The digital age has done more than provide us with greater methods of sharing knowledge and establishing global connections. It’s also an incredible tool for making money and engaging in new forms of entrepreneurism. YouTube is among the online platforms that get the most attention for the potential to gain revenue. 2021’s highest earner on the platform brought in an estimated $54 million. While few contributors will make anything near this amount, being a YouTuber is now considered more than just a source of additional cash. It’s an aspirational career option.
Nevertheless, it’s important to examine the feasibility of such ideas. At a time in which many people are experiencing challenges due to cost of living increases, debt, and unemployment, is YouTube a good solution? There’s certainly far more involved than simply uploading videos and watching the advertising revenue roll in.
So, let’s take a closer look at the issue. How hard is it to make money on YouTube? What are the practical steps you can take to make this a sustainable source of income?
Getting Started
The first thing to understand is you won’t be able to benefit from advertising revenue straight away. YouTube has strict requirements when it comes to who can monetize videos and how. This includes the requirement to have at least 1000 subscribers and 4000 valid public watch hours in the last 12 months. So, even if you have regular watchers in the thousands but only 400 subscribers, you won’t be eligible to join the YouTube Partner Program.
As such, it’s important to start as you would with any other type of small business. Make plans for how your channel can make alternative forms of active revenue in its first months as you can’t rely on passive ad revenue. If yours is an arts channel, you may be able to sell merchandise. It’s not unusual for new creators to seek tips through services like Ko-Fi or Buy Me A Coffee. Make sure these tools are in place before you launch. Importantly, create monthly budgets for your burgeoning business that are based on realistic expectations for your likely tip income.
Alongside your income, you may need to invest in some equipment, too. While becoming a YouTuber is a form of business, the model you’re adopting is more akin to that of an independent contractor. You may not be eligible for many personal or business loans, but freelancers can utilize alternative forms of funding. Lines of credit may be an option if you need to purchase software or equipment. Microloans and crowdfunding are also increasingly viable options for smaller amounts or to finance specific projects.
6 Ways You Can Make Money on YouTube
1. YouTube Partner Program
The YouTube Partner program allows channel owners to access multiple income streams, and after you achieve 1,000 subscribers and over 4,000 hours watched over the past year, you’re eligible to apply. Any content creator on YouTube who is serious about making money needs to know about and work toward applying for this program.
2. Sell Your Merch
Sure, your video content may be front and center when it comes to your Youtube career — but products and merchandise are great revenue streams no many what type of artist you are and business you run. People who support what you stand for will support what you put out, whether it’s video content or merch. Better to utilize this revenue stream than put it to waste.
3. Affiliate Partnerships
If you have a loyal following, you may be able to endorse and make money off of other brands’ products via affiliate marketing and partnerships. For example, if you run a channel doing beauty and make-up tutorials, you might endorse a specific brand of eyeliner and include an affiliate link in the description. When people purchase this eyeliner via your link, you’ll get a cut of the sale.
4. Brand Deals Partnerships
Influencers sometimes ink deals and form partnerships with brands in return for shoutouts and product placement. In fact, influencer marketing is big business. Statistics from WebFX.com indicate that:
- A YouTuber with 10,000 subscribers could charge $200 per video
- For example, a YouTuber with 100,000 subscribers could charge $2,000 per video
- A YouTuber with 1,000,000 subscribers could charge $20,000 per video
Obviously, you’ll be able to negotiate better brand deals the more subscribers you have, so focus on growing your audience.
5. Crowdfunding
Crowdfunding is a great way to encourage a loyal audience to consistently contribute to your channel. Platforms like Patreon are especially popular among informative Youtube channels, though many of these crowdfunded channels offer exclusive content for supporters.
6. License Your Content
If you end up with content that goes viral, news and media outlets may want to replay that content for their own audiences. Via licensing agreements, you can make money off of the replay of your content — assuming you’re dealing with reputable media outlets.
Partnership Opportunities
Partnership opportunities are among the primary ways YouTubers make money. Yes, there is some passive income to be made from the partnership program eventually. But this isn’t always the most lucrative option. Rather, diverse partner relationships with businesses can result in channels gaining more income earlier on in their lifespan.
Sponsorship is the most common form of this. The extent of partner involvement in your content can vary. Those that only need mentions and narrated ad copy at the beginning and middle of the videos largely seek out channels with higher numbers of subscribers. Though this isn’t to say you necessarily have to wait around for brands to contact you.
Indeed, it is often more conducive to building meaningful partnerships when you take the time to research relevant partners and reach out to them accordingly. This process is much like any other partnership. You have to create proposals to clearly demonstrate the value you can provide businesses through your content. This could include exposing their company to new demographics or offering varied or creative content they can use as marketing tools.
Sponsorship isn’t your only partnership tool for making money from YouTube, though. You can work with businesses to arrange affiliate marketing payments. This means you’ll earn a certain amount of money each time a viewer clicks on a link in your video description. Some brands will also make payments to you when your viewers utilize a discount code personalized to your channel. Your audience saves money, you get a slice of the profits, and your brand partners get greater engagement.
Building Your Brand
Making money on YouTube is not necessarily an easy process. But one thing that does make opportunities more likely to arise is building your brand. You can’t just leave your content to percolate, accumulating views, and expect this to make your business grow. Keeping your income sustainable requires effort in marketing strategy and brand engagement.
This is often most effective if you have a solid idea of your brand from the outset. If your content and style are inconsistent, this can make it difficult for audiences to connect with you. Not to mention that brands won’t be able to easily establish whether your channel aligns well with their business.
Your actions here must extend to keeping a solid schedule of not just YouTube videos but other social media posts. Set clear expectations for audiences and partners. Many freelancers use their autonomy as an opportunity to work while traveling the world. If you choose to follow suit, make certain your accommodation and infrastructure are in place to allow you to maintain regular productivity. Reliable wifi and portable power sources can help make sure you can create and post your videos on time. Automated social media scheduling software allows you to set up and share content well in advance.
Another method of marketing to help build your brand is collaboration with other YouTubers. This is where the YouTube method of making money differs from the traditional competitive nature of entrepreneurism. There is a community in place that actively encourages teaming up to make mutually beneficial content. Not to mention it helps to expose you to new audiences and new paid partnership opportunities.
Conclusion
Starting a YouTube channel to make money takes time and effort. Despite stories of overnight success, you’ll generally find a better chance of making money by treating your channel like a business. Make solid plans for your early income and seek out relevant partnership opportunities. Remember that consistent steps to build your brand through marketing is key to growth. This isn’t a get-rich-quick approach, but it’s certainly a viable route to solid income.
