How Much Money Do YouTubers Make? – Case Study

How much money do YouTubers make? If this is the question for which, you are seeking an answer, I suppose, you will soon start your own YouTube channel after reading this post.

Yes, it is true that many top YouTubers generate millions of dollars every year from their YouTube channel. However, that income is not totally generated from YouTube itself. There are other aspects involved too and this confuses the general public like us in believing that YouTube pays a lot for your videos.

So, how much money do YouTubers make per view or how much does YouTube pay per video? I’ll be answering such questions in this post so stick tight and read this post with an open mind.

How Much Money Do YouTubers Make From YouTube?

A Youtuber can make anything from 10$ to $1000 for 100000 views on their videos. It is difficult to predict an actual value depending on the number of views and subscribers of a particular channel.

I am writing this post after doing a rigorous research about the YouTube platform and how it works. For this, I had created my own YouTube channel. Although I didn’t work on it much (though, I am planning to take it to another level in future), I wanted to know the rough estimate of income a person can make from YouTube.

How does YouTube Monetize Your Videos?

Before showing you my own YouTube channel stats, it is better that you understand how YouTube monetizes the videos on its platform. For this, you will need to understand certain terms first.

CPM– The term CPM stands for cost per thousand impressions. It is the total amount an advertiser is willing to pay for 1000 impressions of their ad in one ad panel.

RPM- The term RPM stands for the revenue per 1000 impressions.

Being a YouTuber, RPM helps you determine a rough estimate you are making per 1000 views on your YouTube videos.

For eg: If you earned an estimated $0.10 from 25 views, then your RPM would equal ($0.10 / 25) * 1000, or $4.00.

YouTube has a unique advertising platform. You must have viewed ads on YouTube at some point (that’s why you probably use an AdBlocker ) while watching videos on the platform.

Lets’s understand how YouTube generates revenue showing different types of ads on its platform.

Types Of YouTube Advertisements

There are six types of advertisements in YouTube:

  • Display Ads
  • Overlay Ads
  • Skippable Video Ads
  • NonSkippable Video Ads
  • Bumper Ads
  • Sponsored Cards

Here is a screenshot that I got from the Google Support explaining the different types of advertisements on YouTube.

Types-of-YouTube-AdvertisementsTypes-of-YouTube-Advertisements-2

So that was all about understanding the YouTube Ad types. This was just to get the basic understanding of the platform so that you get to understand how YouTube monetizes the videos.

Now, it’s time to break some myths.

Let me put some common questions put by newbies regarding the YouTube revenue generation.

How Much Does YouTube Pay Per View?

YouTube does not pay per view on the video. It solely depends on the number of times the advertisement is clicked when a visitor plays your video. So, being  YouTuber, you can get anything from $10 to $1000 for 100000 views on your videos.

How Much Does YouTube Pay Per Subscriber?

YouTube does not pay on the basis of your Subscriber count. Subscribers help you to reach a wider audience when your new video is live on YouTube. This in return increases your chances of getting an advertisement clicked when a visitor plays your video. The Subscriber count does not directly affect the revenue of a YouTube channel.

Does the Advertisements Show on Every YouTube Video
The answer is “NO”. Most of the advertisements are targeted on the basis of “category” and are shown for a relevant YouTube video only. Also, many visitors nowadays use an ad blocker extension which hinders the advertisements to show on a YouTube video. Typically, an advertisement is shown between 24%-40% for the total times your video is played. So suppose your Video is played by 100 visitors, the advertisements will only show for 25-40 times only.

These were some common YouTube questions. Now, it’s time for my personal case study.

Case Study

Let me break down some of my own stats now.

I had started a YouTube channel in January 2015. It was just a test project as I wanted to figure out an accurate answer for the above questions myself.

So, here are some of my recent stats:

How-Much-Does-YouTube-Pay-Per-View

As you can figure out in the above snapshot from my YouTube video manager, I have posted six YouTube Videos. As on 12th February 2017, I have 71 Subscribers and 28841 total views on my videos.

Here is the total revenue that was generated for those views:

See, I told you that it all depends on the number of times the ad was clicked.

This revenue is independent of the number of subscribers you have or, the number of views on your videos.

Also, I don’t know if many of you know this or not, the advertisement rates vary from country to country. The statistics which I have observed, developed countries have better advertisement rates as compared to the developing or the under-developed countries.

So suppose you are a YouTuber from India, you are likely to earn less revenue from your YouTube channel as compared to a YouTuber from USA or Canada.

See this snap to understand more:

how-Much-money-do-YouTubers-Make-per-Subscriber

You see that the CPM is different for each country.

Already disheartened? Wait, I promised you that after reading the post you will be tempted to create your own YouTube channel.

YouTube ads are not the only way to generate revenue through YouTube. For many YouTubers, it is just a fraction of total revenue they generate through their channel.

Other ways to monetize your YouTube channel

So, what are the other ways to earn money from YouTube?

A YouTube channel has a much wider scope. If handled properly, it is not less than any famous television channel. It becomes a brand after you

A YouTube channel becomes a brand after you share valuable content with your viewers consistently. This takes time, patience and hard work.

I would always suggest that if you are a newbie, you start a YouTube channel as a hobby. Within few months, you will get to know the actual demand from your channel, how the people are reacting to your videos etc.

Once you start gaining viewership and more subscribers to your channel, you can promote sponsored products and services in your niche. For example, suppose you have a Tech channel where you do unboxing videos of the latest gadgets and stuff. Once you start gaining viewership on your channel and people start recognizing you, you can then start pitching the big brands in your domain and ask them to review their products.

Once you have a good viewership on your channel, you can then also attach your own affiliate links and promote the sponsored products by giving a specific link from your video description. This will earn you good commissions when a user buys a product through your affiliate link.

Believe me, the revenue generated through branding and affiliate marketing is many folds the income that is generated by the YouTube advertisement.

So overall, YouTube may pay you pennies or you may or may not even monetize your channel using the YouTube ads, the most important thing is consistently delivering value to your audience.

Once you set up a good viewership and get noticed among the brands in your niche, you can then monetize your channel by promoting sponsored products and doing paid reviews.

Pro Tip

As a YouTuber, your first priority should always be your audience. Once you are successful in delivering a constant value to your target audience, the monetary aspects will be generated automatically.

YouTubers become successful when they make genuine videos for their audience. Take any big YouTuber, their content quality and deliverability is outstanding as compared to the other average YouTubers. This is the only aspect which helps them stay in the game for a long run.

Conclusion

YouTube is indeed a great resource for talented people. Firstly, it gives you a very big audience base. This helps you to get recognized among people and also earn respect for your talent and knowledge.

Initially, your prime aim should be to start a YouTube channel out of passion. The monetary benefits are the side results of your hard work.

Treat YouTube like a business, offer the best quality to your viewers and for sure, you will get recognition among your audience.

So next time if someone asks you or puts up a question, how much does YouTube pay to YouTubers, show them this case study.

Also read: Best cameras for YouTube videos

Would be glad to know your views in the comment section below.

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