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Watching videos on YouTube always piques our interest and leaves us wondering how these people exactly earn money from the platform. And how much money are these creators on the platform making with millions of views?
Well, this is the topic of the blog today. I will delve deeper into the YouTube channel monetization process and learn how much the creators make for every million views!
According to various industry estimates, if you use ads on your videos, the average pay for a video with 1 million views is between $2,000 and $3,000, which equates to an RPM (Revenue per Mille Views) of $2!
However, the amount of money that YouTube pays for 1 million views can vary widely depending on a number of factors such as:
Here’s a quick view of the RPM of different industries:
YouTube content creators generally earn money from advertising revenue that is generated by displaying ads on their videos. The amount of money earned per view can vary depending on the types of ads shown, the advertiser’s bid, and the viewer’s interaction with the ad (such as clicks or conversions).
PS: You can take the help of various Youtube Money Calculator tools for estimating your exact earning based on CPM.
Your niche, audience, location, video views, and the length of your videos all play a major role in determining how much YouTube will pay you for a million views.
Now, I will be discussing these factors in a more detailed manner:
How much a YouTuber can make depends greatly on their channel’s niche. Niches such as beauty, fashion, and technology are liked more by advertisers and hence they hold higher potential for YouTubers to earn money.
So, a good niche provides you with a higher possibility of getting a good traction, which in turn levels up your video in ranking. Some genres have a propensity to generate more money for YouTubers in comparison to lesser liked ones. For example, Ad prices for gaming channels can be as low as $2 CPM, whereas they pay an average of $5 CPM for vlogs and business channels.
The advertisements that appear on your videos will directly affect your ad earnings. This YouTube income is in fact, based on the viewer’s location, viewing history, gender, Google search history, age bracket, and use of mobile ads.
As a result, a more affluent audience and users, whose purchasing patterns and general interests in high-potential niches are clear from their search and viewing history, will bring in more money per million YouTube views.
A YouTuber’s earnings per million views could vary by country of origin. Advertisers are more willing to pay higher prices per ad view in countries with higher purchasing power, which could potentially increase the earnings of YouTube creators based in those countries.
If your audience is from Western European countries, then your CPM will be higher. The largest CPM potential is offered by Norway and Germany, with rates of $43 and $39, respectively. Whereas a YouTuber in Cambodia who creates videos in the local language, Khmer, will see average CPM rates of $0.52.
If your YouTube video is at least 8 minutes long, you can include advertisements in the midst of it. These mid-roll YouTube ads increase your overall ad revenue, especially if you strategically place them throughout your YouTube content.
Another factor at play is that longer videos uploaded to YouTube tend to have longer watch times, which in turn positively affects the amount of money made from that particular video.
There are various ways to generate YouTube earnings through your channels such as AdSense, Brand deals, Sponsorships, Merchandising, and YouTube Premium, among many others!
You can also earn some real cash through YouTube’s super chat, a part of the YouTube partner program.
Now, I will be diving into each of these YouTube revenue-generating methods more in detail!
AdSense is the most straightforward way to earn money through YouTube.
You just have to register yourself on Google AdSense, and if you are fulfilling the requirements, your channel will get monetized. One important requirement to use AdSense is that you must be at least 18 years old while registering for the AdSense service.
Using this, anyone can generate income just by allowing Ads on their YouTube channel. Whenever a viewer gets interested in the ad shown in between your video and clicks on it, YouTube pays a commission to you.
YouTube enabled the opportunity to make money from the ads seen in-between videos on the YouTube Shorts Feed as well. This new revenue-sharing scheme from 1st February 2023 has replaced the YouTube Shorts Fund.
Brand deals and sponsorships are other interesting ways by which a YouTuber can monetize their account on the platform.
Brand deals and sponsorships refers to the process of monetizing your YouTube channel by partnering with companies who want to promote their products or services through your content. This also results in a greater outreach for the brand.
This typically involves creating sponsored content, such as product reviews, tutorials, or endorsements, that showcases the sponsor’s brand or product.
In return for promoting the sponsor’s brand, a YouTuber receives compensation, which can be in the form of a flat fee, a commission on sales, or other types of compensation depending on the contract.
This type of monetization can be a very lucrative way for YouTube creators to earn income from their channels and grow their brands.
It is the most widely used strategy by most YouTubers all over the world. Many businesses want to work with YouTubers with massive (or as required by the specific company) followers on their channels.
