How Much Money Do YouTubers Make in 2018?
Making money on YouTube is getting very common as more and more people are getting aware of it's potential. Who doesn't love stardom when it comes with a lot of money?
However, people still have a lot of doubts regarding YouTube monetization and the most common of them is the earning potential of a YouTuber.
Most people seem to be confused about "How Much Do YouTubers Make?" or "How Much Does YouTube Pay Per View?" among many other questions. Therefore, I thought of writing this post that covers not only the above question but also all the frequently asked questions about YouTube monetization.
How Much Does A YouTuber Make Per Million Views?
To understand the earnings of a YouTuber, it is first important to understand How do YouTubers make money from YouTube Videos.
How Do YouTubers Make Money?
There are several ways a YouTuber can make money. Let us go through the financials involved with each one of them.
1. YouTube Partner Program
YouTube Partner Program also known as YouTube Adsense is one of the most common ways people make money with YouTube Videos. Though there are various ways you can make money with YouTube, it's the only way you get your paychecks from Google or YouTube.
In this method, Google will display ads in your YouTube videos to generate revenue. Out of the total income earned through the advertisements, YouTube keeps a cut of 45% and pays you the remaining 55%, as your commission.
It is difficult to know the exact income a YouTuber earns from Adsense. This is because the income from advertisements depend on several factors and so the amount a YouTuber earn greatly varies.
Think of a company renting an advertising banner space at the Times Square and another company renting the same in a small town in India. There will be a huge difference in the price of the same in both cities. So the overall profits margins will vary too.
Similarly, the price of renting the advertising banner will also vary with size, whether it is billboard or flex banner and several other factors.
So, just like the profit you can earn by renting a conventional advertising space depends on several factors, the income from YouTube Advertising also depends on many factors.
Let us understand each of these factors in detail.
Factors Affecting YouTube Earning
The amount you earn with YouTube depends on the following factors.
1. Location of Your traffic
Usually, traffic from the USA and the UK gets higher Cost Per Click (CPC) as compared to that from Tier 2 countries like India, Brazil, South Africa, etc.
Hence, for same number of views, assuming same (Click Through Rate) CTR, YouTube will earn more for traffic from the USA and UK. Hence YouTube will pay you more money for the same.
2. Demographics of your traffic
The age, gender and other demographic factors of your traffic also influence your earnings. Although, there is no set rule for what demographics can earn you more income, but traffic that includes teenagers and lower income group people will usually earn less than traffic that includes working professionals.
3. Niche Of The Video
YouTube generally displays the ads to the viewers that are connected to the video they are watching. Hence, the niche of the video is another critical factor that decides the CPC.
Technology videos generally get better CPC than political and news videos.
4. Type Of Ads
Various types of ads are displayed on YouTube. The TrueView and Bumper ads get you money per view, while the pre-roll ads pay you per click.
Some ads are skippable by the users, and others are not. Skippable ads, if skipped are not charged to the advertiser, and hence you make nothing with it.
Similarly for CPC ads, unless the user clicks on the advertisement, you earn nothing.
5. Click Through Rate (CTR)
Your revenue can also depend on Click Through Rate (CTR) of ads on your videos in case of CPC ads. Better the CTR, better the pay rates.
6. Audience Retention
Google and YouTube love quality videos. So if your users watch the video till the end, they indicate that the video content was good and hence higher CPC ads would be shown in the video next time.
Also, longer the duration of the view, more the ads will be shown to the user resulting in higher revenues.
7. Number of Subscribers
A YouTube channel with millions of subscribers will get better CPC and CPI advertisments as compared to a new YouTube channel with no or very few subscribers
YouTube Adsense Earning Estimations
You cannot plan your business without knowing anything about the financials involved. It would be foolish to invest time and money without forecasting the profits and investments. So the question is how much money do YouTubers make?
Well, there's no standard YouTube to money calculator. So, let us do some maths to find out rough estimates of How Much does YouTube pay you for 1 million views through the YouTube Partner program.
Several estimates reveal that on an average, a YouTuber can earn $3 to $10 per 1000 views with both CPC and CPI advertisements.
So here's the answer to the million dollar question, "How Much Money Do YouTubers Make Per Million Views?
For 1 million views, the total earnings through YouTube will be ($3 to $10)*1000 = $3000 to $10,000 per million views.
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2. Affiliate Marketing
While YouTube AdSense is great, if you are targeting the wrong geography and demographics, you might not make a lot of money with YouTube Partner program.
Therefore, a lot of YouTubers especially the tech bloggers use affiliate marketing as a source to make money on YouTube.
The YouTubers who are into affiliate marketing, usually post product review videos. They also publish product unboxing videos. Fashion bloggers and food bloggers often just recommend a product to the readers.
These bloggers then add their affiliate links in the description section of the video. Whenever someone buys a product using this link, they earn a commission for the same.
It is very difficult to judge your affiliate earnings as it depends on the below factors.
However, if we know the commission per sale for a product, we can roughly estimate the earnings from affiliate marketing.
The CTR for affiliate link is usually in the range of 0.5% to 3%. Let us take the average CTR of 2%. For 1 million views, the total people who click on your affiliate links will be 20,000.
Now, the conversion ratio for most affiliate products is in the range of 2% to 5%. Considering a conversion ratio of 3%, the total number of people who buy products or services using your affiliate links will be 600.
So, if you are making $10 per sale, your earning from affiliate marketing will be $6000 for 1 million views.
