Around the globe, five billion YouTube videos are watched every day. YouTube is as popular as ever with users spending an average of 40 minutes per YouTube session.
In addition, two out of three potential buyers have a look at YouTube videos buying a product or service.
In line with this digital shift, the next thing you should learn is how to make money on YouTube. All you need is video editing software and a computer and you can get started on YouTube.
For example, on Ryan’s Toy Review, young Ryan makes a whopping $22 million by playing around and disassembling toys. Not bad for playing around with gadgets.
Making money on YouTube is no longer exclusive to a select few platinum musicians, specific entrepreneurs or huge influencers.
There are plenty of opportunities for everyday people to make money from YouTube.
However, you have to be more strategic in your approach.
In this article, I’ll go over the different ways you can start making money on YouTube this year.
Let’s get started.
How to Make Money on YouTube
While it is possible to make significant income from your YouTube account as a content creator, it is not the easiest either.
500 hours of video are uploaded to YouTube every single minute across the world.
Numbers don’t lie.
Therefore the competition is pretty intense, and making a lot of money online becomes more challenging.
Here are some powerful strategies you can employ to jumpstart your earning potential from YouTube.
1. YouTube Monetization: Use affiliate links on YouTube.
Promoting affiliate links can be a massive earning opportunity for channels that offer in-depth tutorials as well as insightful product reviews.
For example, if you recommend a product and a user visits your link to buy, you’ll start earning commissions.
You can place these links in the first few lines of your description and speak about your link in your video content.
Posting affiliate links on YouTube shares a typical resemblance to promoting affiliate links on your blog.
Thus, you shouldn’t pour affiliate links all over your YouTube content just for the monetary benefit (after all you want your videos to be seen as exclusive content that your audience can’t just get anywhere else).
Don’t forget that viewers will only follow these links when they believe you are a trusted resource.
To build trust with your viewership and get more subscribers, help them solve concrete problems and provide tutorials.
As a bonus, you can create videos that offer solutions you have previously accomplished yourself.
There are plenty of affiliate programs for you to join.
You can join many different programs in one place on a popular affiliate network like Shareasale or Awin.
The best YouTube premium revenue can be earned by starting a blog in unison with your YouTube channel and add affiliate links there too.
That way, you’re monetizing YouTube (while keeping in mind monetization policies and eligibility requirements) and also have a website on a platform that you own yourself.
The first step for beginners starting a blog is to get started with Bluehost web hosting.
Bluehost Get Started
Bluehost is the “official” WordPress.org recommended web hosting platform and you can read my full Bluehost review here.
Here’s how to get started:
Go to Bluehost.com and click Get Started
Choose your hosting plan ($2.95/month is cheapest with my link)
Enter a new website domain name or select one you already own
Enter your account information, account plan, and billing information
You can uncheck the add-ons Sitelock Security and Codeguard Basic
Click Submit and you’re ready to go!
2. Become a YouTube Partner and earn from video ads.
For many YouTubers, ads are the most essential YouTube income stream.
As a YouTube Partner, you make money in different ways.
You can make money from ads before your videos, channel memberships, or Google AdSense banner ads.
However, there are some ground rules to observe before becoming a certified YouTube Partner as well as some prerequisites needed to start.
Aside from adhering to YouTube’s ad rules, you must amass a minimum of 4,000 video watch hours on your channel in the last 12 months and have 1,000 subscribers.
There is no concrete timeline or format to get these foundational 4,000 hours. You can get 100 hours each on 40 youtube videos or any combination to get your total to 4,000.
YouTube Partner Program Requirements
For example, the famous international hit Gangnam Style took an enduring five months to achieve 1 billion views.
However, Despacito ended up being a viral video much faster, rushing to 1 billion views in barely 97 days.
After successfully achieving the 4,000 hour-threshold and winning your place as a YouTube Partner, you can start to earn money from ads.
However, you may not always be able to base your revenue generation on YouTube from advertising alone.
There are other avenues by which you can consolidate your earning potential on YouTube.
Doing a live stream here and there is also a great way to earn money. People love the live element and the real-time factor.
If you have a loyal fan base who religiously watch your stream, then they will definitely want to buy from you.
In addition, the ability to have super chat and super stickers is something that YouTube has introduced.
With these features, your YouTube premium subscribers can buy chat messages that are different than regular ones that can be put at the top of your chat feedback.
This means that there is another revenue stream that you can profit from. This can be a great way to earn money from your fans other than the ads you have on your videos.