This means working with other companies and promoting their products in YouTube videos by using affiliate links. When a viewer makes a purchase through the affiliate link provided in the YouTube video, the specific YouTuber receives a portion of the sale.
This is a pretty much-loved way of earning money through YouTube where the YouTuber offers branded merchandise for sale to their viewers.
This can include a wide range of products such as t-shirts, hats, mugs, phone cases, and other items that feature your channel’s logo or other designs related to your content.
To sell merchandise on YouTube, creators can use the platform’s merchandise shelf feature or direct viewers to an external online store. By selling merchandise, creators can generate additional income from their channel while also strengthening their brand and building a deeper connection with their audience.
Patreon, in simple terms, means, monetizing your YouTube channel by using the crowdfunding platform (Patreon) to receive some real-money support from your viewers.
Patreon allows creators to offer exclusive content, behind-the-scenes access, and other rewards to their supporters in exchange for recurring monthly payments.
YouTube creators can use their channel to promote their Patreon page and encourage viewers to become patrons, thereby generating additional income from their content.
In my opinion,the best part about this is that there is no basic requirement to start earning through it. Even if you have 50 subscribers, it will work.
By using Patreon, creators can build a community of dedicated fans who are willing to support their work and help them to create even more content. This can be a useful way for YouTube creators to monetize their content beyond traditional advertising revenue or merchandise sales.
YouTubers like Jake Paul, MrBeast, Dude Perfect, Jeffree Star, Unspeakable, PewDiePie, and Markiplier are actually raking in millions every year — proving that “monetizing your YouTube account” is a real thing!
Now let’s take a look at the highest-earning YouTubers from all over the world and understand their niche and Youtube earnings in detail:
Jimmy Donaldson, who is also known as MrBeast, started his YouTube journey in 2012. In the beginning, he used to post his gaming videos, but with time he experimented with different genres. Currently, he posts videos about wacky challenges, stunts, and giveaways.
He is regarded as a very kind-hearted person by his followers as he strongly believes in giving back to the community that gave him so much.
He earns money through advertising revenue, thanks to his 116 million subscribers. Merchandise sales and sponsorship also helped him greatly to generate revenue. According to Forbes research, he earned a whopping $54 million in revenues in 2021.
Jake Paul is an American YouTuber, actor, and boxer who primarily makes entertainment-based videos on YouTube. These videos include pranks, vlogs, and comedic content.
His outrageous actions, such as his participation in boxing contests and his antics on social media, are well known. Paul is currently the second-highest-paid YouTuber in the world, with expected earnings for 2021 of $45 million.
His main source of income comes from his YouTube channel, which includes selling merchandise products, sponsorship, and of course, YouTube ads.
Mark Fischbach, also known as Markiplier, is a popular gamer famous because of his hilarious Let’s Play videos. He also makes gaming live-stream videos showcasing his witty commentaries and reactions.
Considered the biggest influencer in the gaming world, he has made many different gaming communities across different platforms for like-minded gamers.
He is considered a great philanthropist by his fans. He has raised millions for many charities through his live streams. Along with gaming videos, he also creates sketches and vlogs proving his comedic and artistic talent.
Today, Markiplier is the third highest earning Youtuber, with a revenue of $38 million in 2021!
Rhett McLaughlin and Link Neal are two North Carolina best friends who have created a career for themselves as internet comedians, performers, and hosts. They became popular on YouTube due to their hilarious music videos and skits.
Rhett and Link are known for their clean, family-friendly humor and their ability to connect with their audience. They have a loyal following of “Mythical Beasts” who watch their daily show “Good Mythical Morning” and weekly podcast “Ear Biscuits.”
According to Forbes, Rhett and Link’s net worth is approximately $25 million.
Unspeakable is a gamer and his main niche is creating videos around the game, Minecraft. He belongs to the United States and started his YouTube journey in 2012 and currently, has a strong subscriber base of 12 million users!
He is also famous for his various charitable work and owns a charity known as “Unspeakable Foundation.” through which he helps children in need.
Due to his great following, merchandise selling, and sponsorships, he became the fourth highest-earning Youtuber in the world. According to Forbes Research, he generated a revenue of $28.5 million in 2021.
Now that you are aware of the specifics of how YouTubers monetize their accounts, including how much money they make and some real-life examples of people who are killing it on the platform, you can start your own channel and begin hustling on YouTube!