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A Beginner's Guide to Making Money on YouTube

Uriel is a technology aficionado. He enjoys programming computers and playing video games.

Youtube logo

Youtube logo

At first glance, making money on YouTube seems to be a camera and a hashtag away for the booming online stars. Well, we found out that it’s not as easy as many of us assume. Consider this:

Of all the influencer platforms in existence right now, YouTube often seems like the most challenging for beginners. However, it is also the most intriguing and lucrative platform, with star YouTubers earning six figures annually from advertising income alone.

Making money on Youtube

Do the numbers go any higher?

Furthermore, this pie is only getting bigger year on year, YouTube recently stated that the number of users grossing over $100,000 annually has grown by over 40%. Also, 75% more channels have exceeded a million YouTube subscribers compared to last year.

Your next dollar just might be a hashtag away after reading what we found. We will, therefore, discuss the alternative ways of making money on YouTube and even suggest the best and easiest way for new YouTubers to get started and earning.

Getting started with making money on YouTube

Note: You must by producing high-quality content for your viewers. Here is a credible toolkit:

How to produce & edit your YouTube content:




YouTube Ad Incomes

YouTube does not directly pay users for their content. Instead, users get paid by linking their YouTube with an AdSense account. AdSense is one of Google’s most profitable and valuable income sources.

When a user enables AdSense on their YouTube channel, Google starts generating advertisements on their videos and the user then stands to get paid. These YouTubers leverage YouTube for their gain. List of Youtubers

How do YouTubers get paid via AdSense?

CPM (Cost Per Mille/Impression)

How much you get paid depends on the CPM formula used by Google. The abbreviation CPM means (Cost Per Impression), which means YouTubers get paid a specific amount for every 1000 advert impressions that originate from their videos.

For instance, let’s assume you earn at the rate of 1$ CPM. This will amount to 1$ per every 1000 times that your video is viewed with a promotion appearing on it. So, if you got a million views, which would be equal to $1000 in ad revenue.

Ultimately, one’s CPM depends on the niche of their videos and their audience. For example, gaming videos and parenting videos have different CPM.

Geographic location of traffic

Also, if a majority of your viewers are from the US your CPA will be much higher compared to YouTubers with predominantly African or Asian viewers. Although AdSense is one of the most profitable ways of making money on YouTube, it’s not a viable option for beginners. This is due to Google’s policy of only allowing people with over 10,000 views to participate.

Youtube app on smartphone

Youtube app on smartphone

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YouTube Endorsements

Are Paid Promotions profitable?

Influencer marketing is a booming industry that YouTubers can, and do cash in on, Paid sponsorships are highly profitable. Some of the biggest brands in the world are working with famous YouTubers after recognizing the economic value of leveraging the massive followings on their channels.

What’s more, paid sponsorships mean viewers get to enjoy their best content while being sold on the brand's relevant products and services at the same time

Game developers and companies selling gaming accessories are the most proactive in this arena. These businesses sponsor gaming YouTubers since they know there is a ready and immediate audience for their products.

What rules should you follow for Paid Promotions?

1.5 billion users are active on YouTube on a monthly basis. This makes it a well of opportunity for people pursuing profit. Especially advertisers. YouTubers have gained so much from this in the past it became a market saturated by irrelevant content and uncertainty that prompted YouTube to make YouTuber’s transparency with users mandatory.

YouTubers have to disclose that their channels or content are sponsored. Before this, users were oblivious to YouTubers promoting products and services for monetary gain. This policy change requires audiences to be made aware whenever the YouTuber is sponsored. YouTubers should use disclosure of Paid Promotion in their video

Prime examples of Brand partnerships with YouTubers include, Epic Meal Time cooperation with Netflix, MysteryGuitarMan partnership with Coca-Cola and Rhet & Link featured ad campaigns with McDonald's.

Affiliate Marketing

In addition to paid promotions, YouTubers promote products and services with a special code that suggests viewers buy the product or service at a discounted price. The YouTuber, in this case, is paid for the ad beforehand, and they could potentially earn more in the form of sales commissions.

Youtube Play button

Youtube Play button

Additional Earnings

Besides the ad revenues and endorsements, YouTubers are now starting to venture beyond the confines of the internet. For instance;

Alfie Deyes released a book titled The Pointless Book which was extremely popular after its release, selling over 500,000 copies. Similarly, Zoe Sugg also known as Zoella has released books, with her first two books alone selling over a million copies. She went on to break the record for book sales in the first week, and her first book titled Girl Online is now available in over 25 different languages.

Apart from books, other famous YouTubers such as Caper Lee and KSI have appeared in their own movies. Popular YouTubers are now touring as a result of their vast following on YouTube. This has made put them in the same elite as actors and singers. They make stage performances or adaptations of their YouTube channels during these tours.

While it may seem like YouTube has been with us forever, we are only in the initial stages in regard to earning and career potential. YouTube Kids is a work in progress. There is a vast potential for growth. It remains to be seen what the YouTube platform will become in the future.

A huge number of people are becoming YouTube subscribers and working at attempting to create a niche for themselves, it’s getting harder and harder to get noticed without the proper know-how.

Nevertheless, from the information we have provided above, the huge earning potential from YouTube can work for you. This will really blow up and boost your finances. You can earn thousands if not millions of dollars annually.

Most successful YouTubers will admit that YouTube is one of their passive income generation streams. However, they will also tell you that it takes a lot of hard work to make money on YouTube. They often spend thousands of hours creating their video content.

If you have decided to venture into creating video content, you should be passionate about creating videos. Persistence is another virtue that most beginners lack.

Granted, it is possible to become an overnight success. Take your time and create high-quality video content for your channel subscribers. A YouTuber should strive to purchase high-quality equipment. This will enable them to produce excellent video content.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2022 Uriel Kushiel

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