How Much Money Can You Make on YouTube? A Realistic Guide

Because people started to make more money online rather than following careers which were considered very successful a while back, the interest in social media platforms and the online environment as a whole is more noticeable than ever. YouTube is in the attention of most people since this platform became a genuine method to earn a regular income. Of course, it involves just as much effort as any other job would require. Besides, owning a YouTube channel is quite challenging when referring to how much time one has to wait until his work becomes popular enough to generate a considerable income.

A new channel on YouTube takes about two years until it becomes worthy of monetizing, not to mention that users have to post quality content regularly. Since most topics and subjects are already covered by vloggers and content creators all over the Internet, the competition is pretty high and people have to come up with competitive advantages that will make them stand out from the crowd in order to earn enough money to live off of it. This article will discuss matters related to how much money a YouTuber can make, based on his channel’s characteristics.

The size of the channel

First of all, one must be familiar with the standards that YouTube sets for monetizing a channel. In order to be part of the YouTube Partner Program, a channel must have no less than 4,000 watch hours accumulated in the past 12 months, as well as 1,000 subscribers. Monetizing channels that don’t meet the standards could lead to problems such as spam accounts that get paid for reposting content, low-quality content and so on. This would harm the overall YouTube ecosystem.

The standards that the platform set are generous, but they won’t get the channel’s owner a fortune. The pay rate can be anywhere between $1,50 to $4 per 1000 views. This would lead to earning $1,500 per 1 million total views. Initially, the amount doesn’t seem enough to make a living out of it because of how difficult it is to gather so many views, but if analyzing the situation in-depth, everything will seem brighter. Here’s how much money a YouTube user would make depending on its channel’s size and the average user engagement:

  • Small channel: A small channel that gathers around 10,000 views each day, with an average CTR of 25% (300,000 views per month) would generate an amount between $1,200 and $2,000 per year, which means estimated monthly earnings of $150.
  • Medium channel: A medium channel would normally gather around 30,000 views per day, which translates as estimated monthly earnings of $1,800. The projected yearly earnings in the eventuality of a 50% CTR (1,000,000 views per month) can reach $33,000.
  • Large channel: A large channel with more than 50,000 views a day and an average CTR of 75% (1,500,000 views per month) would generate estimated monthly earnings of up to $7,500 and projected yearly earnings of $90,000. The estimated daily earnings should be around $250.

The content creator can also use a service such as a YouTube Money Calculator to figure out how much their channel is worth.

Advertising revenue

Creators and advertisers can collaborate through the YouTube Partner Program. Creators get to win more money, while advertisers get their products more popular to increase sales. Before obtaining a collaboration with an advertiser, a user’s channel is thoroughly reviewed to see whether the content respects the criteria or not. YouTube creators can choose from a multitude of ad types that they can expose over their content. Depending on their options, they can generate more or less money. Of course, the revenue generated through ads is highly dependent on the engagement of the users who visualize the content. Content can contain ads only if it is advertiser-friendly according to the criteria listed on YouTube Help’s page.

The revenue sharing program that Google promotes which is called AdSense helps YouTube creators generate a bigger income by showing ads in their content. The amount earned through this type of advertising depends on the location of the audience, the language used in the videos, the advertisement placement discussed earlier and so on. As in the previous case, it also depends on the size of the channel in terms of subscribers and views. Because half of the users use ad blockers, the engagement remains minimum. The number of adverts views and clicks determine the overall YouTube income of a content creator. A YouTuber with an account of over 1 million views that generates around 10,000 ad clicks will earn approximately $4,000 besides the money he receives from regular YouTube views.

Getting sponsored

Channels that feature regular engaging content attract the attention of companies that want to advertise their products to a broader audience. This is how they become sponsors for the YouTube creator. Users that have medium to big YouTube channels can earn up to $50,000 per year, an additional amount besides the money earned from views and ad clicks. Moreover, most sponsors also give their collaborators free products, for testing and reviewing. This is a benefit that many content creators look up to (for instance, gamers that receive free copies of newly released games to test or artists that receive free art supplies to test out). The amount of money earned from sponsorships vary from one sponsor to another. The total per 6 months starts at around $10,000 and could easily reach $50,000, depending on the type of sponsorship involved.

Final word

Making money out of YouTube is definitely not easy and the generated income is greatly influenced by different factors that cannot be controlled by the YouTube user himself. The overall worth of a channel is calculated based on how many subscribers it has, how many views it generates on a monthly basis, how many ads it features, whether it is sponsored or not and more. The key to making a living out of YouTube is to stay consistent and to have a competitive advantage that stirs the interest of users for the published content.

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