Billions of YouTube videos are being watched each day around the world. YouTube is the most popular video streaming platform, with users spending about 40 minutes for each YouTube session.
Since more and more people are using the platform every day, learning how to make money on YouTube should be priority #1. It doesn’t take much to get started. All you’ll need is a computer and video editing software.
On YouTube, the possibilities to create compelling content are endless. For instance, Ryan ToysReview is a hyper-popular children’s YouTube channel.
Ryan, the child-host, makes about $22 million every year by disassembling and playing around with toys. That’s a lot of money for a ten-year-old to try out some gadgets.
Anyone can make money on the platform now, and it’s no longer only for huge influencers and platinum musicians. There are tons of opportunities that enable people to make money on YouTube.
However, you need a strategic approach if you want to see real success. This article will break down the most surefire methods for you to make money on YouTube.
Why is YouTube Popular for Creators?
With over 1.58 billion users worldwide, YouTube is the second most used search engine on the planet. Its users upload 100+ hours of video to the platform every minute.
These videos consist of over 75 languages, which comprise about 95% of the world’s internet users. An average user spends about 25 minutes every day on the platform, and users watch more than 4 billion videos each day.
With statistics like that, every marketer would love to tap into YouTube’s robust market. This reality explains why there is so much money to be made on YouTube. And there will never be a shortage of people to consume your content.
How To Make Money On YouTube 2023
There are several ways that people can make money on YouTube. But the primary way YouTubers make money is when advertisers pay the company for TrueView ads, pre-roll, or Bumpers. YouTube then places the ads anywhere in the video.
Simply put, Advertisers promote products through the content that people create on YouTube. They then make money after a visitor that sees the ad makes a purchase.
In other words, your YouTube channel is an ad platform that hosts channel contents or other brands as a YouTube Partner or a paid affiliate.
Now, let’s dive deeper and see which strategy is best for you to make money on YouTube.
1. Make Money on YouTube By Becoming an Advertiser
YouTube places ads in the videos that channels upload. When they do this, they want to ensure that the ads are relevant to their users.
So naturally, they will insert advertisements that are in the same niche as that of the channel. The great thing about these ads is that they could be from individuals with a highly targeted audience or large brands.
If you wish to apply this strategy, then remember that you have to play the long game. Sometimes, advertisers don’t get the results they want unless they spend large amounts of money on this platform.
Your target audience also won’t view your ad unless you’re delivering premier value, which would make your click-through rates lower than anticipated.
However, research has shown that this strategy works for most advertisers. Most of them make a good return on their investment.
When displaying ads on YouTube, advertisers can choose from three choices:
A pre-roll ad is a video advertisement that automatically plays directly before a featured video, on both mobile and desktop. These ads are commonly 15, 30, or 60 seconds long.
However, the user can’t skip the ad after five seconds, and the advertiser pays for them on a per-click basis.
To convert leads during a pre-roll ad, you can place a CTA (call-to-action) to the ad that directs the user to a landing page.
YouTube advertisers can also leverage the remarketing and retargeting options. These options allow you to send more ads to people that engage with your channel.
TrueView ads are perfect for storytelling. Why? Because they can run alongside the video that the user is watching. This option allows advertisers to create high-quality ads that are longer.
These ads are available in two formats: discovery and in-stream.
Discovery ads appear on the right sidebar in the video below the video that would play next. These ads are perfect for developing your brand and building views for a piece of content.
The in-stream ad appears before the video, giving the user an option to skip it after 5 seconds. The in-stream video ad’s length can range from 12 seconds to as long as six minutes.
Advertisers pay the platform a fixed commission for every TrueView ad view. Google AdWords also helps advertisers measure their campaign success.
When someone spends over 30 seconds watching an ad, or clicks and views the advertiser’s website or landing page, YouTube will then count that as a view.
On the other hand, a bumper ad is a six-second, unskippable video ad that plays before a YouTube video. Many YouTubers use bumper ads for intermissions in long videos like podcasts.
As a bonus, research has shown that about 90% of people always remember bumper ads, making them the most cost-effective advertising type on YouTube.
The platform charges advertisers through a cost-per-minute system. In this system, advertisers pay every time a video’s views hit 1,000. Bumpers are a fantastic way to bolster TrueView ad campaigns.
2. Make Money on YouTube Through Affiliate Partner Links
Another popular strategy that YouTubers use to make money is through affiliate links.
When you run a successful channel, many brands will want to work with you to market their products on your videos. Dollar Shave Club is an example of a brand that is popular for its involvement with affiliate marketing.
The company chose an uncommon route when it comes to advertising on YouTube. Specifically, the company looks for crucial influencer channels on YouTube. It then offers them an opportunity to promote their products for money.
The chosen YouTubers would then take a minute or two to pitch the company in one of their videos. You can view this as a radio ad.
A YouTuber talks about the product or brand and then asks the audience to follow a link in the description box or the video.
The link then takes the viewer to a landing page to make a discounted purchase using a code that the YouTuber offered them. Research has shown that this strategy is effective.
