There are many success stories of people making a good money from
YouTube. But how exactly does it work ? How much money can you make from
YouTube, Is it enough to make a living, how much money YouTube starts
make ? Lets find out..!
Being a YouTube partner from past 2 years and following income
reports shared by other YouTubers , I have crafted a rough overview of
how much can you make from YouTube. But before we start, you should know
that Google contract forbids their publisher to revel their earning to
the public. Therefore we can only talk about rough estimation here.
Pre roll ads are the major source of Income. you can get 10-50$ cpm (impression per 1000 views) for pre roll ads and 1-5$ for banner ads. But again this cpm differs from on no. of factors for instance if your audience is from US, 30-50 CPM where as for India and other south-east region it is 5-10$.
Views More views on video implies, more chances of showing advertisement on the video. Thus generating more revenue for the publisher.
Playback location Advertiser from the county like US, UK pay more as compare to advertiser from Asian countries. Therefore if your audience is from western countries then you will get higher cpm(cost per 1000 impression) for your video. For instance a video having 1000 playbacks from US can earn more than a video having 5000 playback from India.
Subscribers Subscribers means authority. Therefore advertisers are willing to pay more to YouTube channel having millions of subscribers.
Niche Suppose there are 2 YouTube channel A and B. A has more subscriber, more views and make videos on him or her singing where as B upload video related to television sets with comparatively less view and subscriber from A. Now this means channel A has diversity of audience where as B has high targeted audience. Therefore T.V selling companies like LG, Samsung will have potential customer at channel B and thus will pay 5 times more than they would have paid to A.
Normal or Premium YouTuber For standard YouTubers, 45% of their revenue share goes to Google as commission. However premium You-tubers with millions of subscribers can negotiate directly with Google team on this percentage and earn more money than regular ones.
Socialblade, a video analytic company suggest, YouTube entertainment channel Smosh has 18,979,031 subscribers and 3,689,454,427 views/year. So they are probably making few millions of $/year, which is certainly good enough to make good living.
A 31-year-old YouTube star; Olga Kay, says she has earned from $100,000 to $130,000 in each of the last three years. [source]
Conclusion
One can certainly not answer this question without taking more information like demographic, niche, country etc into consideration. But General rule of thumb is to
How people make money From YouTube ?
Google runs a revenue sharing program called Adsense for YouTube, where they show ads on your YouTube videos and you receive a percentage of revenue from advertisement. According to Labnol founder Amit Agarwal, the split is 55-45. This means if advertiser pays 100$ for their ads on your YouTube channel, then Google will take 45$ as a commission and will pay you 55$.What type of ads are displayed in YouTube channel ?
Basically there are 2 type of ads. First is the preroll ads that are displayed in the starting of video (and sometimes in between) and second one is banner ads that are displayed next to your video.Pre roll ads are the major source of Income. you can get 10-50$ cpm (impression per 1000 views) for pre roll ads and 1-5$ for banner ads. But again this cpm differs from on no. of factors for instance if your audience is from US, 30-50 CPM where as for India and other south-east region it is 5-10$.
How much money can you make on YouTube ?
A short answer would be 1-5$ per 1000 views. But a detail studies suggest that money from YouTube depends on many factors like views, video content, playback location, subscribers etc. Lets us understand them one by one.Views More views on video implies, more chances of showing advertisement on the video. Thus generating more revenue for the publisher.
Playback location Advertiser from the county like US, UK pay more as compare to advertiser from Asian countries. Therefore if your audience is from western countries then you will get higher cpm(cost per 1000 impression) for your video. For instance a video having 1000 playbacks from US can earn more than a video having 5000 playback from India.
Subscribers Subscribers means authority. Therefore advertisers are willing to pay more to YouTube channel having millions of subscribers.
Niche Suppose there are 2 YouTube channel A and B. A has more subscriber, more views and make videos on him or her singing where as B upload video related to television sets with comparatively less view and subscriber from A. Now this means channel A has diversity of audience where as B has high targeted audience. Therefore T.V selling companies like LG, Samsung will have potential customer at channel B and thus will pay 5 times more than they would have paid to A.
Normal or Premium YouTuber For standard YouTubers, 45% of their revenue share goes to Google as commission. However premium You-tubers with millions of subscribers can negotiate directly with Google team on this percentage and earn more money than regular ones.
Can you make living out of YouTube ?
There are many YouTube channel that make enough money and are doing it for full-time. However if you are an average users and have few videos with 1000 view then you are probably not even going to make even 100$.Socialblade, a video analytic company suggest, YouTube entertainment channel Smosh has 18,979,031 subscribers and 3,689,454,427 views/year. So they are probably making few millions of $/year, which is certainly good enough to make good living.
A 31-year-old YouTube star; Olga Kay, says she has earned from $100,000 to $130,000 in each of the last three years. [source]
Conclusion
One can certainly not answer this question without taking more information like demographic, niche, country etc into consideration. But General rule of thumb is to
Remove the last 3 digits of view and multiple the remaining figures from 1-5 depending on the above metric.For example if the video has 7, 000,000 views then it’s earning would be between 7000-35,000$.
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