How Much Money Do YouTubers Make in 2020? (And How)
Making money on YouTube is getting very common as more and more people are getting aware of it's potential. Who doesn't love stardom when it comes with a lot of money?
However, people still have a lot of doubts regarding YouTube monetization and the most common of them is the earning potential of a YouTuber.
Most people seem to be confused about "How Much Do YouTubers Make?" or "How Much Does YouTube Pay Per View?" among many other questions. Therefore, I thought of writing this post that covers not only the above question but also all the frequently asked questions about YouTube monetization.
How Much Do Youtubers Make In 2020
To understand the earnings of a YouTuber, it is first important to understand How do YouTubers make money from YouTube Videos.
There are several ways a YouTuber can make money. Let us go through the financials involved with each one of them.
1. YouTuber's Earnings From YouTube Partner Program
YouTube Partner Program also known as YouTube Adsense is one of the most common ways people make money with YouTube Videos. Though there are various ways you can make money with YouTube, it's the only way you get your paychecks from Google or YouTube.
In this method, Google will display ads in your YouTube videos to generate revenue. Out of the total income earned through the advertisements, YouTube keeps a cut of 45% and pays you the remaining 55%, as your commission.
It is difficult to know the exact income a YouTuber earns from Adsense. This is because the income from advertisements depend on several factors and so the amount a YouTuber earn greatly varies.
Think of a company renting an advertising banner space at the Times Square and another company renting the same in a small town in India. There will be a huge difference in the price of the same in both cities. So the overall profits margins will vary too.
Similarly, the price of renting the advertising banner will also vary with size, whether it is billboard or flex banner and several other factors.
So, just like the profit you can earn by renting a conventional advertising space depends on several factors, the income from YouTube Advertising also depends on many factors.
Let us understand each of these factors in detail.
Factors Affecting YouTube Earning
The amount you earn with YouTube depends on the following factors.
1. Location of Your traffic
Usually, traffic from the USA and the UK gets higher Cost Per Click (CPC) as compared to that from Tier 2 countries like India, Brazil, South Africa, etc.
Hence, for same number of views, assuming same (Click Through Rate) CTR, YouTube will earn more for traffic from the USA and UK. Hence YouTube will pay you more money for the same.
2. Demographics of your traffic
The age, gender and other demographic factors of your traffic also influence your earnings. Although, there is no set rule for what demographics can earn you more income, but traffic that includes teenagers and lower income group people will usually earn less than traffic that includes working professionals.
3. Niche Of The Video
YouTube generally displays the ads to the viewers that are connected to the video they are watching. Hence, the niche of the video is another critical factor that decides the CPC.
Technology videos generally get better CPC than political and news videos.
4. Type Of Ads
Various types of ads are displayed on YouTube. The TrueView and Bumper ads get you money per view, while the pre-roll ads pay you per click.
Some ads are skippable by the users, and others are not. Skippable ads, if skipped are not charged to the advertiser, and hence you make nothing with it.
Similarly for CPC ads, unless the user clicks on the advertisement, you earn nothing.
5. Click Through Rate (CTR)
Your revenue can also depend on Click Through Rate (CTR) of ads on your videos in case of CPC ads. Better the CTR, better the pay rates.
6. Audience Retention
Google and YouTube love quality videos. So if your users watch the video till the end, they indicate that the video content was good and hence higher CPC ads would be shown in the video next time.
Also, longer the duration of the view, more the ads will be shown to the user resulting in higher revenues.
7. Popularity Of The Channel
A Popular YouTube channel with billions of view will get better CPC and CPI advertisments as compared to a new YouTube channel with a few views.
YouTube Ads Earning Estimations
You cannot plan your business without knowing anything about the financials involved. It would be foolish to invest time and money without forecasting the profits and investments. So the question is how much money do YouTubers make?
Well, there's no standard YouTube to money calculator. So, let us do some maths to find out rough estimates of How Much does YouTube pay you for 1 million views through the YouTube Partner program.
Several estimates reveal that on an average, a YouTuber can earn $3 to $10 per 1000 views with both CPC and CPI advertisements.
So here's the answer to the million dollar question, "How Much Money Do YouTubers Make Per Million Views?
For 1 million views, the total earnings through YouTube will be ($3 to $10)*1000 = $3000 to $10,000 per million views.
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2. YouTuber's Earnings From Affiliate Marketing
Affiliate marketing is another widely used method for monetizing YouTube Videos. The YouTubers who are into affiliate marketing, usually place an affiliate link to a product or service they are recommending and reviewing the description section of the Video.
They then ask the readers to click on the link if they wish to buy the product or service. Whenever someone buys a product using this link, they earn a commission for the same.
It is very difficult to judge your affiliate earnings as it depends on the below factors.
However, if we know the commission per sale for a product, we can roughly estimate the earnings from affiliate marketing.
The CTR for affiliate link is usually in the range of 0.5% to 2%. Let us take the average CTR of 1%. For 1 million views, the total people who click on your affiliate links will be 10,000.
Now, the conversion ratio for most affiliate products is in the range of 2% to 5%. Considering a conversion ratio of 3%, the total number of people who buy products or services using your affiliate links will be 300.
So, if you are making $10 per sale, your earning from affiliate commissionwill be $3000 for 1 million views.
3. YouTuber's Earnings From Sponsored Videos
YouTube is one of the most powerful mediums for marketing. That's the very reason YouTube AdSense program is so successful.
However, not many people are interested in viewing advertisements, and they end up skipping it or not paying attention to it at all. Therefore, brands take a better route by paying the YouTube channel to create a sponsored video.
