First, it is important to understand how bloggers make money on YouTube.
There are several ways a video blogger can make money. Let’s take a look at the financials associated with each.
1. YouTube AdSense
The YouTube AdSense affiliate program is one of the most common ways to make money from videos.
While there are various ways to make money from YouTube, this is the only way to get paid by Google.
In this method, Google will show ads in your videos. Of the total income generated from the ads, YouTube will take 45% for itself and pay you the remaining 55%.
There’s no way to know the exact income a particular video blogger gets from Adsense. This is because ad income depends on several factors, so the amount a blogger earns varies greatly.
Think about a company renting banner ad space in the middle of your city and another company renting it in a small village. Lowcostsmm site can help increase subscribers, views and likes on YouTube. The link https://lowcostsmm.com takes a little time to get activity on your channel.
There will be a huge difference in price between the two. Likewise, the price of renting an advertising banner will also vary depending on the size, whether it’s a billboard or a flash banner and a few other factors.
So, just as the profit you can earn from renting regular advertising space depends on several factors, YouTube advertising revenue also depends on many factors.
Let’s take a closer look at each of these factors.
Factors that affect earnings on YouTube
The amount you earn on YouTube depends on the following factors:
1. the sources of your traffic.
Usually, traffic from USA and UK gets higher price per click (CPC) as compared to Tier 2 countries like India, Brazil, South Africa, etc.
Consequently, for the same number of views, taking the same (Click Through Rate) CTR, YouTube will earn more for US and UK traffic.
Consequently, YouTube will pay you more money for the same.
2. Demographics of your traffic.
Age, gender, and other demographic factors of your traffic also affect your earnings.
Although, there is no set rule that demographics can earn you more income, but traffic that includes teens and people with lower incomes will usually earn less than traffic that includes working people, especially the wealthy.
3. niche videos.
YouTube usually shows ads to viewers who are subscribed to the video they are watching. Hence, video niche is another important factor that increases the price per click.
Tech videos usually have a higher price per click than political and news videos.
4. ad type.
YouTube displays different types of ads. TrueView and Bumper ads give you money per view, and pay-per-click ads pay for each click on the ad.
Some ads are skipped by users, while others are not. Skipped ads, if they are skipped, are not credited to the advertiser and therefore you will not earn anything from them. Subscribers on YouTube are actually inexpensive. You can buy 1000 participants at https://lowcostsmm.com/buy-youtube-subscribers/ without assignments or registration.
Similarly for pay-per-click ads, if the user doesn’t click on the ad, you earn nothing.
5. Click Through Rate (CTR) – the number of clicks per thousand impressions of your ad
Your income can also depend on the CTR of ads. The better CTR, the more earnings.
6. Audience Retention
Google and YouTube love quality videos. Therefore, if your users watch the video to the end, they show that the video content was good, and therefore the video will have a higher price per click next time.
Also, the longer the viewing time, the more ads will be shown to the user, resulting in more revenue.
7. Number of subscribers.
A YouTube channel with millions of subscribers will get better CPC and CPI ads compared to a new YouTube channel that has no or very few subscribers.
Profit planning with AdSense
You can’t plan your business without knowing the financial numbers. It would be foolish to invest time and money without predicting profits and investments.
So, the question is, how much money do Youtubers make?
Well, there’s no money calculator on YouTube. So, let’s do some math to get a rough estimate of how much YouTube will pay you for 1 million views through the YouTube AdSense program.
Several estimates show that on average, YouTuber can earn between $3 and $10 per 1,000 views with CPC(per clicks) and CPI(per views) ads.
So here’s the answer to the million dollar question: How much money do video bloggers make per million views?
For 1 million views, the total income would be ($3 to $10) * $1,000 = $3,000 to $10,000 per million views.
2. Affiliate Marketing
Although YouTube AdSense is a good way to make money, if you are targeting the wrong geography and demographics, you may not make much money with YouTube AdSense.
This is why many of the bloggers, use affiliate marketing as a source of income.
Bloggers who do affiliate marketing usually post product review videos. They also post videos of unpacked purchases.
These bloggers then add their affiliate links to the description section of the video. Whenever someone buys a product using that link, they earn a commission.
It is very difficult to judge their earnings as it depends on the following factors.
- Click Through Rate (CTR) for your affiliate links
- Conversion Rate (people who clicked on your affiliate link and bought the product)
- Commission per product sale
However, if we know the commission for selling a product, we can roughly estimate the profit from affiliate marketing.
The CTR for an affiliate link is usually between 0.5% and 3%. Let’s take an average CTR of 2%. For 1 million views, the total number of people who click on your affiliate links would be 20,000.
So the conversion rate for most affiliate products is in the 2% to 5% range.
Given a 3% conversion rate, the total number of people who buy products or services using your affiliate links would be 600 people.
So, if you get $10 per sale of a product, your income from a million views would be $6,000.
3. Promotional videos
YouTube is one of the most powerful marketing tools. That’s why YouTube’s AdSense program is so successful.
However, few people are interested in watching the ads, and viewers end up skipping them or not paying attention to them at all
So brands go the other way by paying to create a sponsored video.
Brands typically turn to video bloggers to create a single video focused on a product launch or store opening or similar event.
Some brands sponsor a YouTube channel, and in return the blogger will have to promote their products by recommending them to their viewers.
For example, a cooking channel might focus the camera on a particular brand of spices or other culinary products because the channel owner uses the same.
Bloggers charge a fixed price, which is estimated based on the number of views expected for the video. A typical price is between $10 and $50 per 1,000 video views.
So if a video is expected to have a million views, the price for a sponsored video would be between $10,000 and $50,000.
I know that sounds like a huge amount compared to YouTube AdSense or even affiliate marketing.
However, brands usually only work with promoted channels.
So unless your videos get anywhere from a hundred thousand to a million views, you probably won’t be able to make money that way.
And even if you do succeed, you’ll get them from smaller brands who may be very tight on budget and therefore will pay you much less.
An example of calculating income from a YouTube channel
You have 50,000 subscribers, and you release 2 videos a week. You get an average of 20,000 views per video, and you have a total of 200 videos. Here’s what you can expect:
You’ll get 80,000 views + another 100,000 views a month from the other 200 videos. Let’s approximate that to 200,000 views.
As far as YouTube advertising goes, that’s the equivalent of about $500 (maybe more, maybe less).
You get 2 sponsorships for 2 different videos – $20/1000 views x 20,000 views / video x 2 videos = $800
You include affiliate links to multiple products (your camera review, product or service, etc.). Let’s assume your affiliate links are only seen by 50,000 people.
That would be the equivalent of another $500 in affiliate sales.
Suppose you launched your own product (it could be a mug, t-shirt, hoodie, e-book, physical book, course, etc.).
Let’s assume you made $10 (profit) for 1 sale and let’s assume 100,000 people (views) saw your product. You’ll sell about 500 units, so that’s another $5,000.
Total = $500 Advertising + $500 Sponsorship + $500 affiliate sales + $5,000 of your product = $6,500
Just a quick note:
Selling your own stuff accounts for almost 80% of your income.
Money from YouTube ads is 7.6% of how much you can actually make on YouTube.
If you do the right marketing, you can make a lot of money on YouTube.
Now imagine if you have 500,000 or 5 million subscribers. That would make you a millionaire. In fact, most video bloggers with more than 2M subscribers are almost millionaires.