YouTube is one of the most popular websites in the world. With over 2 billion users uploading 3 billion hours of content each month (and counting), it's no wonder that people are starting to question how exactly all those vloggers are making any money at all.
Of course, there are many different reasons why you may want to watch someone else’s creation instead of creating your own... but if they're not paying their bills with ad revenue from every view, then what makes them think we will pay to see our own stuff? Here's everything you need to know about how successful channels can still generate income while avoiding advertising.
Here are some answers...
Yes! There are several ways to do so.
The first way is by selling merch through their channel. If you've ever watched an influencer walk down a red carpet or attend an event, chances are they have merch available for purchase. This usually includes clothing, jewelry, accessories, bags, home goods, etc. The best part about this option is that because these items aren't being sold directly off of a website, but rather via another company, there isn't really anything stopping anyone who doesn't like your work from purchasing something from you. In fact, just last year, YouTube creator Bethany Mota released her second book after having successfully generated enough sales from fans buying clothes, shoes, makeup, and other beauty supplies she had made herself.
Another great way to earn extra cash is by partnering up with brands to create sponsored content where you receive payment per-view. For example, when Taylor Swift partnered up with Sephora back in 2015, she was able to sell exclusive lipsticks based off colors featured in her music videos. When Katy Perry teamed up with L'Oreal Paris earlier this same year, she got to release four new fragrances inspired by her "Swish" song. Not only did both partnerships bring in millions in additional revenue, but they also helped increase brand awareness. As long as the partnership remains mutually beneficial, companies will continue to seek out talent like these to help promote their products.
And don't forget to consider becoming an affiliate marketer too. Affiliates partner with ecommerce sites offering various types of physical and/or digital products, which means they refer customers who buy said product(s) through their site, thereby earning commissions. Many top creators including Jake Paul, PewDiePie, Tana Mongeau, Markiplier, Lilly Singh, Rosanna Pansino, Tyler Oakley, James Charles, KSI, Michelle Phan, and Zoella use affiliate programs to monetize their channels. Of course, before getting into affiliate marketing, be sure to do thorough research and learn about its pros and cons.
As you can tell, there are plenty of opportunities out there for creators looking to avoid advertisements. However, since not everyone has access to large audiences like superstars like Justin Bieber and Ariana Grande, you'll need to find your niche among smaller platforms like TikTok and Instagram Live. Also, if you plan on pursuing merch, remember that inventory takes time to produce. So keep viewers interested until production starts.
If you'd prefer to skip straight to learning about actual earnings numbers, here are examples of current popular YouTuber incomes.
It depends. How much you actually earn varies widely depending on factors including subscriber count, viewer engagement, length of clips, number of edits, etc., but generally speaking, vloggers tend to pull in anywhere between $1-$10 million dollars annually. Some even claim the figure could reach upwards of $100 million per annum. But again, success stories are few and far between. And, unlike traditional TV viewing habits, watching online content is often done passively, meaning advertisers won't necessarily target you unless your audience actively seeks out your content. Even though YouTube generates billions of pageviews each day, it has yet to truly evolve into a platform that allows advertisers to easily connect with specific demographics. It's estimated that less than 20 percent of total YouTube views come from mobile devices. That leaves a huge chunk of potential eyeballs wide open for advertisers.
In addition to generating passive income, there are multiple ways to earn ad revenue on YouTube. From YouTube Red subscriptions, programmatic ads, preroll ads, promoted posts, native ads, and more, consumers now have more options when trying to decide whether or not they should click on an advertisement. Advertisers choose their spots carefully, but that's not always true for independent creators. Luckily, there are steps YouTubers can take to ensure they maximize their chances of maximizing profits. One proven method is implementing good SEO practices to increase visibility. Another trick is to leverage social media strategies to build credibility. Then, once traffic is high, put together squeeze pages that include relevant keywords to boost conversions.
Don't expect to become a millionaire overnight, however. Building a loyal fanbase takes time -- years, sometimes. So be patient, stay consistent, and never give up.
No. Creators cannot make money without doing one thing: producing original content. They must consistently upload quality material to attract subscribers, otherwise, their channels would likely die within months. Unfortunately, this is especially true for newer creators who lack established followings.
That being said, there are many different methods for streamlining their workflow for maximum efficiency. A popular strategy is editing videos in real-time during live broadcasts. Others utilize software like Adobe Premiere Pro CC to edit footage prior to posting. Still others opt to shoot raw footage and transfer it onto computers before editing. Regardless of the method, the end result is the same: higher output equals greater profit margins.
