For those who are creative, committed and willing to work for long periods without reward, YouTube is a possible way to make additional income. You will need to be all of those and more to be successful on YouTube. By successful I mean able to generate an income from the platform. Please note that only 5% of those who have a channel and upload to it make any money from the platform, well known YouTubers Pewdiepie or KSI are the exceptions rather than the norm.
There is a common misconception about YouTubers, people assume that they make money based on the number of subscribers that they have, this is incorrect. You could have 400K subscribers and make less money than someone with only 20K subscribers. Others believe that YouTubers are paid for the number of views their videos generates. This is not true either although it is connected to how YouTubers are paid; they are paid for the views of the ads surrounding their videos, either before, during or after their videos play.
As a YouTuber, once you have amassed 1000 subscribers and 4000 watch hours, you can apply to join the YouTube Partner Program. If you are accepted, YouTube will then place ads on your YouTube channel. The more your viewers watch the ads on your channel, the more you will be paid. You will generate income via YouTube Adsense. Please click here for a full explanation from YouTube.
YouTube Adsense CPM
All YouTube channels are not equal in the minds of advertisers, they will pay more to advertise on channels that focus on some sectors or interests than others. In the video, I discuss some sectors or niches that generate a high Adsense CPM. I demonstrate these sectors by showing the channels of very popular YouTubers.
CPM stands for Cost Per Thousand using the Latin word Mille for thousand. This is the rate advertisers pay to advertise on a channel per thousand views; this CPM is split between YouTube and the YouTube channel owner. Watch the video to understand how much variety there is amongst YouTubers when it comes to their CPM rate.
Please note, in addition to Adsense, there are other ways that YouTubers can make money and these include; merchandise, patreon, live-streaming, brand deals and selling their own courses or products. I may explore these other revenue streams in a later blog post.
Does the idea of having a YouTube channel appeal to you? Do you have the consistency and dedication to keep making, editing and uploading new videos? Let me know in the comments section below. Also, get in touch if you would like my help to grow your channel. My email address is firstname.lastname@example.org
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My aim with each blog post is to help you move to a better financial future. I believe that there is not enough financial education in the national curriculum and I intend to share anything helpful that I have learned along the way. I am by no means a financial expert. None of the information on this website constitutes financial advice and is provided as general information only. This is my personal finance blog; my marketing blog is over here and I have been blogging there since 2010. I hope you have found this information useful. Thank you for reading.