“All I said was I like this guy’s anime review,” PewDiePie says in the video. “[The channel creator] apparently likes to have hidden and not-so-hidden Nazi references in his videos and obviously if I noticed that I wouldn’t have referenced him in the shoutout. ... I said publicly a year and a half ago that I was going to distance myself from Nazi jokes and that kind of stuff, because I want nothing to do with it. Generally, I’ve done that. I don’t really have a reason to dip into that again — it’s just stupid.”
The tech conceit of starting with nothing and growing a business into being profitable sounds appealing. Who wouldn't like to minimize initial investment? But the successes have typically required hundreds of millions, if not a billion or more, of investment to ultimately succeed. And there are many ways in which the grand concept can fall short the way theory sometimes does when faced with the reality of application.
But recent research has painted another picture. Scoring a place in the top 3 percent of most-viewed channels could bring in ad revenues of just $16,800 per year, according to analysis for Bloomberg News by Mathias Bärtl, a professor at Offenburg University of Applied Sciences in Offenburg, Germany. If you quit your job, that's barely enough to break through the poverty line.
Before you can start getting paid, you'll need to reach the payment threshold. This varies depending on your currency. In the US, the payment threshold is $100. This means you'll need to earn $100 before you can start collecting any money. If you've hit your payment threshold, you'll be paid around the 21st of every month. If you didn't meet the threshold, that money will be rolled over into next month's amount.
The way advertising works with YouTube is probably one of the most complicated things that comes with trying to make money off of YouTube. The real estimate comes out to about $7.50 per 1,000 impressions. The difficult part is actually defining the word ‘impressions.’ The only time you make money on YouTube is when someone interacts with your ad or when it leaves an ‘impression’ on them.
Used by countless popular YouTubers, Patreon is a site that allows viewers to donate monthly to their favorite YouTubers, and in turn, allows the YouTuber to (if so desired) give rewards back to the viewers. And, despite the site taking about 10% of the donations for themselves, most YouTubers make more money through Patreon than their own channel, according to Bustle.
Her answer was simple: “Bright lights, extraneous elements, and faster pacing.” In one of the videos I had her watch, a little boy dances flanked by two cows on a stage. A crowd waves its hands in the foreground. Lights flash and stars spin in the background. The boy and the cows perform “Head, Shoulders, Knees, and Toes,” and as they do, the dance floor lights up, à la Saturday Night Fever. Johnson told me all that movement risks distracting kids from any educational work the videos might do.
As it became clear that ChuChu videos were being watched by millions of people on six continents, Krishnan and Chandar started branching out into original songs and nursery rhymes, which Krishnan has been writing for the past couple of years. Their content runs the gamut, from an adaptation of “Here We Go Round the Mulberry Bush,” dedicated to tree planting as a way to fight global warming, to “Banana Song” (“Na na na banana / long and curved banana”).
Typically only offered to large YouTube channels with a wide audience (although not exclusively), another big way to earn cash through YouTube is to get sponsored deals with companies that will pay you to promote or mention their products in your videos. You can earn money this way either as a lump sum of cash the company will pay you for the deal, clicks on the company's link, or on a per-view basis.
7. Turn to crowdfunding: There are two primary types of crowdfunding: recurring and project-based. Recurring crowdfunding lets contributors pay an amount they specify on a regular schedule. You’d want to maximize this type of funding in order to turn a channel into a substantial income stream. Incentives such as one-on-one video chats, private classes or merchandise can entice viewers to sign up.
It was after Krishnan joined the creative team, Chandar told me, that ChuChu really began to achieve global popularity. What made the difference, in part, was that Krishnan decided to rewrite nursery rhymes that he felt didn’t end well or teach good morals. What if Jack and Jill, after falling down while fetching the pail of water, get back up, learn from the resilience of birds and ants, actually get the damn pail of water, and give it to their mom? “It was ‘Jack and Jill 2.0,’ ” Chandar said. “I thought, This is how a nursery rhyme should be.”
So, predictably, by the time it was 10 a.m., I had made and consumed two cups of coffee, taken out the trash, cleaned my room while taking a deliberately slow approach to folding my shirts, gone on a walk outside to clear my head, had a thing of yogurt and fruit to reward the physical exertion, sent an email to my aunt and sister, read about 100 Tweets (favorited three; written and deleted one), despaired at my lack of progress, comforted myself by eating a second breakfast, opened several tabs from ESPN.com on my browser ... and written absolutely nothing.
Merchandise has become an increasingly important revenue stream for these top digital stars, almost all of whom (No. 1 being a notable exception) are in their 20s and 30s. Each of the 10 on our list now has a line of merchandise, whose blossoming sales help account for that 42% income increase from a year ago. “I’ve built this huge community, and we’ve made a lot of people laugh,” says Fischbach, who sees Cloak as the first step toward an empire built on assets more tangible than video uploads. For now, though, all those gaming clips serve as a force multiplier for the man known as Markiplier. Like any savvy businessman, he’s thinking ahead. “I’m not going to be able to make videos on YouTube forever,” he says. “I need to plan for the future.”
But even if you discount YouTube's multiples a bit to account for its profit uncertainty, you're still left with a very valuable business. At six times Mizuho's revenue estimate, YouTube would be worth $90 billion. At seven times, it would be worth $105 billion. And those valuation figures would rise a little more if one tacked on a slight premium (say, $5 billion or $10 billion) for the potential of YouTube's subscription businesses.
For example if your YouTube Channel happens to provide valuable video content for a very specific audience. Say the channel teaches business owner how to organize their finances, track their expenses and save money on taxes. Any company who is trying to reach business owners would love to place their ads on that channel because you would both share the same demographic. The people who view that channel are their potential customers.
All that money is providing Google with more financial firepower to buy the rights to stream cable networks' shows on YouTube, too, which is likely to reel in even more viewers. It also is helping finance Alphabet's investments in projects such as self-driving cars and Internet-beaming balloons. That segment, known as Other Bets, lost $865 million during the July-September period, narrowing from a $980-million setback last year as Alphabet imposed more expense controls.
If your end goal is to actually make money from videos, there’s a far better option than simply relying on your measly allocation of ad revenue. Instead, create a YouTube channel and build an audience. The primary goal is to engage this audience and build a brand name. Then, once you've established a reputation, begin driving traffic to your own landing pages where you can up-sell viewers with premium video content.
Though the furor around PewDiePie’s repeated antics has subsided after each of these incidents, his courting of alt-right ideas has not. Though he has never openly identified himself as a member or supporter of the alt-right, he has continued to like and promote channels run by alt-right-affiliated users, and earlier this year, he made a video in which he reviewed the right-wing personality and alt-right hero Jordan Peterson’s controversial self-help book. In the review, PewDiePie endorsed the book, called it a “fun” read, and said he would take some of its advice.
This means that if someone skips an ad, or is running an ad blocker, then you don’t get paid for that view. This makes estimating the amount of views a video has and how much a user makes off of the video very challenging. It also depends if it’s a video ad at the front of your video, or just a box at the bottom of your page; this determines how many people interact with your ad and the amount of money that can be made.
However, YouTube channels on the smaller side can still be monetized. Your earning potential isn't determined solely by the number of subscribers and views you have, but also by the level of engagement you generate, the niche you cater to, and the revenue channels you explore. That's not to say subscriber count doesn't matter—check out our tips to get more subscribers on YouTube.
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