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.