3. Sponsored Videos
YouTube is one of the most powerful mediums for marketing. That's the very reason YouTube AdSense program is so successful.
However, not many people are interested in viewing advertisements, and they end up skipping it or not paying attention to it at all. Therefore, brands take a better route by paying the YouTube channel to create a sponsored video.
Brands usually approach YouTubers to create a single video centered around their product launch or a store opening or similar events. Some brands also sponsor the YouTube channel, and in exchange the YouTuber will have to promote their products by recommending it to his readers or if the YouTuber is a public figure, using it for himself.
For example, a YouTube channel on cooking may focus the camera on a particular brand of spices or other culinary products as the channel owner uses the same.
YouTubers charge a fixed price which is estimated based on the number of views expected for the video. The usual price is $10 to $50 per 1000 views of the video. So if a video is expected to generate a million views, the price for the sponsored post will be between $10000 to $50000.
I know that does sound like a huge amount as compared to YouTube Partner Program or even affiliate marketing. However, brands usually work with only established YouTube channels.
So, unless your videos are getting a hundred thousand to a million views, you probably won't be able to get sponsored content. And even if you do manage, you will be getting them from smaller brands who might be very tight on budget and so will pay you much lower than the above price.
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Summary And FAQ's Regarding A YouTuber's Earning
Below is the summary of the above post and also other very common FAQ's people have about a YouTuber's earning that I came across on YouTube.
1. How Much Does A YouTuber Make?
The amount of money a YouTuber makes depends on his talent and ability to create viral videos. Some YouTubers fail to earn a single dime whereas others make thousands of dollars from their YouTube Videos.
The top YouTuber Pewdiepie is said to be making $4 million Net income from his YouTube Videos. While not everyone earns as much as Pewdiepie, according to Business Insider, several other YouTubers including Michelle Chan is making over $ 100k.
2. What Is An Average YouTuber's Salary?
Strange enough, but a lot of people think that YouTube pays a salary to an YouTuber. So, to all the people who want to find a YouTuber's salary, they must know that YouTube does not hire people to post videos.
Rather, as discussed earlier, YouTubers are individuals who either earn a commission from YouTuber or they earn money through other sources like Affiliate marketing and sponsored videos. So, there is no such term like a YouTuber's Salary. The correct word is "YouTuber's Earning" as YouTubing is a kind of Online Business and not a job.
Anyways, coming to the "average" part, YouTubers earn from almost nothing to hundreds of dollars each month. And with so many people trying to Make Money with YouTube, it is impossible to calculate an the earnings of an average YouTuber.
There is also no statistics in this regard. However, according to the Observer Website, the top 3% of the YouTube channels get 90% of the total YouTube views. So the average YouTuber earns only a small fraction of what YouTube stars ,make.
3. How Much Does YouTube Pay You For 1 Million Views
YouTube charges it's advertisers based on various factors as discussed above in the article in detail. Out of what YouTube earns from the advertisers, they pay you 55% and keep the remaining 45% as their commission.
However, in general, a YouTuber pays between $3-$10. The figures can be higher or lower in some cases. But, they are usually in the above range. So for 1 million views, YouTube may pay a YouTuber anything between $3000-$10,000
4. How Much Does YouTube Pay Per View?
YouTubers pays between 0.3 cents to 1 cents per view by applying the same logic as above.
5. How Much Do YouTubers Make Per View?
As discussed above, a YouTuber makes 0.3 cents to 1 cents per view from YouTube Partner Program. The amount would be similar for YouTubers who are into Affiliate Marketing.
As for the sponsored posts, the price can go up to 1 cent to 5 cents. Things get a bit complicated when YouTubers use a combination of these monetization methods. This is because the CTR on advertisements may be lower for videos related to affiliate marketing.
6. How Much Does YouTube Pay Per Subscriber?
YouTube does not pay you per subscriber. It pays you for the number views your video gets.
However, the thumb rule says that more the subscribers, greater the number of views. This is because whenever you publish a new video, your subscribers will be notified of the same.
If someone has subscribed to your channel, it means the person is interested in viewing your videos and so is very likely to check out your new video. So, even if 10% of your subscribers see your new video, you get views form these 10% subscribers apart from those you are going to get organically from search engines, YouTube search and social media.
As for the figures, it is not possible to judge the income of a YouTuber from the number of subscribers as some YouTubers may have few but very active subscribers. On the other hand, some YouTubers might have bought fake subscribers who won't ever check out their videos.
7. How Many Views On YouTube To Get Paid?
YouTube will pay you only when your balance reaches $100. As you already know by now, one can make $3 to $10 per 1000 views.
Therefore to reach $100 you need (100$ x 1000 views)/($3 to $10) = Approx. 10,000 to 34,000 views. So you must plan to start YouTube channel only if you are confident of getting minimum 34,000 views.
8. How Much Do YouTubers Make Per Video
The amount a YouTuber makes per video will depend largely on how many views they are getting to the videos. For every 1000 views, he will earn $3 to $10.
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YouTube indeed is a great way of Making Money Online. However, due to lack of clarity regarding how much money Youtube pays per view to YouTubers, a lot of people are skeptical about switching to YouTubing.
In this article, I've tried my best to explain in the best possible way how much money YouTubers make. However, it might be possible that I have skipped some important questions that you have.
So, if there's anything else you would like to know about YouTubing, do let me know in the comments section and I will try my best to answer the same.