YouTube ads provided a big percentage of the Segarses’ income during those early days, and worked well with their content. “Our workouts require strategically placed water breaks, which easily lends itself to monetization/ads that aren’t intrusive to the user experience,” says Segars. “People even joke about how relieved they are to see ads and get a quick minute to catch their breath.” Meanwhile, that revenue allowed them to adopt a no-sponsor policy. “It has cut out a lot of monetization opportunities, but our audience is well aware of our stance and appreciates it,” Segars continues. “We think that trust is an important part of building a brand.” As a result, they’ve roped in a loyal audience that’s now willing to pay for a variety of workout programs and meal plans for sale on the Fitness Blender website.

Morgan Stanley told clients Feb. 5 that more disclosure about YouTube, as well as the smaller businesses lumped together on its balance sheet as “Other Bets,” could help investors see more value in the sum of these parts. Alphabet, which now has a market capitalization of roughly $708 billion could actually be a $1 trillion company, the bank’s analysts said.


The good news is that income is rising, but efforts to generate a broad and loyal audience that turn to the service on a regular basis for original content appear to have hit a wall. The Journal points out how three years ago YouTube spent hundreds of millions of dollars on original content to build new channels, only to see many of them fail. Getting people to visit the site directly and regularly because there’s something specific they want to see, rather than dropping by occasionally via a link on another site or online service, appears to be a big challenge for the company.
The Legion of Extraordinary Dancers[271] and the YouTube Symphony Orchestra[272] selected their membership based on individual video performances.[254][272] Further, the cybercollaboration charity video "We Are the World 25 for Haiti (YouTube edition)" was formed by mixing performances of 57 globally distributed singers into a single musical work,[273] with The Tokyo Times noting the "We Pray for You" YouTube cyber-collaboration video as an example of a trend to use crowdsourcing for charitable purposes.[274] The anti-bullying It Gets Better Project expanded from a single YouTube video directed to discouraged or suicidal LGBT teens,[275] that within two months drew video responses from hundreds including U.S. President Barack Obama, Vice President Biden, White House staff, and several cabinet secretaries.[276] Similarly, in response to fifteen-year-old Amanda Todd's video "My story: Struggling, bullying, suicide, self-harm", legislative action was undertaken almost immediately after her suicide to study the prevalence of bullying and form a national anti-bullying strategy.[277] In May 2018, London Metropolitan Police claimed that the drill videos that talk about violence give rise to the gang-related violence. YouTube deleted 30 music videos after the complaint.[278]
The SEC late last year prodded the company to explain why it doesn’t share YouTube data, according to regulatory filings in February. Accounting rules require companies to disclose revenue for operating segments that account for 10% of a company’s total revenue, profit or combined assets. YouTube’s numbers are included in Alphabet’s advertising figure.
User entitlement -- A key to the plan of scaling up and eventually figuring out how to make money is free services for users. The minute you charge people, most walk off, particularly when they've been trained to assume that services should be free. YouTube has clearly told people that they should expect free video streaming, even if it has considered an ad-free paid subscription service. Getting consumers to change their behavior after they've become used to not paying is next to impossible.
In February 2015, YouTube released a secondary mobile app known as YouTube Kids. The app is designed to provide an experience optimized for children. It features a simplified user interface, curated selections of channels featuring age-appropriate content, and parental control features.[60] Later on August 26, 2015, YouTube launched YouTube Gaming—a video gaming-oriented vertical and app for videos and live streaming, intended to compete with the Amazon.com-owned Twitch.[61]
For kids to have the best chance of learning from a video, Johnson told me, it must unfold slowly, the way a book does when it is read to a child. “Calmer, slower-paced videos with less distracting features are more effective for younger children,” she said. “This also allows the video to focus attention on the relevant visuals for the song, thus aiding in comprehension.”

