The idea of making millions off of videos the way YouTubers like PewDiePie famously have certainly seems like a pseudo-new-American Dream. And while not all of us will reach internet stardom with our videos, it might be worth looking into how you could make a few dimes from the popular platform. So, how do you make money from YouTube, and what will you need?
The second view is e.g. taken by Christian Fuchs in his book "Internet and Society". He argues that YouTube is an example of a business model that is based on combining the gift with the commodity. The first is free, the second yields profit. The novel aspect of this business strategy is that it combines what seems at first to be different, the gift and the commodity. YouTube would give free access to its users, the more users, the more profit it can potentially make because it can in principle increase advertisement rates and will gain further interest of advertisers. YouTube would sell its audience that it gains by free access to its advertising customers.:181
20. Focus on the quality of your content. “Don’t worry about the production quality of your videos—especially when you first start creating video content. The quality of your content is more important than the production quality of your videos. Your first priority should be making videos that are both helpful and entertaining for your target audience.
Have you ever watched a YouTube star’s video and thought, I could’ve done that? Me neither. Out of all the influencer platforms, YouTube strikes me as the most intimidating. But it can also be the most lucrative, with top YouTubers earning well into the six figures from advertising revenue alone. And this pie is only getting expanding: YouTube recently reported that the number of users earning over $100,000 on the platform has increased by more than 40 percent annually; currently, 75 percent more channels have surpassed a million subscribers versus last year.
Did you know that the top listing in Google’s organic search results gets an average of 34% of the clicks? The second gets around 20%. The third gets 13%… That means all the rest of the results on page one (paid and organic) fight over the remaining 16%. The paid results only get about 5% of the traffic — it’s a horrible affliction referred to as “ad blindness.”
YouTube's still-rapid viewing growth -- driven by smartphones and to an extent connected TVs -- has a lot to do with its revenue momentum. At last week's NewFronts online video ad event, YouTube disclosed it now had over 1.8 billion monthly logged-in viewers, up from 1.5 billion as of last June. And back in February 2017, YouTube said it was seeing over a billion hours per day of viewing -- that's about three times what Netflix (NFLX) witnessed on a record-breaking day in January, and 10 times what YouTube saw back in 2012.
YouTube was founded by Chad Hurley, Steve Chen, and Jawed Karim, when they worked for PayPal. Prior to working for PayPal, Hurley studied design at the Indiana University of Pennsylvania; Chen and Karim studied computer science together at the University of Illinois at Urbana–Champaign. YouTube's initial headquarters was above a pizzeria and Japanese restaurant in San Mateo, California.
Understand this, Certain KeyWords Pay More than Others. Advertisers will pay more for the keyword, “home mortgage” (CPC $17.63) than “cheap phone cases” (CPC $1.38) because the end return is a lot higher. If someone ends up closing on a home loan that could make them upwards of $5,000+, whereas the end return on a cheap phone case would only be $15. Would you rather get paid from a phone case video that gets a million views with a CTR of 0.01% or a home mortgage video that only gets 10,000 views with a CTR of 0.08% ? Consider the scenarios below with the given keywords and their cost per clicks.
When marketing on YouTube, it’s important to recognize and consider your audience’s stage in the buying process. Some marketers try to cold-sell to customers and prospects who might be interested in their products. The problem is that people who find your videos on YouTube are usually in the discovery stage and aren’t ready to commit to a purchase.
“But don’t be fooled into thinking that improving your watch time is as simple as creating longer videos. A 30-second video that people watch from beginning to end will rank better than a 10-minute video that only gets watched for a couple of minutes. In the end, the best way to boost watch time is to produce videos you audience wants to watch.” – Ric Mazereeuw, How Does the youTube Algorithm Work? A Guide to Getting More Views, Hootsuite; Twitter: @hootsuite
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Regardless of the exact number, it's safe to assume that YouTube's ad sales are growing at a rapid clip. On its earnings calls, Google has signaled that outside of mobile search, YouTube has been the biggest driver behind its rapid ad sales growth. Last quarter, "paid clicks" on Google's own sites and apps rose 59% annually -- this figure covers not only actual ad clicks, but (among other things) the showing of YouTube video ads that were watched long enough for Google to get paid.
Finally, leverage your YouTube reputation and attract live speaking engagements. If the YouTube channel you produce is focused on a specific niche or audience, do some research about annual conferences or other industry events that have keynote speakers. Then, utilize your YouTube statistics and some of your best clips, to put together a package and pitch to the directors of these events.
4. Use product placement and video sponsorship: Companies interested in your channel’s audience might sponsor your videos or offer you product placement deals in exchange for a shout out. You’ll likely receive payments on a per-sale basis or in commission tiers. Search on sites such as ShareASale, Clickbank and CJ Affiliate by Conversant for possible corporate partners — and be sure you’re willing to vouch for the company and products you’re selling before signing up.