Also, please note that although certain producers might seem like they're raking in tons of dough, that is often due to the sheer amount of content they post daily. Remember, the average person watches 10 minutes worth of content each day, according to Statista. Therefore, if you were to calculate how much longer someone would have to run their channel without commercials versus with them, the answer is quite literally hundreds of thousands of times longer.
Not currently. Although certain publishers have experimented with this idea in the past, the results haven't been very promising. Why? Because it's extremely difficult to gauge viewership accurately. What happens if a user clicks away right after your clip ends? Or, what if someone streams your content later, outside of prime time? Most importantly, what if they share it with friends who weren't subscribed to begin with? All questions you have to contend with when relying solely on view counts to determine compensation.
Although it seems counterintuitive, the truth is that advertising works better when paired with subscription services. According to Delmondo Partnerships, 70% of U.S.-based television households subscribe to streaming services. Furthermore, 65% of Americans report using streaming apps three or more days per week. That means roughly 4.3 billion people around the globe consume entertainment content on a weekly basis. Now imagine if all those people happened to watch one episode of your show in lieu of clicking play on your latest upload. Just think of the possibilities.
What does that mean for future creators? Well, maybe you shouldn't call yourself a YouTuber anymore. Call yourself a Content Creator.
It's easy to think of YouTube as just another place where people watch cat videos or funny pranks. But it turns out that there are many other types of content being uploaded every day.
There is a wide variety of channels with different interests ranging from cooking shows to technology reviews to music. The most popular genres include comedy, entertainment, gaming, lifestyle, science, politics, religion, history, shopping — even makeup tutorials! YouTube has a lot going for it but one thing missing was an effective way for users to donate directly to their favorite creator in order to help them reach financial success. That changed in 2017 when PayPal launched its Creator Fund program. This article will explain how this works so your next video can be financially sustainable too.
The Creator Fund allows anyone who supports YouTubers to donate directly into Creators Accounts which then allow them to receive donations and use those funds however they see fit (including reinvesting in themselves). It essentially gives fans control over what happens to their favourite creators' earnings while also giving them access to information about how their favourite creators earn money online.
Here are some facts about the impact that the Creator Fund could have on the future of YouTube:
According to Nielsen, 91% of U.S. adults between 18-34 years old watched at least once episode of scripted TV series during 2016. In contrast only 13% of Gen Z viewers tuned in.
In 2018, YouTube had 1 billion monthly active users across all devices including mobile phones and computers. One third of these users spend 2 hours per day watching YouTube. According to comScore data, 53 million Americans used YouTube Premium last year.
Many top influencers like KSI, Logan Paul, PewDiePie, Jake Paul, Tana Mongeau, Lilly Singh, etc., rely heavily upon viewer contributions to keep their channel running smoothly. They often post several times per week and need consistent funding to sustain their work. A good example would be someone who posts daily vlogs with multiple edits each. If not enough people tune in live within 24 hours, their revenue stream vanishes overnight.
That’s why we decided to explore whether creators really make any money off ad revenues alone – especially since the majority of their income comes from subscriptions rather than advertising. We analyzed thousands of high quality clips posted by various producers and found that they actually bring in significantly less profit compared to their subscription numbers suggest. Let’s take a look at some examples.
For our experiment, we set up two identical accounts with the same title, description, thumbnail image, and tags. However, instead of posting anything remotely entertaining, we chose to upload low budget stock footage of nature shots from around the world. Both channels were monetized using the standard method of showing advertisements before and after video playback. Our goal here was to test if higher amounts of subscribers translate into higher profits because subscribers pay $5/mo whereas advertisers pay per view. After three months, the first account had 50 000 subs, 575 845 total video plays, and grossed $464.50. Meanwhile the second account had 30 000 subs, 648 720 video plays, and grossed $1,937.05. So far, we haven't made a penny yet despite having nearly double the number of subscribers, plays, and views. What happened? Well... nothing! Since neither video featured an advertisement, neither received any money from Google AdSense nor did either generate any income through YouTube Partner Program payments.
This means that even though both videos got roughly the same amount of "views" (or hits), the one with fewer subscribers earned significantly less. Why? Because each subscriber only pays $0.005 per month. Therefore, each hit translates to 0 cents. For example, let's say that I subscribe to Channel #2 and watch 3 videos per week. Each time I play something my personal info gets submitted along with my viewing habits. When the video ends, the advertiser sends me an email asking me to click a link confirming that I've viewed their video. Then they send me an invoice based on the number of clicks I provided. How long would it take for that company to get paid? Assuming no fraudulent activity, it'd take anywhere from 4-14 weeks. And in case you're wondering, yes, in theory, companies can ask customers to voluntarily provide feedback via surveys. But generally speaking, they don't want to go down that road unless absolutely necessary. Now imagine doing this process hundreds of times per month. Can you see how tedious it becomes?
