Dreaming of becoming a YouTuber with the freedom to work anytime, free from the constraints of time and location? Want to generate passive income through your YouTube channel? With an increasing number of YouTube users, many are drawn to the dream of becoming a YouTuber. However, how do YouTubers make money, and is it possible to sustain a living solely through YouTube's income? This article will delve into the ways YouTubers make money, the principles behind earning, and online tools that can assist you in monetizing your content.
Four Major Revenue Channels for YouTubers: Ads, Fan Sponsorship, Brand Collaborations, Selling Own Products
- YouTube Ads: The Most Direct Official Revenue Sharing Method
Among these five channels, ad revenue is the easiest income to obtain. Generally, after joining the YouTube Partner Program (details on how to join are explained below), YouTubers can earn ad revenue by increasing the number of views on their videos. However, the income from this method depends on the fees advertisers are willing to pay and the number of times viewers watch the ads, making the earnings somewhat unpredictable. For YouTubers with less than a million views, the income from this channel may not be substantial. YouTubers can estimate this revenue in their management pages.
How to Maximize Profits To maximize profits from this method, YouTubers need to increase the number of ad views. This involves placing more ads within the video, attracting a larger audience to watch your videos, and increasing the chances of your channel being favored by advertisers.
- Increase video exposure and click-through rates
- Extend video length
- Enable more ad formats
- Target high-spending ad audiences to create video content
- Fan Sponsorship: Managing Membership Zones and Active Interaction
Within YouTube's official channels, fans can sponsor their favorite YouTubers through various means, with the most direct way being joining the channel membership. Once your YouTube channel reaches 30,000 subscribers and joins the YouTube Partner Program (details on how to join are explained below), you can establish a paid channel. In YouTube's membership system, YouTubers can customize the prices for each membership level, but the platform will take a 30% cut of the membership revenue. For detailed membership plan information, refer to the Creator Academy.
To make money through this method, you need to actively manage the membership zone, providing exclusive content to different membership levels to capture their hearts. Simultaneously, building a unique and valuable channel brand is a top priority to attract more ordinary viewers to become loyal paying members.
If you build a substantial membership base, the income potential for YouTubers is considerable. However, for creators who were not originally highly recognized, this method takes longer and requires more effort compared to other ways of earning.
Apart from the subscription-based membership system, there are other one-time sponsorship methods to earn profits. Regardless of membership, fans can purchase Super Chat and Super Stickers when YouTubers are live streaming.
To earn higher profits through this method, the frequency of live streaming and the interaction with fans during live broadcasts become crucial.
- Brand Collaborations: A Lucrative Avenue for Influential KOLs
For YouTubers, brand collaborations offer a significant source of income. Methods of collaborating with brands include securing sponsored videos, becoming a brand ambassador, and receiving fees for incorporating product promotions within videos.
As this is not an official YouTube monetization method, YouTubers must negotiate collaborations independently with brand companies. This involves the entire process from finding collaboration partners, discussing promotional content, to handling payment details, highlighting the complexity of the procedure. When negotiating collaborations, striking a balance between satisfying the brand's requirements and delivering the best information to the audience can be a challenging task, requiring self-assessment and careful consideration.
How to Maximize Profits To negotiate the highest possible rates, YouTubers must understand their own value and the expectations of the collaborating brand.
- Keep the YouTube channel's theme clear, ensuring the audience aligns with the brand's target customers.
- The greater your influence, the higher the collaboration fee, and brands may approach you without solicitation.
- Thorough understanding and genuine appreciation of the collaborating brand's products are essential to create the most valuable videos for both the brand and the audience.
Considerations Although this is not an official revenue channel of YouTube, YouTubers must adhere to YouTube's guidelines when collaborating with brand manufacturers, disclosing to the audience if the video contains paid promotional content. For details, refer to YouTube's guidelines.
- Selling Products
The products sold by YouTubers can either be wholesale goods, such as clothing, books, skincare products, etc., or their own creations, such as books they've written, notes, handmade jewelry, etc.
When selling a variety of products, YouTubers can establish their own brand, utilizing their popularity to boost product sales and generate substantial income. Unique self-made products not only possess intrinsic value but also have high collectible value, making it relatively easy to attract followers to make purchases.
YouTube Official Revenue Channels: Thresholds, Revenue Calculation, and Concerns
Official revenue channels on YouTube include advertising, channel memberships, YouTube Premium revenue, Super Chat, and Super Stickers.