Apply to join the YouTube Partner Program when you feel confident in the interest and following your videos have garnered. There is no set following numbers needed to become a partner, but YouTube must see that your videos have interest and are growing a following before you're accepted. Sometimes YouTube will contact you directly about becoming a partner, especially if your videos have gone viral quickly. If not, you can apply on the YouTube partner page by entering personal information, describing a marketing plan, and defining your video genre.
In 2013, the average cost per thousand (CPM) for YouTube was $7.60. CPM (cost per thousand) is an industry term that represents revenue per thousand views. In 2013, the average income for each YouTube content creator was $7.60 per every thousand views. A video with 500 views would have earned roughly $3.80. A video like Gangnam Style with a billion views would earn $7.8 million. Some videos earn a higher or lower than average rate depending on the video content. Videos containing copyrighted music do not earn revenue for the video creator, and some topics may not attract advertisers. Others have a strong draw from advertisers and drive up the CPM.
It helps, too, that the same young viewers who eschew television in favor of YouTube are bonkers for video games. “Ten to 15 years ago, gaming wasn’t cool. You didn’t game because it was cool, you gamed because you loved it,” says David Huntzinger, a digital-talent agent at WME. “Now you have Drake going on Twitch and playing Fortnite, and [professional] athletes in the locker room saying they can’t stop playing Xbox—it’s what these kids are living and breathing.” 
On Thursday, the Senate voted unanimously to blame Crown Prince Mohammed bin Salman for the murder of the Saudi journalist Jamal Khashoggi, and 56 members—a clear majority—-cast votes to end U.S. support for the Saudi-led war effort in Yemen. The rebuke was followed shortly afterward by a revelation about the Defense Department’s refueling of that bombing campaign: According to the Pentagon, the department had somehow failed to bill the Saudis and the Emiratis for at least $331 million in fuel and servicing costs. The Saudis, it appears, never directly paid the U.S. a penny.
YouTube is one of the most popular websites on the planet, receiving billions of views a year and paying out millions to the content creators that it hosts. Money earned through YouTube is generated by advertisements. Content creators who host ads on their videos receive about half of the ad revenue those ads generate, while YouTube takes the rest. Anyone can monetize their videos, as long as their videos do not break copyright law.
Google does not provide detailed figures for YouTube's running costs, and YouTube's revenues in 2007 were noted as "not material" in a regulatory filing.[279] In June 2008, a Forbes magazine article projected the 2008 revenue at $200 million, noting progress in advertising sales.[280] In January 2012, it was estimated that visitors to YouTube spent an average of 15 minutes a day on the site, in contrast to the four or five hours a day spent by a typical US citizen watching television.[28] In 2012, YouTube's revenue from its ads program was estimated at $3.7 billion.[281] In 2013 it nearly doubled and estimated to hit $5.6 billion according to eMarketer,[281][282][283] while others estimated $4.7 billion.[281] The vast majority of videos on YouTube are free to view and supported by advertising.[56] In May 2013, YouTube introduced a trial scheme of 53 subscription channels with prices ranging from $0.99 to $6.99 a month.[284] The move was seen as an attempt to compete with other providers of online subscription services such as Netflix and Hulu.[56] In 2017, viewers on average watch YouTube on mobile devices for more than an hour every day.[285]

If you really love making video content, consider doing it as a side hustle – something to beef up your resume, find a creative outlet or boost your professional profile in the area about which you broadcast. When it comes to making it big on YouTube, "It's obviously becoming more challenging as there are more creators out there, and everyone is fighting for an audience," Vaught says. "But the barriers to entry are also lower."