Even worse, according to research by Tubefilter, consumers aren't very satisfied with the current state of user experience on the platform. More than half said that they find it difficult to navigate and follow links within their feed. Moreover, 40 percent expressed frustration due to poor audio synchronization. These issues combined create a significant barrier to entry for new talent looking to break into the industry. Not exactly encouraging news for creators trying to build audiences and turn their passions into profitable careers.
So what did we learn? Simply put, if you plan to launch a YouTube channel, consider setting aside some seed capital to cover expenses until your audience grows sufficiently large enough to begin earning meaningful royalties. Alternatively, focus on building relationships with brands and influencers willing to give you exposure in exchange for free product samples or sponsored partnerships.
Now that we know how little actual money creators make from regular traffic, let's talk about how big the difference is when you cross over 10k views. Here's a breakdown of what happens when you cross over 100k views:
First, assuming there are no promotional efforts involved whatsoever, we'll assume that our hypothetical producer crossed over his first milestone of 75 500 views. At that point he should start earning approximately 15 cents per hour of video played. He may choose to reinvest this money back into himself and continue uploading additional material, or alternatively, he may decide to share it with his team members. Either option brings him closer towards achieving his ultimate goals of becoming a full-time entrepreneur.
Next, assume that he continues uploading regularly (i.e., weekly) at the rate of five new clips at 75 500 views apiece. Over the course of six months, he earns $19.25 per clip multiplied by 12 clips = $228.00.
Finally, suppose that he decides to invest 25% of his earnings back into his channel to grow further. This investment doubles the length of time it takes to achieve his second milestone (from six months to twelve months), but increases his overall haul by almost 400%. His net income jumps exponentially from $114.60 to $225.20.
If done correctly, this strategy will enable you to eventually scale up your business to become self-sufficient and independent. Of course, the key word here is'scaling', meaning growing organically without relying on outside sources of financing. By taking matters into your own hands, you can avoid getting taken advantage of by unscrupulous investors and venture capitalists. Also, contrary to popular belief, there isn't a magic formula to making millions of dollars quickly. Successful entrepreneurs took years of hard work, persistence, and perseverance to realize their dreams. Even Warren Buffet advises against chasing short term gains. As a result, focusing solely on traditional methods of generating passive income may ultimately cost you more in the end.
We recommend learning about proven strategies and tactics to maximize your chances of hitting major milestones faster. Take note of what others are doing right now, and model yourself accordingly. Remember, you can never stop innovating and evolving as a creative individual. Don't ever forget that you alone hold the power to determine your destiny. Your journey starts today.
As always, stay positive and persistent. Never stop dreaming bigger and believing in yourself. Keep pushing forward. Once you succeed at creating a thriving career, remember to pass it on to the next generation of young leaders eager to carry on the tradition.
To read more articles like this one, please visit us at MoneyMakerNews.com.
YouTube is a massive platform for content creators who can upload their own work or find other people's channels that feature them in order to gain exposure. There are thousands upon thousands of channels with millions of subscribers across hundreds of different topics -- from cooking tutorials to makeup reviews.
But how exactly do these content creators monetize their channel while also keeping it ad-free so they don't have to worry about annoying viewers? How much money do you actually make per view when there aren't any advertisements running? If your goal is to become an influencer like some popular YouTuber, we're here to help answer all your questions.
To start off, let’s go over some basic stats regarding what makes up a typical revenue stream for a creator on YouTube. We will then break down this information by comparing two scenarios where a viewer clicks on either a recommended video (RV) recommendation OR an advertisement. Lastly, we'll talk about whether clicking on RV recommendations could be better than watching an ad.
What percentage of income comes directly from subscriptions versus advertising revenue?
Content creators often earn money through several methods including ad impressions, sponsorships, merchandising deals, etc., but most tend to rely heavily on subscription revenues as well. According to Tubefilter research, 70 percent of top earners on YouTube receive 75 percent or higher of their total monthly earnings via subscriptions. And only 10 percent of those surveyed received 50 percent or less of their total earnings from advertisements each month.
In 2019, Forbes reported that the average annual income for TikTok users was around $567 per year, which included both ad impressions and sponsored posts. The same report found that Instagram Influencers earned approximately $816 per week in 2018.
