How a YouTuber makes money
You’ve probably heard of YouTubers – people who make a living by creating videos and posting them to YouTube. YouTube has become a sensation. What started out as a way to share videos with friends and family has turned into a platform that allows people to make a living—and in some cases, an absolute fortune. But how do they actually make money?
In this blog post, we’ll take a look at how YouTubers make a living, some of the top YouTubers in the world and how much are they earning. Hopefully, this will inspire you to build a brand on YouTube for yourself and your business.
The most popular method that YouTubers make money is through ad revenue. YouTube runs ads before, during, and after videos, and YouTubers get a cut of that ad revenue. YouTube splits the ad revenue with the YouTuber who created the video. This revenue share usually falls somewhere between 45% and 55%. The earnings of the YouTubers from ads varies based on a number of factors, like the number of views their videos get and the type of ads that are shown.
Picture Credit: Dr: Eric Berg YouTube Channel
Sponsorships & Product Placements
YouTubers can also make money through sponsorships and product placements. In sponsorships, the company pays the YouTuber to mention their product in a video. For example, if an energy drink company paid a YouTuber to mention their product in a video about working out, that would be considered a sponsorship. Product placement is similar to sponsorship, but it’s when a YouTuber shows a product in their video without actually mentioning it.
Picture Credit: Thao Huynh YouTube Channel
In addition to ads, YouTubers also make money through affiliate links. This is where a YouTuber promotes a product or service in their video and includes a link for their viewers to follow if they’re interested in purchasing the product. If a viewer does purchase the product, the YouTuber will receive a commission from the sale. Affiliate links are usually included in the description box beneath the video.
YouTubers also make money through Patreon, sponsorships, or merchandising. Patreon is a platform that allows viewers to support their favorite content creators by pledging to give them a certain amount of money per month. This amount is typically very small (e.g., $1-$5), but it can add up quickly if enough people are supporting the creator.
Picture Credit: Today Trending YouTube Channel
Top YouTubers In The World And How Much They Earn
MrBeast – $54 million per year
His real name is Jimmy Donaldson. His videos are mainly expensive stunts e.g. MrBeast-branded Burgers in 2021, Squid Game theme game. His YouTube channel currently has over 100 million subscribers!
Rhett and Link – $30 million per year
Rhett and Link are the hosts of Good Mythical Morning, a daily show on YouTube that features skits, challenges, interviews, and more. In addition to their main show, Rhett and Link also have a second channel called Good Mythical More where they post bonus content for fans who just can’t get enough.
Anastasia Radzinskaya – $28 million per year
Anastasia Radzinskaya is the creator of one of YouTube’s most popular channels for kids, Little Big Shots. Radzinskaya started the channel when her son was just 2 years old and looking for entertainment that was both educational and fun. Little Big Shots now boasts over 10 million subscribers and features videos of Radzinskaya’s son playing with toys, learning new things, and going on adventures.
Ryan Kaji – $27 million per year
Ryan Kaji is just 9 years old, but he has made quite a name for himself on YouTube. His channel features videos of him opening and playing with toys and has been a hit with young viewers all over the world. In addition to his regular videos, Kaji also appears in product videos for companies like Walmart and Coca-Cola.
Dude Perfect – $20 million per year
Dude Perfect is a group of five friends who got their start making trick shot videos while they were in college together. Today, their channel has grown to include challenges, stunts, and comedic skits, all with a family-friendly twist. The guys behind Dude Perfect have managed to parlay their YouTube success into other opportunities as well, including merchandise sales and live tours.
How to use YouTube for business?
You can use YouTube to market your business by creating videos that show off your products or services. If you have an online store, you could create videos that show how to use your products or how to style them. If you offer services like web design or SEO, you could create videos that explain what those services are and how they can benefit businesses. By creating informative and engaging videos, you can reach a whole new audience and grow your business organically or by running YouTube ads for your business.
Read about what kinds of content to create for your social media here.
These days, people are making serious money by sharing their interests with the world via YouTube. If you have an engaging personality and something interesting to share, you could be next! Who knows?
As you can see, there are many ways for YouTubers to make money. The most common way is through ad revenue, but they can also make money through sponsorships, product placements, affiliate links, and patreons.
If you know a YouTuber and wants to advertise your products/services on their channel, learn how to do digital advertising on Google, Facebook and YouTube here!
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Author: Fazal Ahamed
About the author
Faz is a published author, performance marketing, and SEO professional with a proven track record of helping brands grow in the SAAS, EdTech, Fintech, Fashion, Retail, and FMCG industries. He is well-versed in actionable frameworks and strategies for media buying and go-to-market, and he has a passion for solving growth challenges.