Thresholds As long as you apply and are approved to join the YouTube Partner Program, you can place ads in your videos and earn revenue. The requirements for joining the YouTube Partner Program are:
- The number of channel subscribers exceeds 1,000.
- Total watch hours of your videos reach 4,000 hours.
For detailed information on the YouTube Partner Program, you can visit the Creator Academy.
Revenue Calculation The income generated from this method is visible on the YouTube Creators page in the form of estimated revenue, known as RPM (Revenue per Mille). RPM represents "the revenue generated by a YouTuber for every thousand video views." This figure encompasses ad revenue, channel memberships, Super Chat, and Super Stickers, among other official YouTube revenue sources. The ad revenue CPM (Cost per Mille, or cost per thousand impressions) varies based on advertiser bids, ranging from $1 to $10 or more, depending on different content and regions.
For a more detailed explanation of ad revenue, you can visit Google's Ad Revenue Overview.
Concerns for YouTubers One major concern for YouTubers is the constant changes in the algorithm. PewDiePie, one of the most well-known YouTubers, has revealed that YouTubers sometimes feel frustrated because they struggle to fully understand YouTube's algorithm mechanisms. When a video is ranked lower by YouTube, making it challenging to gain exposure, YouTubers worry about the stability of their income.
Since ad revenue is heavily dependent on video clicks and views, YouTubers may tailor their videos to meet YouTube's algorithm criteria, potentially diminishing the intrinsic value of the content, which goes against the original intent of the YouTuber.
Additionally, when YouTube videos are controversial or violate YouTube's guidelines, there's a possibility that ads cannot be placed in the videos or the videos may be taken down. The ultimate decision on whether a video violates guidelines rests with YouTube, meaning that the life or death of a YouTuber's channel is in the hands of YouTube. If any mistakes occur, YouTube shutting down a YouTuber's channel can turn years of hard work into nothing overnight.
Tools to Help You Earn Unofficial Income on YouTube
Due to potential concerns with YouTube's official revenue channels, maintaining a stable income through unofficial channels becomes crucial for YouTubers. The aforementioned brand collaborations and product sales have online tools to assist YouTubers in earning income.
- Finding Collaborative Brands
If a YouTuber is highly popular, often brands will approach them for collaborations without the YouTuber having to actively search. However, for those without significant fame, finding suitable brand partnerships may involve reaching out to a few interesting companies. To aid in this process, several online tools and platforms in Taiwan provide influencer matching services.
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Taiwan KOL Self-Media Matching Center https://taiwankol.com/ This well-known Taiwanese platform helps KOLs and businesses find suitable partners for collaborations, covering various sectors like food, accommodation, fashion, and beauty.
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Match Now https://www.matchnow.co/ A platform in Taiwan where YouTubers can upload their information and be discovered by businesses seeking collaborations.
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KOL Radar https://www.kolradar.com/ This platform provides data analytics on influencers for businesses and covers various Asian regions, including Taiwan, Hong Kong, Malaysia, and India. YouTubers can register on the platform and be invited for collaborations by interested businesses.
- Selling Products
YouTube doesn't offer a direct product-selling service, so YouTubers often place product links in their video descriptions, along with a few promotional sentences, directing interested viewers to external pages for purchases. Many platforms allow YouTubers to list products for sale, such as Shopify, Shopline, and others. However, these platforms might not help YouTubers establish their brand for long-term marketing.
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Shopify https://www.shopify.hk/ An international e-commerce platform from Canada with comprehensive features and services. It connects to international payment platforms but may not support localized payment methods common in places like Hong Kong.
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Shopline https://shopline.hk/ A well-known e-commerce platform in Asia, supporting both Chinese and English. Its features and payment methods are more tailored to the Asian market, but basic accounts may have product listing limitations.
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Podia https://www.podia.com/ A creator platform from the United States designed for online creators. It allows the setup of membership systems and online product sales. It offers 24/7 customer service but may not support highly localized payment methods.
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RakoSell https://rakosell.com/ A local online creator website creation system. YouTubers can use this tool to establish their website, and its e-commerce system supports physical and virtual products, including videos. It connects to local payment methods and includes a built-in membership system for exclusive content.
In conclusion, while online industries like YouTube continue to thrive, it's essential to carefully weigh the investment against returns before becoming a YouTuber. Understanding the formula for YouTuber income, YouTube's official operational model, and utilizing online tools that can aid you are key factors for success.
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