So, why would someone choose not to watch an ad instead of subscribing? Advertisers pay big bucks to reach consumers on social media platforms such as Facebook and Twitter because they know that at least 80 percent of Americans use at least one of these sites every day. But advertisers' budgets may limit their ability to advertise specifically on smaller channels. Additionally, many creators simply prefer having no interruption between themselves and their fans. It's just easier to focus solely on creating content rather than trying to market yourself to potential customers during the actual production process. Also, many creators want to keep their channels free from clutter since they usually provide valuable entertainment. Some creators even consider RV recommendations to be intrusive due to their nature.
Let's take a look now at how much money a creator earns out of 100,000 subs vs. 100k views on YouTube.
If our hypothetical creator has 100,000 subscribers, he or she should expect to net somewhere close to $1,000 per month based on his or her average subscriber payout rate. This means that after paying for hosting costs, equipment expenses, editing software, web development fees, payment processing fees, taxes, and everything else necessary to run the site, the creator should still have enough left over to treat him or herself once or twice throughout the course of the year. Of course, this amount is very variable depending on numerous factors, such as genre, quality of content, audience size, popularity, etc.
However, according to Tubecom Media, the world’s leading online TV marketplace, the median worldwide price for one minute of streaming time is roughly $0.015. So, our fictional creator earning $1000/month from 100k subscribers translates into making roughly $10.50 per hour worked. However, that number assumes constant traffic levels and viewership, something creators rarely achieve due to fluctuating interest rates and trends. In reality, it takes significantly longer to build brand awareness and trust among audiences. Creators must spend months promoting new material before seeing significant returns on investment (ROI).
The bottom line is that it takes a lot of hard work and persistence to grow and maintain a strong following. While creators typically put in long hours working toward building their audience, they often fail to realize that generating consistent revenue requires more effort than posting regular updates.
With the right amount of promotion, any YouTuber can rack up huge numbers within weeks. For example, Josh Sundquist reached #2 on weekly VEVO chart globally in 2020. His single "All My Heroes" broke 714K streams in its first 24 hours released. He currently has over 5.6 million subscribers and receives over 2 billion pageviews per month.
His success wasn't achieved overnight, though. In fact, it took years of hard work and dedication to cultivate a loyal fanbase and establish himself as a major name in music. Here are some facts related to Sundquist's career milestones to give you perspective:
He made his debut back in 2012.
His first song, “All My Heroes, Pt. 1," had just under 3,500 cumulative plays on Spotify as early as 2014.
Since 2017, he has been part of two Billboard Hot 100 charts.
By July 2021, his second album titled The Book of Life went Platinum in sales.
When asked about his latest achievement, Sundqvist said, "It feels great! Especially considering my last record sold platinum."
This isn't an isolated case. Another famous YouTuber named Ethan Klein started uploading videos to YouTube in 2009 and hit viral fame in 2015 thanks to his signature catchphrase “yo momma”. Klein uploaded over 20 videos per week until October 2016. Since March 2018, Klein has gained over 4 million subscribers and averages nearly 200 million total lifetime views per month.
Although Klein hasn't released another full length studio album yet, he continues producing short comedy sketches called "Ethan's Playlist" for Netflix.
One reason why Klein and Sundquist were able to generate such high numbers despite being relatively unknown entities is because they invested time and resources into gaining traction organically. They built their fan base slowly over time using various tactics such as releasing mixtapes, guest appearances, collaborations, interviews, live shows, podcasts, and more.
Now, let's compare the scenario above to the outcome for similar scenarios involving viewing an advertisement versus getting an RV recommendation.
For comparison purposes, let’s assume that our creator wants to create and publish content consistently in order to maximize ROIs. As mentioned earlier, it takes months to promote new projects, and even then, creators often struggle to see immediate results. With this in mind, let’s say that the creator decides to wait six months before publishing anything. After spending four months waiting, however, the creator finally produces and publishes a clip. Now imagine that he doesn't receive any comments, likes, shares, or follows in the next three days. Assuming he wanted to turn a profit quickly, he'd probably decide to stop investing in future clips altogether.
On the other hand, suppose that after publishing the clip, the follower count increases steadily within the next few weeks. Let's say that the creator receives 15,000 views on the initial post alone and gains 500 followers daily thereafter. A reasonable estimate for the timeline would be anywhere from eight to 12 weeks. Therefore, assuming the creator didn't invest additional funds into marketing materials, he'd end up losing anywhere between $70,000 and $92,000 compared to RV recommendations. On the bright side, however, this loss amounts to merely 0.3% of his yearly income.
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