How do YouTubers make money?

How to calculate the earnings of a youtube channel?

YouTube is a social media and online video sharing platform.It has 2562 million users worldwide which is likely to grow even more with increased use of smartphones and internet sevices.YouTube is now accquired by Google and its worth is $180 billion in 2022. Nowadays, YouTube is one of the most coveted website among people who look forward to get some dose of entertainment and also share their thoughts and ideas on the platform.

How do YouTubers make money?

Through YouTube, people can earn in millions by posting videos at their own comfort. It is such a popular platform that even celebrities also appear in popular YouTuber’s video to promote their movies, music videos or web series.Infact, they themselves have their own YouTube account which is followed by millions and it provides them a lot of revenue and popularity as well.

Now, we will understand the different ways of monetisation on YouTube which is explained below:

Monetization through Adsense

 A channel can earn money by running ads in between their videos.The ads are displayed on the content in order to promote a certain brand so that people buy them. Placing an ad on the content is a win- win situation for both the brand promoting company as well the YouTuber who gets money just for allowing them to run the ads on their content. But monetization can only be done when necessary terms and conditions are satisfied .These terms and conditions are decided by YPP(YouTube Partner Programs).

Once the Channel fulfills the conditions, they are given access to YouTube monetisation features and various other tools. These conditions include: The Channel must have 1000 subscribers with a total of 4000 watch hour in the past 12 months.Other conditions includes having an Adsense account on an ad providing platform like Google adsense,adversal, amazon shopping ads and various other platforms.

The last and most important one is that the person running the Channel must be present in the region where YouTube Partner Program is available.

Now let us talk about the norms through which YouTubers get paid for each ad displayed in the video. The revenue depends upon the watch time of the ad, if someone skips the ad right after the start then it is less likely that they are paid.

There is a certain time limit upto which the audience need to watch, to be precise, the watch time should be of atleast 30 seconds but in certain ads there is a limit of 5 seconds as well. This is why most of the ad videos have a 30 seconds or 5 seconds skippable option.

How do YOutubers get paid?

 According to data from influencer marketing Hub, YouTubers are paid according to views, for every single view they are given 10 to 30 cents. with an average of 18 cents.If a particular video is getting 1000 views then it can easily receive $18 on an average which means $3-$7 dollar per 1000 views. Now suppose a YouTuber is getting 1000 views daily for a month that means 30,000 views a months and these 30,000 views is equal to somewhere near $90-$120.

Let us suppose a bigger number where a channel has subscribers in millions that means fixed views in millions , if they are getting a million views in a day then that means that they can earn a whooping amount between $90,000-$150,000 per month.

This much amount is fixed for a channel which has a miilion subscribers but we know that if a video is good it is watched numerous times so the amount is likely to go up certain percentage.But this benchmark of getting a million views in just a single day is not easy to achieve, only big Youtubers can achieve this amount of views in a single day.

Table which depicts earning through views are given below:

     Views of Videos    Earning (Estimated)
     10k    $50-$80 dollars
     100k    $500-$25,00 dollars
     1 million    $34,00-$40,000 dollars

Others methods of monetisation

 Channel Membership

Some YouTubers who are extremely popular provide a Channel membership. Through this feature, the loyal subscribers who become members of the channel can get some benefits from the channel. The benefits include early access to videos, merchandise discounts,Custom emojis, Loyalty badges, members-only commuted posts and even some bonus content.

The membership is quite beneficial for both the parties as it can provide various benefits to the subscribers as well as to the YouTubers. With the help of membership,subscribers get to watch their favourite content and YouTubers get financial support to run their channel more efficiently.

Sponsorship Deals

 YouTubers who are popular and get millions of views in just few days , they are also provided sponsorship from various brands to promote their product to the audience. Generally , these companies also provide some free products to the YouTubers  for their use. These sponsorships could be provided by private companies who create and sell goods or devices. But sponsorship could also be provided from government’s side as well, such sponsorships are done to promote sports , tourism , culture of a place , city or a country like the indian government provides sponsorship for toursim in India under the name “Incredible India’. Many such deals adds to the revenue of the YouTubers.

Merchandise shelf

 YouTubers sell their merchandise items like T-shirts, mugs etc. and  this merch shelf is placed right below the comment section, you will notice when the video is played in the small screen or some YouTubers also provide the link in the bio or description. These merchandise item have logo of the channel and people can buy it online. This is bascially done to promote their channel and in return they also get some revenue.