An independent test in 2009 uploaded multiple versions of the same song to YouTube, and concluded that while the system was "surprisingly resilient" in finding copyright violations in the audio tracks of videos, it was not infallible.[339] The use of Content ID to remove material automatically has led to controversy in some cases, as the videos have not been checked by a human for fair use.[340] If a YouTube user disagrees with a decision by Content ID, it is possible to fill in a form disputing the decision.[341] Prior to 2016, videos weren't monetized until the dispute was resolved. Since April 2016, videos continue to be monetized while the dispute is in progress, and the money goes to whoever won the dispute.[342] Should the uploader want to monetize the video again, they may remove the disputed audio in the "Video Manager".[343] YouTube has cited the effectiveness of Content ID as one of the reasons why the site's rules were modified in December 2010 to allow some users to upload videos of unlimited length.[344]
Alternatively, you can also become an affiliate for brands and make residual passive income through commissions from every sale you generate through your channel. This works especially well if you review products as part of your YouTube channel. Since there's no risk involved on the brand's end (they only pay when they make sales), there's usually a low bar to getting started.
You're much more likely to build up revenue by getting an audience through regular content publishing, whether you're making vlogs, cat videos or just talking about custard creams.You might remember the tale of 17 year old Fred Pye - he hit the news a few years ago when he revealed he'd earned £24,000 a year by making walk-throughs for Grand Theft Auto.
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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.
Some investors and others have renewed calls for more transparency from YouTube in light of accounting rules and recent questions raised by the Securities and Exchange Commission about its disclosures. They say YouTube has become a material part of Alphabet’s business and an important driver of its growth, warranting quarterly disclosure of its revenue, costs and profitability. Some investors are also arguing that the lack of disclosure around YouTube could potentially be undervaluing Alphabet.
But even in relatively limited doses, these videos can affect young toddlers’ development. If kids watch a lot of fast-paced videos, they come to expect that that is how videos should work, which could make other educational videos less compelling and effective. “If kids get used to all the crazy, distracting, superfluous visual movement, then they may start requiring that to hold their attention,” Johnson says.
Morgan Stanley told clients Feb. 5 that more disclosure about YouTube, as well as the smaller businesses lumped together on its balance sheet as “Other Bets,” could help investors see more value in the sum of these parts. Alphabet, which now has a market capitalization of roughly $708 billion could actually be a $1 trillion company, the bank’s analysts said.
But sponsorships are where the big bucks are made, and where intermediaries like MediaKix and other agencies come in. This is the major leagues: Most brands aren’t interested in YouTube channels with fewer than 200,000 to 300,000 subscribers or average views of less than 10,000 to 20,000 per video, says Asano. The bar is also high because videos cost more to make, and require tricky negotiations —the sponsor will want to know where their product will be featured, for how long, and so forth. “When we’re connecting top brands with top influencers on YouTube, you’re talking a minimum budget of $50,000 to $100,000, and it just goes up from there,” Asano explains. “Some of the biggest YouTube influencers get paid $100,000 to 200,000 for a single video. And then those videos get millions of views. That’s why there’s a lot of money in the space.”
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.
Broadcasters snipe at the quality of YouTube's videos, aiming to hold on to TV advertising. Competing in subscription-based services vs. the likes of Netflix and Hulu would take big content investments. Not knowing YouTube's costs, margins or growth history will make it hard to gauge how it's meeting the challenges -- and the potential for a blow to its value to Alphabet, whose overall market capitalization approaches $500 billion. Alphabet stock closed Friday at 747.60, up 1.5%.

Make your videos with a specific type of person in mind.  This is basic advertising 101; identifying your target demographic.  Don’t tell me that your demographics are 21 – 55 year old women.  This is the shotgun approach that’s too general and vague.  Do you talk to a 21 year old girl the same way you’d talk to a 55 year old lady?  Of course not.  Define your audience and create videos that’s catered to them.
This YouTube Money Calculator provides a glimpse into what a user could make with YouTube by estimating a commonly accepted CPM range based off of the average amount of views you insert down below. We take it one step further to provide users with various settings, allowing them to customize the experience. Please remember that these figures are Youtube Estimated Earnings, as there are many mitigating factors which decide what your overall CPM will be.
But what about the cost of servers, bandwith etc? I think it might be in the range of  $750 million per year to as high as $1.5 Bn plus ( we will never know as Google never reveals cost of running youtube, and Google has invested heavily in this space ). I feel Youtube as a standalone business  MAY NOT be as profitable a biz as Search and might never be since barely 10% of its content is actually monetizable. But for Google, with $30 Billion revenues, Youtube losses( even if money lost is as high as say $500 million per year) is chump change considering the strategic advantage it gives visavis competition. (Microsoft online businesses lost way more last 10 years). Youtube subsidy by Google has created a monopoly which has effectively destroyed all independent video ad network business plans.
For other YouTube creators, ad dollars only go so far, and a significant portion of revenue comes from sponsorships and “affiliate marketing” (when brands offer a commission on any sales or traffic that the creator’s content drives). Affiliates function pretty seamlessly through YouTube; anyone can include links to featured products in their video’s caption, and when audience members click through and buy them, that YouTube channel gets a small kickback. Many YouTubers prefer Amazon’s affiliate program, “Amazon associates,” although there are plenty more to choose from.
Individuals and businesses make millions of dollars through YouTube advertising, but there are risks to using a platform controlled by another company. Not only is there a chance that a change in Google's search algorithms could make or break video traffic, but Google also takes a hefty 45 percent cut of revenue from video advertising. Nevertheless, YouTube is a massive platform and is the world's second largest search engine after Google, which includes YouTube videos in search results. If the benefits of reaching YouTube's large audience and having Google handle the most labor-intensive parts of building an advertising network outweigh the costs and risks, this platform is a great resource for turning videos into cash.

