In order for a YouTuber to get paid for an ad, the viewer of their video must have Ad-Block turned off (meaning they will see all the ads on videos) and must watch at least 30 seconds of videos they could otherwise skip. Or, this will work if the viewer sees smaller ads like banner ads, according to YouTuber Mah-Dry-Bread. The money generated from the viewer watching these ads is split between YouTube and your channel.

New challengers also add urgency to her task. Facebook and Twitter Inc., which routinely send traffic to YouTube, are building their own video offerings. Facebook, and startups such as Vessel, are trying to poach YouTube stars. Meanwhile, Inc. and Netflix Inc. are changing the image of “online video” by licensing Hollywood-produced content and creating original programming.
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]
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.”
In a widely circulated essay last year, the artist James Bridle highlighted the many violent, odd, and nearly robotic children’s videos sitting in the vaults of YouTube. They didn’t seem made by human hands, he wrote, or at least not completely. Some were sadistic or sick. (After Bridle’s essay was published, YouTube undertook an effort to purge the site of “content that attempts to pass as family-friendly, but clearly is not,” and ultimately removed some of the disturbing videos the essay cited.) Others seemed like grab bags of keywords that had been successful for more professional operations: nursery rhymes, surprise eggs, finger family, learning colors. These were videos reverse engineered from whatever someone might enter into the YouTube search box. And though none of these videos has achieved the scale of ChuChu’s work, they definitely get seen, and are occasionally recommended to a child who has been happily watching something more virtuous.

Wait for approval. If you are rejected from the program, you must wait two months before applying again. If approved, you'll be allowed to choose the type of ads you want run on your videos. As of 2011, YouTube partners receive 68 percent of the profit their videos generate through advertising, so advertising your videos and nurturing your followers helps you turn a profit even faster.

The great thing about sponsorships is that you don’t have to give YouTube a cut. Plus, you can negotiate whatever contracts you want based on impressions and the size of your audience. In most cases, the amount of revenue you generate from sponsorships is substantially more than YouTube ad revenue. (Meanwhile, you can still generate ad revenue. So it’s like having two sources of income from the same video.)
“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.”
Suraj Verma had been watching videos on how to get away with murder. Then he tried to delete his browsing history from YouTube. That’s when the police managed to see through the facade of lies that he set up to defend himself. Circumstantial evidence also undid Suraj’s lies. For instance, the bathroom had been wiped clean — something robbers don’t do.
In March 2017, the government of the United Kingdom pulled its advertising campaigns from YouTube, after reports that its ads had appeared on videos containing extremism content. The government demanded assurances that its advertising would "be delivered in a safe and appropriate way". The Guardian newspaper, as well as other major British and U.S. brands, similarly suspended their advertising on YouTube in response to their advertising appearing near offensive content. Google stated that it had "begun an extensive review of our advertising policies and have made a public commitment to put in place changes that give brands more control over where their ads appear".[356][357] In early April 2017, the YouTube channel h3h3Productions presented evidence claiming that a Wall Street Journal article had fabricated screenshots showing major brand advertising on an offensive video containing Johnny Rebel music overlaid on a Chief Keef music video, citing that the video itself had not earned any ad revenue for the uploader. The video was retracted after it was found that the ads had actually been triggered by the use of copyrighted content in the video.[358][359]
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.
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. 
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.
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.
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, which webcasts video games and general interest content, sees accounts that are two years or older make $80 in "tips" per year on average.
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.
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.
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 May 2014, before Music Key service was launched, the independent music trade organization Worldwide Independent Network alleged that YouTube was using non-negotiable contracts with independent labels that were "undervalued" in comparison to other streaming services, and that YouTube would block all music content from labels who do not reach a deal to be included on the paid service. In a statement to the Financial Times in June 2014, Robert Kyncl confirmed that YouTube would block the content of labels who do not negotiate deals to be included in the paid service "to ensure that all content on the platform is governed by its new contractual terms." Stating that 90% of labels had reached deals, he went on to say that "while we wish that we had [a] 100% success rate, we understand that is not likely an achievable goal and therefore it is our responsibility to our users and the industry to launch the enhanced music experience."[215][216][217][218] The Financial Times later reported that YouTube had reached an aggregate deal with Merlin Network—a trade group representing over 20,000 independent labels, for their inclusion in the service. However, YouTube itself has not confirmed the deal.[209]
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.” 
Making a lot of money on YouTube is not as easy as you might think. There are a lot of hurdles to overcome in the process. It's definitely not a way to get rich quick. However, if you have a hobby, are really good at a particular activity and would like to help people, are funny, or even if you just want to have some fun, YouTube is a great option to cash in some extra bucks doing something you love.
The power of YouTube's ad-targeting abilities -- enabled by both its own user data and outside data it can get with Google's help -- have also helped its cause. So have its investments in building quality measurement tools that help companies gauge the impact of a video ad on things like awareness of a product and attitudes towards the brand that's selling it.

