How much money does YouTube pays to its creators?
Thinking of starting a YouTube channel?
Or just wondering how much do your Favourite youTubers make? Whatever it is. This article will answer all your queries and clear out the basics of YouTube for you.
- YouTubers make money through Ads (then ones you get annoyed by an skip ahead? Ya those)
- You have to have a Google AdSense account and be eligible for YouTube partnership program- these two things make a creator’s channel monetized
- A creator should have 1000 subscribers and 4000 watch hours in a year.
- On an average a youTuber earns $4-7 per 1000 ad views
- Creator’s earning depends on CPM and CPC
There are 2 things you need to know, firstly there’s no fixed amount a youTuber makes. The money a creator earns VARIES a lot. Secondly, youTube pays on Ad views and NOT video views.
For instance, A video having a million views will earn based on how much ad views it gained. Which is definitely always, lower than the total views a creator gets on their videos.
Now the right question that must be popping inside your head would be
How Much a youTuber makes through ad views?
Well according to many YouTubers, from highly popular channels with an average of million views on their videos to Nano and Micro creators, on an average Google AdSense pays 0.18 per ad view. This rate depends on multiple factors. For instance whether it is CPM ad or CPC ad, what is the niche of content, the country its playing in etc.
Per 1000 views a youTube video may earn on an average $7.56
Practically speaking, your video view can never be equal to ad views. We as audience know how many times we get annoyed by ads and skip them as soon as the skip option appears or don’t even click on the ad by not paying attention to it. Therefore, the revenue earned is low per 1000 views.
After listening to many youTubers and their earning journey, on average a creator makes $7.56 per 1000 views.
So youTuber with 1 million views can make on an average $7560.
YouTube takes 45% of this money you earn. The creator gets the rest.
This rate depends on the type of ad being played.
In order to understand this you need to know these two types explained below.
There are two types of google ads that appear on your YouTube video
- CPM (cost per mile)
CPM ad means cost per every 1000 views. These are the ads that gain a creator money based on how many people viewed it.
For the CPM ad to be counted as a payment the viewer needs to watch it halfway through and not skip it in the very beginning.
Now mostly we do watch an ad for 5-10 secs but the money a creator/YouTuber earns through it isn’t specific.
Because CPM rates vary from ad to ad and from country to country.
For instance CPM rate in India for an ad maybe $1.12 and for the same the rate in USA may be up-to $4.4. So depending upon the demographics (locations) of audience that’s viewing your video you earn money.
And some people just use ad blocker, to not view any ad. That’s a trouble for creators. But there are other factors too. (More on that later)
Two points you should note here:
- Video views are not the only factor that determines a creator’s pay.
When researching about pay rates, we found stories of YouTubers who gained views in millions on one video and earned under $1000 and for another video with almost the same amount of views in millions the youTuber earned more than $2000.
The earning changed, based on the audience they got on each video.
- CPM pay rates change according to the country your audience belong to.
- CPC (cost per click)
A CPC ad is the one that pays on the basis of cost per click.
This one we imagine is hard to get you money as a creator. Because for this the ad needs to be enticing enough for audience to click on it.
And remember, 45% of this ad revenue goes to youTube.
Other Factors that determine the earnings.
A top finance youTuber Graham stephen had CPM of $16 last year in December. The YouTuber makes videos on finance related topic and earned around $129000 in a single month.
He had roughly 7.8M views across his YouTube channel.
Another example is of shelby Church, who is a lifestyle youTuber with over 1M subscribers and her CPM was well over $5.
Why does niche matters in earning through ads?
Well, there are some topics that are evergreen or just more in demand by audience. For example Finance, how to make money online or gaming is one of the top earning niches around the world. So the advertisers bid their ads on videos like these because they attract more audience. However it also depends on the type of ads you are getting on your video. For example if the ad is related to the topic of the creator’s video, the viewer will most likely click on it because that ad will attract his attention.
Some high earning niches in youTube
For you to decide if you consider starting a youTube channel in future.
- Make money online $14.85
- Finance $12.35
- Social media tips $8.55
- Cooking $7.00
- Tech $6.50
- Fitness $4.72
- Vlogs $2
Some countries have lower CPM than others.
Length of video
A shorter video has only 1 ad or 2 so the length of video also determines your ad revenue.
NO USE OF CURSE WORDS
YouTube has a policy where it doesn’t encourage any content that promotes vulgarity. Use of curse words in your video can actually lead to demonetisation of your channel.
Therefore youTube channels with millions of views and subscribers don’t necessarily earn a fortune if their content doesn’t comply with YouTube’s content regulations.
How much does a youTuber with 500k subscribers make?
Disclaimer: The number of subscribers doesn’t directly earn any creator money.
It depends on the views. So yes, while subscribers are important in gaining you traction but they are not what determines money.
However subscribers are valuable
Because subscribers are the people that are most likely to watch your video first because it appears on their homepage first. And in turn watching ads. (Ads are main source of youTube income)
Subscribers are more likely to like comment and share your video, because they often become your loyal audience. This leads to more views and more audience.
So someone with 500k subscribers, if has a good audience demographic and viewer rate then they should earn a handsome amount of money.
Now that you have got your basics down, there’s one important question still remaining.
How to get the money that you earned through ads? Or how to start earning money on youTube
YouTubers make money in number of different ways, through collaborations with brands in order to promote company’s products, affiliate links, selling merchandise, or their own digital products but majorly the money that they get from YouTube itself is earned through ads that are played on their videos.
How to get the ads to play on your YouTube videos?
Create A google Adsense account. Google Adsense account can be created as soon as you start your YouTube channel but that doesn’t mean you will start earning through it from the very beginning.
In order to earn from ads and monetize your YouTube channel creators have to be part of youTube partnership program which allows you to monetize your channel.
Requirements and criteria for youTube partnership program.
- You must have at least 1000 subscribers and 4000 watch hours in the period of 12 months.
Once you have these YouTube will most likely notify you itself that your account is now eligible for monetisation
That’s it! Once you meet these two goals you can apply for it. The approval time is 30 days. Within 30 days YouTube will tell you if your account is approved for monetization or not.
Before applying make sure you comply with youTube’s terms and policies in terms of content.
If you don’t get approved, theres nothing to worry about.
Being a youTuber is like running a business. You will have to do smart work and hard work. You will have to consistently upload and then you will face obstacles that will hinder your growth but never put them to halt. Create content, make sure you follow the rules and apply for it again after some time.