3. Make Money on YouTube with Funding from Your Fans.
If you’ve built a following of loyal fans, encouraging them to crowdfund your channel can help you fund your new videos and profit.
A crowdfunding platform like Patreon introduces more seamlessness to the process of getting paid for your content.
For as little as a dollar, your fans can make subscriptions to their favorite channels, even going home with some exclusive rewards from their favorite content YouTube creators.
Tipee is another service that allows you to enjoy a combo of recurring and one-time donations.
For-profit and nonprofit channels alike are leveraging this fan-funding with their audience to keep their video operations running smoothly.
As long as the type of content you create is interesting, entertaining, or providing value, you would be amazed at how your viewers open the floodgates of generosity.
Understanding the demographics of your audience is also crucial when deciding how to ask for donations.
4. Master Your YouTube SEO.
For video creators who have not built a significant following yet, you have to step up your game and maximize YouTube SEO this year.
To do that, perform keyword research like you usually would – however, think a little differently based on what people are searching for on YouTube.
Next, make sure you are using high-value keywords in your video title, description, and video tags.
Once launched, you can check your YouTube “Traffic Source: YouTube search” report to get an idea of what people are searching for when they find your hosted videos.
In general, Google provides video results for keywords on how to, reviews, tutorials, and funny video terms.
There are also five key YouTube SEO ranking factors to consider:
Number of comments
Subscribes after watching a video
Thumbs up/thumbs down ratio
Click-through-rate on the YouTube search results
YouTube SEO Infographic
The basics of SEO, like having great content and getting linked to from high-quality channels, are still relevant in YouTube search results.
Keep in mind that it will only get harder to rank on the first pages of Google for competitive keywords.
More videos get uploaded every minute to YouTube than all the other video databases combined!
So SEO is not an overnight process (but can be accelerated with these strategies).
A perk of YouTube that can be used to your advantage is that it’s easy to form partnerships and collaborate with the right people.
By letting another popular YouTube partner feature you in their videos or vice versa, it can bring a ton of new viewers to your own channel.
But for this option, be sure to choose a relevant and high-traffic influencer who has a following that is similar (or ideally bigger) to yours.
To find potential collaborators, search for other YouTubers on YouTube and find those who have a channel that is similar to yours.
You can also search for potential collaborators on Google by typing: “your keyword” + “collaborate”
You can also consider doing shout-outs for other popular channels in exchange for them mentioning your channel as well.
By working with other creators, you might be able to attract new fans who didn’t know about your channel before.
5. Make the most of your YouTube marketing funnel.
Optimize your YouTube channel for sales. Choose your niche, become a YouTube partner, and start planning your marketing funnel.
YouTube is one way to spread your message, but you can make more money by using YouTube in unison with a blog.
That way you’re collecting more email addresses and eventually selling products to your fan base.
For example, if you write a blog post about an affiliate product you’re recommending, repurpose that content, and create a YouTube video embedded in the post.
youtube marketing funnel
Then send users from YouTube back to your blog and to the affiliate links to both earn commissions and build blog readers.
Another great option is to connect your YouTube channel with an ecommerce platform like Shopify and sell merch. Here are some great YouTube merch stores to take inspiration from.
6. Become an Amazon Influencer.
The Amazon influencer program is becoming more popular.
This influencer program allows you to maximize your YouTube (social media in general) presence to make money via Amazon recommendations.
After joining the program, you can review and recommend products and direct your viewers to Amazon to purchase via affiliate links.
When your viewers click through and make Amazon purchase, you get your cut of the commissions – typically 8-10%.
In addition to product reviews, Amazon also provides the ability for content creators to promote their own merch. This means that if someone buys your merch, you will get the full profit of the sale.
You can also monetize your audience by leveraging Amazon’s affiliate program without even having to fulfill an order yourself.
However, keep in mind that this program isn’t open to everyone.
Social media follower count and other metrics dictate approval odds when it comes to Amazon’s influencer marketing programs.
7. Explore extra gains from YouTube Red Subscribers.
YouTube Red allows users to pay $9.99 for ad-free YouTube viewing.
Even without YouTube ads, content creators can still generate money and make 55% of revenue, based on view time.
There are mixed reviews on whether YouTube Red increases or decreases CPM rates.
With YouTube Red, your watch time matters, so check your YouTube Analytics to view your statistics like watch time and video engagement.
How Much Money Can You Make on YouTube?
The short answer: it depends.
By using ad monetization, affiliate links, and selling sponsored placements in your videos, you can maximize your revenue potential.