Live stream

When YouTubers do live streaming, millions of people watch them live and in this session there are also some people who give money to the YouTubers as a gesture of their admiration of them or to get the attention of the YouTuber.

Super Chat is also a kind of feature in YouTube through which people can Highlight their messages on the top of the live chat by paying them.Through this feature, people can also purchase other people’s messages which stands out and then pin them.

Taxes implied on YouTubers

It is to be noted that YouTubers pay taxes as well. According to law, if the earning of a YouTuber exceeds a certain limit then they are liable to pay taxes to their government. However, different regions have different limits of impose tax.For example: In some states in India, if a YouTuber earns more than INR 20 lakh, then they have to get registered under GST for tax payment.

Now let us look into some popular YouTube Channels and analyse about their wealth through the above method. The Channels are mentioned below;

SET India

SET stands for ‘Sony Entertainment Television’, it is a subsidiary of a Japanese Corporation’. Presently, it one the the most Subscribed Channel on YouTube in the world .It is subscribed by 138 million people and growing day by day , it has record of getting more than 2 billion total views and 3 million subscribers monthly, it gets 71.58 million views daily.

The Channel is a representative of an Indian Television channel on YouTube, the channel uplaods compilations and previews of their shows which is aired on Television.Today, this channel is one of the fastest growing channels with the tittle of 3rd most subscribed channels in the world. The channel is further branched on the basis of several spoken languages in the country.

The monthly earning of the channel is calculated to be $8-$9 million thus totallying it to be $130 million a year.

Pewdiepie:

Pewdiepie is a Swedish YouTuber, whose real name is Felix Arvid Ulf Kjellberg.He uploaded videos related to games in his initial days on YouTube , later on when he became famous he began adding some new content to his Channel which included vlogs, formatted shows, comedy shows, reaction videos etc.

His channel gained vast  popularity and at a point he became the world’s most popular YouTuber.He has also been named as ‘YouTube’s Highest earning creater’ by Forbes.He has currently 111 million subscribers and 4400 videos on his Channel which has achieved 28 billion views.

Considering the view count of his videos, his estimated monthly income should be $4-$5 million and annual income is $56 million.

Mr. Beast

Mr. Beast is an American YouTuber , he started off with gaming videos. Pretty much similar to Pewdiepie, he also used to play video games in his videos. But as he got more popular , he expanded to include more vast contents like vlogging, doing charity videos like buying a  complete dog shelter or donating some large amount of dollars to needy people.Apart from this Channel, he also some several other Channels like Beast react, Mr, Beast gaming, Mr Beast shorts, to post videos of other kinds which is visibile from the names of the Channels.His main Channel has 104 million subscribers and 17 billion views. His net worth is calculated to be near $54 million.

AsI have mentioned above that YouTubers do have other sources of  earnings from merchandise, sponsorship, endorsement. We can see this case on Mr. Beasts channel, he does various endorsement deals and have have his own merch shelf which provides him a revenue of $ 4.25 million if we just count the revenue from his main Channel.

Like Nastya

Like nastya’ is a YouTube Channel which is managed by Anastasia ( 7 year old kid ) along with her parents. She is a Russian –American YouTuber whose content mostly deals with her adventures with her father in different locations or settings.However, she also creats Vlogs and role plays where she performs different acts.Her Channel has surpassed Taylor Swift’s YouTube channel and Dude perfect ( also a YouTube channel ) to become one of the top 20 most popular channels in the world along with subscription growth.

Her channel has recently achieved over 80 billion views in July, 2022 with subscribers 165 million. Her net worth worth is $20 million annually.Like other popular YouTubers, she also have her own merch shelf which provides things like T-shirts, pillows, hairbands, notebooks etc.

Markiplier

Markiplier , also known as Mark Fischback. He primarily makes content related to video gaming with a bit of humour added to it.He has also collaborated with many of his fellow YouTubes like Pewdiepie, Game Grumps, Matthias,etc. who makes releatively similar content to him. Once, he said in an interview that he thinks that amount of wealth that a YouTuber can make on YouTube is simply “unfair”.This why why he also does charity and  streams his content live during charity. He even collects donations for various chariatable societies.

Markiplier has surpassed 18 billion views on his YouTube Channel in 2022. He gets  around 3 million views per video and through adsense in his videos he generates revenue of $12,000  per video.If we go higher to calculate his monthly earning then we can say that he easily earns $592,000 per month just from Adsense.

Annually, Markiplier earns $72 million ,this revenue is generated  without even counting his donations, sponsorships, merchandise and channel membership but only ads.