YouTube has become the easiest way to make money by creating online videos. There are plenty of trending YouTube channels which makes a huge sum of money in internet. You must be thinking how much these YouTube channels are earning through making online videos. There are plethora of funny videos, Stand-up comedy, laughter club, Political, cookery show, tech or geek shows over internet, are these making money online ? The answer is yes, but if the question is how much money they earn from Youtube, the answer is quite difficult. It depend upon popularity of your videos and the number of subscriber you have for your channels and also what type of audience you attract. There are some who have made a living out of YouTube videos, however there are many who struggle to attract audiences. Let us understand how one can earn from Youtube.
How YouTube Pays Money?
Google directly deposits the amount to your bank a/c once you crossed the threshold limit of 100$. Ahh ! i hope you don’t want this one line answer to the question in title. Actually, YouTube does not pay any money for making videos. But, you get money through placing ads on your videos. You will receive ads through Google Adsense which is a monetization program by Goolge. Therefore i wrote ‘Google pays’ in first line of this para. You need to first fulfill Google Adsense’s eligibility requirements, which is as follows.
- Your YouTube Channel should reach 4,000 watch hours in the past 12 months and get 1,000 subscribers.
Once you meet the requirements, you need to place ads on your channels. You must have seen ads appearing on online YouTube videos. Google pays in two ways for its advertisements
- CPC- Cost per Click. These are display ads. You will be paid for every click on the ads by the viewers.
- CPM- Cost per mille. It means cost per 1000 views of the ads. These are video ads, generally run before start of videos. You will get paid for every 1000 views of these ads, if a visitors skip these ads then it will not be considered for cost calculation.
Moreover the CPC and CPM rates depend upon various factors like whats the Niche (category of videos), country where it is shown, types of ads you allow on your channels, age group of audience etc. These things may not be in you control however you can increase your income by increasing the number of subscribers and number of viewers/audience. There is a term called CTR (Click Through Rate), It is a hypothetical figure which tells us that how many percentage of people will click on the ads among total number of people watched your video.
How YouTube Income is Calculated:
Suppose You have YouTube Channel in Technology Niche. You have the 20000 subscriber or fan base. It means once you upload a video on Youtube channel then a minimum of 20000 people will watch it. Suppose in one day, If your Fans share it and there is 1 Lakh impressions of your videos over internet. Assume 5% CTR, for your YouTube Channel, meaning 5% of people (5000) who watched video will click on the Advertisement flashing at during video starting.
Assume CPC of 0.5 dollar and CPM of 2 dollar , then your total daily income will be.
Total CPC based income: 0.5*5000=2500 dollar
Total CPM Based income: 2* 100,000/1000=200 dollar
Therefore Total income for 1Lakh view in o day = 2700 dollar
Your monthly income depends upon total number of views in that month. However the exact calculation on total views are displayed in Google Adsence account.
It is already mentioned that the two (CPC/CPM) method of monetization are the main source of earning for a YouTubers. To achieve better earning you need to increase your fan base over internet, therefore the number of subscriber is important for any Youtube channels in the beginning. To stand in top you need to have distinctive niche with quality video. These may lead to a create brand of your self. Then the doors to other means of income opens such as Affiliate marketing, Sponsorship and Promotional.
How Much You Can Earn From Youtube?
The simple answer for this question is that you can make a living out it, but you have to be creative and technology freak. Many Youtubers do not disclose but some shared about their earning in interviews. As per media reports the top millionaires in India whose income is solely from YouTube Channels are Tanmay Bhatt, Bhuvam Bam, Nisha Madhulika, Ranjit kumar, Shruti Anand, Sanam Puri and many. Each one of them are the master of their videos channels category in terms of style, knowledge and deleverables.
So, at last I want to say that don’t start YouTube just for earning money. Start YouTube as a passion. Whatever you like make videos on it with your own original content. Initially don’t think for earning just focus on your content. If your content is good then only audience will come and will engage with your Channel and if audience engage with your channel then you will start earning good amount. Because, you can earn very good amount from Sponsorship then Google Adsense. The most famous youtubers earn a high amount of money from sponsorship only.