Nobody likes content interrupted, commercials are at least half of why I stopped watching TV shows on TV. Besides a majority of youtube videos are ~2-5 minutes long, a 30 second ad is too long as a % of total time. Internet ads for video tend to serve the same ad repeatedly which is a big mistake. Our privacy will be sacrificed for targeted ads here too I’m sure.
Chu Chu loved it. “She wanted me to repeat it again and again,” Chandar recalls. Which gave him an idea: “If she is going to like it, the kids around the world should like it.” He created a YouTube channel and uploaded the video. In a few weeks, it had 300,000 views. He made and uploaded another video, based on “Twinkle, Twinkle, Little Star,” and it took off. After posting just two videos, he had 5,000 subscribers to his channel. Someone from YouTube reached out and, as Chandar remembers it, said, “You guys are doing some magic with your content.” So Chandar and several of his friends formed a company in Chennai, in the South Indian state of Tamil Nadu, from the bones of an IT business they’d run. They hired a few animators and started putting out a video a month.
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]
All the estimates by research firms and analysts, says Kirjner, are "based more on belief and anecdotes than on truly representative data. What's more -- beyond anecdotes either shared by Google or collected through discussions with ad buyers, creators and multichannel network operators -- we know very little about what is available on YouTube, what people watch and how much it gets watched."
This year, Heather Hund and her family will gather in West Texas on December 25 and solidify a new Christmas tradition, in which each relative is randomly assigned to give a gift to another family member and to a house pet. “The rules are basically a regift for the human and then $10 for the pet,” Hund told me. “And my 18-month-old son got put in [the latter] category too, so it’s small humans and small animals.”
The world of YouTube is vastly different from the world of broadcast television. While broadcasters in the United States and abroad are bound by rules, and the threat of punishment for breaking those rules, far fewer such regulations apply to the creators of YouTube content, or to YouTube itself. YouTube’s default position is that no one under 13 is watching videos on its site—because that’s the minimum age allowed under its terms of service. In addition to its main site, however, the company has developed an app called YouTube Kids. Like normal YouTube, it plays videos, but the design and content are specifically made for parents and children. It’s very good. It draws on the expertise of well-established children’s-media companies. Parents can restrict their children’s viewing in a multitude of ways, such as allowing access only to content handpicked by PBS Kids. But here’s the problem: Just a small fraction of YouTube’s 1.9 billion monthly viewers use it. (YouTube Kids is not available in as many countries as normal YouTube is.)
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.
Videos with progressive scanning or interlaced scanning can be uploaded, but for the best video quality, YouTube suggests interlaced videos be deinterlaced before uploading. All the video formats on YouTube use progressive scanning.[84] YouTube's statistics shows that interlaced videos are still being uploaded to YouTube, and there is no sign of that actually dwindling. YouTube attributes this to uploading of made-for-TV content.[85]