Learn more about how YouTube monetization works

Learn more about how YouTube monetization works

Is it still possible to make money on this platform?

If you use YouTube on a daily basis, you know that the platform has a huge content archive. People are increasingly more interested in using it to post free videos, and (why not?) make money out of it.

Do you know how to actually earn money on YouTube?

Some famous YouTubers make fortunes with the platform. On the other hand, many don’t get paid enough to cover their video production costs, even with a considerable audience. This occurs because the YouTube algorithm has certain requirements and having a specific number of subscribers doesn’t cut it.

Therefore, we have created an article explaining how the YouTube monetization works, the platform’s criteria, recent changes and tips to boost your channel. Shall we continue?

What is YouTube monetization?

What do PewDiePie, Brothers Jake and Logan Paul and little Ryan have in common?

They achieved fame and made a “LOT!” of money with their YouTube channels. Despite being a free video platform, both for publishing as well as for watching, YouTube pays creators of relevant content.

To do so, you obviously need to create an account on the platform. The second step is reaching a minimum number of followers and hours of video viewing.

Then, you only need to register for free in the YouTube Partner Program. On second thought, “only” isn’t exactly the right word, because monetization is becoming increasingly more complicated as you’ll see below.

How does monetization work?

Up to some time ago, you needed a few relatively simple requirements in order to make money with your videos through the Partner Program:

  • Produce original content with regular frequency;
  • Live in one of the countries included in the program list;
  • Follow the YouTube Community terms;
  • Have a Google AdSense account in order to run ads.

Afterwards, all you needed was to publish new videos frequently, be approved in the Partner Program and then all was set for you to start to make money on YouTube.

YouTube monetization depends on the number of ad clicks and for how long the ad is watched. Payment is in US dollars and follows a little rule called Cost per Thousand (CPM).

It’s simple: for every 1,000 views, YouTuber earns a certain amount not disclosed by the platform, but that has been estimated between U$ 0.60 and U$ 5.00.

It might not seem like much, but in the case of a YouTuber with a large channel and a monthly average number of views of 7 million, the monthly salary may be between USD 4,200 and USD 35,000. Not bad, right? Well, it so happens that a lot has changed. Keep reading!

Main recent changes

Many YouTubers built their “empires” by running Google ads on their videos. However, controversy has arisen over the last few years that lead YouTube to limit monetization possibilities. The major problem is that the ads were run automatically by the system.

So, not even content creators knew what would appear on their videos, nor did advertisers have control over where their products would appear.

The result was that the ads from serious companies appeared on videos considered offensive, which lead many brands such as Starbucks and PepsiCo to leave Google Ads.

One of the biggest controversies occurred in late 2017, when YouTuber, Logan Paul, posted a video showing the body of a suicide victim.

Certain advertisers revolted and asked YouTube to take action, because they didn’t want their brands linked to this type of content. The channel had its revenues suspended.

As a result, YouTube monetization received new, and stricter, criteria. On one hand, the changes are positive because they preserve advertiser credibility.

On the other hand, the future of YouTubers in many channels is at stake due to the lack of financial return.

What about the platform’s criteria?

Okay, all of this is quite interesting but let’s get to what really matters: Nowadays, how can you make money with YouTube?

Well, the platform’s criteria are not widely disclosed, since they originate from an algorithm that is still enigmatic. However, a few of the rules are as follows:

  • Reach 1,000 subscribers in order to register in the Partner Program;
  • Have at least 4 thousand viewing hours over the last 12 months;
  • Produce content that is in agreement with the platform’s guidelines.

Oh, it’s also worth remembering that user engagement also counts for the algorithm. This is why YouTubers usually end their videos with the famous, “Please like and share with your friends “.

Is there a step-by-step process to earn money on YouTube?

The good news is that you don’t need to unravel the mysteries of YouTube monetization in order to start making money.

The most important thing, of course, is producing quality content. Below, we give you a few tips on how to make your channel more visible and increase your chances of a good return.

1. Produce quality content

In order to be considered relevant, and consequently, have followers and views, you need to produce quality content.

So, think about subjects that you truly master so that you can organize good scripts and create valuable material for your audience.

In this sense, YouTube Analytics is a great ally. With it, you can understand which videos attract your followers’ attention the most, for example.

You can also know if people are watching the full content or only a specific part. This way, you can optimize the material to be more pleasing.

2. Use AdSense

Is your channel a hit? Great! So now it’s time to sign up for Google AdSense, Google’s ad platform.

Just create an account or use your own YouTube login. Accessing Ads regularly is essential to control the revenues generated by the channel and to request payments.

3. Do direct advertising

In addition to linking Google ads, you can use your channel’s space for direct advertising. However, be careful here, okay?

Filling up your video with advertising might irritate your audience and alienate it from the channel. Moreover, select your partners carefully when offering products related to your content.

4. Purchase pre-roll ads

Are you familiar with those somewhat unwanted ads at the beginning of videos? You will really want them! After all, they can increase the channel’s earnings. But be selective when purchasing them: find strategic products or services.

Thus, in addition to reducing the chances of your subscribers immediately skipping the ads, they will add value and you can present truly useful ads to your audience.

5. Become an Influencer

The advantage of working as an influencer is that you’ll obtain more engaged subscribers.

Remember that this is one of YouTube’s monetization criteria. You can make money teaching what you know the most, and also become a positive influencing figure for your audience.

After all, can you earn money on YouTube?

As you saw above, YouTube monetization can deliver good results for those who have quality content, whether it’s teaching virtual classes or even for a personal vlog.

Running ads with Google Ads is the most famous and also the most effective way of making money with the platform, but there are other ways.

Interesting, right?

Also, check out how you can make money with videos on the internet besides YouTube.

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