How Do YouTubers Make Money?

The primary answer to this question is ad revenue. To benefit from it, it’s necessary to join the YouTube Partner Program. You’ll be accepted if you meet its channel monetization requirements — one of them is having over 1,000 subscribers.

The platform will pay you, based on ad impressions on your channel. Your revenue share will be around 50%, and the rest will be deducted as a fee.

How Much Do YouTubers Make Based on Subscriber Count?

To analyze the importance of subscriber count, we also need to talk about the CPM rates. This indicator shows the price of an ad per 1,000 views. Don’t mistake it for the RPM rate — it reveals how much you earn per 1,000 ad views.

$3 is considered regular CPM, while $5 is a decent result. The numbers largely depend on niche selection. CPM is higher for topics that require expertise and attract well-off people — such as technologies or business. In entertainment and other niches with a low entry threshold, the rate is more modest.

Let’s calculate how much one can earn with a CPM of $3, depending on their audience and performance:

Number of followersNumber of views per monthMonthly income
1,00030,000$90
100,000300,000$900
1,000,0003,000,000$9,000

Additional Revenue Streams for YouTubers

Nothing prevents you from leveraging multiple income streams at once. Here are the options to consider.

After you build a strong community around your channel, it would be wise to offer memberships. Those who pay for them will get access to your exclusive content. Others will be able to watch the videos that are accessible for everyone.

Viewers might want to support you with gifts and donations. You can accept them through live streams on YouTube or through third-party platforms, such as Patreon.

Merchandise sales can come in handy, too. Your loyal fans will be eager to wear garments with your logo. The most successful creators develop product lines that generate an income for them on online marketplaces.

It’s not uncommon for YouTubers to sell online courses on topics in which they have proven expertise. For instance, a nail blogger can teach others to make a manicure, and a nutritionist can create a course on losing weight. Another way out is to build an app — for example, an astrologist can offer one with a moon calendar and music for meditation.

If you are not ready to sell your custom products yet, consider affiliate marketing. You’ll sign a contract with a company to promote goods or services relevant to your niche. You’ll encourage people to follow your link to order the product. The business will share a part of its profit from each purchase with you.

Sponsored content is the most lucrative option. Your task will be to feature the promoted products in your videos and reveal their advantages. Or, brand deals can involve being the company’s ambassador. You’ll need to wear or use its products regularly, without substituting them with the offers of its rivals.

Factors That Impact One’s Earnings

Your income depends on your audience demographics. If your viewers have money, they might want to spend it on you. But if you attract people with limited budgets, you shouldn’t expect generous donations or frequent purchases from them.

Don’t worry if your income increases and decreases cyclically. It’s a norm for online businesses. In particular, people spend a lot of money at the end of each year and have nothing left in their pockets by January.

It’s crucial to create videos that people want to see till the end. The higher your watch time and engagement rate, the more revenue you’ll get from ads. Plus, it’s essential to upload fresh content regularly.

Buying YouTube watch time can be an option, if you are selective about the provider. However, this measure is not mandatory. Keep an eye on YouTube analytics to detect your strong and weak sides. Make your content genuinely exciting, and it will attract viewers.

Top-Earning YouTubers and Their Income

Now that you know how much YouTubers earn, let’s look at the biggest stars of the platform and their annual income:

  • MrBeast – $85 million
  • Dhar Mann – $56 million
  • Jake Paul – $50 million
  • Rhett & Link – $36 million
  • Ryan Kaji – $35 million

It would be rare luck to rise to their level. However, it’s realistic to earn from a few hundreds to a few thousands of dollars per month on the platform. Deliver high quality content and experiment with different revenue streams. Your efforts can start to pay off in a few months.

Leave a Reply

Your email address will not be published. Required fields are marked *