to 12 items of stuff to their audience. Selling lipstick, highlighters, and eye shadow palettes to his admirers, Jeffree Starr has made millions.
Online Video Best Practices
Creators should adhere to accepted YouTube best practices to maximize their likelihood of gaining a sizable fan base. The creation of rich, interesting content is one of the most essential best practices. YouTube is visited by viewers who are either looking for entertainment or a solution to a problem they are having. Great content increases the likelihood that the video will be viewed and shared.
Important! The likelihood that a video would appear higher in search results increases with the amount of engagement it receives on YouTube.
Content producers can also enhance viewership by making their videos more visible in YouTube searches. Among other things, this entails using the Google Keyword Planner to identify terms that a lot of people look up and adding those terms to the description and tags of the YouTube video page. Another well-liked strategy to increase traffic to the YouTube video is to advertise the video on social media and through paid marketing.
Challenges in generating revenue
YouTube video creators still experience certain difficulties with generating income even when all these recommended practices are followed. As of the first quarter of 2020, the median cost per thousand (CPM) ad rate charged to advertisers was under $3.53. The effective CPM that creators make can be significantly less because they are only compensated for monetized views rather than all views.
Conclusion
Despite these obstacles, those who are successful in building a sizable and devoted fan base on YouTube can earn a respectable living. Forbes estimates that the highest-paid YouTube video creators earn up to $20 million annually, so it is understandable why so many people are drawn to this source of money that seems to have no end.
Are you interested in becoming a content creator? if yes, please do it now!
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