First, there are 2 ways to generate money through YouTube.
1. YouTube partnership
2. Join an MCN (Multi-channel network).
With YouTube, you are dependent on how many people view and click the ads in your videos. Usually you'll make $1-$5 per thousand views.
If you join an MCN, then sometimes you'll be guaranteed a dollar amount per thousand views, or split a percentage of revenue made after YouTube's cut.
How you're payed:
If you are a YouTube partner currently, then you'll see all your revenue through Adsense. In Adsense you can choose how you want your payment sent, which usually is through wire transfer.
If however you are apart of an MCN, then they will decide how you are payed (usually PayPal). Unless of course you are a huge channel in which you will probably get to decide. I've personally been payed by check, wire transfer, and PayPal in 3 different networks.
Great question. There are a few different ways to earn money as a Youtuber. I've worked at 3 different MCNs (multi-channel networks) in the past 5 years, so let me break it down.
*Disclaimer: I no longer work in the MCN space. All thoughts are purely my own.
TL; DR: Adsense, brand deals, and if your're part of an MCN it's almost always through Paypal with some cases of check / bank transfer.
1. Adsense - joining the YouTube partner program to monetize your videos by running ads across them will earn you a CPM, or cost per thousand views (this can be anywhere from $1 to a few hundred dollars but the avg is somewhere around $5). This is the easiest and most accessible means to all creators who upload videos to YouTube.
2. Affiliate links - a standard practice for YouTubers is sharing a sponsor's link in their video description and earning a CPC (i.e. $1 for every click, paid for by the sponsor) or even a flat fee for sharing in the first place. Some sponsors even tie in incentives to conversion - meaning for every sale sponsor X makes, the YouTuber gets a cut. That type of deal usually happens when the YouTuber is pretty big and a deal is worked on in person. There are tons of sites for the masses that offer affiliate links, a large one being Amazon Associates.
3. Brand deals - For the sake of simplicity, this is a fancy industry term for "product placement." This only becomes realistic when your channel has grown to a substantial size, but there's no specific subscriber count nor is there a minimum view count to qualify. The secret is really in "brand friendliness" and how brand-friendly a YouTube channel actually is. I've seen YouTubers of all sizes, as little as 20k subscribers with around 10k views per video get deals that pay 100's of dollars, and some folks with way more reach and less views get paid even less. Normally the best branded opportunities will be delivered to a YouTuber by way of joining an MCN and/or having a rockstar talent manager, since they represent the you and your best interests so they are going to be involved at some point in some aspect of negotiations. MCNs are not a necessary condition but in most cases they're going to deliver the best types of deals.
4. Merch - if you grow a ton, and depending on your brand it's common for YouTubers to launch their own merch lines, like t-shirts, cell phone cases, hats etc. District lines and Spreadshirt are popular platforms for this. It's a great source of ancillary revenue but requires a lot of effort to market in an authentic way that doesn't alienate your audience. You also need a huge reach to actually convert enough sales and make substantial income.
5. Offers platforms - There are loads of platforms like famebit, instafluence, content blvd, etc cropping up and offering to connect brands with YouTube creators. These work best for smaller creators (10k - 50k) that don't have the reach or just can't compete with other bigger and more seasoned YouTubers sucking up everyone's attention at MCNs. I spent the last year helping launch one of these, and I've seen the good intentions. They are a great source of side cash but have a long way to go before proving to be a feasible and scalable source of income for any one YouTuber.
5. Probably the hardest way to earn money as a YouTuber (but most rewarding) are the opportunities that come out of growing a LOT and getting a ton of attention from your MCN. This word has a real stigma attached to it, and trust me I've been at the frontlines of the good, the bad and the really ugly. The goal for any YouTuber is to get in with an MCN, get noticed, collaborate with others, grow their numbers and get deals consistently. If a YouTuber is a standout talent - which let's be fair, just because you've got huge numbers doesn't mean you're necessarily particularly talented - MCNs will take notice and may offer said creator and/or others to participate in their original productions. In my experience the best place for young millennials to get this type of exposure was AwesomenssTV. Ultimately digital stars want to take what they've learned online and crossover in TV, film, books, special appearances and other media in order to continue growing their brand and monetizing. This is far and few in between - not all great content creators have that "je ne sais quoi" to succeed in other formats.
The most common ways that people make money on videos uploaded to YouTube is through advertising and paid product placement.
The types of online advertising that can generate income for video producers are cost per click (CPC) and cost per thousand impression (CPM). Cost-per-click ads generate income anytime that the ad is clicked on by a viewer. CPM ads generate income through viewer impressions.
Paid product placement is another way in which people can monetize YouTube content. Paid product placement occurs when a sponsor pays the YouTube content creator directly to review a product or to feature it within the video.
How people make money From YouTube?
- Google runs a revenue sharing program called Adsense for YouTube. The company shows ads on your videos and you receive a percentage of revenue from advertisement.
- Although not confirm, it’s believed that the split is 55-45. So if an advertiser pays 100$ for ads, Google take 45$ for providing you hosting and other stuff while you get 55$. Fair enough!
In general, the more people who watch a video, the more value it has to an advertiser or sponsor, and therefore the more revenue it is likely to generate for the content's creator. One of the most important priorities for people interested in profiting from YouTube content is to increase the size of their audience.
Even when all these best practices are followed, there are some revenue generation challenges that YouTube video creators face. As of 2014, the average rate for pre-roll ads was only $7.60 for every thousand views, which, according to the New York Times, is about half of what the CPM would be for a traditional media outlet such as CNN. In addition to the production costs a video creator might incur, YouTube collects 45% of the advertising profits.
- Pewdiepie- the number one YouTube channel right now, make three to four million dollars every year. I know that’s huge. But most YouTubers don’t even make the quarter of his revenue.
- Brandon Campbell — a popular workout coach, said he made some $1300 every month from 600k views. This means roughly $2 for every 1000 views
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