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.
YouTube has a set of community guidelines aimed to reduce abuse of the site's features. Generally prohibited material includes sexually explicit content, videos of animal abuse, shock videos, content uploaded without the copyright holder's consent, hate speech, spam, and predatory behavior.[312] Despite the guidelines, YouTube has faced criticism from news sources for content in violation of these guidelines.
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.
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.
The second involves YouTube’s annual year-end “Rewind” video. The 2018 video, released on December 6 and described by YouTube as “a who’s who of internet culture,” omitted a number of popular YouTubers, most notably PewDiePie. In response, PewDiePie’s followers started a campaign encouraging people to vote down the video, with the result that within a matter of days, YouTube’s 2018 Rewind video has rapidly overtaken an eight-year-old Justin Bieber single to become the most disliked video in YouTube history, surpassing Bieber as of early Thursday morning at 9.8 million dislikes and counting. By Thursday afternoon, the dislikes had topped 10 million.
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?”
Knowing who you are and, perhaps more importantly, who your audience is will make you attractive to advertisers, sponsors and partners outside the YouTube sphere, experts say. Make sure to also set yourself up as someone who is "brand safe," says Tyler Vaught, head of Niche, Twitter's service that connects creators worldwide with brands to develop branded content. That could mean not using profanities, avoiding charged political topics and dodging drug references and other controversial topics on your channel.
Also in November 2017, it was revealed in the media that many videos featuring children – often uploaded by the minors themselves, and showing innocent content – were attracting comments from pedophiles[376][377] and circulating on the dark web, with predators finding the videos by typing in certain keywords in Russian.[377] As a result of the controversy, which added to the concern about "Elsagate", several major advertisers whose ads had been running against such videos froze spending on YouTube.[378][369]
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]
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.
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.
A TiVo service update in July 2008 allowed the system to search and play YouTube videos.[141] In January 2009, YouTube launched "YouTube for TV", a version of the website tailored for set-top boxes and other TV-based media devices with web browsers, initially allowing its videos to be viewed on the PlayStation 3 and Wii video game consoles.[142][143] In June 2009, YouTube XL was introduced, which has a simplified interface designed for viewing on a standard television screen.[144] YouTube is also available as an app on Xbox Live.[145] On November 15, 2012, Google launched an official app for the Wii, allowing users to watch YouTube videos from the Wii channel.[146] An app is also available for Wii U and Nintendo 3DS, and videos can be viewed on the Wii U Internet Browser using HTML5.[147] Google made YouTube available on the Roku player on December 17, 2013,[148] and, in October 2014, the Sony PlayStation 4.[149] In November 2018, YouTube launched as a downloadable app for the Nintendo Switch.[150]

