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How Much Do YouTubers Make?

How Much Do YouTubers Make? – [Billionaire YouTubers?]

Have you ever wondered, how much do that amazing YouTuber with a million subscribers makes a year? Or how much a YouTuber earns per 1000 views? Welcome to the curious question of the decade!

Yes, making money online is a new normal and we’re adapted to it, work from home and the pandemic has made this adaption really fast-forwarded. Of all the ways to make money online, being a YouTuber is pretty popular and trustworthy among those who begin the research about passive income.

Being said that, the number of YouTubers, also called content creators are growing day by day and most of them begin starting a YouTube channel with the goal of growing the channel and making money from YouTube.

How Much Do YouTubers Make?
How Much Do YouTubers Make?

To get the idea of how much do YouTubers make from their channel, we should have a quick idea of the income sources of a YouTuber, how the content-creator is generating income with the channel, and why does YouTube pays the channel or content creator?

If you’re a person who can’t wait to read this long article to find out how much a YouTuber earns, here is a quick overview so that you can find it the amount your favorite YouTube star makes without any further reading.

$1 – $5 per 1000 views

The going rate for top online talent, Forbes estimates, is about $5 per thousand views.

Also, this is an estimated amount as per Forbes and the amount might be varying to a large extent higher or lower with respect to the brand influence, affiliate income, sponsorships, niche, audience potential, geolocation and many more factors.

Why does YouTube pay?

Most of the people, who believe YouTube is a good option for a side hustle or passive income, really don’t know how a YouTuber is being paid or why does the creator gets paid for it?

Do you think YouTube sending money as the content creators keep the platform running? No, really not! There’s a much bigger business going around.

To understand better, think of your YouTube channel on the topic of Football and you have a great audience who loves playing Football. Same time, a popular football accessories company, for example, Nike launches a new product and plans to promote it across YouTube to boost the product.

Nike will approach Google Ads for marketing their product across YouTube videos. The ultimate aim of Nike is to sell more products so they want to target an audience who loves Football and is interested in it.

As you’re having a YouTube channel with a Football audience, Google may show the ads for the same product on your videos as it may convert into sales for Nike making a healthy relation between, the advertiser, content creator, and the platform.

Summary: Google will show ads that are much related to your audience and channel thereby making it easy for advertisers to market their products to the right audience while giving you the revenue share for helping the company. A win-win for everyone in this business model.

How much does YouTube pay?

YouTube pays the content creator the revenue share of the money spent by advertisers to promote the product/service on their platform. The revenue share is 45/55 for all content creators, which means Google keeps 45% of the revenue and gives 55% to the content creators whose video has ads enabled.

YouTube pays 55% of the revenue share to YouTubers while keeping 45% of it.

YouTube Revenue Share

Here, Nike pays money to Google, and 55% of it is being shared between content-creators with respect to the CPM and CPA for the ads that the advertising company sets.

With this model, Nike will be happy and reach out again to Google for running ads again. Google will be happy, as they’re able to serve ads to relevant consumers for advertisers. And the content creator will be happy, as he/she gets paid with the YouTube channel.

How do YouTubers make money?

Being a YouTuber opens you to an endless opportunity to make more money. The only key to winning on YouTube is to have a loyal audience and a niche that’s profitable. Here are the ways in which YouTubers make money:

1. Advertisements

You have seen them, if you’ve googled “how much YouTubers make” and get into this article, then you might have seen ads not once, not twice, but hundreds of times.

Think of playing a video from your favorite YouTuber, and a disturbing ad will get played just before the video. Yes, it’s annoying but at the same time, it may be essential for the business and monetization policies of YouTube.

With the 45/55 revenue share from advertisements while Google only keeps the 45% while giving the 55% to YouTubers. The amount they earn from this is related to the CPM and CPA that the company which runs the ad fixes.

2. Affiliate Marketing

Have you seen YouTubers, asking you to click the link in the description or to signup using their link or just asking you to enter a discount code? These are all popular affiliate marketing examples that we can see on YouTube.

Affiliate Marketing is just about referring people to a product/service and earns commissions for the lead generated or actions completed. Similar to the ads, this business model is also solely based on revenue sharing where affiliates get a part of the income generated.

Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make.

Pat Flynn, Smart Passive Income

Affiliate marketing is rewarding and high-paying than ads, as you can even get more than $1000 or less than $1 for a single sale, but that may not be the same with every product/company. However, you can get high commissions like $100/customer on niches like web hosting.

3. Sponsorships

Do your favorite YouTuber shows you a product/service and recommend them? Maybe the YouTuber is doing a paid promotion or it’s a sponsorship. The company may choose to invest a part of their marketing budget in that YouTuber who has a target audience related to that product/service.

Sponsorships or paid promotions is a marketing campaign in which the company may choose to invest a part of their marketing budget to the YouTuber who has a target audience for their product/service.

Sponsorships may reward you with a great amount of money but you should have a target audience following so that the brands will benefit from your partnership. Doing too many promotions will also let your trust blown away so keep a healthy balance between the products you pick and the way you promote it.