And I don’t just mean that the Republican Party is led by the boss of a kleptocratic family business who presides over a scandal-ridden administration, that many of his closest advisers are facing prison time, that Donald Trump himself might have to stay in office just to avoid prosecution, that he could be exposed by the special counsel and the incoming House majority as the most corrupt president in American history. Richard Nixon’s administration was also riddled with criminality—but in 1973, the Republican Party of Hugh Scott, the Senate minority leader, and John Rhodes, the House minority leader, was still a normal organization. It played by the rules.
It's the perfect option for videos managed by charities and nonprofits, but even for-profit businesses and independent creatives can publish videos and YouTube Live streams that encourage contributions from their audience. Streaming platforms such as Twitch.tv, which webcasts video games and general interest content, sees accounts that are two years or older make $80 in "tips" per year on average.
Conversely, YouTube has also allowed government to more easily engage with citizens, the White House's official YouTube channel being the seventh top news organization producer on YouTube in 2012[266] and in 2013 a healthcare exchange commissioned Obama impersonator Iman Crosson's YouTube music video spoof to encourage young Americans to enroll in the Affordable Care Act (Obamacare)-compliant health insurance.[267] In February 2014, U.S. President Obama held a meeting at the White House with leading YouTube content creators to not only promote awareness of Obamacare[268] but more generally to develop ways for government to better connect with the "YouTube Generation".[264] Whereas YouTube's inherent ability to allow presidents to directly connect with average citizens was noted, the YouTube content creators' new media savvy was perceived necessary to better cope with the website's distracting content and fickle audience.[264]
Infrastructure costs -- The concept of free user services and scaling to eventually make them pay depends on the negligible price of adding additional consumers. But video is demanding of bandwidth and storage. Even if those are cheap in general, once you're handling as much material as the service does, it means big expenses for infrastructure. Although those costs won't scale linearly with the increased number of users, they do grow.
Little kids are responsible for billions of views on YouTube—pretending otherwise is irresponsible. In a small study, a team of pediatricians at Einstein Medical Center, in Philadelphia, found that YouTube was popular among device-using children under the age of 2. Oh, and 97 percent of the kids in the study had used a mobile device. By age 4, 75 percent of the children in the study had their own tablet, smartphone, or iPod. And that was in 2015. The sea change in children’s content that ChuChu and other new video makers have effected is, above all, profitable.
Morgan Stanley told clients Feb. 5 that more disclosure about YouTube, as well as the smaller businesses lumped together on its balance sheet as “Other Bets,” could help investors see more value in the sum of these parts. Alphabet, which now has a market capitalization of roughly $708 billion could actually be a $1 trillion company, the bank’s analysts said.
At the end of the day, though, there are a lot of variables that can affect just how much you can make on YouTube. Your audience has a lot to do with the type of ad that would work best. For example, if you are making short funny videos, it’s probably best to not include a 30-second ad at the beginning—a viewer might just skip right on by. Luckily, YouTube has an analytics page that you can use to see just about every measurable aspect of your video—from demographics to time of day watched and location.

While not directly related to YouTube, you can use your YouTube platform to build up a following and reputation, and eventually direct your viewers to other paid platforms, like Yondo. This platform allows you to create your own kind of video store, where you can sell special videos (either on a subscription basis or pay-per-view). And, the best part? You can set your own price. 
One reason is that it caters to a narrow audience of young viewers. Music videos are its most popular content. YouTube’s stars remain relatively unknown. Felix “PewDiePie” Kjellberg is the biggest star, with 35 million subscribers to his wacky videogame montages. Even Ms. Wojcicki hadn’t heard of him before joining YouTube, she told a conference last fall.
The survey was interested in the particulars of respondents’ anger. In its 14 pages, it sought an almost voyeuristic level of detail. It asked the woman to describe the stages of her fury, which words she had shouted, whether punches had been thrown. “In becoming angry, did you wish to get back at, or gain revenge?” the survey inquired. Afterward, did you feel “triumphant, confident and dominant” or “ashamed, embarrassed and guilty”? There were also questions for people like her husband, who had been on the receiving end: “Did the other person’s anger come as a surprise to you, or did you expect that it would occur?”
To an adult, the appeal of ChuChu videos is not totally obvious. On the one hand, the songs are catchy, the colors are bright, and the characters are cute. On the other, the animation is two-dimensional and kind of choppy, a throwback to the era before Pixar. And there is a lot of movement; sometimes every pixel of the screen seems to be in motion. Krishnan and Chandar believe that any given shot needs to include many different things a child could notice: A bird flying in the background. Something wiggling. These things hold kids’ attention.