Brands usually approach YouTubers to create a single video centered around their product launch or a store opening or similar events. Some brands also sponsor the YouTube channel, and in exchange the YouTuber will have to promote their products by recommending it to his readers or if the YouTuber is a public figure, using it for himself.
For example, a YouTube channel on cooking may focus the camera on a particular brand of spices or other culinary products as the channel owner uses the same.
YouTubers charge a fixed price which is estimated based on the number of views expected for the video. The usual price is $10 to $50 per 1000 views of the video. So if a video is expected to generate a million views, the price for the sponsored post will be between $10000 to $50000.
I know that does sound like a huge amount as compared to YouTube Partner Program or even affiliate marketing. However, brands usually work with only established YouTube channels.
So, unless your videos are getting a hundred thousand to a million views, you probably won't be able to get sponsored content. And even if you do manage, you will be getting them from smaller brands who might be very tight on budget and so will pay you much lower than the above price.
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FAQs On YouTuber's Earnings In 2020
Below is the summary of the above post and also other very common FAQ's people have about a YouTuber's earning that I came across on YouTube.
1. How Do YouTubers Make Money?
YouTube Channels make money by showing advertisements via YouTube Partner Program, by promoting products and services of brands (Affiliate Marketing) and Sponsored Videos from brands.
2. How Much Does A YouTuber Make In 2020?
The top YouTuber Ryan Kaji from Ryan ToysReview, who is a 7 year old boy, is said to be making $22 million from his YouTube Videos. While not everyone earns as much as Ryan, several other YouTubers are making enough to live a lavish life. But then there are others who can't even make a single dime.
3. What Are The YouTube Monetization Requirements?
To apply for YouTuber Partner Program you need to fullfill following requirements.
4. How Many Subscribers You Need To Start Making Money On YouTube?
You need 1000 Subscribers to apply for YouTuber Partner Program. There is no such condition for affiliate marketing or sponsored videos. However, in general brands only sponsor videos from channels that get millions of views for each video.
5. How Much Does YouTube Pay Per View In 2020?
In general, YouTube Pays around 0.3 cents to 1 cent per view. It may be more or less depending on several factors
6. How Much Money Do Youtubers Make Per View?
As discussed, YouTube pays 0.3 cent to 1 cent per view to a YouTuber. However, apart from YouTube Partner Program, a YouTuber can also make money from affiliate marketing and sponsored videos.
The income from Sponsored videos is usually 4-5 times of what YouTubers can make through YouTube Partner Program and turns out to be around 4 to 5 cents per view. As for Affiliate Marketing it varies too much and is very hard to predict unless we know the commission earned per sale.
Some YouTubers may be using a combination of these monetiation methods and so the income will be even more difficult to guess.
7. How Much Does Youtube Pay Per 1000 Views In 2020?
For 1000 views YouTube Pays around $3 to $10. It may be more or less depending on several factors
8. How Much Would Youtube Pay You For 1 Billion Views In 2020?
YouTube generally pays better to popular YouTube Channels that generate billions of views. So, if we are talking about a billion views, YouTube is likely to pay the YouTube Channel around 1 cent or even more per view. So for a billion views YouTube will pay around $10 million
9. What Is A YouTuber's Salary?
A YouTuber does not earn a salary. Rather, he earns a commission on advertisements from YouTuber. He can also make money from Affiliate Marketing and sponsored videos.
10. How Much Does YouTube Pay Per Subscriber?
YouTube does not pay you per subscriber. It pays you for the number views your video gets. However, the thumb rule says that more the subscribers, greater the number of views.
11. How Much Do YouTubers Make Per Video?
The amount a YouTuber makes per video will depend largely on how many views they are getting to the videos. In general, for every 1000 views, a YouTuber earns $3 to $10 from YouTube Partner Program. The earning from a sponsored post will be roughly $10 -$50 per 1000 views.
12. How Many Views Do You Need On YouTube To Get Paid?
YouTube will pay you only when your balance reaches $100. For earning $100 you may need 10,000 to 34,000 views. This may be more or less depending on several factors.
13. Do YouTubers Get Paid For Likes?
No, YouTubers don't get paid for likes.
14. Do YouTubers Have To Pay Tax?
Yes, YouTubers have to pay Income Tax. There is no other tax for YouTubers unless they register their channel as a company. If they do register as a company, the taxation and compliances will differ depending on the type of company as well as their country of registration.
15. Is It Hard To Make Money On Youtube?
Yes, YouTubing does require a lot of brain work to generate ideas for creating viral videos. Even for general videos like reviews and cooking videos, it does require efforts for shooting and editing the videos.
16. Who Is The Top Paid Youtuber 2018?
The top paid YouTuber of 2018 was a seven year old boy Ryan Kaji from Ryan ToysReview.
17. Who Is The Richest Child Youtuber?
The richest Child YouTuber is Ryan Kaji from Ryan ToysReview.
18. Who Are The Highest Paid YouTubers Of 2018?
Below is the list of top 10 highest paid YouTubers of 2018 along with their earnings.
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YouTube indeed is a great way of Making Money Online. However, due to lack of clarity regarding how much money Youtube pays per view to YouTubers, a lot of people are skeptical about switching to YouTubing.
In this article, I've tried my best to explain in the best possible way how much money YouTubers make. However, it might be possible that I have skipped some important questions that you have.
So, if there's anything else you would like to know about YouTubing, do let me know in the comments section and I will try my best to answer the same.