Entrepreneurship

How To Make Money On YouTube

Cameron Fleming | 27 January 2022 | 2 years ago

How to make money on YouTube

As an entrepreneur, you are probably pondering ways of monetising the social media fields of influence that permeate almost all of society’s daily lives. YouTube is a great option to consider but knowing the ‘how-where-and what’ is vital to ensuring success. Here are our top tips on how to make money on YouTube in 2022 and beyond.

First steps to making money on YouTube

Before getting into the detail, we have to state the obvious. The concept behind YouTube is to produce awesome videos with engaging content that looks reasonably professional (not Hollywood but not school project either).

This has to be achieved, first and foremost. Only then can you think about:

  • Driving up subscription numbers
  • Monetising the channel
The more subscribers you attract, the more views and shares (and vice versa) you get. This compounds the growth of subscriber numbers and increases the value of your YouTube channel. The latter increases your ability to monetise your YouTube presence.

Let’s move on to the tips.

How to make money on YouTube – Tip #1

Now that you know the YouTube concept, you can start on setting up your channel, a.k.a. your business presence on YouTube, in preparation for amazing the world with your creations.

The first step is to join the YouTube Partner Program. To achieve this you/your business needs to qualify via the minimum requirements and respect the program rules.

How to make money on YouTube – Tip #2

Now it’s time to create top quality videos that meet your viewers’ expectations. Remember, social media users are quite quality-savvy as they see a lot of content every day wherever they go, physically or digitally.

They will quickly click away if you serve them up inferior visuals and awful sound. Remember, you need to upload sufficient videos to attain the minimum watch-time hours. It is advisable to post your videos on a regular day and time so your audience has an expectation. Irregular posts risk being lost in the swamp of online content.

This step is part of becoming eligible for the YouTube monetisation features. These features include the ability to offer memberships and run income-earning ads in your videos. YouTube will indicate via a green dollar sign in the Video Manager section when monetising access has been granted. Access the YouTube Studio via your profile and select the Monetization option for a revenue overview.

How to make money on YouTube – Tip #3

Another great money-earner on this platform is sponsorships. If you build a good following and even better viewing numbers, then you will attract sponsorships or will be able to negotiate with relevant brands. Sponsorship can be in the form of:

  • Product placement in your content
  • Short mentions in the script
  • Recommendations of a product or service
An example of possible earnings can be linked to the number of views you achieve, e.g. £15 to £35 per thousand. Alternatively, it can be linked to the number of subscribers, e.g. £1400 per 100k subscribers. To illustrate, the video ‘Dangerous Woman’ by Ariana Grande topped more than 155 million views. You do the maths.

YouTube channel owners can set higher prices for sponsorships on the platform because audiovisual content is far more costly to produce.

If your goal is to become a YouTube influencer, it is important to be transparent about your sponsorships, partnerships, or other money earning options. This ensures that trust is built. Followers fall away quickly if they feel you are ‘hiding’ something, even if it was an unwitting oversight, so be on your guard about this.

You can find the disclosure policy on the Google support forum.

How to make money on YouTube – Tip #4

If you have expert knowledge on a topic and have the gift of being able to teach, then selling access to online courses is a popular way to earn income. E-learning is a continuously growing market with an expected market size of hundreds of billions of pounds by 2026.

Combining courses with Ads is a great strategy that can provide more cash flow stability.

You don’t have to be a qualified teacher; you just need to be good at explaining things.  Review how successful YouTube courses are run, and this should give you a good idea of how to approach it.

You can also research platforms that support online learning and link them from your YouTube channel.

There are some exercise channels, for example, that have 40,000 paid subscribers. An online course does not need to be a YouTube Partner, so you can earn income without “qualifying” for the YouTube Partner Program (YPP) and without selling adverts on your videos. Add ebooks, PDFs and merchandise to widen the income-earning opportunities or increase subscribers.

How to make money on YouTube – Tip #5

If you have chosen to go the YPP route, you will need to utilise Google AdSense (GAS) to receive payments from adverts.

GAS gives advertisers access to buying ad space. YouTube links these adverts to videos they deem appropriate. A cost-per-click or per-view method is offered to advertisers:

  • An ad view = thirty seconds or 50% of the ad length.
  • An example average rate is thirteen pence. An example of the earning potential is:
    • 1 thousand views of an ad
    • 10% of the viewers watched for thirty seconds or 50% of the ad length
    • Earnings achieved £13.00
The earning power is subject to:

  • The relevance of the adverts to the content of your video
  • The attractiveness and engagement strength of your video
  • The popularity of your chosen topic
  • The SEO leveraging
Forty-five per cent of all income earned via GAS is paid to YouTube.

How to make money on YouTube – Tip #6

Memberships are an effective money earner if you are over eighteen years old and have racked up a solid subscriber base of thirty thousand. You also need to be registered with YPP.

Your members could, for example, do monthly, quarterly or annual payments to get access to your channel’s exclusive content. The channel displays a JOIN button to show that content viewing requires a membership. Up to five levels of membership are permitted.