You could earn subject to your following audience, and the conversion rate, and the your audience interest towards the niche of the product. Once you’re big enough and established on your niche, you could easily charge a bigger amount and they will agree without a second thought.

How much do YouTubers make?

While you know, there can’t be any accurate values of the number of zeroes of the paycheck of YouTubers, this question still bothers you. Yes, we do think of how much that channel with million views make per month?

Now, you know, a YouTuber’s income is comprised of many sources, they don’t solely rely on the YouTube ad revenue. As mentioned in this article, most YouTubers have at least 3 sources of income: Ads, Affiliate Marketing, Sponsorships.

Coming to the total revenue they make with respect to their subscriber count is really difficult to answer, and to be honest there’s no real answer for that. The YouTube income from many sources is having a higher dependence on the niche they create content on.

The niche can affect the ad revenue, as well as the affiliate commission and even the partnership package. The more potential and profitable niche, the more income you may be able to bag with you YouTube channel.

For example, Personal Finance is a really powerful niche, as we need to learn financial matters, and this industry has many big players like banks, credit cards, insurance companies that spent millions on advertising, marketing, and PR. Hence, indirectly you will be able to make more money with a profitable niche.

But as more income, then more competition will normally arise so it may make you more money or maybe it won’t make you any money. Being a successful YouTuber, you need a larger following, also more importantly you need to build a brand around your channel.

To answer the question, “how much do youtubers make?”, you need to know the CPA and CPM of the ads, the normal affiliate commission of the products, and the type of sponsorships they might offer the YouTubers.

The amount in figures!!!

But I know, you’re reading this article to get a $$ figure of YouTube income and you won’t stop searching about it unless you find the exact $$ even though you know there is no exact $$.

For those, who need to get an average figure idea, we have just researched, calculated the ads, affiliate, sponsorships value, and asked fellow YouTubers and made a rough figure on how much do they make. (Note: This is not an accurate figure and a YouTuber may earn higher or lower than the amount shown here.)

Ad Revenue

For a million views, a YouTuber can make anywhere from $3000 – $10,000 as the ad revenue. It can be lower for niches like gaming where people won’t really care about the ads and never clicks on them. In cases, where the topic and target audience is really influencing, the ad revenue can be much higher to $10,000 or more.

Ad revenue: $3,000-$10,000 for million views on YouTube.

Average YouTube Ad Revenue for million views.

You may be wrong if you just calculated the revenue for 1000 views with the same ratio. There are a ton of factors that really affect your ad performances and clicks. Google ad revenue is something hard to predict as maybe you will get surprised by the amount and sometimes you won’t.

How YouTube ad revenue is calculated?

For understanding the YouTube ad revenue, you need to know what is RPM and CPM that you can find in every YouTuber’s Studio dashboard.

RPM

The RPM report shows you the amount of money you’ve earned from several revenue sources per 1,000 video views. RPM is calculated as total revenue divided by total views times 1000. 

RPM = (Total Revenue ÷ Total Views) x 1000

YouTube RPM Calculation

Revenue Per Mille (RPM) is a metric that represents how much money you’ve earned per 1,000 video views. RPM is based on several revenue sources including Ads, Channel memberships, YouTube Premium revenue, Super Chat, and Super Stickers.

CPM

The CPM or Cost per 1,000 impressions is a metric that represents how much money advertisers are spending to show ads on YouTube.

CPM=(Ad Revenue ÷ Ad impressions)x 1000

YouTube CPM Calculation
  • CPM: The cost an advertiser pays for 1,000 ad impressions. An ad impression is counted anytime an ad is displayed.
  • Playback-based CPM: The cost an advertiser pays for 1,000 video playbacks where an ad is displayed. 
Difference between RPM and CPM

CPM is the cost per 1000 ad impressions before YouTube revenue share. RPM is your total revenue (after YouTube’s revenue share) per 1000 views.

YouTube RPM and CPM
RPMCPM
The creator-focused metric that
includes total revenue reported in YouTube Analytics including ads, YouTube Premium, Channel Memberships, Super Chat, and Super Stickers. Also includes the total number of views from your videos, including the ones that did not monetize. It is the actual revenue earned after revenue share.
The advertiser-focused metric includes only revenue from ads and YouTube Premium. Also includes only views from the videos that monetized (i.e ads were shown)It is the earnings before revenue share.
Difference between RPM and CPM as per YouTube Official Support

With CPM and RPM the total YouTube revenue of a channel is calculated. As you know, the CPM will vary much with respect to the advertiser’s budget, region, niche, and many factors. You can’t expect to see the same RPM on a Personal Finance Channel and an Entertainment Channel.

Affiliate Income

Affiliate income is even difficult to calculate as this have some more factors that keep the calculation complex. Although, this is not that easy as ad revenue, affiliate income is one of the best and most-paying passive income methods.

If a YouTuber added an affiliate link and made a call to click on it, it’s sure everybody’s not gonna click it. Only about 1% – 10% will click on the affiliate link on the YouTube description. And only 1% to 10% of the people who clicked on your link will be generating a sale with your affiliate link.