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In order to truly succeed on YouTube, you need to approach it differently than other social platforms. Facebook, Instagram, and Twitter revolve around both creating and sharing great content with the goal of creating awareness, engagement, and conversation. (That’s a simple definition, but for the purpose of this argument, it will work for now). It’s about actually socializing.
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19. Focus on entertaining instead of advertising. “If you want to advertise on YouTube, it’s best to pay via AdWords and have your advertisement promoted across the platform to relevant demographics. However, when you’re uploading videos via your own YouTube channel, stick to entertainment rather than advertising. Keep in mind how video is important in the buying cycle.
I recommend that your account picture (which you set through your Google account) is some sort of brand logo. If you’re a one-person business, it can be a professional headshot of you. Ideally, it should match your profile pictures on other social media accounts for instant brand recognition. This works both ways; if ones of your followers from another site comes across your YouTube, you want them to recognize you so they’re more likely to watch. And, vice versa, if a viewer Googles you, you want them to be sure that the Facebook profile they’re clicking on is actually you. To change your channel art, just click on it when editing your profile.
Plus, the money you’ll make as a result of these monetization options isn’t exactly going to be sending you into early retirement. You might make something like $1 per 1,000 views, and you can’t even get paid until you hit the $100 mark. For most businesses, this takes ages. Many find that it’s not worth the risk of losing viewers for pennies of potential profit.
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As “iJustine,” Ezarik has broadened her brand outside of YouTube. She often hosts or emcees live events around the world. She’s written a book, I, Justine: An Analog Memoir (2015), and has dabbled in merchandise, mobile apps (yes, more than one), and has starred in TV commercials. Ezarik says YouTube creators could also engage YouTube’s “Super Chats,” announced in May, where fans can pay small amounts to interact with YouTubers during live streams. “Fan funding is fairly new, but these donations are another way you can make money,” says Ezarik.
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Listicles: Listicles are a very popular content format, both as blog posts and as media (videos, images, infographics, etc.). You can create listicles that highlight your products or services – like “The 10 most innovative ways you can use (your product)” – or they can be educational, informational, or entertaining. Just remember, the lists should always be relevant to your audiences’ interests and your business niche.
The results reflect YouTube’s struggles to expand its core audience beyond teens and tweens. Many YouTube users treat the site as a video repository to be accessed from links or embedded video players posted elsewhere, rather than visiting YouTube.com daily. Google executives want them to turn on YouTube the way they turn on television, as a habit, where they can expect to find different “channels” of entertainment.
“Even if advertisers are paying a decent amount to promote their products through video ads, only a portion of their expenditures ever make it into content creators’ pockets,” says entrepreneur Michael Johnston. “For example, if advertisers are paying an average of $20 per 1,000 ad impressions, the videos where those ads are being shown may only generate $2 or $3 per 1,000 views.”
When creating an ad, you have 5 seconds to hook the viewer in so they watch more of your video. You see what Tai Lopez does? The background is him standing in a mansion, and the first thing he says is that he’s going to give you a tour of his mansion. Then he introduces himself. And to keep you watching, he gives you a video tour of the mansion while he talks about himself and what he offers. This is great marketing that few people have done.
Does your company have a relationship with another company that has a great YouTube presence? Ask them to collaborate! Collaborating with others is a fun way for both channels to gain exposure to another audience. Create a video or playlist together. There are a lot of options to creatively collaborate with other brands, just make sure that their audience and goal is similar to yours. The partnership should align with your marketing strategy.
After all, relatability is a YouTuber’s greatest asset — along with a willingness to keep plugging away. “If you’re passionate about it, you really increase your chances of success,” says Asano. “It’s a lot of work. To produce just one video, you need camera equipment, a computer to edit it on, and time. And if you’re just starting out, you’re not going to get paid for a while because you need to build your subscribers. Don’t do it because you think you’re going to make an easy buck, because it’s not.”
7. Turn to crowdfunding: There are two primary types of crowdfunding: recurring and project-based. Recurring crowdfunding lets contributors pay an amount they specify on a regular schedule. You’d want to maximize this type of funding in order to turn a channel into a substantial income stream. Incentives such as one-on-one video chats, private classes or merchandise can entice viewers to sign up.
Remind your YouTube viewers to subscribe to your channel, during or after the video plays, and in the description or comments section. Tag your videos with relevant keywords, so people can find your work. Push traffic to your YouTube channel from other social platforms. “Boosting your subscribers won’t happen overnight, but keep it up. Consistency is key, and you can reach out to other creators for advice or collaboration,” adds Ezarik (YouTube says collaboration is critical, too). Interact with your viewers by responding to comments.
Like any good campaign or content generation, it’s important to establish what you want to accomplish with your video before you get into the nuts and bolts of bringing it to life. Do you want to increase awareness for your brand? Drive inbound website traffic? Add subscribers to your channel? Increase social shares? Or do something else entirely? Establishing a singular goal at the start of the production process is key and will allow you to focus the video’s script and strategy on accomplishing it. It’s perfectly OK to have multiple goals for your YouTube channel, like increasing brand awareness and adding subscribers, but the best practice is to focus on one goal per video.