Thirty per cent of the income you earn from memberships is paid to YouTube.

How to make money on YouTube – Tip #7

Another income earning option is good, old-fashioned selling of products and branded merchandise. If your brand has established a solid following, it is probably time to launch the merchandise income stream. Offering slight customisation options makes the ‘merch’ even more attractive.

There are famous YouTubers who do tech reviews, gadgets tests and scam fighting. Their branded merchandise is bought by avid followers who want to show they are part of the YouTubers ‘cult’ following or niche market.

Refer to your ‘merch’ in your different videos and provide a hyperlink in the video description to your online shop.

NOTE: Your online store must be a YouTube approved merchandise site.

An e-commerce platform can simplify sales and logistics.

YouTube also offers an option for the sale of merchandise, but it is for more mature YouTube channels as you are required first to have ten thousand subscribers. That’s a tough number of subscribers to achieve. The average YouTuber can take a year to build one thousand subscribers and fifteen years to get to ten thousand subscribers with 160 hours of content per month. A viral video with millions of views would speed that up.

YouTubes merchandise shelf also requires you to be over the age of eighteen.

NOTE: There is no correlation between the number of views and the uptick in subscribers.

How to make money on YouTube – Tip #8

An incoming earning option on YouTube that is not hindered by rules and stipulations is affiliate marketing ‒ your commercial power is the key. This means that the earning power can be correlated to the amount of smart work you pump into your channel, and it is unlimited. As video is one of the most influential means of marketing, affiliate marketing is a great option for your channel and your affiliates products or services.

The ‘process’ is not complex. Your channel must act as a magnet to a target market that select companies want to reach. If you can prove your channel’s ‘stickiness’ for a company’s product, then you have an opportunity to become an affiliate of that company. In the world of YouTube, this means earning income.

A content creator (the affiliate) usually commences with mentioning a company’s products in the content of the videos they are creating (verbal product placement). The company you are gently promoting or recommending may have a discounted deal on promotion at the moment. You would definitely mention that and you could even agree to a coded discount, e.g. if the customer uses the discount code <yourbrand>20 at the checkout, they will get a 20% discount. The company can then also track your influence, and you might have negotiated a percentage of the sale as part of the affiliate agreement.

Your affiliate link can help with trackable links so the origin that drove the sale to the company can be traced. You would add the affiliate link to every YouTube post that you do via the description field.

If you have hit the headlines as a YouTuber, companies will be knocking on your door to be an influencer for their brand. However, if you are not part of that top 3%, you will need to approach companies whose products align with your brand.

It will also be important to the companies you approach that your values align with their brand values, so know and be mindful of them whenever you post content. This statement applies even if you post content that does not mention their brand. For example, you can’t promote vegan products as well as wines if the wineries you promote use egg whites as part of their filtration process.

Know your affiliates, their products and their brand values.

Combining an affiliate program with advertising in a strategy is a very effective strategy.

Some YouTubers, for example, may create their engaging, top-quality content about the trendy topic of gadgets, tech and gaming. They would then establish affiliate relationships when they have an attractive amount of likes and subscribers in their track record.

These YouTubers would then also compliment regular posts with tutorials, how-to guides and in-depth analysis of products (affiliated and unaffiliated). They would discuss the software, hardware, styling and even the trendiness (or not) of the products. Related affiliate links would be hyperlinked in the descriptions below these videos as well as discount codes or other special deals.

NOTE: It is important to be open and honest about your money-earning here as well. Use a disclaimer link that says your links in the description field can sometimes be affiliate links that support you in keeping your YouTube channel alive.

While we did refer to having an attractive number of subscribers, it is helpful to note that affiliate relationships do not require hefty numbers of subscribers. Quality and influence are definitely more valuable than volume. Trust and high-quality leads are the cornerstones of affiliate marketing.

Final note on making money on YouTube

YouTubes algorithm have broader parameters since the second quarter of 2021. You will see ads playing on your videos that are not close matches. This is great news for you as your income earning potential, as a content creator, has now increased.

There also has been an easing of restrictions on the advertiser guidelines regarding monetisation opportunities. Some of the partially monetised options are now fully monetised, and these changes have been updated into the YouTube Partner Program.

There is a colour-coding key that indicates whether your video qualifies for full or partial monetisation. The icons that are located in YouTube Studio are as follows:

  • Green icon – your video qualifies for full monetisation
  • Yellow icon – your video will have limited ad display or no ads at all
  • Red icon – no ads will be displayed
  • Grey icon – you have manually turned off this video
YouTube is offering more monetisation opportunities for videos that carry the following content:

  • Educational (adult not school) – informative news or documentaries on:
    • Harsh interactions with police
    • Developments or content relating to recreational drugs
    • Sensitive, emotional-trigger events
  • Controversy – non-graphic, discussions on controversial issues
  • Adult humour – humorous delivery of adult-themed content
  • Profanity – moderate profanity within thirty seconds of the video playing
Now you are locked-and-loaded to launch your stellar YouTube journey. Good luck.

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