Do you want to know how much money can you make on YouTube? If you want to start a new YouTube channel and launch your own online business, knowing about the earning potential of a YouTube channel is very important.
In this article, we will tell you how much money can you make for 1000 views on YouTube. We will also see YouTuber salaries, what are the different YouTube monetization models and what are the factors that affect the amount of money you make from YouTube.
It is going to be inspiring as well as entertaining. Keep reading.
How People Make Money on YouTube?
Before knowing ‘how much money’, we need to know ‘how to earn money’. How to make money on YouTube? What are the different monetization models for YouTube?
Here is the answer.
YouTube Monetization Models
The main method of monetization of most YouTubers is advertising, otherwise known as ‘Google Adsense’. These are the ads you see just before watching a video or during a video or at the end of the video. These adverts may be skippable ads or non-skippable ones.
Similarly, you may have also seen small ad banners being shown in the lower third of the YouTube video you are watching. These are also advertisements from Google Adsense.
For every 1000 impressions of these advertisements, the channel owner makes money. The earning can increase significantly if visitors click on these ads and go to the advertiser’s page.
This one is by far our favourite method of earning money from YouTube and blogs. Affiliate marketing is a business model where you can earn a commission by referring your visitors to a product or service. Whenever the person you referred to the vendor’s website makes a purchase, you get a commission.
Unlike advertisements, the money you make from affiliate marketing on YouTube doesn’t depend on the number of subscribers or number of views.
We have made more than $540 from an animated video that was even shorter than 5 minutes and had less than 20 views. That’s the power of affiliate marketing.
This is the money different companies and brands are ready to pay you for mentioning or promoting their brand in your YouTube videos.
Now, most YouTubers aren’t openly talking about the money they make from sponsorships. And there is no way we can say exactly how much can you earn from sponsorships on YouTube.
Having said that, there do exist few YouTubers who occasionally mention the money they make from some of their sponsorships.
Jordan, a beauty and lifestyle vlogger mentioned in one of her videos that she knows many social media influencers who charge upwards of $60000 for a simple brand mention in one of their videos. And she herself earns an average of $3000 per sponsorship with $7000 being the maximum, till date.
Selling Your Own Products
This method of making money on YouTube works great for people who already have an established YouTube channel and an audience. If you are a newcomer, please don’t even think about it.
Because creating a quality product takes a lot of time and hard work. Also, you need to manage customer service and support. That’s a lot of work and time.
As a newcomer, you are better off building your email list and making money with affiliate marketing. Once you have established yourself as an expert and have grown your audience, you can think about launching a product.
Selling Your Service
You can also use your YouTube channel to promote your services. This can be a great way to make money from YouTube even as a beginner.
We have personally enjoyed great success with selling our services on platforms like Fiverr and we know anyone can replicate the same level of success on platforms like YouTube and other social media platforms.
Meanwhile, if you want to learn how to make passive income on YouTube creating simple videos, have a look at this training. This can be done even with faceless videos, meaning, you don’t need to be on camera to do this.
Does YouTube Pay Money, Based on Subscribers?
No. There isn’t a direct relationship between the number of subscribers and the amount of money you make from YouTube. However, if you have more number of subscribers your video views tend to be more, resulting in higher ad revenue.
So the answer is, YouTube doesn’t pay you anything based on the number of subscribers you have. Everything depends on the video views you get.
How Much Can You Make on YouTube Per View?
To know that, we need to understand the word CPM which means cost per mille. This is a term highly used in paid advertising where CPM refers to the price companies pay for every 1,000 impressions an ad receives.
Whenever a person sees an advertisement on the search engine, social media, or any other marketing platform, it is counted as an ‘impression’.
That means, higher the CPM more money you make on YouTube from every view. But remember that the whole CPM numbers won’t be credited into your bank account.
YouTube takes approximately 45% of your CPM. That means, if your CPM is $100, YouTube keeps $45 and credits $55 into your account.
YouTube has now introduced the term RPM or Revenue Per Mille, in their analytics dashboard. RPM is a metric that represents how much money a YouTuber earns per 1,000 video views. This excludes the percentage of money YouTube deducts from CPM. Meaning, in the example above, $55 will be your RPM.
Do More YouTube Likes Mean More Money?
No, absolutely not. This is one of the biggest misconceptions most newcomers have. There is absolutely no relation between the number of likes your video gets and the amount of money you make on YouTube.
