As I was watching youtube yesterday, I came across what seemed like an old trend where YouTubers would take their dogs to a pet store and buy whatever they touched, with a limit of $1,000. Spending that much money on things their pets don't even need seemed crazy to me and made me wonder how they had enough money to do that. According to YouTuber Evan Edinger, there are five main ways YouTubers make money.
- Ads. Though Google does keep a portion of this revenue (45-50%), YouTubers still make a certain amount of money through advertisements. This is through either a CPC or CPM system. With CPC or cost per click, they make money for every viewer that clicks on that ad. With CPM, they get a certain amount of money for every thousand views that are at least 30 seconds long.
- Affiliate links. When a YouTuber promotes or reviews a product in their video, they are given an affiliate link from the company. When a viewer uses that link to buy a product from that company, the YouTuber will get 5-20% of that sale.
- Merchandise. Many famous YouTubers have their own product lines and sell merchandise such as T-Shirts, water bottles, stickers, and more.
- Donations. Most of us who watch YouTube have seen or heard a YouTuber promote their Patreon. Using Patreon, viewers can support their favorite YouTubers by donating money. Some give money per month or per video. Donators are often given access to exclusive content.
- Brand deals. This is by far the biggest moneymaker for YouTubers. Brand deals make them 12 times more than they make off ads in a month. Of course, only very popular channels can do this.
This was a very interesting post that expanded on the Marketing documentary we watched by specifically talking about how YouTubers turn views and time spent on their channel into money.
ReplyDeleteCool topic so does this mean that there is now a higher bar to become a professional YouTuber as you mentioned brand deals make 12 times more money then all of the other options when it comes to creating income through YouTube so does this require someone to make quality enough content to receive a brand deal to be a full-time YouTuber and at that point does it become an oxymoron where people cannot support themselves off of the other income available on YouTube so becomes very exclusive for those who can get brand deals?
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