What could be better than getting paid to do something you love and have a flexible working schedule? Nowadays it is the reality of any YouTuber with significant amount of audience. More and more people are starting their career on YouTube because they are aware of its earning potential.
If you are considering to start uploading videos on YouTube and wondering how many views or subscribers do you need to make a living, then you came to the right place. In this article I will present how much YouTubers make on average and disclose their revenue streams.
Let’s get started!
How YouTube partner program works?
To be eligible to monetize videos and run ads, YouTube channel needs to apply for YouTube partnership program. There are strict requirements for channels to qualify for monetization.
Channel needs to have at least 1000 subscribers and 4000 hours of watch-time in the last 12 months. Only after that channel is able to apply for YouTube partnership and ad monetization.
The revenue generated from running ads on your content will be split 45/55. YouTube keeps 45% and pays you the remaining 55% revenue cut from the total generated revenue. It is called revenue sharing.
The revenue you see in YouTube video analytics will display only your earnings with 45% already taken off that amount.
It is difficult to know exactly how much of ad revenue user will earn as it depends from variety of factors, however, we can still see some average numbers.
How much YouTubers get paid from ads?
This question is frequently asked, however, there is no exact answer, as earnings varies from variety of factors. These factors will be explained in the next paragraph. But still, we can come up with some average earnings from ad revenue.
YouTube creator’s ad revenue is measured by their CPM. CPM stands for Cost Per Mile. It means the earnings that creator receives per 1000 video or ad views. CPM varies greatly depending on your channel’s niche, audience demographics and location. It can be as low as 0.1$ CPM and as high as 10$+ CPM.
Statistically the average YouTubers get is 5$ CPM. It means that per every 1000 video views YouTube creator earns 5$. However, as I have said earlier, CPM can vary greatly so keep reading further to know the important factors affecting CPM the most.
Important factors affecting how much YouTubers earn
As I have mentioned earlier, there are many factors that influence how much YouTube channel will be earning per thousand video views (CPM).
Traffic location. This one is by far the most important one. If your main source of traffic comes from 1st world countries, then you will get the best CPM revenue. However, if your traffic comes from third-world countries, then you can expect your CPM to be even 1000% lower compared to traffic from 1st world countries.
The best traffic sources are all English speaking countries like USA, UK, Canada, New Zealand, Australia and European countries as France, Italy, Germany, Norway, Sweden, Belgium, Denmark.
You get better ad revenue from 1st world countries because this traffic is more valuable to advertisers than the rest of the world.
Demographics. Demographics matters too, but not as much as traffic location. Basically, age, gender, income group influencer your ad earnings too. If your audience consists mostly of people aged 45+ living in USA with higher than average income, then you will earn more compared if your audience is built only from teenagers living in USA with no income. That’s because the first group is more probable to click on ads and make purchases, so they are more valuable to advertisers so they can pay you more to reach this audience!
Content niche. If your content is built around medicine, law, finances, etc., then you should receive a better ad revenue compared if your content would be just entertaining & funny videos. That’s because people from medicine, law and financial industries are charging their clients so much so that they have a much bigger budget for advertising to attract clients.
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Other revenue streams
You should not forget that professional YouTube content creators have more than one income stream. The ad revenue generated from YouTube partnership is just one income stream. Usually YouTubers earn extra revenue by creating promotional and sponsored videos; collaborating with brands; affiliate marketing income; selling their own products or services (merchandise).
These extra revenue streams usually generate much more income compared to just ad revenue from YouTube sponsorship program. On average, professional YouTuber with big audience can make 5x of revenue from these extra revenue streams compared to just ad revenue. So, if YouTuber makes 5$ ad revenue per 1000 video views on average, you can expect him to make an extra 25$ from other revenue streams.
Ad revenue is considered one of the smallest income streams for YouTube creators, so have that in mind while creating your monetization plan!
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Did you expect YouTubers to make more? Or have you expected they make less? Leave a comment below!