Now let’s see some of the top YouTuber salaries.
How Much do YouTubers Actually Make?
The first YouTube income proof we are showing you here is from Cathrin Manning. She is a YouTuber whose channel’s primary focus is on teaching the audience how to make a living with YouTube.
She also has a separate vlog channel. Here’s her YouTube income. This is how much she makes on YouTube every month with 200k subscribers.
She made $5731.43 from advertisements. Yes, that’s the Google Adsense earning from her one YouTube channel for a month. She made $3949.34 from selling her own products.
She made a whopping $13,643.29 from affiliate marketing on YouTube. And she didn’t disclose her sponsorship earnings.
Now let’s look at the earnings of another YouTuber. The YouTuber is Graham Stephan. In the video we watched, he shared how much he made from his YouTube channel with 2 million subscribers.
He doesn’t exactly breakdown his income based on the source, as Cathrin did. However, he did mention his exact Adsense numbers from three of his channels, in 2020. And he earned a modest $1,889,972.50 from Adsense alone. That’s insane!
He also goes on to mention that he made around $4,000,000 in 2020 from YouTube including advertisements, sponsorships, product sales etc.
Let’s see a few more YouTuber earning examples, before wrapping it up.
The next YouTuber worth mentioning is Patricia Bright. She mentions in one of her videos that she earned $66,784.87 from one single video. It was a video about fashion.
And that’s the answer to people who keep asking how much can they make on YouTube from a single video.
Don’t forget that those earnings are only from Adsense and don’t include affiliate commissions and other sources of revenue. In 2018, her Adsense earning was $482,735.08 and in 2019, it was $201,489.92.
Another YouTuber Meghan Pruitt shared her YouTube earnings as follows. She explains in detail how much she earned each month in Adsense revenue starting from August 2019 to April 2020 with less than 5000 subscribers. Here is how much she made.
In August 2019 she made $22 in Adsense revenue. In September 2019, she made $27.49, $29.18 in October 2019, $33.51 in November 2019, and $107.63 in December 2019. In 2020 she earned $39.25 in January, $79.96 in February, $107.32 in March, and $86.72 in April.
How Much Can You Really Earn on YouTube?
Frankly speaking, there is no definitive answer to that question. There are YouTubers who are earning six and seven-figure income from a simple YouTube channel, as you saw in the examples above.
And there are those YouTubers who are struggling to earn their first dollars online, even after putting in months of hard work.
So the answer is ‘it depends’. It depends on a variety of factors like your video content, channel niche, target audience, how frequently you upload videos, the primary language of your channel and more. If you want to know the exact YouTuber salaries keep reading.
Factors That Influence The Money You Make on YouTube
As you saw in the examples above, no two YouTube earnings are the same. Here are some of the important factors that affect the overall earning capacity of a YouTube channel/video.
YouTube Niche or Topic
The niche of your YouTube channel plays a big role in the amount of money you make from YouTube. Some niches have high CPMs while others don’t.
If your YouTube channel talks about topics like finance, marketing, business etc. your CPM tends to be much higher than the channels that focus on things like hobbies, entertainment, astrology etc.
It is because advertisers are ready to pay more money for showing their ads on videos that have content related to finance and business than videos that have content related to hobbies, entertainment and recreation. You got what we are trying to say here, right?
We have seen YouTubers earning up to $60-$80 CPM in business niches whereas YouTubers in niches like Origami are earning $5-$10. That’s a huge difference. So you need to choose your YouTube niche properly if you want to make more money from it.
This is another important factor that influences the amount of money you earn from YouTube. If your target audience is based in an English speaking country like the USA, Australia, UK, NewZealand, and Canada, you tend to earn more revenue for 1000 ad impressions than the target audience that is based in a country like Bangladesh.
I know that sounds strange, but that is the truth. The main reason for that being the buying capacity of the audience living in developed countries. People living in the USA and other 1st world countries tend to spend more online than in other countries.
It has been believed that more interactions the videos and the channel gets, more exposure it will be given by YouTube. Yes, YouTube tends to show those videos to a larger audience which get higher likes, subscribes, and comments. At least, that’s what most YouTubers believe.
Hope you have learned some important facts about how much money you can make on YouTube in this article. If you have any doubts, please contact us.
Also, don’t forget to read this article if you want to learn how to earn money on YouTube creating simple videos without showing your face.