HOW YOUTUBERS MAKE MONEY?

How do people make money on YouTube?

It used to be that making money on YouTube was as simple as uploading fantastic material, getting millions of views, and receiving a cut of the advertising revenue. 

Photo by Karolina Grabowska from Pexels

Content makers now have a variety of options for monetizing their work. This can include corporate sponsorships from a large brand, fan fundraising, or item sales, in addition to advertising.  Bellow we highlight 6 of the key methods to make money on YouTube.

1. VIDEO ADS, AD REVENUE

Video advertisements usually served at the onset of a YouTubers video is one of most common ways for YouTubers to make money. CPMs (cost per impression) varies due to audience and video categories, however channels do split ad revenue with YouTube. Furthermore, YouTubers who are part of an MCN (multi-channel network) will additionally split their share of ad revenue with their MCN.

2. BRAND DEALS, SPONSORED VIDEOS

For today's up-and-coming YouTubers, brand deals or sponsored videos are the "bread and butter." Although sponsored videos are a financial necessity for most YouTubers, they come at a cost to their channel's growth and public perception – sponsored films frequently result in audience outrage and a flood of unsubscribers. While corporate partnerships and sponsored videos are a necessary part of YouTubers' income, it's a two-way street for both brands and influencers.

3. AFFILIATE COMMISSIONS

YouTubers can make money through affiliate links in addition to brand deals and sponsored content (similar to blog advertising, see the differences between sponsorship and affiliate commissions here). YouTubers frequently use a customized link (URL) in the video description box to refer to and recommend certain items, businesses, or services. The YouTuber will now be rewarded per link click or possibly sale, depending on the affiliate compensation structure.

4. HOSTING, SPEAKING, LIVE APPEARANCES

With the development of livestreaming technology and platforms, YouTubers and other top social media influencers are being enlisted to be a part of live campaigns and activations. Similar to brand deals, these opportunities usually come at an ad hoc basis and although paying, may not provide a recurring source of revenue.

5. MERCHANDISE

Similar to other creatives, artists, and musicians, YouTubers can possibly further commercialize their social media followings with merchandise sales (t-shirts, apparel, etc.).

6. ATREON, CROWD-SOURCED CHANNEL SPONSORSHIP

Subscribers can donate to each channel directly through the "Support this channel" option on YouTube. Many YouTubers, on the other hand, have a Patreon page where their fans can donate to support their vlogging efforts.