It is the most popular strategy among YouTubers that host a variety of shows and podcasts.
3. Make Money on YouTube By Crowdfunding Your Next Project
Crowdfunding is a fantastic way to execute a project when you don’t have a ton of money at your disposal. For context, crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.
As a YouTuber, you might need help hiring actors, purchasing better equipment, or paying for other production costs. When this happens, you can ask your following to pitch in.
Most successful crowdfunded projects tend to offer a trailer or sneak peek that gets their audience excited. So, create a video that provides a taste of what to expect or explains your project. Here are a couple of famous, reputable crowdfunding sites to consider using.
- Kickstarter – one of the most well-known crowdfunding sites known for funding unique creative projects. Make sure to set an achievable funding goal because you must meet the goal before securing the funding.
- Indiegogo – An alternative to Kickstarter but offers more flexible funding choices.
If you go the crowdfunding route, remember to follow the best practices. Consider creating transparency around you’ll use the money your followers donate. Doing that helps in getting your fanbase to invest in your mission or story. They will buy into your content’s value.
Also, consider offering enticing rewards for good pledges. The more you make your donors feel like they will get something exclusive for their loyalty, the higher the chances of getting pledges and donations.
4. Make Money on YouTube By Relying On Your Fans
This approach is similar to the crowdfunding, as you create a fan-funding stream to get donations from your audience.
You would be contributing your voice without forcing your fans to pay for admission. If you are offering good content, the chances are that your audience might be willing to provide support regularly.
Most fan-funding platforms offer creators a place for people to know about their content and a perfect way to engage the loyal audience and reward their support. Here are the most popular fan-funding options:
YouTube’s Super Chat – when going live on the platform, a “super chat” feature is available. This feature allows you to create a jar that viewers can use to offer their support. They can donate any time they want and any amount they see fit.
- Patreon – this website is a membership platform that enables creators to get paid. Fans have the option of subscribing to their favorite creators for just $1/month and can receive exclusive rewards.
- Tipee – this platform enables creators to get both recurring and one time only donations.
5. Make Money On YouTube By Selling Merchandise
The best way to sell your merchandise online is through Print on Demand. For context, Print on demand is a printing technology and business process in which design doesn’t get printed until the company receives an order. This process allows prints of single or small quantities.
Companies such as Printify and Printful have an online platform that lets people upload a design onto different consumer products and wait for someone to place an order.
These companies then ship the products to the customers, and creators don’t have to be involved.
Selling merchandise on YouTube boosts your exposure by taking your online personality and brand offline. Doing this will strengthen your relationship with your audience and build trust.
You can use freelance sites such as Fiverr to order affordable designs tailored for specific products. Remember to integrate your store with services that handle orders.
You can use Oberlo or the Print on Demand services mentioned earlier to take advantage of dropshipping. There will be less effort on your part, meaning you can learn to sell your product without worrying about shipping, inventory, or design.
Alternatively, there are merchandising networks such as DFTBA that help creators. The only caveat is you will be competing with other creators.
So, you’ll have less control over integrating your content, offering discounts, adding products, and all the usual benefits of owning an eCommerce website.
You can also take this a step further by manufacturing a unique product, selling it to your customers, and powering your business through your channel. For example, Luxy Hair sold its hair extensions by sharing how-to tutorials related to the hair products.
When you have earned a big audience, you have advantages over other store owners because you have a content engine that always drives traffic to your website.
You have gained your audience’s trust by regularly sharing content related to your brand.
6. Make Money on YouTube By Licensing Your Content
When you create content that appeals to many people and goes viral, you can license it and get some money.
Online news sites, morning shows, and TV news outlets might reach out to you asking to use your videos when they go viral. You can also add your videos to a marketplace like Juken Media, where the right people can find them and make a purchase.
YouTube Success Story: Joe Rogan
An example that will inspire you when it comes to YouTube creators is podcast king, Joe Rogan. He started podcasting back in 2010. Joe began by having an in-depth conversation with his friend in a relaxed setting.
With time, he started inviting hundreds of famous guests onto the show, including scientists and MMA fighters.
However, before 2016, Rogan could only muster up a few thousand views for each podcast. Enter YouTube. In 2016, his subscribers started to rise exponentially thanks to his use of the platform in marketing his podcast.
The Joe Rogan Experience, the name of his YouTube channel, now has over 5.5 million subscribers, and each podcast routinely hits over 1 million views.
The show has risen to become the most popular podcast in the space. Joe Rogan now makes an estimated $30,000 per podcast episode, producing five podcasts every week.
There is a slew of ways to make money on YouTube. Let’s break them down.
YouTube will help you gain more traffic. New users will easily find you on the platform and get to your website if you put out consistent content.
YouTube videos help in building an element of familiarity, which will make a stronger community. It helps create a closer personal connection as they know you and how you react to situations.
Plus, when you share tutorials, people feel like you are there, helping them solve a problem.