On YouTube, there are many ways to make money. This can happen from ads on a CPM, CPV, and CPC basis. With cost per impression (CPM), a typical YouTuber makes $7.60 per 1,000 views.
Nonetheless, by Google policy, creators get 55% of earnings accrued from advertisements while Google keeps 45%.
Now if you are using affiliate marketing as a channel owner, advertisers disburse payment with different models – typically cost per sale or cost per lead.
Here, your earnings directly correlate with the number of conversions and sale commissions you get from advertisers.
You can also sell sponsored product placements in your videos.
YouTube is quite advertiser-friendly in this regard because the platform makes money by selling either short mentions or more extended product recommendations on brands looking for exposure.
However, if you have been able to build a measurable following on your channel, brands will pay you.
The amount of money may range from $20 to $50 for every few thousand YouTube views they get on your channel.
So if for example, their video on your channel hits millions of views, you can be dancing to the bank anywhere from $20,000 to $50,000.
This strategy is a better way to monetize when you aren’t generating millions of views.
How Much Money Do YouTubers Make?
For thousands of YouTubers, this answer may be nothing, or barely anything.
For popular YouTubers, this could be a million dollars or more per year.
It’s getting tougher to make money, as ad revenue can range from $0.35 to $5 per view, with the safe assumption being $1 per 1,000 views.
The profitability of your channel is tied to both your views and your niche.
YouTubers in highly-viewed niches like listicles, news, celebrity gossip, makeup and beauty, and popular fails quickly pull in revenue with millions of views.
There are also YouTube revenue calculators to help you understand how much you can make based on video views and engagement.
How many views do you need to cash out on YouTube?
Once you attain a balance of $100, YouTube pays you.
And can you earn from YouTube on a pay-per-subscriber basis?
YouTubers just rolled out a subscription service to YouTubers with high follower counts.
The Components Of A Successful YouTube Channel
Let’s now have a look at what it takes to have a successful Youtube channel.
For this example, I’m going to use my own YouTube channel.
Let’s start from the top.
This is the image that appears at the top of your channel. It’s a great place to put a call-to-action or something really eye-catching.
In this case, I use a picture of my face, my logo, and text that is relevant to what I do.
This gives the viewer an idea of what I am about and what they’ll be able to do by engaging with my channel.
There’s also an image that points people to my website.
Call To Action Within The Channel Art
cta within channel art
This is a great spot to put a call to action.
This tells viewers what you want them to do next.
In my case, I have a link to my free blogging masterclass, my TikTok, and my Instagram.
youtube profile picture
A great profile picture is a must! This is an image that will be always visible as it’s in the bottom left corner under each of your videos.
Ensure that the picture you choose is up to date.
If you’re using a personal picture, a smile is infectious, so put one on!
YouTube channel name
In my case, I’m using my own name as the channel name.
However, this can be anything – just make sure it’s relevant to your content.
A YouTube channel trailer is a short video that plays when the viewer lands on your new YouTube home page. Make sure the video is engaging, interesting, and brief!
The video will be your chance at a first impression before the viewer even gets to your content.
The first few seconds are the most crucial. Ensuring that you make an impact with your channel trailer is key.
Treat it like a movie trailer and give the audience a preview of what’s to come.
A voiceover is optional, but you need to make sure your visuals match up with what you’re saying.
Channel Trailer CTA and Description
Channel description and CTA
Again, this is your first impression to deliver value to your visitors.
In my case, I use a call-to-action to invite people to join my free blogging masterclass.
The description then tells viewers what the video is all about and what they will get from watching it.
This section shows the latest videos that you’ve uploaded.
This is a great place to feature your most recent videos and can be used as another opportunity to entice the audience into checking out your content.
If you have playlists, they can also be featured here to make things easier for the viewer to consume your content.
How to Make Money on YouTube FAQ.
How can I make money on YouTube without ads?
If you aren’t making a lot of money with ad views, there are plenty of other ways to generate an income from your channel. Here are some of the best options:
1. Add affiliate links to your video descriptions to recommend products and earn commissions on every sale.
2. Sell merchandise, t-shirts, and physical products linked to your ecommerce platform.
3. Sell digital products, online courses, and eBooks.
4. Build your audience and get a YouTube sponsorship from a brand.
5. If you’re an expert in your niche, sell coaching and consulting services and charge an hourly rate.
Is it hard to make money on YouTube?
It is pretty challenging to make money on YouTube and yes, there is some hustle involved. According to YouTube’s community guidelines, you must have 1,000 subscribers and 4,000 watch hours within the last 12 months to join YouTube’s Partner Program. Then you have to generate a lot of views and monitor your cost per view (CPV) to see how much money you make for advertisements.