As more advertising dollars flow to YouTube, it's making the already hugely profitable Google even more prosperous. On Thursday, Google's corporate parent — Alphabet Inc., based in Mountain View, Calif. — said the company overall earned $5.1 billion, or $7.25 a share in the third quarter, up 27% from the same quarter last year. After subtracting advertising commissions, revenue climbed 21% to $18.3 billion. Both figures beat analyst projections.


Next up you’ll want to become a YouTube Partner. This isn’t as hard as it used to be. In the past, to become a YouTube partner you had to have some 15,000 hours of your video watched at any point in time. The benefit here is that you can upload more than 15 minutes of video, which may help on some video projects. You also get analytics tools and some more advanced editing tools.
Consider start-up costs. Your start-up costs largely depend on the type of content you're putting out. For "Pittsburgh Dad," the cost to launch the show was virtually nothing, Preksta says. The first episode required just three supplies: Preksta's iPhone, a polo shirt from Goodwill and a pair of glasses. The show hasn't required much of an investment in technology since, "At the end of the day, it's me, Curt and a couple of lights," Preksta says.
You can also sign up for Patreon, which allows you to launch membership-only video channels through YouTube at a small fee per month for regular rewards. Just imagine how much a YouTube channel could generate if it has the 1,000 subscribers required by the YPP. Charge $1 for a new channel with new content, and you could be looking at a solid monthly revenue stream.
Advertisers only pay when someone clicks an ad or watches for 30 seconds.  This is why you can’t tie your channel views to dollars.  If your video gets ten million views but nobody watches or click the ads, you don’t make any money.  This is how I’m able to make $1 per 25 views.  Advertisers pay big money to get their ad in front of specific and targeted audience.
YouTube's policies on "advertiser-friendly content" restrict what may be incorporated into videos being monetized; this includes strong violence, language, sexual content, and "controversial or sensitive subjects and events, including subjects related to war, political conflicts, natural disasters and tragedies, even if graphic imagery is not shown", unless the content is "usually newsworthy or comedic and the creator's intent is to inform or entertain".[352] In September 2016, after introducing an enhanced notification system to inform users of these violations, YouTube's policies were criticized by prominent users, including Phillip DeFranco and Vlogbrothers. DeFranco argued that not being able to earn advertising revenue on such videos was "censorship by a different name". A YouTube spokesperson stated that while the policy itself was not new, the service had "improved the notification and appeal process to ensure better communication to our creators".[353][354][355]

Scenario 2 You make a video teaching people about home loans that gets 10,000 views, of which your ad Click Through Rate (CTR) is 0.8%.  Meaning 80 people clicked the ad.  If the CPC is $17.63 the total advertising dollars the total advertising made would be $1,410.  Google keeps around 45% leaving your payout $776.  This gives you about $1 per 13 views.

“Even if advertisers are paying a decent amount to promote their products through video ads, only a portion of their expenditures ever make it into content creators’ pockets,” says entrepreneur Michael Johnston. “For example, if advertisers are paying an average of $20 per 1,000 ad impressions, the videos where those ads are being shown may only generate $2 or $3 per 1,000 views.”
How many views does it take to make money on YouTube?  This is a common question asked and it really depends on who you ask.  You may have heard that you’ll make one dollar per thousand views or that it’s $1,000 per Million Views.  Some say it’s $5 per thousand views.  Well, we’re asking the wrong question.  We should be asking, “How much ENGAGEMENT does it take to make money on YouTube?”
Of course, YouTube is funded by advertisers. So it makes sense to pay attention to their wants and desires. But under the current model, brands’ reactions are often a placeholder for third party regulation. And at the moment – as content creators are sketching the line for appropriate content – it is often advertisers who have the final say about acceptability.
In May 2013, creation of live streams was opened to verified users with at least 1,000 subscribers; in August of that year the number was reduced to 100 subscribers,[106] and in December the limit was removed.[107] In February 2017, live streaming was introduced to the official YouTube mobile app. Live streaming via mobile was initially restricted to users with at least 10,000 subscribers,[108] but as of mid-2017 it has been reduced to 100 subscribers.[109] Live streams can be up to 4K resolution at 60 fps, and also support 360° video.[110] In February 2017, a live streaming feature called Super Chat was introduced, which allows viewers to donate between $1 and $500 to have their comment highlighted.[111]
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