If a product has a $10/sale affiliate commission. If the video has a million views, only 10%, that is, 10,000 – 100,000 people will click on it. Out of that, only 1% – 10%, that is, 1000- 10,000 will make a purchase. Hence, the money the YouTuber earns will be around $10,000 – $100,000 as affiliate income with respect to your audience’s interest.

Affiliate commissions: $10,000-$100,000 for million views on YouTube.

Affiliate revenue is with respect to the no. of sales and the product you’re promoting.

You’ll be surprised with the affiliate income on products like web hosting and credit cards where the commission can be more than the customer pay and even above $100 for a single sale. Also, you can get paid more once you start referring more customers.

Sponsorships

Sponsorships can be for a single video to promote a product launch or be a constant promoter of their brand. But sponsorships only work if the YouTube channel has a target audience that matches the product’s target consumers.

Sponsorship income can be based on the YouTuber’s subscribers and average views. For a million views, a YouTuber may earn around $10,000 to $100,000 in sponsorship income. If the YouTube channel is much stronger, you could charge a higher fee and brands may accept it if it’s benefiting their business.

Sponsorships: $10,000-$100,000 for a channel with high influence.

A channel can only land a high sponsorship if the channel is powerful with high subscribers and the capacity to influence the audience.

As said, sponsorships are related to your brand, this figure can be lesser or higher if you’re YouTube channel is stronger and has a great potential to influence the audience. This can be only determined by seeing the brand’s marketing capacity and the numbers on the YouTube channel.

Sponsorships are a source of income for YouTubers once their channel has accumulated the number of subscribers and fan following so that the company is ready to invest their marketing budget in the YouTube channel.

Total Income of a YouTuber

When it comes to the total income of a YouTuber, we can hope they have at least 3 monetization methods and other ways to make money like selling courses, merchandise, books etc.

Taking into average consideration of ad revenue, affiliate income, sponsorships, and some other extra income, we can have a rough guess maybe but this figure may or may not be the exact amount received by any YouTuber that you watch.

If a YouTuber, who has around 100k subscribers, and probably the channel and gets 1 Million views/month. These numbers can be strong as it can land some good brand sponsorships if the channel is influencing and powerful.

For a million views, let’s say if the channel earns around $3000 as ad revenue on the lower end and makes 100 affiliate sales of a product with a $10 commission/sale. (And also if the channel is strong, it may be able to bag a sponsorship anywhere at least $1000 for this example but can’t be predicted.)

Ads: $3000 from Google Adsense.

Affiliate marketing: $1000 ($10×100)

Sponsorships: $1000 as per contract.

Total = $5000

Average YouTuber Income Breakdown for 100k subscribers and 1 Million views monthly.

Examples of YouTube Income

In times, when everybody was not content-creators, there was no idea how much did YouTube pay for YouTubers. Today, things are different, it’s 2021, an era where work from home was the new normal and there are plenty of examples of YouTube income reports.

These examples are revealed by themselves and some are verified by global media in interviews. You can see many YouTubers with a million views are getting different amounts. Also, this income is reported on several years so things have changed and the revenues may also not be the same now.

YouTube income also depends on countries as the advertisers and the audience interaction behavior will also change from country to country. You can’t expect to have the same ad rate or sponsorship fee for India and the USA, they will be extremely different.

Ryan Kaji: $29.5 million

Mr. Beast: $24 million

Dude Perfect:  $23 million

YouTube Income as reported by Forbes in 2020

Conclusion

YouTube is a new source of income generation as you’re ready to create content for an audience. With work from home and online side hustle gaining popularity, it’s sure that new content creators will soon start YouTube channels.

While new beginner’s often asked how much do YouTubers make and will get confusing stats as the YouTube income is not always the same. Also, YouTubers with the same subscriber count won’t make the same money from YouTube.

Apart from that, there are different sources for YouTubers to make money online and one has to understand the potential of each source to calculate an average income. The most popular monetization methods for a YouTuber are Advertisements, Affiliate Marketing, and Sponsorships.

For those who want a value to calculate how much that YouTuber makes, here is a rough guess: Don’t take it seriously! A YouTuber with 1 Million views may be earning anywhere from $1000 – $10,000 with respect to his niche and target audience country.

With that said, a YouTuber can have multiple sources and at the initial stage of the channel, you’re ultimate aim should be to grow your YouTube channel to an asset that can make money for you. Keep growing, and put your money to work and make money while you’re sleeping!

How much do YouTubers make?

There’s no accurate value as YouTubers with same subscribers or views won’t be making same amount from YouTube. Income depends on factors like niche, target audience, country of the viewers and much more. For the question, we can say the YouTuber who has a million views on a country where AdSense pays well would be making anywhere from $1000 – $10,000.

How much does YouTubers make with a million subscribers?

A YouTuber with 1 million subscribers will be making anywhere from $10,000 – $100,000 a year with respect to niche, average ad rates, geolocation, the affiliate income, sponsorships, and, influencing power and brand trust of the YouTube channel.

Who is the highest-paid YouTuber?

While most of the income data like sponsorships or affiliate income won’t be available for the public, Forbes reported Ryan Kaji with an earning of $29.5 million as the highest-paid YouTuber.

Infographic

How much does YouTubers make? by PocketHike

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