If you don’t have millions of views, one great way to monetize your channel is with affiliate marketing. You can review products or perform product tutorials and place affiliate links in your video description. That way, you can earn commissions on every sale and make more money than your advertising CPV.
I recommend you start a blog and couple that with your YouTube channel. That way you can promote affiliate links on both your YouTube channel and blog and embed your videos in your blog posts to get more views (and help your SEO).
How much is 1,000 views worth on YouTube?
There is no definitive answer to how much 1,000 view is worth. Factors to consider include the industry you’re in, how many people click on your advertisements, and the country you are located in. This all factors into your average CPM.
Additionally, advertisers create a Google AdWords account and choose their ad strategy based on either paying on a cost per view (CPV) or cost per click (CPC) basis.
For example, you could get $0 for one view and $5 for another view if that viewer clicks on a high-value advertisement. A good rule of thumb is to assume that you will earn $0.75 – $1.00 for 1,000 views if you use banner ads, or $6-7 per 1,000 views if you use ads that play before your video starts.
How many subscribers do you need to make money?
Based on the YouTube Partner Program, you need 1,000 or more subscribers to be able to monetize your channel. You also need at least 4,000 watch hours within the last 12 months and have an active Google AdSense account. Once you apply and are accepted into YPP, you are allowed to set ad preferences and enable monetization for the videos you upload.
Who is the highest paid YouTuber?
The top YouTube stars bring in millions of dollars a year by monetizing their YouTube channels. Here is a list of the highest-paid YouTubers based on yearly revenue in 2019:
1. Ryan Kaji: $26 million.
2. Dude Perfect: $20 million.
3. Anastasia Radzinskaya: $18 million.
4. Rhett and Link: $17.5 million.
5. Jeffree Star: $17 million.
6. Preston: $14 million.
7. PewDiePie: $13 million.
8. Markiplier: $13 million.
8. DanTDM: $12 million.
What is the best way to make money on YouTube?
The best way to make money on YouTube is by having a consistent theme to your videos whether it be comedy, education, review or vlogging.
Youtube will place ads at the beginning or end of certain videos and pay you when someone views these ads.
The more subscribers, views and comments your video has, the more money Youtube will offer when someone advertises their products on your videos!
Why aren’t my videos making any money?
This question has a lot of possible answers.
Firstly, your viewers might not be watching all the ads that YouTube places for you.
Secondly, your videos may not be engaging enough for people to watch the ads.
Lastly, your video content itself may have few advertisements to choose from because of their theme.
What kind of equipment do you need for YouTube?
Basically a computer and a good quality webcam.
You can also buy a microphone if you want to have more clear audio.
It is highly recommended to have a good quality camera to film your video.
Make sure the lighting is adequate enough so you are visible!
Where can I get video editing software to make YouTube videos?
This list of the best video editing software is a great place to start.
In addition, YouTube Studio is an application developed by Google that allows you to control everything related to your channel.
You can also edit videos, add intros and outros, speed up or slow down the pace of your video, change the music in your video, etc.
If you want to be able to make changes later on (for example edit an old video again), it is recommended to make a copy of your original file.
Can I use copyrighted music in my videos?
No! If you violate copyright, YouTube will not only take down your video but they also have the right to restrict monetization from your future videos.
There are a lot of legal alternatives for music on YouTube anyway so it is recommended to find noncopyrighted music for your videos.
What should I title my videos on YouTube?
This depends on what you would like to portray with your video. If you want to add keywords for SEO purposes, use the relevant ones in the title of your video.
This way, people who are searching specific things will find your channel easier and in turn, you will get more traffic to your channel.
How much does it cost to start a channel on YouTube?
Nothing! You can have an account completely free of charge so why not try it out?
How do you become popular on YouTube?
This is a question with a multitude of answers.
The general consensus from YouTubers is that you should be consistent in your content, have good quality videos, and engage with your subscribers/viewers.
In addition, taking the time to research topics that interest you will add to the quality of your videos and add more detail and accuracy to your videos.
Ask people that watch your videos to leave comments and subscribe in order to increase your chances of becoming popular.
That’s a Wrap.
Making money on YouTube is possible, but it’s hard to make money with just YouTube alone.
It’s vital to have a platform that you own like a blog and use YouTube as a secondary traffic stream.
One benefit is that YouTube SEO is not yet as competitive as organic SEO.
If you can get in now and start generating traffic, you’ll be a better place by 2020 when the competition is more fierce.