Libya blocked access on January 24, 2010, because of videos that featured demonstrations in the city of Benghazi by families of detainees who were killed in Abu Salim prison in 1996, and videos of family members of Libyan leader Muammar Gaddafi at parties. The blocking was criticized by Human Rights Watch.[425] In November 2011, after the Libyan Civil War, YouTube was once again allowed in Libya.[426]
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.
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The money you earn on YouTube is entirely dependant upon how many views your videos receive. If you have a large number of subscribers and all of your videos receive thousands of views, the ad revenue will be high. If your videos have a low number of views, those videos will not generate much in terms of revenue. “Gangnam Style,” for example, was a viral hit that received over two billion views and generated as much as $5.9 million in revenue. However, even popular users generally see views in the thousands rather than the billions, so earnings are considerably lower on average. As of 2013, it is estimated that one video with a million views can earn the creator between $800 and $8,000.
The ChuChu guys didn’t set out to make educational programming. They were just making videos for fun. How were they to know they’d become a global force in children’s entertainment? As time went on and the staff expanded, the company created a teaching series, called Learning English Is Fun, and worked with a preschool company to develop an app, ChuChu School, that has an explicitly didactic purpose. But generally speaking, Chandar and Krishnan just wanted their videos to be wholesome—to deliver entertainment that perhaps provided kids with a dose of moral instruction.
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.
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.
But there is something the company could do immediately to improve the situation. YouTube knows that I—and tens of millions of other people—have watched lots of videos made for toddlers, but it has never once recommended that I switch to YouTube Kids. Think of how hard Facebook works to push users from Instagram onto Facebook and vice versa. Why not try to get more families onto the YouTube Kids app? (Malik Ducard, YouTube’s global head of family and learning, said in a statement that YouTube has “worked hard to raise awareness of the YouTube Kids app through heavy promotion. These promos have helped drive our growth. Today, YouTube Kids has over 14 million weekly viewers and over 70 billion views.”)
If you’re having trouble getting views, try to be creative on where you share your videos. Targeting an audience with an interest in your type of content works better than trying to appeal to a general audience, so you may find better results from a Facebook (FB) group, sub-Reddit or forum about the specific topic. Also be sure to set up your individual channel settings so if one video becomes popular visitors can easily find related videos you’ve created.
How does a video streaming service with one billion active users per month and $4 billion in revenue not turn a profit? Ask YouTube, which couldn't break free from breaking even in 2014, according to a new report. Sources tell the Wall Street Journal that Google's video unit posted $4 billion in revenue last year, up from $3 billion in 2013, and that while the service accounted for 6 percent of Google's overall sales, it contributed nothing to earnings.
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YouTube has a set of community guidelines aimed to reduce abuse of the site's features. Generally prohibited material includes sexually explicit content, videos of animal abuse, shock videos, content uploaded without the copyright holder's consent, hate speech, spam, and predatory behavior.[312] Despite the guidelines, YouTube has faced criticism from news sources for content in violation of these guidelines.
The ChuChu guys didn’t set out to make educational programming. They were just making videos for fun. How were they to know they’d become a global force in children’s entertainment? As time went on and the staff expanded, the company created a teaching series, called Learning English Is Fun, and worked with a preschool company to develop an app, ChuChu School, that has an explicitly didactic purpose. But generally speaking, Chandar and Krishnan just wanted their videos to be wholesome—to deliver entertainment that perhaps provided kids with a dose of moral instruction.

Alternatively, you can partner with an existing merchandising network for creators such as DFTBA (Don’t Forget to Be Awesome). However, you'll be competing with other YouTubers in a marketplace and have less control over adding products, offering discounts, integrating your content, and all the advantages that come with owning your own ecommerce site.


But there is something the company could do immediately to improve the situation. YouTube knows that I—and tens of millions of other people—have watched lots of videos made for toddlers, but it has never once recommended that I switch to YouTube Kids. Think of how hard Facebook works to push users from Instagram onto Facebook and vice versa. Why not try to get more families onto the YouTube Kids app? (Malik Ducard, YouTube’s global head of family and learning, said in a statement that YouTube has “worked hard to raise awareness of the YouTube Kids app through heavy promotion. These promos have helped drive our growth. Today, YouTube Kids has over 14 million weekly viewers and over 70 billion views.”)
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.” 
All YouTube users can upload videos up to 15 minutes each in duration. Users who have a good track record of complying with the site's Community Guidelines may be offered the ability to upload videos up to 12 hours in length, as well as live streams, which requires verifying the account, normally through a mobile phone.[78][79] When YouTube was launched in 2005, it was possible to upload longer videos, but a ten-minute limit was introduced in March 2006 after YouTube found that the majority of videos exceeding this length were unauthorized uploads of television shows and films.[80] The 10-minute limit was increased to 15 minutes in July 2010.[81] In the past, it was possible to upload videos longer than 12 hours. Videos can be at most 128 GB in size.[78] Video captions are made using speech recognition technology when uploaded. Such captioning is usually not perfectly accurate, so YouTube provides several options for manually entering the captions for greater accuracy.[82]
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