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To others, it is a place to upload and share videos from concerts, a newsworthy event or even family events with friends online.

How many subscribers do you need to make money on YouTube?

A smaller group thinks of YouTube as a central part of their online income strategy. Earning with YouTube is easy, but making big money with the platform can be a challenge. Here is how YouTube ad revenue works and how to get started making money through the platform. The first two steps in earning online revenue with YouTube is to open an account and turn on account monetization.

In order to earn revenue on a video, you need to first post videos on your YouTube account.

Can You Still Make Money on YouTube?

Once your video is online, you need people to watch it. Promote your content on social networks, to family and friends, on blogs, Tumblr YHOO , and any other possible digital outlet. More views means more money in your pocket. CPM cost per thousand is an industry term that represents revenue per thousand views. 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. 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.

Make Money from YouTube

You can choose to be paid via direct deposit not available in all countries or check—direct deposit is the fastest method and has no fee. Either way, you are required to pay income tax on your earnings. 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.

More than a billion hours are spent each day watching YouTube videos, there are more than hours of content uploaded every minute. The platform is available in 76 different languages and is used not only by individuals but also by big brands, celebrities, and many other Youtube exclusive influencers to promote themselves and to earn money through Youtube. Well, we have all your answers here. The videos uploaded on the platform are free to watch. Apart from providing video sharing platform, Youtube also provides a specialized platform for games and music.

But how does YouTube make money? Intuitively, it might sound confusing how can such a platform earn revenue when its content is free to access?


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You can watch millions of free videos for as many hours you want even some movies are provided for free. The actual product that YouTube sells is its users. This is an advertisement based business model. The company pulls over 1. Google records their activities on Youtube and other websites and combines it with their profile to help advertisers in targeted advertisements on Youtube. However, Youtube also makes money through a subscription-based model as well — Youtube Premium.

Youtube Premium offers certain exclusive benefits to the subscribers by charging a nominal amount for the membership. Even though the company is steadily moving towards the subscription-based business model, it still remains a secondary revenue source.

How to Make Money on YouTube

Youtube Advertising revenue in the USA from Source: Statista. One of the ways Youtube make money is through sponsored advertisements. In the above picture, the result that is circled is a paid ad. It is a sponsored video and the advertiser pays YouTube based on the number of views it gets after such an ad has been clicked on. It is called SERP advertising. Another advertisement revenue stream of Youtube is an embedded advertisement. The above picture shows how an advertisement is embedded in a YouTube video. This advertisement is played before the actual video begins. Also, short ads are placed in between videos, that also generate income.

Here the company earns money from the advertisers based on the number of views the ad gets. A proportion of that fee is paid to the creator of the video. This landing page advertisement on Youtube is a banner style advertisement which can contain both pictures and videos and can be used by advertisers in numerous ways to shout out loud the story. Started off as sponsorships, channel memberships feature allows the Youtube partners publishers to engage more deeply with their fans and earn more from Youtube than just putting ads.

This is a subscription-based service and is expanding at a fast rate.

How does the YouTube Partner Programme work?

However, there are some premium channels which can be subscribed to after paying certain additional subscription amount. Youtube TV can be streamed on any device and comes with a complimentary Chromecast with every subscription. You must have noticed related products under some videos on Youtube. These products link to the affiliate partners which pays commission to Youtube if you buy their products. Did we miss something? Come on!


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Average rating 4. Vote count: Arieez, great article! It is a sponsored video and the advertiser pays YouTube based on the number of views, after clicks.

3 Ways to Make Money on YouTube ($1000+)

Hi Arieez, Great information. I found it trying to understand how youtube makes its money so that I could complete my project.