Here we are, part 3 of our articles examining YouTube for business. If you read my last two articles you know why watch time is important, and how controversy has shaped it. Now we get to the interesting part. How to make YouTube Money! There are a couple of different methods that can be used so let’s go over them now.
Ad Revenue
This is the gateway to starting to make money on YouTube in more ways than one. You know the ads that play on YouTube videos? A creator gets a tiny cut of that per view they get. It varies from level to level and I’m not going to lie to you, initially you won’t be making a lot of money. If you stick with it and build your community, you can become part of the YouTube Partnership Programme. This allows you at certain levels to add different ways to make money and perks open up to you. If you want to learn more about it click here for more info.
The problem you run into is that at any time you could run the risk of being demonetised. It could be because you’re talking about a sensitive topic. For example politics or current events, having a 5 second clip of music, criticising someone and they didn’t like it. Often the road to getting it overturned isn’t worth the hassle and results against a strike on the channel (3 strikes and you’re kicked off the platform). So for many creators it’s a battle to keep the channel afloat which has led to them looking to other revenue streams.
Merchandise
For most people YouTube is a source of entertainment and as a result it is ripe for making merchandise. Back in the day, it would be a t-shirt with a phrase or image the creator was known for saying. Over time though things got a bit more varied. Some creators have made a career out of selling their own brands of makeup, cooking utensils, books, coffee, coats, masks etc. Your options are only limited to what you’re willing to put time and money into.
Back in the old west of YouTube, many creators were promised something by third party companies and the results varied. Now though, many on the platform realise that this is a major revenue stream and therefore put more effort into it and make sure that they are of a good quality and reflective of them as a brand. Some will even drop a line of products for a short time and will only go into production or have a limited amount of a certain product creating a scarcity. Admittedly you will have to split some profits with the manufacturer but this is a very good way to sustain yourself on the platform.
Sponsorships
Once you get to a certain level of prestige on YouTube you may be approached by brands to do a sponsorship in the middle of your video. Generally it will be for a brand that works with your target audience and they will pay you a set number of ads over a certain amount of videos. Different brands and creators work out different rates. Sometimes a brand, film or game will ask a creator to make a video specifically about their product but generally the creator will drop an ad read at some point in the video. Sponsorships can be a great help especially if the subject you’re talking about is high risk of being demonetised. It gives you a life-line to make the video but also be able to pay your bills. The deals have to be disclosed to the audience and clearly displayed as an ad or endorsement.
There is another kind of sponsorship that is just as valid. Many creators have setup a Patreon, a site where users pay set amounts to creators for perks. These could be getting names in the credits of a video or a shout out during it, getting a look at scripts the creator is working on, getting to ask them questions or even get a say in what kind of videos they want to see produced. I should point out that Patreon isn’t just for Youtubers, but for all kinds of creative fields. It runs on a tier system, the higher the tier you pay the more you get. It’s a model that has helped many creators survive and produce the content they want. If you want to know more you can visit their site here.
YouTube Money
And there you have it. These are the most common ways people are able to get some of that sweet sweet YouTube money. This most important thing though is to make good content. Once you have that as a basis and hard work, you will be able to progress up the ladder. It won’t be easy and sometimes you will be stretched thin, but as long as you persevere you’ll be able to be successful.
